We review the large literature on various economic policies that could help developing economies effectively manage the process of financial globalization. Our central findings indicate that policies promoting financial sector development, institutional quality, and trade openness appear to help...

In this paper, we present the root cause of the American financial crisis in 2007. We show that financial integration and capital flow volatility is the factor that creates a climate conducive to the emergence of the crisis in the USA and led to its spread to the rest of the world. On the...