Just about every episode of financial deregulation has been accompanied by a period of crisis and turmoil. In Latin America, in the 1980s, the nub of the issue is captured in the title of the definitive analysis of the period: “Goodbye Financial Repression, Hello Financial Crash” (Diaz - Alejandro 1985).
Even the United States, less than a decade ago, experienced the Saving-and-Loans crisis, the direct result of lop-sided deregulation and market-distorting official guarantees. The United Kingdom and Japan had credit-induced asset booms and busts only a decade ago. Sweden experienced a meltdown of its financial sector in the early 1990s.