How Japan Fuels Global Financial Instability

Yes, the soaring deficits may contribute somewhat to international financial instability.

Finally, the new rules must allow for financial markets inherent instability.

Pursuing real economic stability, it seems, may lead again to financial instability.

He stressed that UNOPS could not move ahead laden with financial instability.

Yet the IMF pinned significant blame for global financial instability on this policy.

Developing countries main defense against world financial instability has been to accumulate international reserves.

MILAN Over the past two years, industrial countries have experienced bouts of severe financial instability.

One of the major reasons for the financial instability of many middle income countries is the high volatility of external financial flows.

The sooner this happens, the sooner one more scourge of financial instability will be behind us.

And this would give savers less of an incentive to search for yield, thus avoiding financial instability.

Most explanations of the causes of the post 2007 financial crisis point to five sources of instability.

But, whereas we only recently learned that financial behemoths create financial instability, foreign exchange markets for a long time were characterized by volatility and uncertainty.

Unnecessary Instability

Widespread instability

Of course, we must respond to both the weakening economy and financial instability in a virtual state of emergency.

Another is the perceived need, in the aftermath of the increasingly virulent financial crises of the late 1990s, to protect domestic activity levels from international financial instability.

For a world beset by seemingly endemic financial instability, this could prove to be the most destructive development of all.

SÃO PAULO Less than a decade ago, Brazil s economy faltered at the first sign of instability in international financial markets.

This will lessen the need felt by emerging economies for self insurance against financial instability, by building up large reserves.

Europe s Instability Mechanism

Instability from Rigidity

HONG KONG The proliferation of China s opaque, loosely regulated (or unregulated) shadow banking system has been raising fears of possible financial instability.

Expressing concern about the financial instability of the Office of the Special Representative and its adverse impact on the implementation of the mandate,

MILAN In the past two years, two dangerous episodes of financial instability and sudden changes in market dynamics have hit the world economy.

That strategy has now been exposed as perilous, and the use by financial institutions of similar risk models can lead to greater instability.

The Sunni Arc of Instability

Instability just strikes like lightning.

Instability can express itself anywhere.

Underlines that the reforms of the international financial architecture should aim at addressing the fundamental weaknesses of the free market system and inherent instability of the international financial system through achieving the following

Worse still, they have had to adopt strategies such as currency intervention and accumulation of foreign exchange reserves that export financial instability to others.

BARCELONA Central bankers and regulators tend to worry that too much competition in the financial sector increases instability and the risk of systemic failure.

Unable to facilitate balance sheet repair or stimulate real economic activity, QE has, instead, become a dangerous source of instability in global financial markets.

Another delegation referred to the need to set up risk management systems, so as to prevent the spread of financial crisis and economic instability.

Financial support under the Stabex (a financial compensation mechanism aimed at offsetting ex post instability in export earnings) covered only a set of eligible products, with a view to supporting the relevant commodity sector.

Signs of political instability are mounting.

Nor, therefore, is it surprising that the world is once again facing a period of global financial instability, with uncertain outcomes for the world s economies.

Uncertainty over the resolution of the debt is likely to provoke political instability over tax hikes and spending cuts, and therefore volatility in financial markets.

And, in a world economy that had rested on the foundations of a strong dollar, the consequent financial market instability will be costly for all.

Several ministers pointed out that the risk of international financial instability persisted and that it was necessary to correct global imbalances to reduce that risk.

60. These calculations show an instability factor of 3.87 in agricultural production and a weighted instability factor of 1.04.

Thus, large banks are likely to continue to hold too little capital and to take excessive risks, raising the prospect of renewed bouts of financial instability.

The alternative is like in the 1930s unending stagnation, depression, currency and trade wars, capital controls, financial crisis, sovereign insolvencies, and massive social and political instability.

I grew up in a family with a lot of problems, that got realized in a number of ways, one of which was financial insecurity, instability.

The roots of Pakistan s instability run deep.