financial globalization:recent phenomenon?(1)

in spite of the many different issues and disagreements surrounding globalization,the phenomenon is currently perceived as present in nearly all aspects of economic life and is often taken for granted.further,it is generally viewed as a relatively recent phenomenon,particularly in the area of capital flows and international finance.in a recent article, Alan M.Taylor provides a historical look at the globalization of finance and point out some interesting facts.Capital flows have indeed surged in volume in the past few decades in the both the developing and developed world ,often creating difficult challenge for policymakers.Surprisingly, a similar phenomenon took place in an earlier period of globalization between 1870and 1914.The striking parallels between the two periods,roughly 100 years apart,have raised some interesting questions,particularly in light of the collapse of the earlier globalization phenomenon starting in 1914 and continuing through the 1940s and 1950s.while two world wars and major world recession certainly contributed to the striking changes in global finance ,it seems prudent to step back and examine the current global capital phenomenon in terms of our earlier experiences.