International Trade & Banking Essay Example | Topics and Well Written Essays - 1000 words

International Trade & Banking - Essay eccentricAccording to Mishkin, globalization is essentially about economic integration, which implies the opening up of national economies to the external influx of goods, services. Contrary to earlier beliefs, globalization is hardly a new phenomenon, dating back to the end of the nineteenth century and the age of industrialization. The globalization system, unlike the Cold War system, is not static, but a impulsive ongoing process globalization involves integration of markets, nation-states and technologies to a degree never witnessed before in a flair that is enabling individuals, corporations and nation-states to reach around the world farther, faster, deeper and cheaper than ever before, and in a way that is excessively producing a powerful backlash from those brutalized or left behind by this new system. Yet, counterbalance today it is too early to say that globalization has achieved its peak. Central banks are still in their way but far from achieving real financial globalization. The latter presupposes having a single global currency and a single global financial authority. According to Way, independent central banks produce sharply lower pomposity rates where Left cabinets are prevalent but at a cost of increasing unemployment. In the absence of financial stability and global financial homogeneity, central banks acquire a new habit of adjusting their decisions and exchange rates policies to the needs of the international financial community, including the issues of currency convertibility.