Many will recall that we treat this current problem a lot earlier. Let's do it again, because topicality is not reduced.
Meanwhile a large number of studies have shown that things are a little different than at the beginning of the global economic crisis thinking: inconsistency of national and incompleteness and inconsistency of the global financial system, was the trigger role in the outbreak of the global economic crisis, but the underlying generetor, the driving force were global imalances and their generators.
It seems that it may be useful to emphasize to point out that the former Great Depression predominantly in the U.S. and today's global economic crisis has had a large and important common feature in the financial domain.
At least with the current global economic crisis is concerned, it seems that we come to the conclusion that it may be correct causality following formula: the role of the financial system in causing the crisis was important but not primary / fundamental. This also means that it is necessary but not sufficient to establish, a consistent set of financial systems - both national and global. It is necessary to remove the deeper generators disorders not only in financial but also in the real sector of the economy:
- As we know the Great Depression in the U.S. had a significant impact on the establishment of a repressive, hiperegulated Financial Sector (or as others prefer to tell the Government-led financial system);
- Performance of that repressive sector became an obstacle financial development,
- But when we take account other factors (computer and telecommunication technologies, financial innovation, the general surge of liberalization and the recent breakthroughs in financial theory) has inevitably been apperance a "financial revolution" in the second half of the seventies and eighties years of the last century;
- Financial revolution is, in fact, had two "arm scissors" jointly participated in the simultaneous realization of two-dimensional process of creative destruction:
(1) the destruction of the previous system of financial repression, and
(2) creating a new, much more developed, far more liberal, etc. and risky World of finance.
Financial development/"Financial revolution", viewed as trade of too much libelarism - to much riskiness
Inhaltsverzeichnis (Table of Contents)
- Financial Revolution: A Story of Liberalization and Risk
- The Great Depression and the Financial Revolution
- Financial Development and the Trade-off between Liberalization and Risk
- The Consequences of the Financial Revolution
- The Rise of a Neo-Liberal Financial System
- Periods of Financial Instability since 1970
- The Globalization of Finance
- The Absence of a Consistent Global Financial System
- Financial Instability and the Global Financial Crisis
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This work aims to analyze the evolution of the global financial system since the Great Depression, particularly focusing on the impact of financial liberalization and deregulation on financial stability. It examines the interconnectedness of financial development and the globalization process, emphasizing the role of risk in shaping the landscape of international finance. The key themes explored in the text include:- The interplay between financial liberalization and risk in a globalized world
- The impact of the financial revolution on the stability of financial systems
- The emergence of a neo-liberal financial system and its implications
- The challenges of managing global financial instability in the absence of a consistent global financial system
- The potential need for a new approach to global financial management
Zusammenfassung der Kapitel (Chapter Summaries)
This text traces the evolution of financial systems since the Great Depression, highlighting the shift from a regulated environment to a more liberalized and deregulated one. The author discusses the 'financial revolution' and its impact on financial development and the global economy. The consequences of increased liberalization and the resulting rise in risk are explored, including the emergence of a neo-liberal financial system. The text then delves into specific periods of financial instability since 1970, demonstrating the interconnectedness of local, regional, and global financial crises. The author argues that the absence of a consistent global financial system has contributed to financial instability and ultimately led to the global financial crisis.Schlüsselwörter (Keywords)
The main keywords and topics of this text include: financial liberalization, financial revolution, global financial crisis, financial instability, risk, neo-liberal financial system, global financial management, financial regulation, globalization, and the Great Depression.Frequently Asked Questions
What triggered the global economic crisis according to the text?
The text states that global imbalances were the driving force and generator of the crisis, while the inconsistency of national and global financial systems played a trigger role.
What was the "financial revolution"?
The financial revolution of the 1970s and 80s destroyed the previous system of financial repression and created a new, more liberal, but also more risky world of finance.
What is the trade-off between liberalization and risk?
Increased financial development and liberalization often come at the cost of higher riskiness within the global financial system.
How did the Great Depression affect financial regulation?
The Great Depression led to the establishment of a highly regulated, almost repressive financial sector led by the government.
Why is a consistent global financial system necessary?
Without a consistent set of national and global financial systems, it is difficult to manage financial instability and prevent crises in a globalized world.
What role did technology play in the financial revolution?
Computer and telecommunication technologies, along with financial innovation, were key factors that enabled the surge of liberalization in the late 20th century.
- Quote paper
- Stanko Radmilovic (Author), 2012, No stable world of finance based on the premises. poor regulation, strong liberalization and high riskiness, Munich, GRIN Verlag, https://www.grin.com/document/267119
