Over the past 40 years, there have been more than 120 banking crises around the world. Different governments have responded in different ways. The gross and net costs as a percentage of GDP range wildly, anywhere from less than 1 percent to well beyond 30 percent.
Their share of the foreign investment pie grew from 0.4 percent in 1970 to 15.8 percent in 2008. What’s behind the growth?