FINANCIAL GLOBALISATION: PAST AND PRESENT

This article compares and contrasts the two modern periods of financial globalisation, approximately a century apart. The focal point of the first period was around the turn of the twentieth century, while that of the second was around the turn of the twenty‐first century. Financial globalisation in the latter era was far deeper and there was a remarkable across‐the‐board transformation of the global financial system. An interesting twenty‐first‐century phenomenon is the recent change in direction of capital flows: that is, sizeable sums of capital flowing from non‐industrial countries to advanced industrial countries.