RAPORTUL DE CAUZALITATE DINTRE CRIZELE FINANCIARE ACTUALE SI CRESTEREA INTEGRARII FINANCIARE

Dana Bako
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Dana Bako: Universitatea “Babes-Bolyai” Cluj-Napoca, Facultatea de Stiinte Economice si Gestiunea Afacerilor

Revista Tinerilor Economisti (The Young Economists Journal), 2006, vol. 1, issue 6, 76-81

Abstract: The world had to face last century a series of financial crashes which were felt more or less intense in every country. As the links between national economies became stronger, the consequences of the financial crises spread faster. Thus, giving both governments and citizens more reasons to worry about the devastating impact of international financial markets turmoil. Financial crises are accompanied by large-scale failures of both financial and non-financial companies, as well as by income and prices decreases in the whole economy. Theoretically, the repercussions of such a crisis could be contained by a sole country, but in reality, financial interdependence as well as other forms of economic interdependence mean that crises are internationally spreading through a phenomenon of contagion. After the financial markets collapse in southeastern Asia and Russia serious talks were held about re-thinking the architecture of the international financial system. Recommendations were made aiming at increasing transparency in international financial operations, reinforcing prudential regulation in banking, and fighting moral hazard provided that private investors will accept the financial risks for the investments they made.

Keywords: financial crises; prudential regulation; moral hazard; capital mobility; new financial architecture (search for similar items in EconPapers)
JEL-codes: G00 G01 (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:aio:rteyej:v:1:y:2006:i:6:p:76-81

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