Financial globalization and the instability of the world economy 1

We can divide globalization into two types: “financial globalization” (FG), on the one hand, and “market system (or capitalist) globalization” (MG) on the other. FG is the global unification or liberalization of the financial market, while MG is the multiplication of nations, on the global level, which favor adopting the market system as the fundamental economic mechanism.