Financial globalization has been a significant aspect of the world economy for over a century, with two distinct periods marked by remarkable advancements and challenges. In 1919, John Maynard Keynes lamented the end of the first great age of financial globalization brought about by the first world war. He remembered a time when a Londoner could easily invest his wealth in natural resources and new enterprises across the world with just a phone call, or choose to invest in government bonds from any substantial municipality on any continent.
Fast forward more than a century, and we find ourselves in the midst of financial globalization’s second age. Today, a day trader tapping away at her phone has an even wider range of investment options than Keynes’s Londoner could have imagined. Despite conflicts and geopolitical tensions around the world, financial channels remain open and accessible. Unlike during the first world war, stock and bond markets are still thriving, with a multitude of choices available to investors.
In 2024, a Londoner can easily invest in any of the numerous stock markets globally without much difficulty. The ease of access to investment opportunities has expanded greatly since Keynes’s time, with technology making it even simpler for individuals to participate in the global economy. Despite the challenges and uncertainties of the modern world, financial globalization continues to offer opportunities for those looking to grow their wealth and participate in global markets.