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Is Financial Globalization Truly Global?: New Institutions for an Inclusive Capital Market

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  • Philip Arestis
  • Santonu Basu

Abstract

In 2002 more than $1 trillion worth of new bonds was sold across international boundaries. The total stock of cross-border bond holdings was more than $9 trillion. Such lending, together with sales of equities, is regarded as one of the chief benefits of globalization. But financial investment does not always flow where it is needed most.While it appears that the world cannot be satiated with U.S. securities, issues of emerging economies account for less than 6 percent of total international holdings of debt securities (DÕArista 2003). And, as Argentina discovered recently, international lenders can be fickle, selling enough foreign currency and securities to cause a currency crisis.

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  • Philip Arestis & Santonu Basu, "undated". "Is Financial Globalization Truly Global?: New Institutions for an Inclusive Capital Market," Economics Public Policy Brief Archive ppb_75, Levy Economics Institute.
    • Handle: RePEc:lev:levppb:ppb_75
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    References listed on IDEAS

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    1. Mr. Marco Terrones & Mr. Eswar S Prasad & Mr. Ayhan Kose, 2003. "Financial Integration and Macroeconomic Volatility," IMF Working Papers 2003/050, International Monetary Fund.
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