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Globalization As Financial Crises Premise

Author

Listed:
  • LUCHIAN, Ivan

    (International Institute of Management IMI-NOVA, Chisinau, Republic of Moldova)

  • FILIP, Angela

    (Moldova State University, Chisinau, Republic of Moldova)

Abstract

Financial globalization represents an important form of economic globalization and is a process of interconnection of basic segments of financial markets at national and international level. It is expressed through increasing the volume and intensity of financial flows, which is determined by opening of national financial markets, level of financial leverage and financial integration. Also, it is aggregated form of international financial integration, which refers to increasing global connections created through cross-border financial flows. The carried out research demonstrate, that certain basic features of financial globalization are in fact prerequisites for triggering international financial crises. The amplification of financial globalization increases the instability in the international financial system and the probability of international financial crises. Knowing this allows the facilitation of predicting international financial crises and reducing their contagion effect.

Suggested Citation

  • LUCHIAN, Ivan & FILIP, Angela, 2015. "Globalization As Financial Crises Premise," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 2(1), pages 127-134.
    • Handle: RePEc:vls:rojfme:v:2:y:2015:i:1:p:127-134
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    References listed on IDEAS

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    Cited by:

    1. Olasehinde-Williams, Godwin & Balcilar, Mehmet, 2020. "Examining the Effect of Globalization on Insurance Activities in Large Emerging Market Economies," Research in International Business and Finance, Elsevier, vol. 53(C).

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    More about this item

    Keywords

    financial globalization; financial crisis;

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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