2  Frederic S. Mishkin (2006), The Next Great Globalization: How Disadvantaged Nations Can Harness Their Financial Systems to Get Rich, Princeton: Princeton University Press. BIS Review 25/2008  1  the flow of information. Unfortunately, however, financial liberalization and innovation, often have flaws and do not solve information problems as well as markets may have hoped they would.
When these flaws become evident, financial markets sometimes seize up, often with very negative consequences for the economy. I would argue that we have been experiencing exactly such a cycle in recent years. Advances in information and communications technology have allowed for faster and more disaggregated mortgage underwriting decisions.