Reflections on Ensuring Financial Stability in the Context of Globalization

Author(s)

Mohamad ABOU EL HASSAN ,

Download Full PDF Pages: 161-170 | Views: 329 | Downloads: 75 | DOI: 10.5281/zenodo.6912196

Volume 11 - June 2022 (06)

Abstract

In the present days, globalization represents a challenge for society because it requires assimilation and control of the relevant content and information that is transmitted by building links between diverse economies and communities. Globalization is facilitated by the free movement of money, labor, and technology. The intensification of global economic exchanges increases the dependence of emerging economies on developed economies, which have a large share of capital and expertise in many areas. Achieving financial stability by a financial system is conditioned by the absence of an economic and financial crisis, but also by the ability of the system to limit the impact of negative effects and deterioration of the system before it poses a threat to systemic stability. The aim of this paper is to investigate how financial stability is ensured in the context of globalization based on reviewing previous research in this field. The first part of the paper analyses the notion and the dynamics of financial globalization. The second part of the paper investigates the theoretical and practical challenges of financial stability in the current context of globalization. Moreover, it presents a series of measures that contribute to maintaining financial stability.

Keywords

financial deregulation, financial stability, globalization, market economy.

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