Financial Globalization and Inequality: Capital Flows as a Two-Edged Sword

38 Pages Posted: 9 Mar 2021

See all articles by Barry Eichengreen

Barry Eichengreen

University of California, Berkeley; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Balazs Csonto

International Monetary Fund (IMF)

Asmaa A ElGanainy

Georgia State University; International Monetary Fund (IMF)

Zsoka Koczan

International Monetary Fund (IMF); European Bank for Reconstruction and Development (EBRD)

Multiple version iconThere are 2 versions of this paper

Date Written: January 2021

Abstract

We review the debate on the association of financial globalization with inequality. We show that the within-country distributional impact of capital account liberalization is context specific and that different types of flows have different distributional effects. Their overall impact depends on the composition of capital flows, their interaction, and on broader economic and institutional conditions. A comprehensive set of policies - macroeconomic, financial and labor- and product-market specific - is important for facilitating wider sharing of the benefits of financial globalization.

JEL Classification: F21, F22, F24, F41, F62, F63, F65

Suggested Citation

Eichengreen, Barry and Csonto, Balazs and El-Ganainy, Asmaa and El-Ganainy, Asmaa and Koczan, Zsoka, Financial Globalization and Inequality: Capital Flows as a Two-Edged Sword (January 2021). Available at SSRN: https://ssrn.com/abstract=3799596 or http://dx.doi.org/10.2139/ssrn.3799596

Barry Eichengreen (Contact Author)

University of California, Berkeley ( email )

310 Barrows Hall
Berkeley, CA 94720
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National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
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Centre for Economic Policy Research (CEPR)

London
United Kingdom

Balazs Csonto

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Asmaa El-Ganainy

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

Zsoka Koczan

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

European Bank for Reconstruction and Development (EBRD) ( email )

One Exchange Square
London, EC2A 2EH
United Kingdom

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