Financial Globalization and Inequality: Capital Flows as a Two-Edged Sword
January 8, 2021
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Summary
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.
Subject: Economic sectors, Financial crises
Keywords: and inequality., capital account, capital flows, remittances
Pages:
37
Volume:
2021
DOI:
Issue:
004
Series:
Working Paper No. 2021/004
Stock No:
WPIEA2021004
ISBN:
9781513566382
ISSN:
1018-5941
