Annals of the University of Oradea: Economic Science (Jul 2014)
GLOBALIZATION AND THE EVOLUTION OF THE GLOBAL FINANCIAL SYSTEM IN THE CURRENT FINANCIAL CRISIS
Abstract
Globalisation is best exemplified nowadays by the stage of integration of the capital markets. The free movement of capital engages the countries in a global competition, makes them vulnerable in front of the multitude of speculative transactions. The globalisation comprises change processes of a spatial and temporal nature, which support a transformation of the organisation of the inter-human relationships, by connecting and extending the human activity across regions and continents. As a result, first of all, the concept of globalisation implies an extension of the social, political, economic and financial activities across frontiers, so that the events, the decisions and the activities in a particular region of the world may influence the people and communities from other regions of the world. We are all accomplices in causing these financial crises. The financial crises made their presence felt all throughout the modern economy history, they all represented major challenges at an international political level, although many of these crises did not have a large scope and did not develop into large crisis that would have encompassed the sector of the real economy. In the developed countries, the financial instability takes the shape of the banking and monetary crises, while in the underdeveloped countries, it is a mix of the two, accompanied by the increase in the difficulties linked to the service of the external debt. Both the financial crises in the middle of the `90s and the current crisis we are experiencing nowadays have had a great impact on the economic security of people in different parts of the world. This engendered a sudden change in the volume of the foreign investments flows, leading also to the reconsideration of the financial system, overall, by the great players in the international arena. The tendency of the financial crises towards instability caused numerous efforts to be oriented towards generating a general pattern of the financial crises.
