Granted that the adoption of fixed exchange rate regimes and the impetuous liberalization of capital flows on the part of emerging economies were behind the recent turbulence, it is possible to conclude that technological innovation and globalization might have had a tendency to amplify such crises.
Indeed, financial globalization, ignited by innovations in information technology, has dramatically increased cross-border financial transactions, and occasioned intensified competition and interdependence among financial markets in various countries.