Did globalization cause the Great Recession?
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| We argue that the vast bulk of movements in aggregate real economic activity during the Great Recession were due to financial frictions. | |
| Thus, globalization may hurt the poor not because it went too far, but rather because it did not go far enough. | |
36 Citations | The limited overall impact of globalization reflects two offsetting tendencies: whereas trade globalization is associated with a reduction in inequality, financial globalization-and foreign direct investment in particular-is associated with an increase. |
| Moreover, we show that the Great Recession had strong but differentiated impacts at regional level. | |
22 Citations | My key argument is that the origins of the Great Recession can be fully understood only within an analysis of the system of globalised production and the corresponding division of labour manifest in the symbiotic relationship between the financialised US-centred core and the commodity-producing periphery. |
| Since the middle years were also ones of economic autarky and 'de-globalization', while the rest were ones of increasing globalization in world commodity and factor markets, history offers an unambiguous positive correlation between globalization and convergence. |
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