Global Financial Trade: How Far Have We Come?

Abstract

In this paper, I review recent trends in global integration of financial systems and assess the implications for international macroeconomic adjustment. While recent growth in the scale of international balance sheets has been dramatic, product markets remain quite segmented. The mis-match between financial and real integration means that the role of exchange rates in international adjustment has taken on an even more crucial role Classification-financial globalization, net foreign assets, macroeconomic adjustment