Financial deglobalization: a North-South divide?
Haroldo Montagu, a recent graduate of ISS, has written an article for the deglobalization series in the ISS BLISS blog. He discusses the concept of financial deglobalization and whether it is an occurring phenomenon.
As a result of the financial crisis in 2008, cross-border capital flows were set back to the average of the 1990's. According to Montagu, it is clear that trade flows collapsed after the financial crisis, and that deglobalization in terms of international trade has occurred ever since. However, many international organizations argue that financial deglobalization is not a reality because the decrease of financial flows is not a broad-based and sustained phenomenon. To clarify this debate, Haroldo Montagu sees the necessity to critically examine data to understand whether financial deglobalization is happening or not.
About the author
Before studying at ISS, Haroldo Montagu was appointed as National Director of Development Strategies and Macroeconomic Policy at the Ministry of Economy and Public Finance of Argentina. He also worked as a consultant for the Economic Commission for Latin America and the Caribbean. He teaches topics in International Economics and Economic Development at university level in Argentina.