IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this book chapter or follow this series

Postscript to Financial Globalization and Economic Policies

  • Kose, M. Ayhan
  • Prasad, Eswar
  • Rogoff, Kenneth
  • Wei, Shang-Jin

The global financial crisis serves as a reminder of the risks of financial globalization. After grappling with surges of capital inflows earlier in this decade, many emerging market and developing economies experienced a sharp reversal of those inflows in late 2008 as a result of the crisis. Moreover, international financial linkages clearly served as a channel transmitting the financial turmoil from advanced countries to the shores of emerging markets. These developments will re-ignite the fierce debate about the merits of financial globalization and its effects on growth and stability, especially for emerging market and developing countries. As the crisis is still unfolding, it is premature to undertake a detailed analysis of its implications for the debate on financial globalization. Nevertheless, there are two preliminary observations that are pertinent. First, the differential effects of the crisis across countries confirm that it is not just financial openness, but a country's structural features and its precrisis policy choices that have determined the crisis' overall impact on a country. Second, the crisis has not led to a resurgence of capital controls in emerging market economies. Recent research further emphasizes the important role of the composition of capital inflows in determining the extent of pain caused by the crisis on nonfinancial firms

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sciencedirect.com/science/article/pii/B9780444529442000227
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

as
in new window

This chapter was published in:
  • Dani Rodrik & Mark Rosenzweig (ed.), 2010. "Handbook of Development Economics," Handbook of Development Economics, Elsevier, edition 1, volume 5, number 6, January.
  • This item is provided by Elsevier in its series Handbook of Development Economics with number v:5:y:2010:i:c:p:4360-4362.
    Handle: RePEc:eee:devchp:v:5:y:2010:i:c:p:4360-4362
    Contact details of provider: Web page: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:devchp:v:5:y:2010:i:c:p:4360-4362. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.