Now we are confronted with another period of weak international demand, and this time the United States – the former powerhouse of the world economy – is the principal source of the weakness. This time we confront a problem that is global rather than specific to our region.
If we take a long sweep of history, there is no doubt that innovation has contributed to enhancing the quantum, quality and reach of financial intermediation. In recent years though, financial innovation has become a contentious issue. Unbridled financial innovation and the failure of regulators to check that are also being cited as among the culprits for the global financial crisis. 3.