On this view, financial globalization may destabilize a country's economy in some circumstances and thereby make macroeconomic policy more difficult. However, I tend to believe that these financial crises often arise from macroeconomic policies that are inherently unstable and from private-sector participants who fail to recognize and price risk appropriately.
As such, globalization may have increased the penalties for bad public and private policies, but the correct response is to get policy right, not to turn the clock back on globalization. Globalization has increased the spillovers of economic events across countries.