Financial globalization — definition?
Integration of domestic markets into global markets.
Key features of financial globalization?
Free capital movement, global financial services, interdependence.
Historical waves of integration — example?
Gold standard era, Bretton Woods, post-1980s liberalization.
MSCI classification — dimensions?
Development level, size/liquidity, accessibility.
Market accessibility pillars?
Ownership openness, capital flow ease, operational and institutional stability.
Why accessibility beats GDP?
It directly affects investment feasibility and index inclusion.
Crisis under capital mobility — mechanism?
Currency mismatch, leverage, contagion, sudden reversals.
Pattern of crises?
Boom, excess leverage, asset bubbles, sharp correction.
Inflow phase — bubble dynamics?
Rising prices attract more demand, fueling bubbles.
Contagion channels?
Spot, forward, swap markets, investor sentiment, trade links.
Household debt crises — why persistent?
Debt overhang, asset price drops, deleveraging, slow recovery.
Globalization — main driver?
Deregulation, tech, liberalization, openness.
Financial innovation example?
Derivatives, securitization, cross-border instruments.
Waves of integration — why?
Shocks, crises, retreat periods, policy shifts.
Amsterdam–London link?
Surplus capital flows during crises, early financial network.
Fed swap lines — purpose?
Provide dollar liquidity, stabilize markets.
BRI cycle?
Initial support, later repayment, shifting China’s role.
Classical gold standard — key feature?
Fixed gold convertibility, limited policy flexibility.
Bretton Woods — system?
Dollar peg to gold, fixed exchange rates, IMF/World Bank.
Trilemma?
Fixed rate, free capital, independent policy—only two can be achieved.
Gold standard rigidity?
Limits monetary flexibility, can cause deflation during crises.
Household debt — why persistent?
Debt overhang, asset drops, slow deleveraging, demand slump.
Testez vos connaissances avec un QCM de 22 questions sur Global Financial Integration and Crises.
1. What does financial globalization primarily refer to?
2. Which set best captures the main drivers of financial globalization?
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