This chapter is partially based on earlier work (see van Marrewijk 2012, Part III.A and III.B and Brakman and van Marrewijk 2021). When (developing) countries are trading with other countries, they are confronted with financial interactions and forces that affect the way they do business and limit the possibilities and effectiveness of certain types of policies. The power of these financial forces is enormous. According to the Bank for International Settlements (2019), the daily turnover on financial markets for all instruments on a net-net basis in April 2019 was US$6.6 trillion, which is equivalent to about 8 percent of total world income in one year.1 This chapter briefly discusses the main interactions, forces, limitations, and possibilities.
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