Working Paper: NBER ID: w11891
Authors: Frederic S. Mishkin
Abstract: This lecture examines whether financial globalization is beneficial to developing countries by first examining the evidence on financial development and economic growth and concludes that financial development is indeed a key element in promoting economic growth. It then asks why if financial development is so beneficial, it often doesn't occur. It then goes on to examine whether globalization, particularly of the financial kind, can help encourage financial and economic development and argues that it can. However, financial globalization does not always work to encourage economic development because it often leads to devastating financial crises. The issue is thus not whether financial globalization is inherently good or bad, but whether it can be done right.
Keywords: No keywords provided
JEL Codes: F02; O10; O16; G20
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| financial development (O16) | economic growth (O49) |
| financial globalization (F30) | financial development (O16) |
| financial globalization (F30) | financial crises (G01) |
| financial globalization (F30) | economic growth (O49) |
| mismanagement of financial globalization (F65) | economic downturns (F44) |