Emerging Lessons from the U.S. Financial Crisis

As other emerging markets watch the U.S. financial crisis with caution, they might be even more wary to adopt the free-market principles that guided the development of the U.S. financial markets. Eswar Prasad argues that this is the wrong lesson to take from the crisis, however, and urges emerging markets to instead learn from the U.S. lessons on fraud, corruption, and government interference and regulation.