EMERGING ECONOMIES FACED WITH THE DOWNSIDE OF FINANCIAL GLOBALIZATION: HEDGES AND WAY OUTS
EMERGING ECONOMIES FACED WITH THE DOWNSIDE OF FINANCIAL GLOBALIZATION: HEDGES AND WAY OUTS
Author(s): Sorin BurneteSubject(s): Economy
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: financial globalization; money mercantilism; currency crises; international reserves; speculative attacks; capital controls; regulation
Summary/Abstract: The underlining assumption of this paper is that developing countries are in a fragile state nowadays. Economically, they have been seriously harmed by the 2008 crisis1 but this is not the end of the story: the future still has pitfalls in which these economies might get trapped, due to their enhanced vulnerability to exogenous shocks generated by financial globalization. Ideologically, the recent events have triggered a serious backlash against capitalism, particularly the Anglo-Saxon template. Getting an insight into the causes and implications of global economic crises is therefore critical for policy-makers in emerging economies. History might be a good adviser in this respect. Lessons from the past are even more important for ex-communist nations, whose confidence in capitalism’s potential is still shaky. Some of the possible hedges against and/or way outs from such scourging events are discussed in the paper.
Journal: Review of Economic and Business Studies (REBS)
- Issue Year: 2009
- Issue No: 3
- Page Range: 41-56
- Page Count: 16
- Language: English
