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Thu 12 Dec 2009Unprecedented state assistance helped avert global meltdown

ANALYSIS:THE ROLE of the state has been of paramount importance to the development of modern financial systems, writes CHARLIE FELL

Financial systems evolved during the early modern era in tandem with the emergence of nation states. This is hardly surprising, given that governments needed large-scale finance long before private economic entities. Those needs arose from the ambition of governments to solidify their power and wage war against competing states. The history of modern banking is intertwined with that of nation states and war.

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