Resumen de Financial Crises and Center-Periphery Capital Flows
The core of the world financial system is based on large investment and commercial banks which are located in leading financial centers. This core both holds and routes significant amounts of the world's financial funds considering the needs of their respective countries. On the other hand, peripheral countries with persistent current account deficits have to manage with the surplus funds of core countries or, worse, during times of financial turbulences be obliged to feed the core with their capital or absorb the excess funds of the core. In most cases, this dilemma creates an asymmetrical relationship between these two groups of countries. As financial crises mostly emerge in core countries, due to lack of domestic funding, they necessarily spread to the periphery as well. Thus, the Tobin Tax frequently gains popularity as a protective measure in the periphery. This study intends to redefine financial crises with their asymmetrical and endogenous aspects as well as to draw attention to the internal imbalances of peripheral countries.
