Edited by Jan Toporowski and Jo Michell
Chapter 20: Globalization
Of all the developments from the 1980s broadly termed ‘globalization’, growing cross-border financial activity attracted most attention. Commentaries prophesying the ‘death of distance’ and ‘end of geography’ envisaged the emergence of a seamless global capital market. This was variously expected to lead to allocative efficiency gains, international risk sharing and consumption smoothing, and major capital flows from the rich North to the capital-scarce South. Governments would be constrained, if not effectively prohibited, from pursuing inefficient policies. The potential for external crises was downplayed, attributed to government policy failures or seen as the occasional price to be paid for faster growth through exploiting risk–return trade-offs. Financial globalization in these accounts was largely attributed to the impact of new information and communication technologies. Whilst these technologies facilitated the exponential growth of cross-border transactions in assets and derivative products, a more historical perspective qualifies this account.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.