Financial globalization and economic policies

Arbeitspapier

We review the large literature on various economic policies that could help developing economies effectively manage the process of financial globalization. Our central findings indicate that policies promoting financial sector development, institutional quality and trade openness appear to help developing countries derive the benefits of globalization. Similarly, sound macroeconomic policies are an important prerequisite for ensuring that financial integration is beneficial. However, our analysis also suggests that the relationship between financial integration and economic policies is a complex one and that there are unavoidable tensions inherent in evaluating the risks and benefits associated with financial globalization. In light of these tensions, structural and macroeconomic policies often need to be tailored to take into account country specific circumstances to improve the risk-benefit tradeoffs of financial integration. Ultimately, it is essential to see financial integration not just as an isolated policy goal but as part of a broader package of reforms and supportive macroeconomic policies.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 4037

Classification and Topics

• Classification: Wirtschaft ; International Economic Order and Integration ; International Investment; Long-term Capital Movements ; Financial Aspects of Economic Integration
• Subject: Financial globalization ; emerging markets ; capital flows ; capital account liberalization ; Internationaler Finanzmarkt ; Globalisierung ; Kapitalmarktliberalisierung ; Außenhandelsliberalisierung ; Wirtschaftsreform ; Aufstrebende Märkte ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kose, M. Ayhan ; Prasad, Eswar ; Rogoff, Kenneth ; Wei, Shang-jin
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/35433
• URN: urn:nbn:de:101:1-20090306304
• Last update: 10.03.2025, 11:44 AM CET