The 1990s financial crises and the subprime crunch of 2008 have boosted debate about the impact of financial globalization on development. Financial liberalization resulting in significant rise of cross-border financial flows has been one of the major shifts in global economy since the 1980s. Yet questions of its actual impact on developing economies and global financial stability have no clear answers. The aim of this paper is to present the concept of financial globalization. It will also add to the debate on global financial architecture and financial stability.
