THE GLOBAL FINANCIAL MARKETPLACE
THE MARKET FOR CURRENCIES
EVOLUTION OF THE GLOBAL MONETARY SYSTEM
THE PURPOSE OF EXCHANGE RATES
GLOBAL CAPITAL MARKETS
THE FINANCIAL CRISIS OF 2007–2009
The current financial crisis and worldwide recession have abruptly halted a nearly three-decade-long expansion of global capital markets. From 1980 through 2007, the world's financial assets—including equities, private and public debt, and bank deposits—nearly quadrupled in size relative to global GDP. Global capital flows similarly surged. This growth reflected numerous interrelated trends, including advances in information and communication technology, financial market liberalization, and innovations in financial products and services. The result was financial globalization.
But the upheaval in financial markets in late ...