On Financial Globalization

I especially wanted to find out the causes of the various financial and banking crises taking place so frequently into the 1990's. I believe that the answer lies with the substantial phenomenon of rapid economic globalization梩he integration of the international financial system (in other words, financial globalization). The financial globalization remarkably raised the efficiency of financial transactions, brought about numerous financial derivatives, drew more and more emerging economies into the global financial system, prompted the extreme expansion of suppositional capital, and consequently increased the market risk to a great extent. However, the existing international financial and monetary system and its surveillance mechanism appeared so weak in front of enormous financial risks. My thesis attempts to analyze and discuss in depth the various issues associated with globalization in a hope that it can provide some useful revelation to the opening of the financial sector and the economic development of our country.My thesis is divided into 4 parts including 13 chapters according to its theme and the nature of the extensive issues it covers.Part 1: Pandect of financial globalization. This is the foreword part of the thesis, introducing the origin of financial globalization and its concept, analyzing its main manifestations and characteristics, taking Euro as an example to explain the relations between financial globalization and regionalization, and using quantitative methods to make an overall assessment of the impacts of financial globalization. This part forms a general picture of financial globalization.Part 1 comprises 4 chapters: Chapter 1 "The Concept of Financial Globalization and its evolution". This chapter starts with the general trend of economic globalization, defines the concept and connotation of financial globalization; discusses the relations between economic globalization and regional integration, preparing for the following analysis of financial regionalization; reveals the evolution of financial globalization, and puts forward the findings that real-sense financial globalization actually started from the beginning of the 1990's. Chapter 2 "The Main Manifestations and Characteristics of Financial Globalization". This chapter analyzes the latest trends and phenomenon of current financial globalization, reveals its main characteristics. Chapter 3 "Euro and Financial Globalization", based on reviewing the process of evolution of European Monetary Union, analyzes the impacts of regional monetary integration on European regional economic integration, reveals the interactive relations between European regional monetary integration and financial globalization. Chapter 4 "Assessment of the Driving Causes and Impacts of Financial Globalization", analyzes the main driving forces behind financial globalization, argues its positive impacts, uses quantitative methods to calculate the impacts caused by financial globalization on different countries, and contributes an exhaustive personal viewpoint to the current debate on the impacts of financial globalization by demonstrational analysis.Part 2: International Financial Crisis and Risks. This part comprises Chapters 5-8which provide multi-dimensional analyses on international financial crises and risks. It touches upon international financial and banking crises and their consequences by case and demonstrational analyses, and argues the risks brought about by financial globalization; by combining the international financial crisis theory model and the demonstrational analysis of the crisis spreading and contagion mechanism, reveals some new characteristics of crisis spreading since 1990's, and constructs my own model for financial crises by utilizing the example of the Asian Financial Crisis. This Chapter concludes with the argument that the Asian Financial Crisis accelerated global deflation and brought the world economy to the brink of decline.Part 3: Counter-measures to Financial Globalization. This part has chosen 3 essenti...