Generally speaking, liberalization of financial markets when combined with a weak, underdeveloped domestic financial system tends to

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When financial markets are liberalized in a country with a weak and underdeveloped domestic financial system, it can create an environment that is vulnerable to currency and financial crises. This vulnerability arises due to the sudden inflow and outflow of foreign capital, which can result in fluctuations in exchange rates and asset prices, and a buildup of debt. Such scenarios can lead to financial panics, banking crises, and even economic recession.

Generally Speaking, Liberalization of Financial Markets When Combined with a Weak