If this trend were to be sustained in the future, the euro area could be particularly affected as financial integration is a key aspect for the smooth functioning of monetary union and the broader viability of the single market. Another prominent case of rising financial protectionism in recent years has been the introduction of measures to curb capital inflows in some emerging economies.
This was partly done in an effort to contain the fallout from too easy monetary policy in key advanced economies. In their landmark publication, Rajan and Zingales (2003)30 offer powerful insights into the nature and functioning of financial markets. The authors warn that the establishment might exploit the wave of public anger during economic downturns in order to restrict competition and access to capital.