Financial sustainability of a globalised economy in the context of the mechanism of the spread of crisis
Journal Title: CES Working Papers - Year 2018, Vol 10, Issue 1
Abstract
Financial sustainability of an open economy is a very current and complex issue. In today's global conditions the flow of streams of capital, people, labour, goods, materials, etc. are controlled in a very small degree by countries and its direction depends on exogenous factors. Such conditions allow the free transfer of economic processes within the globalised economy. These processes can generate desirable, positive effects or undesirable, negative effects to the country's economy. Under these circumstances it is important for the internal economy, and the financial system, to possess the ability to resist the destabilizing processes, especially during their particular intensity during a crisis. Given the fact that the initial crisis processes spread through financial markets, and primarily affect the financial system, it's resistance to destabilisation is the most important security buffer for the real economy to maintain growth. Therefore, the sustainability of the financial system in an open economy during a crisis is a crucial factor for the stability of the whole economy. This article discusses the role of the financial system of an economy in absorption of the external crisis processes. Furthermore, in the article the author analyses the specific course of an economic crisis phenomenon in the global conditions. Correct identification of the development of the crisis is crucial for building the economy's resilience to the crisis effects
Authors and Affiliations
Piotr Komorowski
Keywords
Related Articles
- EP ID EP468534
- DOI -
- Views 118
- Downloads 0
“INTERNATIONAL TRADE – ENVIRONMENT” RELATIONSHIP IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT
The overall aim of this paper lies on presenting a short pragmatic image of the main aspects concerning the impact of international trade on the environment, on the one hand, and the impact of environmental policies and...
THE EU-US RELATIONS IN AN EMERGING MULTIPOLAR WORLD
In the context of an emerging multipolar world, the transatlantic partnership faces various challenges in the attempt to maintain the Western-shaped and dominated liberal order. This article aims to synthesize and ration...
ROMANIA – TO HAVE OR NOT TO HAVE ITS OWN DEVELOPMENT PATH?
Human societies are evolving in sequences similar to a business cycle. The cause for which the evolution is accompanied by setbacks lies in the complexity of social systems, which, ab initio, cannot be designed or...
REFERENCES OF THE NEW THEORY OF TRADE AND ECONOMIC GROWTH
This paper shows that the dynamization of the traditional theory of international trade through the study of growth effects on the foreign trade in the framework of neoclassical analysis, alongside the approach with the...
The new economic governance framework of the European Union
There is a general agreement that the European Union is facing nowadays one of the most important challenges in the history of the community, taking into consideration the wide range of economic, social and political ris...