The False Promise of Financial Liberalization

Dani Rodrik
Something
is amiss in the world of finance. The problem is not another financial
meltdown in an emerging market, with the predictable contagion that
engulfs neighboring countries. Even the most exposed countries handled
the last round of financial shocks, in May and June 2006, relatively
comfortably. Instead, the problem this time around is one that
relatively calm times have helped reveal: the predicted benefits of
financial globalization are nowhere to be seen.
……