Template-Type: ReDIF-Article 1.0
Author-Name: Costas Lapavitsas
Author-Email: cl5@soas.ac.uk
Author-Workplace-Name: SOAS.
Title: Financialisation embroils developing countries
Abstract: Financialisation of developed countries includes increased lending to individuals as well as adoption of investment banking by commercial banks, 
	thus contributing directly to the crisis of 2007-9. Financialisation has acquired an international aspect since the 1990s, primarily through 
	liberalised capital flows. In the 2000s international financialisation has resulted in net capital flows from developing to developed countries, 
	thus imposing substantial costs on the former, while subsidising the USA as leading issuer of quasiworld- money. International financialisation has 
	also spurred domestic financialisation in developing countries through development of bond markets and foreign bank entry. Developing countries have 
	been drawn into the crisis as current accounts declined and short-term capital flows were reversed.
Classification-JEL: B50, F30, G01, O16.
Keywords: Financialization; Crisis; Capital flows; Developing countries.
Journal: Papeles de Europa
Pages: 108-139
Volume: 19
Year: 2009
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/padeur09-19(108-139).txt
File-URL: https://eprints.ucm.es/id/eprint/68222/1/2009-19(108-139).pdf
File-Format: Application/pdf
Handle: RePEc:ucm:padeur:v:19:y:2009:p:108-139