Globalisation of finance in the recent era


Financial globalisation has increased massively since the 1990s. The Great Financial crisis of 2008 has stopped that progression.

A simple and widely used measure of de facto financial integration is the sum of all cross-border financial liabilities (or of cross-border financial assets), scaled by annual world GDP. As reported in Lane and Milesi-Ferretti (2017), financial integration has risen spectacularly from the 1990s to 2007: cross-border labilities increased from about 70 per cent of world GDP in 1995 to about 210 per cent of world GDP in 2007. The lion’s share of these …

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