The Risk of Globalisation for the Stability of Financial Markets - the Case of the European Union
Journal Title: Central European Review of Economics and Finance - Year 2015, Vol 10, Issue 4
Abstract
The way the global market economy is developing, includes the risk of destabilisation related to uneven pace of growth and changes in the structure of economy and financial markets. As has been shown by recent experiences, the countries and markets are becoming more related to each other. The difficulties appearing in one country within a particular sector may be easily transferred to other areas and countries. This correlation between markets and countries combined with the increase of globalisation will also get stronger, causing greater risk of destabilisation. Apart from advantages, globalisation also entails a range of dangers in various areas. The main risk of globalisation for the international financial system is the increased danger for the world's financial stability. The world of finance has become multipolar. Globalisation of financial markets plays an important role in this process. It is necessary to remember, that globalisation, influencing some markets, will result in the increase of risk for the remaining markets - due to their growing correlation. The aim of this paper is to describe the parameters affecting the stability of financial market, which still receive little attention in the existing stabilisation procedures within the EU, and which, according to the author, are crucial for maintaining the balance of this system.(original abstract)
Authors and Affiliations
Jacek Pera
Keywords
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