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In this important study, Patrick Honohan, former governor of the Central Bank of Ireland, calls on central banks to make preparation for crisis management a core activity.
With global enthusiasm for microfinance, policymakers and NGOs are unaware that mainstream financial sector development is as important for poverty reduction.The author finds that the scale of microfinance is small, contrasts between micro and mainstream finance are exaggerated, and evidence for the pro-poor effectiveness of microfinance is weak.
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