Volume 19, Issue 2, February 2017, Pages 349–355
Sofiane Mostéfaoui1 and Ali Yousfat2
1 Department of Economy, University of Adrar, Algeria
2 Department of Economy, University of Adrar, Algeria
Original language: English
Copyright © 2017 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
The financial system in any economy occupies an outstanding position in channeling the necessary funds to boost the economic growth. In this context, a critical debate had been launched in an attempt to reveal the mechanism of developing the financial system and increasing its performance vis-à-vis the other economic cycles' departments. Financial liberalization comes as a strategy to improve the funds pooling and channeling process and come up with the demands of the other economic agents (investors and consumers). The antagonists of the financial liberalization argue that this tactic whether takes the sequencing or big bang approach may lead to hard distortion within the system because it requires the lift up of the government hand on the financial system and let the latter working according to the market law. These laws may deprive a large portion of the society to benefit from the gains of the financial system. This paper tries to explain the interrelations between the financial system and the requirements of the financial liberalization paradigm, and how the latter impact the efficiency of the former.
Author Keywords: financial system, financial liberalization, efficiency.
Sofiane Mostéfaoui1 and Ali Yousfat2
1 Department of Economy, University of Adrar, Algeria
2 Department of Economy, University of Adrar, Algeria
Original language: English
Copyright © 2017 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
The financial system in any economy occupies an outstanding position in channeling the necessary funds to boost the economic growth. In this context, a critical debate had been launched in an attempt to reveal the mechanism of developing the financial system and increasing its performance vis-à-vis the other economic cycles' departments. Financial liberalization comes as a strategy to improve the funds pooling and channeling process and come up with the demands of the other economic agents (investors and consumers). The antagonists of the financial liberalization argue that this tactic whether takes the sequencing or big bang approach may lead to hard distortion within the system because it requires the lift up of the government hand on the financial system and let the latter working according to the market law. These laws may deprive a large portion of the society to benefit from the gains of the financial system. This paper tries to explain the interrelations between the financial system and the requirements of the financial liberalization paradigm, and how the latter impact the efficiency of the former.
Author Keywords: financial system, financial liberalization, efficiency.
How to Cite this Article
Sofiane Mostéfaoui and Ali Yousfat, “The financial liberalization and the financial system: Is it a good or a bad symbiosis?,” International Journal of Innovation and Applied Studies, vol. 19, no. 2, pp. 349–355, February 2017.
