Banking De-Globalisation: A Consequence of Monetary and Regulatory Policies?

8 Pages Posted: 5 Oct 2016

See all articles by Kristin J. Forbes

Kristin J. Forbes

Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER)

Dennis Reinhardt

Bank of England

Tomasz Wieladek

Bank of England

Date Written: September 2016

Abstract

Countries around the world have tended to become more closely linked through the movement of goods, capital and people over time. It is often argued that this globalisation is a seemingly irreversible trend that can only move in one direction, especially in international finance. For example, Figure 1a shows one measure of cross-border financial integration – the sum of capital flowing in and out of a country by foreigners and domestic residents each year (scaled as a share of global GDP) for a group of advanced economies with data back to 1970.5 These capital flows increased sharply over the 15 year window starting in 1990 – a trend which many believed would continue (albeit with some ups and downs around this longer term trend as had traditionally occurred).

Full publication: Macroprudential Policy

Suggested Citation

Forbes, Kristin J. and Reinhardt, Dennis and Wieladek, Tomasz, Banking De-Globalisation: A Consequence of Monetary and Regulatory Policies? (September 2016). BIS Paper No. 86h. Available at SSRN: https://ssrn.com/abstract=2844241

Kristin J. Forbes (Contact Author)

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

Room E62-416
Cambridge, MA 02142
United States
617-253-8996 (Phone)

HOME PAGE: http://web.mit.edu/kjforbes/www

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Dennis Reinhardt

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Tomasz Wieladek

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

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