Raghu Rajan's incredibly prescient presentation at Jackson Hole in 2005

Has Financial Development Made the
World Riskier?

In the last 30 years, financial systems around the world have under-gone revolutionary change. People can borrow greater amounts at cheaper rates than ever before, invest in a multitude of instruments catering to every possible profile of risk and return, and share risks with strangers from across the globe. Have these undoubted benefits come at a cost? How concerned should central bankers and financial system supervisors be, and what can they do about it? These are the issues examined in this paper.