FINANCIAL CRISIS AND INSTABILITY

Authors

  • Aduagba Yahaya Abdullahi 1.Department of Economics and Development Studies, Kwara State University, Nigeria. 2. Graduate School of Economics, Khazar University, Baku, Azerbaijan. 3. Department of Economic and Management Sciences, University of Trás-os-Montes and Alto Douro (UTAD), Vila Real, Portugal.

DOI:

https://doi.org/10.61841/ca6f7w38

Keywords:

Financial Crisis, Economic Instability, Monetary Policy, Fiscal Policy, Azerbaijan.

Abstract

Financial crises and instability are common occurrences in the world economy, and they have significant effects on both developed and developing nations. The numerous causes of financial crises and the ensuing instability in the financial markets are thoroughly examined. It explains the theoretical foundations of financial crises, going over important ideas including market bubbles, excessive leverage, and regulatory shortcomings

The paper also looks into how regulations and governmental actions can either exacerbate or lessen financial crises, how financial institutions contribute to systemic risk propagation and how interconnected they are. It looks at how the spread of crises across borders and asset classes can aggravate their severity through the contagion effect.  It also covers the socio-economic fallout from financial crises, such as social unrest, income inequality, and unemployment.

The summary concludes by highlighting how crucial it is to have strong regulatory control and proactive risk management to avert and lessen future financial disasters. It promotes a comprehensive strategy that blends international collaboration, regulatory changes, and responsible risk-taking to promote long-term economic growth and stability in a global financial system that is becoming more linked.

References

World Bank. (2020). Global Economic Prospects, June 2020: A Crisis Like No Other, An Uncertain Recovery. World Bank Publications.

Reinhart, C. M., & Rogoff, K. S. (2009). This time is different: Eight centuries of financial folly. Princeton University Press.

Mishkin, F. S. (1992). Anatomy of a Financial Crisis. Journal of Evolutionary Economics, 2(2).

Shiller, R. J. (2003). From Efficient Markets Theory to Behavioral Finance. Journal of Economic Perspectives, 17(1).

Obstfeld, M., & Rogoff, K. (1996). Foundations of International Macroeconomics. MIT Press.

Bordo, M. D., & James, H. (Eds.). (2014). The Great Depression and the New Deal: A Very Short Introduction. Oxford University Press.

Carney, M. (2019). Values, Prosperity, and the Tides of Globalization. Bank of England Speech, 29 August 2019.

Brunnermeier, M. K., Crockett, A., Goodhart, C. A., Persaud, A. D., & Shin, H. S. (2009). The Fundamental Principles of Financial Regulation. Geneva Reports on the World Economy 11.

Kaminsky, G., & Reinhart, C. (1999). The Twin Crises: The Causes of Banking and Balance of Payments Problems. American Economic Review, 473-500.

Brunnermeier, M. K., Crockett, A., Goodhart, C. A., Persaud, A. D., & Shin, H. S. (2009). The Fundamental Principles of Financial Regulation. Geneva Reports on the World Economy 11.

Roubini, N., & Mihm, S. (2011). Crisis economics: A crash course in the future of finance. Penguin.

Stiglitz, J. E. (2003). Globalization and its discontents. W. W. Norton & Company.

Bordo, M. D., & Schwartz, A. J. (Eds.). (2016). Central Banks at a Crossroads: What Can We Learn from History? Cambridge University Press.

Fisher, P., Flores, R., Herring, R. J., Hoelscher, D. S., & Medeiros, C. A. (2016). Too Big to Fail: The Path to a Solution. International Centre for Monetary and Banking Studies.

Group of Thirty (G30). (2009). Financial Reform: A Framework for Financial Stability. Group of Thirty.

Acharya, V. V., Cooley, T., Richardson, M. P., & Walter, I. (Eds.). (2011). Regulating Wall Street: The Dodd-Frank Act and the New Architecture of Global Finance. John Wiley & Sons.

Azerbaijan Data Source: https://data.worldbank.org/country/azerbaijan

Downloads

Published

30-09-2024

How to Cite

Abdullahi , A. . Y. (2024). FINANCIAL CRISIS AND INSTABILITY. Journal of Advance Research in Business, Management and Accounting (ISSN: 2456-3544), 10(3), 39-45. https://doi.org/10.61841/ca6f7w38

Similar Articles

11-20 of 86

You may also start an advanced similarity search for this article.