The Evidence and Impact of Financial Globalization

Chapter 1

Financial Globalization and CrisesOverview

T. Beck*, S. Claessens^† and S.L. Schmukler^‡

^*CentER and European Banking Center, Tilburg University, The Netherlands and CEPR, London, UK

^†International Monetary Fund, Washington DC, USA, University of Amsterdam, Amsterdam, The Netherlands, and CEPR, London, UK

^‡The World Bank, Washington DC, USA

Outline

Introduction

Evidence on Financial Globalization

Forces Behind Globalization

Effects of Financial Globalization

Monetary and Exchange Rate Policy under Financial Globalization

Crises

Final Words

Acknowledgment

References

Introduction

Financial globalization, the integration of countries with the global financial system, has increased substantially since the 1970s and particularly with more ...