Features of d eveloping countries
The monetary and financial challenges facing developingcountries are often unlike those in advanced economies.Some of the related characteristics reveal themselves followingtransitory shocks to the economy, but others are structural or persistent in nature.
1. F inancial underdevelopment
, and particularly weak financial institutions and a lack of adequate prudentialsupervision, prevail in developing countries.
in these economies financial crises are usually more protracted and difficult to resolve.In developing countries incomplete information is an importantfeature, often leading to financing shortages for otherwise potentially fruitful ventures.