Benefits and Risks of Financial Globalization : Challenges for Developing Countries

Schmukler, Sergio L.

Federal Reserve Bank of Atlanta

关键词: financial globalization;    financial liberalization;    international financial markets;    financial crises;   

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper discusses the benefits and risks that financial globalization entails fordeveloping countries. Financial globalization can lead to large benefits, particularly tothe development of the financial system. But financial globalization can also come withcrises and contagion. The net effect of financial globalization is likely positive in thelong run, with risks being more prevalent right after countries liberalize. So far, onlysome countries, sectors, and firms have taken advantage of globalization. As financialsystems turn global, governments lose policy instruments, so there is an increasing scopefor some form of international financial policy cooperation.