The Benefits and Risks of Financial Globalization

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1 University Press Scholarship Online You are looking at 1-10 of 14 items for: keywords : international financial markets The Benefits and Risks of Financial Globalization Sergio L. Schmukler in Capital Market Liberalization and Development Published in print: 2008 Published Online: May 2008 ISBN: eisbn: acprof:oso/ This chapter discusses the benefits and risks that financial globalization entails for developing countries. Financial globalization can lead to large benefits, particularly the development of the financial system. But financial globalization can also create crises and contagion. The net effect of financial globalization is likely to be positive in the long run, with risks being more prevalent immediately after countries liberalize. So far only some countries, sectors, and firms have taken advantage of globalization. As financial systems turn global, individual governments no longer have policy instruments at their disposal. This means that there is an increasing need, and potential, for some form of international financial policy cooperation. International Finance: A Survey H. Kent Baker and Leigh A. Riddick (eds) Published in print: 2012 Published Online: May 2013 ISBN: eisbn: acprof:oso/ This book reflects the new diversity of interest in international finance that summarizes and synthesizes developments in the many and varied areas that are now viewed as having international content. The book attempts to differentiate between what is known, what is believed, and what is still being debated about international finance. The book consists of five major topics: (1) exchange rates and risk management, (2) international financial markets and institutions, (3) international investing, (4) international financial management, and (5) special topics. The chapters cover market integration, financial crises, and the links Page 1 of 6

2 between financial markets and development in some detail as they relate to these areas. Introduction Tariq Banuri and Juliet B. Schor (eds) in Financial Openness and National Autonomy: Opportunities and Constraints Published in print: 1992 Published Online: October 2011 ISBN: eisbn: acprof:oso/ The international financial markets experienced tremendous change during the 1980s as there was significant growth in the variety, volume, and the extent of international transactions across various aspects of the financial services industry. Along with the upsurge in the extent of cross-border activities, new means of understanding the world economy came about as the national or the Keynesian model was no longer widely accepted. This view was grounded on the need for governments to implement national level macroeconomic policies and the significance attributed to an international system of financial management that facilitated this. An anti-keynesian view referred to as global neoclassicism was thus adopted and this view draws attention to how regulation and macroeconomic policies were found to be futile. This chapter introduces financial liberalization as an alternative while also looking at some national Keynesian and global neoclassical models. China, India, Brazil, and South Africa: Capital Flows and Exchange Rates. What Lessons Have Been Learnt since the East Asian Crisis of ? Marion Pircher in Southern Engines of Global Growth Published in print: 2010 Published Online: May 2010 ISBN: eisbn: acprof:oso/ This chapter discusses the movement of capital flows to and from the exchange rate regimes and monetary policies of China, India, Brazil, and South Africa (CIBS). This chapter compares the level of financial stability and the composition and duration of capital flows of the countries on a policy level according to the third generation crisis models'; following which the East Asian Crisis of linkages between the corporate and financial sectors, and foreign short term debt are given further Page 2 of 6

3 attention. The chapter concludes by comparing all four countries and analysing possible risks in CIBS financial systems. Banking, Currency, and Finance in Europe Between the Wars Charles H. Feinstein (ed.) Published in print: 1995 Published Online: November 2003 ISBN: eisbn: This collection of 20 studies deals with various aspects of banking, exchange rates, domestic and international financial policy, capital flows, and foreign trade in Europe in the years from 1918 to The essays are arranged in three parts. In the first, the major themes are set in a broad international context, and the experience of a large number of European countries and of the USA is brought to bear on the issues considered. Part II is devoted to comparative analyses of specific exchange rate policies in the 1920s and 1930s. In each of the chapters, the experience of two broadly comparable countries is examined to throw further light on the causes and consequences of the decisions to change or to defend the prevailing parities. In Part III, the focus narrows again to examine the inter war economic history of the banking system in 12 individual countries from all parts of Europe. Casino Capitalism: with an introduction by Matthew Watson Susan Strange Published in print: 2015 Published Online: May 2016 ISBN: eisbn: Publisher: Manchester University Press DOI: / manchester/ Originally released by Basil Blackwell in 1986, and then re-released by Manchester University Press in 1998, Casino capitalism is a cuttingedge discussion of international financial markets, the way they behave and the power they wield. It examines money's power for good as well as its terrible disruptive, destructive power for evil. Money is seen as being far too important to leave to bankers and economists to do with as they think best. The raison d'être of Casino Capitalism is to expose the development of a financial system that has increasingly escaped the calming influences of democratic control. This new edition includes a powerful new introduction provided by Matthew Watson that puts the book it in its proper historical context, as well as identifying its relevance for the modern world. It will have a wide reaching audience, appealing both to academics and students of economics and globalization as well as the general reader with interests in capitalism and economic history. Page 3 of 6

4 Casino capitalism Susan Strange in Casino Capitalism: with an introduction by Matthew Watson Published in print: 2015 Published Online: May 2016 ISBN: eisbn: Publisher: Manchester University Press DOI: / manchester/ The Western financial system is rapidly coming to resemble nothing as much as a vast casino. Every day games are played in this casino that involve sums of money so large that they cannot be imagined. At night the games go on at the other side of the world. In the towering office blocks that dominate all the great cities of the world, rooms are full of chain-smoking young men all playing these games. Their eyes are fixed on computer screens flickering with changing prices. As in a casino, the world of high finance today offers the players a choice of games. Instead of roulette, blackjack, or poker, there is dealing to be done the foreign exchange market and all its variations; or in bonds, government securities or shares. In all these markets you may place bets on the future by dealing forward and by buying or selling options and all sorts of other recondite financial inventions. Some of the players banks especially play with very large stakes. These are also many quite small operators. There are tipsters, too, selling advice, and peddlers of systems to the gullible. And the croupiers in this global financial casino are the big bankers and brokers. They play, as it were, for the house. It is they, in the long run, who make the best living. Should We Fear Capital Flows? René M. Stulz in International Financial Markets: The Challenge of Globalization Published in print: 2003 Published Online: February 2013 ISBN: eisbn: Publisher: University of Chicago Press DOI: / chicago/ This chapter analyzes the advantages and disadvantages of capital flows for the international financial market. It explains the benefits of capital mobility which include reduction of the cost of capital, improvement in corporate governance and differentiation of a country's capital from its investments. This chapter considers the issue of whether the costs of sudden withdrawals of capital by foreign investors can offset the benefits of capital mobility. It also argues that the appropriate policies to eliminate the fragility of emerging economies are policies that Page 4 of 6

5 foster better financial structures, so that long-term contracting can be supported. Other People's Money: Debt Denomination and Financial Instability in Emerging Market Economies Barry Eichengreen and Ricardo Hausmann (eds) Published in print: 2005 Published Online: February 2013 ISBN: eisbn: Publisher: University of Chicago Press DOI: / chicago/ Recent crises in emerging markets have been heavily driven by balancesheet or net-worth effects. Episodes in countries as far-flung as Indonesia and Argentina have shown that exchange rate adjustments that would normally help to restore balance can be destabilizing, even catastrophic, for countries whose debts are denominated in foreign currencies. Many economists instinctually assume that developing countries allow their foreign debts to be denominated in dollars, yen, or euros because they simply don't know better. Presenting evidence that even emerging markets with strong policies and institutions experience this problem, this book recognizes that the situation must be attributed to more than ignorance. Instead, the chapters of this book suggest that the problem is linked to the operation of international financial markets, which prevent countries from borrowing in their own currencies. A comprehensive analysis of the sources of this problem and its consequences, this book takes the study one step further, proposing a solution that would involve having the World Bank and regional development banks themselves borrow and lend in emerging market currencies. So what? Benjamin J. Cohen and Susan Strange in Mad Money: with an introduction by Benjamin J. Cohen Published in print: 2015 Published Online: May 2016 ISBN: eisbn: Publisher: Manchester University Press DOI: / manchester/ What are we to make of the condition of financial markets? Who is to blame and what can be done about it? Finance is calling the tune, rather than governments. Governments have less and less control over their economies and societies than ever before. There are widening income gaps, dangerous mergers and acquisitions and a serious chance of moral contamination. Al this needs to be controlled urgently to avoid future financial and social crises. Page 5 of 6

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