Economics focus: Third thoughts on foreign capital

摘要

The next great globalisation, according to Frederic Mishkin's new book of that name, will be financial in character: the flow of foreign money into stocks, bonds and banking in emerging economies. A recently appointed governor of the Federal Reserve, Mr Mishkin makes a clear and compact case for cosmopolitan capital; and his footnotes (all 55 pages of them) weigh and tally a wealth of economic research. But the title of his book is a bit odd: wasn't cross-border finance the last, rather disappointing, globalisation?