Ekonomika

In this article called “ Global Financial Instability: framework, events and issues” by Frederic Mishikin, he states that global economy has experienced severe bouts of financial instability in the last five years, and that these instabilities have had devastating impact on crisis in countries. For example in Mexico GDP fell from 4% to –6%. In Asian countries like Korea and Indonesia it fell from above 5% to below –5%. So the key questions that today’s policy makers face are how to reduce risk of global financial instability and how to show how economic instability damages economic activity. As...