Abstract
Under the influence of neo-liberalism, financial liberalization initiated by developed countries has transformed industrial capitalism into financial capitalism and subsequently brought about the globalization of financial capitalism. Despite the respite after the financial crisis of 2008, the resurgence of globalization of financial capitalism will be unavoidable. Globalization of financial capitalism, an economic phenomenon as well as a social, political, and legal phenomenon, may have a significant impact on the financial sovereignty of countries around the world. In an era of globalization of financial capitalism, how to safeguard the financial sovereignty has become a serious challenge for all countries, especially developing countries.
Highlights
As a form of capitalism, financial capitalism is such an economic system that financial capital dominates the political, economic, and social lives of a society and that wealth is created mainly through financial system instead of goods production processes
In the sphere of finance, sovereign states still have the sovereign authority and capability to implement policies such as fixed exchange rates and capital controls, tremendous international flow of capital resulting from globalization of financial capital and financial capitalism has significantly reduced the benefits of such policies while increasing the costs
In the past three decades, under the influence of neo-liberalism, the positive effects of finance on economic development were highly exaggerated, which led to both financialization of economy and the evolution of industrial capitalism into financial capitalism
Summary
As a form of capitalism, financial capitalism is such an economic system that financial capital dominates the political, economic, and social lives of a society and that wealth is created mainly through financial system instead of goods production processes. In such an economic system, financial intermediaries have come to dominate economic activities and have been able to exert great influence on both political and social development.. In an era of unavoidable globalization of financial capital and financial capitalism, countries around the world, especially developing countries, are faced with the challenge of how to protect financial sovereignty so as to safeguard national financial and economic safety
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