Financial Globalization And The Financial Crisis - 1274 Words

The term financial globalization can be defined as the integration of various financial markets of countries across the world. In other terms, it means the mobility of finance across various countries without encountering any barrier. Therefore, financial liberation is not sufficient enough parameter for globalization. Financial globalization advocates for development of a single currency worldwide currency that can be regulated and managed by a single global monetary institution. The first era of unrestricted financial globalization took place in late 1860s. During this time, it is argued that London played the role of the heartbeat of all of financial undertaking. This time frame is classified as the early stage of development of global financial and markets (Eichengreen Bordo 202). That time frame was characterized by a sequence of banking challenges as a result of poor financial management, speculation; unrestricted borrowing poorly controlled banking systems and non-disclosure of financial data in the banking industry. Interestingly, Keynes (171) views the financial the first era financial crisis under the perception as London having the ability to serve the whole world in terms of financial assets only through a phone a call. The history of global financial industry progress in the world war time frame, 1919 to 1939, had no anything to be happy about either; besides it greatly threatened by the collapse of stock market in the early 1930s, proceeded by the GreatShow MoreRelatedGlobalization Of Financial Markets And The Global Crisis2182 Words   |  9 PagesGlobalisation of Financial Markets and the Global Crisis The financial markets are increasingly and highly interconnected, which means that the regulation of the financial services is becoming globalised as well, since most of the bigger firms operate all over the globe, the standardization of the regulation is a very common practice nowadays, making very difficult especially for developing countries keep up with the regulation. 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In my paper I will be discussing the Economic Globalization of India, the roots of the globalization to occur, the effects it had and the negative effects it had. Effects such as foreignRead MoreArticle Analysis: On the Contradictions of the New International Financial Architecture: Another Procrustean Bed for Emerging Markets?1404 Words   |  6 PagesSummary: what is a main concept in the case or article? The main concept of the article is to explain why the New International Financial Architecture (NIFA) was created and who is being benefited from this approach. The discussion begins with an examination of the power structures of the global political economy by focusing on the continued dominance of the USA. 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Limiting ourselves to economicRead MoreFinancial Deregulation and Capital Control1283 Words   |  5 Pagesï » ¿Financial deregulation and capital control The financial markets for a long time were regulated following the aftershocks of the global recession which affected several economies across the globe. It was until the 1980s that the federal government passed the Deregulation and Monetary Act which was aimed at providing deregulation for the financial institutions. This gave the banks the flexibility to compete and extend their services at a much easier and faster way in a very competitive market and