Financial excesses and the economic instability

Ion Bucur
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Ion Bucur: University of Bucharest, Romania

Theoretical and Applied Economics, 2016, vol. XXIII, issue Special(I), 193-200

Abstract: The defining with profound implications on the economy and society is represented by the globalization. In this context, we have noticed the increasing influence of the financial markets on the economy, the tendency to remove the finances from the real economy requirements, the growing role of external financing using more volatile capital goods, increased competition regarding the access to financing, the significant increase of power of the international capital markets whose characteristic is represented by the increased instability. As a conclusion, the tendencies are noticed of the financial world economy to become fragile, of fading connections between the financial and the real economy, of enhanced risk for financial accidents to propagate. Based on these observations, the extent is emphasized to which financial globalization provides the possibility of the financial crises to occur and expand.

Keywords: financial globalization; institutional investors; financial crises; financialization of the economy; shareholder capitalism. (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:xxiii:y:2016:i:special(i):p:193-200

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