Globalization has increased interconnectedness in financial markets from "summary" of The Economics of Money, Banking and Financial Markets, eBook, Global Edition by Frederic S. Mishkin
Globalization has transformed the world economy by breaking down barriers to trade and investment. As a result, financial markets have become more interconnected than ever before. This interconnectedness has been facilitated by advances in technology, which have made it easier and faster to move money across borders. One of the key drivers of this increased interconnectedness is the rise of multinational corporations. These companies operate across multiple countries and have a significant impact on global financial markets. They are able to move capital around the world with ease, contributing to the integration of financial markets. Another factor contributing to the interconnectedness of financial markets is the liberalization of capital controls. Many countries have reduced restrictions on the movement of capital in recent decades, allowing ...
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