Title
Globalization in Growing Financial Markets as a Threat to the Financial Security of the Global Economy
Authors
[ 1 ] Uniwersytet Mikołaja Kopernika w Toruniu | [ 2 ] Instytut Studiów Strategicznych, Wydział Bezpieczeństwa Narodowego, Akademia Sztuki Wojennej | [ P ] employee
Scientific discipline (Law 2.0)
Year of publication
2020
Published in
Journal year: 2020 | Journal volume: Volume XXIII | Journal number: Special Issue 1
Article type
scientific article
Publication language
english
Keywords
PL
- Bank Rozrachunków Międzynarodowych
- Banki
- Bezpieczeństwo
- Ekonomia
- Finanse międzynarodowe
- Globalizacja
- Gospodarka światowa
- Inwestycje
- Kryzys finansowy
- Międzynarodowe stosunki gospodarcze
- Organizacje międzynarodowe
- Rynek finansowy
- Ryzyko finansowe
- Ryzyko inwestycyjne
- Światowa Federacja Giełd
EN
- Bank for International Settlements (BIS)
- Economy
- Financial market
- Financial risk management
- Globalization
- Security
- The World Federation of Exchanges (WFE)
Abstract
EN Purpose: The main aim of this article is to spread awareness regarding the scale and dynamics of the development of particular sectors of the financial market and financial turnovers, which threaten the stability of the economy. Design/Methodology/Approach: To achieve that aim, the following analyses were conducted. A comparative analysis of current and historical data of the Bank for International Settlements (BIS) and the World Federation of Exchanges (WFE) in terms of the number of assets allocated in selected sectors of financial markets as well as daily turnover. A content analysis for occurrences confirming growing financial imbalances and frequently occurring in the recent years deep crashes on key financial markets which are a threat to the stability of the global financial economy. Simultaneously, one aspect pointed out was the instance of the growing concentration of assets among individual entities and countries. Findings: The current position of the global economy is far from stable. It is a result of the uncontrolled explosion of development of financial markets and virtually generated profits which, by having been transferred to the world of the real economy, caused detachment of prices from their economic foundation in the recent decades which, in turn, contributed to the global economy's sensitivity to shocks as well as created extremely violent and deep crises with increased frequency. Practical Implications: Financial markets pose significant risks regarding a lack of control over the financier's world and threats to the global economy's financial stability and future civilization development rate. Originality/value: More and more capital on global markets significantly decreased its cost and increased acceptance of investment risk and underestimation, leading to its extremization – risk-taking phenomenon. It prompts even more debt, lowers business entities' vigilance, demotivates saving, reforms, and rationalizes actions among governments, banks, businesses, and citizens. It discourages share issuing and encourages increa.
Date of online publication
11.11.2020
Pages (from - to)
335 - 355
Comments
JEL classification: F31,F32,F34,F38,F42,G15,G18. Bibliografia na stronach 353-355.
License type
CC BY (attribution alone)
Open Access Mode
open journal
Open Access Text Version
final published version
Release date
11.11.2020
Date of Open Access to the publication
at the time of publication
Ministry points / journal
100
Ministry points / journal in years 2017-2021
100
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