Contents -- EXECUTIVE SUMMARY -- I. INTRODUCTION -- II. A BRIEF OVERVIEW OF THEORY -- III. MEASURING FINANCIAL OPENNESS -- IV. PATTERNS OF FINANCIAL GLOBALIZATION -- V. MACROECONOMIC EVIDENCE ON EFFECTS OF FINANCIAL GLOBALIZATION -- VI. HOW DOES THE COMPOSITION OF CAPITAL FLOWS MATTER? -- VII. ORGANIZING PRINCIPLES -- VIII. COLLATERAL BENEFITS OF FINANCIAL GLOBALIZATION -- IX. THRESHOLD EFFECTS IN OUTCOMES OF FINANCIAL GLOBALIZATION -- X. CONCLUDING REMARKS -- APPENDIXES -- References.