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Financial excesses and the economic instability

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  • Ion BUCUR

    (University of Bucharest, Romania)

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.

Suggested Citation

  • Ion BUCUR, 2016. "Financial excesses and the economic instability," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(Special(I), pages 193-200.
    • Handle: RePEc:agr:journl:v:xxiii:y:2016:i:special(i):p:193-200
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    References listed on IDEAS

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