Journal of Economic Literature
Book Reviews
2026-08-28
Anusha Chari of University of Michigan reviews “Boom-Bust Cycles and Financial Liberalization” by Aaron Tornell, Frank Westermann,. The EconLit Abstract of the reviewed work begins “Examines the underlying distortions that affect financial markets in middle-income countries (MICs), how their interaction makes fluctuations in MICs so large in magnitude relative to high-income countries, and why the forces that lead to greater growth also generate financial fragility. Presents a road map that connects the main points of the book. Examines the empirical link between liberalization, growth, and crises. Characterizes economic fluctuations in MICs. Presents evidence on the credit market imperfections prevalent in MICs. Presents policy implications. Tornell is Professor of Economics at the University of California, Los Angeles. Westermann is Professor of Economics at the University of Munich. Index.”