Perspectives on Globalisation and Economic Crisis Essay

Perspectives on Globalisation and Economic Crisis - Essay Example Scholars like Chinn and Ito (2008) have supported this perception in the sense that they often present entirely novel plans to steer the process of globalisation. However, Feenstra and Taylor (2013) state that monetary unions aimed at economic integration were a reality even during the 19th century. According to the authors: â€Å"In monetary affairs the launch of the Latin Monetary Union in 1866 by France, Belgium, Italy, and Switzerland (later joined by 7 other countries) could be seen as, if not an early precursor to the Eurozone, at least an attempt to coordinate monetary policy at a transnational level, even if the project was soon undermined by the contradictions of the bimetallic system it sought to defend, and the bloc ended up as a de facto member of the soon ubiquitous gold standard area which began to dominate world monetary affairs after the 1870s.† (Feenstra and Taylor 2013, p. 5) Feenstra and Taylor (2013) further state that the gold standard (as set during the m id 19th century) has served as a platform for ensuring multilateral economic cooperation. Even during the days of colonial rivalries and frequent warfare, leaderships in different countries essentially understood that economic cooperation and intergovernmental dialogue were better avenues for achieving peace and prosperity. European countries were at the foremost in comprehending the importance of such mature financial behaviour although they could not effectively establish peace in their continent unlike today’s European Union. Present day econometric mechanisms of globalisation are also based on mainly economic integration and commercial cooperation. Moreover, geographical situations of different regions as well as geopolitical dynamics play a key role in globalisation simply because it...This paper tries to to elucidate the process of globalization with an objective to explore its economic dynamics with particular reference to the financial markets. It is argued in the paper, that if there is a global economic crisis, then the process of globalization can be affected in various ways. Conversely, regional or country specific economic crises too may obtain a worldwide dimension because of the fiscal dynamics of financial globalization. The gold standard (as set during the mid 19th century) has served as a platform for ensuring multilateral economic cooperation. Even during the days of colonial rivalries and frequent warfare, leaderships in different countries essentially understood that economic cooperation and dialogue were better avenues for achieving peace and prosperity. European countries were at the foremost in comprehending the importance of such financial behaviour although they could not effectively establish peace in their continent unlike today’s EU. As far as the financial world is concerned, it cannot be assumed as synonymous with commerce and industry. Therefore, globalisation with regard to global commerce and industries has its own dimensions with respect to the financial world, or more precisely, the financial or capital markets. A much better comprehension of today’s economic activities is still necessary that can help the international policymakers in finding out that how deficiencies in contemporary financial regulations might set the scene of yet another global economic crisis.