ABSTRACT. We shall focus here on the financialization of the economy, the instability of the global financial system, and the magnifying effect of the crisis on international trade. Fumagalli points out that the processes of globalization and financialization redefine the new international hierarchical structures. Mellor claims that the financial crisis of 2007–08 has revealed both the instability of the global financial system and the importance of the state as lender, borrower and investor of last resort. D’Arista and Griffith-Jones stress that effective regulation covers a diminishing share of total capital and banking markets. On Allen and Yago’s reading, loose monetary policy, combined with the ready availability of funds because of global imbalances, inflated the bubble in property prices. (pp. 281–286)

JEL: F01, G01, Q02

Keywords: global, financial, system, regulation, instability, market