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Financial Globalization and Instability in the Early 21st Century

Author

Listed:
  • Mertens, Johan

Abstract

This article provides the figures of the volatility of economic growth in poor and rich countries and analyzes it. The conclusion is that while volatility has declined almost everywhere in advanced countries, the picture is much more mixed in developing countries. This article then examines the case of India, where GDP volatility has been declining for the last twenty years. The figures show that by moving away from an agricultural economy, the Indian economy has stabilized. Increased financial depth and the favorable evolution of the terms of trade had a similar effect. Finally, this article examines the relationship between economic instability and insecurity at the global level.

Suggested Citation

  • Mertens, Johan, 2018. "Financial Globalization and Instability in the Early 21st Century," MPRA Paper 93844, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:93844
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    File URL: https://mpra.ub.uni-muenchen.de/93844/1/MPRA_paper_93844.pdf
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    References listed on IDEAS

    as
    1. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," The World Bank Economic Review, World Bank, vol. 11(2), pages 357-382, May.
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    3. Kirrane, Christopher, 2017. "Looking Back to the Asian Crisis," MPRA Paper 89104, University Library of Munich, Germany.
    4. Arvind Virmani, 2004. "India's economic growth: From socialist rate of growth to Bharatiya rate of growth," Indian Council for Research on International Economic Relations, New Delhi Working Papers 122, Indian Council for Research on International Economic Relations, New Delhi, India.
    5. William Martin & Robert Rowthorn, 2004. "Will Stability Last?," CESifo Working Paper Series 1324, CESifo.
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    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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