13. The process of financial innovation and deregulation and liberalization of financial markets throughout the world had led to more integrated and globalized capital markets.

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And, yes, financial markets require close supervision and regulation. But what is true of financial markets need not be true of other markets.

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Domestic financial markets and institutions

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Globalization and integration of financial markets, together with outward oriented policies in developing countries, had generated significantly increased financial flows to certain parts of the developing world.

Massive inflows of foreign capital into emerging markets had greatly contributed to the growth of the world economy and, at the same time, had increased the volatility of financial markets.

IV. Enhancing prudential oversight of financial markets

47. The fluctuations in financial markets, caused by speculative short term capital flows, threatened the healthy development of the world economy.

The World Markets Company Plc (WM).

We create financial markets that are super complex.

It was the liberalization of international financial markets.

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Financial and Development Issues in Emerging Markets, in November.

Sunset industries face slowing sales in mature markets and growing sales in world markets.

Financial markets could transmit tensions from one market to another, increasing the probability of systemic risks for which the world was not yet prepared.

As financial markets became increasingly disconnected from the longer term demands of industrialization, unregulated financial flows triggered boom bust cycles, which became a recurrent feature of the developing world during the 1990s.

Panel discussion on financial and development issues in emerging markets

They also influence private financial markets to support technology transfer.

Yes, financial markets in troubled countries for example, Russia s currency, equity, and bond markets have been negatively affected. But the more generalized contagion to global financial markets that geopolitical tensions typically engender has failed to materialize.

That puts central banks in the destabilizing position of abdicating control over financial markets. For a world beset by seemingly endemic financial instability, this could prove to be the most destructive development of all.

The liberalization of financial markets has made it easier for larger SMEs to gain access to international capital markets.

So, while global markets arguably have been rationally complacent, financial contagion cannot be ruled out. A century ago, financial markets priced in a very low probability that a major conflict would occur, blissfully ignoring the risks that led to World War I until late in the summer of 1914.

CAMBRIDGE If the world were fair, most emerging markets would be watching the financial crisis engulfing the world s advanced economies from the sidelines if not entirely unaffected, not overly concerned either. For once, what has set financial markets ablaze are not their excesses, but those of Wall Street.

African countries must restructure their domestic financial sectors and develop capital markets and non bank financial institutions.

Access to financial services and the depth of financial markets have been associated with growth and development.

BRUSSELS The purpose of the euro was to create fully integrated financial markets but, since the start of the global financial crisis in 2008, markets have been renationalizing. So the future of the eurozone depends crucially on whether that trend continues or Europe s financial markets become fully integrated.

There has been a longstanding discussion about whether new derivative markets, which provide such financial hedging, tend to increase preexisting financial markets volatility. The consensus is that they do not.

Global financial integration and imbalances in financial and money markets had adversely affected many countries, particularly emerging market economies.

37. Financial integration, through loans on the financial markets, foreign investment and loans from international financial institutions, was proving more complex and less rapid.

Financial markets did well through capital market liberalization. Enabling America to sell its risky financial products and engage in speculation all over the world may have served its firms well, even if they imposed large costs on others.

Developing countries are contributing not only to world growth but also to macro stabilization policies worldwide, in particular through greater internal price stability and significant deregulation of financial markets.

They should also mitigate the impact of the excessive volatility of financial markets.

26. Countries are also being assisted in obtaining access to international financial markets.

Considering that the stability of the world financial system was in the best interest of all, ways should be found to reduce systemic risk in international private capital markets, especially portfolio markets, while simultaneously strengthening direct investment flows, particularly to developing countries.

Recommendations were also made on several issues concerning financial instruments, relating to new developments in financial markets and instruments, namely

Moreover, money laundering distorts financial markets, discouraging foreign direct investment as a result of the damaged integrity of financial institutions.

5. It is essential that the Group of Seven industrialized countries immediately take the necessary steps to restore stability in financial markets and ensure the growth of the world economy

37. Second, the efficient functioning of financial markets depended mainly on a strong national capacity to manage both those markets and the banking sector.

Given all the effort that the world s emerging markets have devoted to shielding themselves from financial volatility, they have reason to ask where in the world is the upside of financial liberalization? That is a question all of us should consider.

But it is time to go further and begin to lobby aggressively for faster financial liberalization in the developing world. True, most studies suggest that developing countries ought to precede any sharp opening to international financial markets by liberalizing trade.

For both purposes, it is necessary to improve the efficiency of domestic financial markets.