Financial globalization

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[...] Financial globalization I. Defining financial globalization: Process, Powers, Impacts Meaning The term financial globalization refers to a free movement of finance across national boundaries without facing any restrictions. Financial globalization requires the introduction of a worldwide single currency managed and regulated by a single international monetary authority. The first financial powering was located in London, creation and development of financial institutions, between 1870's and 1913. Today, Wall Street is home of the NYSE and the heart of financial trade, exchange of stocks, bonds and securities. [...]

[...] United States: Major players in financial globalization A. The context With the entry of the United States in the world war of 1917, American capital starts pouring in Europe, reinforcing the status of the dollar on the detriment of the pound sterling. Postwar situation confirms the transformation of economic power relations and the growing financial power of the United States. After a period of stability and power for the US, many crises occur from the late 60s: to the first oil shock, small surpluses in the North facing a deficit in the rest of the world. [...]

[...] Mendoza Vincenzo Quadrini, Journal of Monetary, Economics, May 2009 Financial Globalization and Monetary Policy , Steven B. Kamin International Finance Discussion , Papers Number June 2010 David Barboza, The New York Times Economix; Q&A : Why the Dollar Remains the Reserve Currency?; March Tejvan Pettinger, Definiton of Deregulation, Economics help, November C. Bastidon Gilles, J.Brasseul, P Gilles, Histoire de la Globalisation Financière, Amrand Collin Sergio L. Schmukler, Benefits and Risks of Financial Globalization: Challenges for Deveoping Countries, Development Research Group World Bank, June 2004 M. [...]

[...] Financial institutions: Make changes in both developing countries and developed countries. Have to avoid a too big instability of the international monetary system. Allow loans if countries set up policy reforms and structural adjustment reforms = austerity reforms in order to liberalize the economy The United States have a lot of influence through them because they are the first country to give financial aid to developing countries, therefore, they can favor their firms and their policy in those countries. Deregulation Remove Government legislation and laws in order to favor the competition, thus market forces drive the economy. [...]

[...] Since the early 2000s, international capital flows have become increasingly important in world trade. Saving more and more abundant, mainly from emerging countries (China in head) but also, to A lesser extent, Germany and Japan, seeking to place abroad (in the United States in majority). The US drains almost half of global savings. A quote of Joseph Stiglitz (1943), a former chief economist at the World Bank and chairman of the Council of Economic Advisers under President Clinton: “It used to be said that when the United States sneezed, Mexico caught a cold. [...]