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Emerging Economies Faced With The Downside Of Financial Globalization: Hedges And Way Outs

Author

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  • Sorin BURNETE

    (Department of Economics, “Lucian Blaga“ University of Sibiu, Romania.)

Abstract

The underlining assumption of this paper is that developing countries are in a fragile state nowadays. Economically, they have been seriously harmed by the 2008 crisis1 but this is not the end of the story: the future still has pitfalls in which these economies might get trapped, due to their enhanced vulnerability to exogenous shocks generated by financial globalization. Ideologically, the recent events have triggered a serious backlash against capitalism, particularly the Anglo-Saxon template. Getting an insight into the causes and implications of global economic crises is therefore critical for policy-makers in emerging economies. History might be a good adviser in this respect. Lessons from the past are even more important for ex-communist nations, whose confidence in capitalism’s potential is still shaky. Some of the possible hedges against and/or way outs from such scourging events are discussed in the paper.

Suggested Citation

  • Sorin BURNETE, 2009. "Emerging Economies Faced With The Downside Of Financial Globalization: Hedges And Way Outs," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 3, pages 41-55, May.
    • Handle: RePEc:aic:revebs:y:2009:i:3:burnetes
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    References listed on IDEAS

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    More about this item

    Keywords

    financial globalization; money mercantilism; currency crises; international reserves; speculative attacks; capital controls; regulation;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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