Financial ‘globalization’ and exchange rate regimes
Abstract
This paper argues that, although international capital flows have increased
rapidly in recent decades, financial markets are still far from forming a unified global market.
It also argues that the effect of increasing capital mobility on national economic policy
autonomy continues to depend, to a large extent, on the choice of the exchange rate regime.
JEL Classification: F31; F62.
Keywords: Capital flows globalization exchange rate regimes exchange rate policy liberalization