Globalisation of finance in the recent era

A number of offshore financial centers are managing an increasing amount of world wealth as IT and financial innovation have made it simpler to move funds overseas

Financial globalisation has increased massively since the 1990s. The Great Financial crisis of 2008 has stopped that progression. A simple and widely used measure of de facto financial integration is the sum of all cross-border financial liabilities (or of cross-border financial assets), scaled by annual world GDP. As reported in Lane and Milesi-Ferretti (2017),  financial integration has risen spectacularly from the 1990s to 2007: cross-border labilities increased from about 70 per cent of world GDP in 1995 to about 210 per cent of world GDP in 2007. The lion’s share of these liabilities (or assets) belong to advanced economies or