Ups and downs in the global city: London and New York In the 21st century

London and New York entered a new era of development in the early 1980s, with a period of growth continuing despite some fluctuations continued at least up to the financial crisis 2008. This continuity resulted from a combination the expanding role of financial capital in a globalizing economy, and the new flexible economy. Physical proximity facilitated the face-to-face encounters among the key actors, while routine support functions continued to hive off to cheaper domestic and offshore locations. Both growth and internationalisation of the two cities were promoted also by large scale immigration. This phase of growth was interrupted by a financial crisis in the making of which each city played a major role, but from the worst consequences of which they were protected by robust measures taken by the two national administrations to avoid meltdown of the banking systems. Through steady aggregate growth, boom and bust, however, inequality continued to increase.