tell your views that Financial Globalization has brought speculation and ruin ?
MANOJ KUMAR
Financial Globalization has brought speculation and ruin?
13-06-2011 14:51
15-06-2011 20:00
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I don't think you presented a specific point to be discussed. Could you be more clear in which aspects you're asking for our opinion?
I don't think you presented a specific point to be discussed. Could you be more clear in which aspects you're asking for our opinion?
16-06-2011 05:12
Financial Globalization has brought speculation becouse it is help full to all country for cash inflow and outflow
In recent years financial liberalization, although not necessarily able to deliver a higher growth
rate or for that matter to bring efficiency in the financial sector (Arestis and Demetriades, 1997),
has brought a new twist in the process by introducing a highly politicized term, that of financial
globalization. The term financial globalization refers to the process by which financial markets of
various countries of the globe are integrated as one.
We wish to argue that although financial liberalization is a necessary condition for
financial globalization, it is not a sufficient condition for it. The introduction of a worldwide
single currency managed by a single international monetary authority is the sufficient condition.
The first age of unregulated financial globalization that spans over the period from the 1870s to
1913, (when London arguably acted as the center of financial activity), was marred by a series of
banking crises, a period which can also be categorized as the early stage of the development of
international financial institutions and markets (Eichengreen and Bordo, 2002). The crises
principally arose from speculation, excessive lending, poorly managed funds, ill-regulated
banking systems and non-disclosure of information. The history of international financial sector
development in the inter-war period, 1919 to 1939, was not a particularly happy one either; in
fact it was deeply scarred by the stock market collapse in the late 1920s, followed by the Great
Depression. The post World-War II period was characterized by a number of financial controls
and fixed exchange rates. Banking crises were absent during the period from 1945 to the early
1970s, although currency crises were in evidence. From then onwards the process of financial
liberalization began, and banking crises re-emerged in a new era of broadly flexible exchange
rates, which brought about an era of free movement of capital. In this paper we seek to define the
current epoch of financial globalization, and examine more closely the conditions that are
required for its emergence.
In recent years financial liberalization, although not necessarily able to deliver a higher growth
rate or for that matter to bring efficiency in the financial sector (Arestis and Demetriades, 1997),
has brought a new twist in the process by introducing a highly politicized term, that of financial
globalization. The term financial globalization refers to the process by which financial markets of
various countries of the globe are integrated as one.
We wish to argue that although financial liberalization is a necessary condition for
financial globalization, it is not a sufficient condition for it. The introduction of a worldwide
single currency managed by a single international monetary authority is the sufficient condition.
The first age of unregulated financial globalization that spans over the period from the 1870s to
1913, (when London arguably acted as the center of financial activity), was marred by a series of
banking crises, a period which can also be categorized as the early stage of the development of
international financial institutions and markets (Eichengreen and Bordo, 2002). The crises
principally arose from speculation, excessive lending, poorly managed funds, ill-regulated
banking systems and non-disclosure of information. The history of international financial sector
development in the inter-war period, 1919 to 1939, was not a particularly happy one either; in
fact it was deeply scarred by the stock market collapse in the late 1920s, followed by the Great
Depression. The post World-War II period was characterized by a number of financial controls
and fixed exchange rates. Banking crises were absent during the period from 1945 to the early
1970s, although currency crises were in evidence. From then onwards the process of financial
liberalization began, and banking crises re-emerged in a new era of broadly flexible exchange
rates, which brought about an era of free movement of capital. In this paper we seek to define the
current epoch of financial globalization, and examine more closely the conditions that are
required for its emergence.
MANOJ KUMAR
Total Posts: 3