Regulators in Western financial hubs have been liberalising markets for decades, while those in emerging markets continue to keep a tight leash on the system. Many point to emerging markets' tougher regulation as key to weathering the financial crisis. However, while the meltdown justified a tougher stance, the position is keeping markets from some helpful innovation. Securitisation, for example, could hep India channel money needed to invest in infrastructure, according to this analysis from The Economist.
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