Davide Furceri, Prakash Loungani, Jonathan D. Ostry, 02 December 2019

Free trade has contributed to a ‘great convergence’ of emerging market countries toward incomes in industrialised nations in recent decades. It is less clear whether free mobility of capital across national boundaries has conferred similar benefits. This column presents evidence suggesting that the gains in average incomes have been – at best – small, while increases in income inequality and the decline in the labour share of income have been significant. Financial globalisation thus poses far more difficult equity-efficiency trade-offs than free trade and should be at the centre of debates about how to make globalisation inclusive.

Thorsten Beck, 14 May 2010

Thorsten Beck of Tilburg University talks to Viv Davies about his current research in the areas of finance, growth and development - and the policy lessons for developing countries. The interview was recorded at Tilburg University in April 2010.

Nauro Campos, Fabrizio Coricelli, 06 August 2009

Will the current crisis reverse the past two decades of democratisation and financial liberalisation? This column documents the complex, non-linear relationship between political and financial reform. Financial liberalisation often reverses as countries move from autocracy to democracy, as “partial democracies” are less liberalised, and there are big differences between de jure and de facto liberalisation.

Frank Westermann, Romain Rancière, Aaron Tornell, 20 October 2008

The current credit crisis has prompted many calls for regulation to prevent such an event from ever happening again. This column defends a financial system that engenders systemic risk. Economies that risk occasional credit crises enjoy higher long-run growth, and the cost of the US bailout is well within historical norms.


CEPR Policy Research