Financial Innovations and Development

THE main issue addressed in the book under review relates to linkages between innovations, economic and financial developments. The financial systems in the advanced countries have witnessed several financial innovations. These financial innovations have been greatly responsible for widening and deepening of the markets, sophistication of the instruments and soundness of the institutions. They have also contributed partly to the process of globalisation and integration of financial markets. However, the question of a close and direct relationship between financial innovations and development, as a quick survey of the academic literature suggests, finds little space in the literature.