Abstract
Financial globalization, defined as global links through cross-border financial flows, has become increasingly relevant for Latin American markets as they have integrated financially with the rest of the world. This chapter characterizes the evolution of financial globalization in the region across countries and relative to other comparison groups. In particular, the chapter shows that, because of the way financial globalization is often measured, the available evidence has led to the misperception that it has been growing in recent years. Contrary to conventional belief, in the 2000s financial globalization both in Latin America and in other emerging markets has grown only marginally and
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