Financial crises reveal vulnerabilities in global markets from "summary" of International Money and Finance by Michael Melvin
Financial crises serve as a litmus test for the robustness of global markets. These crises have a way of exposing weaknesses and vulnerabilities that were previously hidden beneath the surface. When everything is going smoothly, it is easy to overlook the cracks in the system. However, when a crisis hits, these weaknesses are laid bare for all to see. One of the key ways in which financial crises reveal vulnerabilities is through the interconnectedness of global markets. In today's interconnected world, what happens in one market can have ripple effects that are felt around the globe. This interconnectivity can amplify the impact of a crisis, turning a small problem in one market into a full-blown global catastrophe. Another wa...
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