The Deputy Research Director at the International Monetary Fund (IMF). Jonathan D. Ostry presented his paper Inclusive Financial Globalization? on the afternoon of the 7th NCID Research Workshop, which we hosted the 18th of May at the Fundaci贸n Ram贸n Areces headquarters in Madrid.
鈥淲e鈥檝e been observing a tendency for globalization, which lifted billions out of poverty, where the fruits have not been broadly shared鈥, Ostry said. 鈥淥ne of the things that worry is that it is feeding toward toward rising tendencies toward protectionism鈥, he said. For those protectionism movements to be reversed there has to be an adequate distribution of wealth and growing inclusion in the globalization.
This paper researches not only trade globalization, but also financial globalization, which Ostry considers has gone 鈥渦nder the radar鈥 as literature suggests it also brings large effects on inequality. Looking at macro and sectoral data, the paper gives a treatment of aggregate and distribution effect of financial globalization.