Financial Globalization and Economic Growth Literature Review with Comments
The second chapter is a critical review of the main articles, monographs, and books on the topic of financial openness and its impact on economic growth. It starts by looking at seminal works from the early 1970s in which the terms financial repression and financially liberalized systems were introduced. It then moves on to Minsky's financial instability hypothesis and the findings of a range of studies from the Obstfeld Taylor in 2002 to Lane and Milesi Ferretti in 2014. The topics discussed run from the initial hypotheses and assumptions regarding financial openness impact on economic growth, through the major findings and conclusions of studies into the connections between financial openness and economic growth during the final three decades of the twentieth and the first decade of the current century, to ways of measuring de jure and de facto financial liberalization and observations on the adjustment processes before and after the crisis of 2008.