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Old 07-28-2011, 02:04 PM   #1
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The political backlash against profligate global banks is underway; regulators everywhere are sizing up "hot" cross-border money flows; and capital controls in developing economies are back in vogue. Financial globalization, in short, is on the back foot.
The questions for policymakers, and for investors, is whether it is possible to skim the froth off global finance without undermining the benefits of "real" globalization in trade and direct investment.
And for many emerging economies, is slightly lower but more stable growth a price worth paying for damping volatile and destabilizing financial flows?
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