Globalization and the instability of global financial markets

Abstract

The financial and economic crisis that began in 2007 is a clear example of how is globalisation connected to the instability of global financial markets. Our target is not to analyze the immediate and direct contributing factors for the current financial instability. This paper focus on the issue of how globalisation is related to the instability of global financial markets by noting that the instability of global financial markets can be influenced not only from the vulnerabilities of global financial and banking system but also from the impact of globalisation on state power and uneven development and distribution of the wealth. These factors have contributed to the creation of a highly fragile financial system which is vulnerable to prospect crises anytime.