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


  • Sorin BURNETE

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


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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    13. J. Bradford Delong, 1999. "Financial Crises in the 1890s and the 1990s: Must History Repeat," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 30(2), pages 253-294.
    14. Jagdish Bhagwati, 2005. "In Defense of Globalization," 'Angelo Costa' Lectures Serie, SIPI Spa, issue Lect. VI.
    15. Barry P. Bosworth & Susan M. Collins, 1999. "Capital Flows to Developing Economies: Implications for Saving and Investment," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 30(1), pages 143-180.
    16. Caprio, Gerard & Honohan, Patrick, 2001. "Finance for Growth: Policy Choices in a Volatile World," MPRA Paper 9929, University Library of Munich, Germany.
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    More about this item


    financial globalization; money mercantilism; currency crises; international reserves; speculative attacks; capital controls; regulation;

    JEL classification:

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


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