Financial globalisation – and de-globalisation – is a topic at the heart of the financial reform policies being discussed in reaction to the global crisis and more recently the Eurozone crisis. Academic attention, however, goes back much further, sparked by heightened financial globalisation and transmission of shocks and crises (see Obstfeld and Taylor 2004, and Kose et al.
Different facets of financial globalisation
Francisco Ceballos, Tatiana Didier, Sergio Schmukler, 28 August 2012
Come together: Financial recoupling in emerging markets and the “benchmark effect”
Eduardo Levy Yeyati, Tomás Williams, 8 May 2012
In the 2000s, thanks to a steady debt deleveraging and de-dollarisation process, and to a lower dependence on external finance, emerging economies reduced their business cycle co-movement with advanced G7 economies (The Economist 2008).
Does openness generate growth? Reconciling the experiences of Mexico and China
Timothy Kehoe, Kim Ruhl, 19 November 2011
Does opening to international trade and foreign investment generate economic growth? A large empirical literature employs regressions with a country’s growth rate as the dependent variable and some measure of openness among the independent variables.
An accounting perspective on financial globalisation
Nicolas Véron, 28 July 2011
Sometimes it takes a narrow lens to distinguish the true features of big objects. The future of financial globalisation, whatever your perspective on its dangers or merits, is one of the biggest questions of our times. By contrast, accounting is often perceived as a boring pursuit.
Financial globalisation has improved international risk sharing
Robert Flood, Akito Matsumoto, Nancy P. Marion, 12 January 2010
Sharing risk is basic to market economies. Many institutions, such as insurance companies and equity and derivatives markets, are designed to spread risk. Indications are that markets are pretty good at spreading risk within countries.
Did financial globalisation make the US crisis worse?
Enrique G. Mendoza, Vincenzo Quadrini, 14 November 2009
The global financial crisis that started with the meltdown of the US subprime mortgage market in 2007 was preceded by a protracted period of growth in debt and leverage ratios in an environment of increasing world financial integration, low real interest rates, and growing US external deficits.
Financial globalisation and securitisation in mortgage markets
Mathias Hoffmann, Thomas Nitschka, 20 June 2009
The securitisation of mortgage-related debt has played a major role in the emergence and proliferation of the current financial crisis (Brunnermeier 2009). Understandably, this has led to widespread about the usefulness of such instruments for allocating macroeconomic risk.
Financial globalisation and productivity growth
M Ayhan Kose, Eswar Prasad, Marco E Terrones, 5 January 2009
Theoretical models posit a number of channels through which openness to international financial flows ought to increase economic growth. However, there is little robust empirical evidence of a causal link between these two variables (see Obstfeld, 2008).
Disappointing diversification – why reducing risks through cross-border investment has not lived up to expectations
Dennis P. Quinn, Hans-Joachim Voth, 5 November 2008
“Don’t put all your eggs in one basket” is probably amongst the oldest pieces of advice for investors. Many investors try to reduce risk by diversifying across industries, asset classes, or borders. The success of this strategy depends on the co-movement between different asset prices – higher comovements limit the possible gains from diversification.
How do capital gains affect long run-current accounts?
Cédric Tille, 11 October 2008
The debate on the sustainability, or lack thereof, of global imbalances has kept policymakers and international economists busy for several years.
- Fiscal consolidation: At what speed?Blanchard, Leigh
- Public debt and economic growth, one more timePanizza, Presbitero
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
- Rethinking macroeconomic policyBlanchard
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Reichlin, Baldwin, 14 April 2013
Reichlin, Turner, Woodford
CEPR Policy Research
- The "Greatest" Carry Trade Ever? Understanding Eurozone Bank RisksAcharya, Steffen
- Political Credit Cycles: The Case of the Euro ZoneFernández-Villaverde, Garicano, Santos
- Winning by Losing: Incentive Incompatibility in Multiple QualifiersDagaev, Sonin
- Income and schoolingBrückner, Gradstein
- Monetary Policy and Rational Asset Price BubblesGalí