... IMF Occassional Paper, No.22, 19 83 McKinnon, R The Order of Economic Liberalization: Financial Control in the Transition to a Market Economy, 2nd edition, The Johns Hopkins Studies in Economic Development, ... before moving on to the discussion of the reasons as to why financial liberalization might have led to banking crises.6 It is known that the early record of financial liberalization, taken as ... trade liberalization requires depreciation, while sudden capital inflows that tend to go along with liberalization cause appreciation pressures The latter may derail the trade liberalization process...