Financial Globalization And The Financial Crisis

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The term financial globalization can be defined as the integration of various financial markets of countries across the world. In other terms, it means the mobility of finance across various countries without encountering any barrier. Therefore, financial liberation is not sufficient enough parameter for globalization. Financial globalization advocates for development of a single currency worldwide currency that can be regulated and managed by a single global monetary institution. The first era of unrestricted financial globalization took place in late 1860s. During this time, it is argued that London played the role of the heartbeat of all of financial undertaking. This time frame is classified as the early stage of development of global financial and markets (Eichengreen & Bordo 202). That time frame was characterized by a sequence of banking challenges as a result of poor financial management, speculation; unrestricted borrowing poorly controlled banking systems and non-disclosure of financial data in the banking industry. Interestingly, Keynes (171) views the financial the first era financial crisis under the perception as London having the ability to serve the whole world in terms of financial assets only through a phone a call. The history of global financial industry progress in the world war time frame, 1919 to 1939, had no anything to be happy about either; besides it greatly threatened by the collapse of stock market in the early 1930s, proceeded by the Great
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