Two observations suggest that financial globalization played an important role in the recent financial crisis. First … large asset price spillovers of country-specific shocks to bank capital. The impact of these shocks on asset prices are … amplified by bank capital requirements based on mark-to-market …

and asset prices first rise and then fall. These results are in line with the post-globalization dynamics observed in …

explosive mix of lack of policy credibility and world capital market imperfections that afflict emerging economies with national …