Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/198533 
Year of Publication: 
2018
Citation: 
[Journal:] CES Working Papers [ISSN:] 2067-7693 [Volume:] 10 [Issue:] 1 [Publisher:] Alexandru Ioan Cuza University of Iasi, Centre for European Studies [Place:] Iasi [Year:] 2018 [Pages:] 67-78
Publisher: 
Alexandru Ioan Cuza University of Iasi, Centre for European Studies, Iasi
Abstract: 
Financial sustainability of an open economy is a very current and complex issue. In today's global conditions the flow of streams of capital, people, labour, goods, materials, etc. are controlled in a very small degree by countries and its direction depends on exogenous factors. Such conditions allow the free transfer of economic processes within the globalised economy. These processes can generate desirable, positive effects or undesirable, negative effects to the country's economy. Under these circumstances it is important for the internal economy, and the financial system, to possess the ability to resist the destabilizing processes, especially during their particular intensity during a crisis. Given the fact that the initial crisis processes spread through financial markets, and primarily affect the financial system, it's resistance to destabilisation is the most important security buffer for the real economy to maintain growth. Therefore, the sustainability of the financial system in an open economy during a crisis is a crucial factor for the stability of the whole economy. This article discusses the role of the financial system of an economy in absorption of the external crisis processes. Furthermore, in the article the author analyses the specific course of an economic crisis phenomenon in the global conditions. Correct identification of the development of the crisis is crucial for building the economy's resilience to the crisis effects.
Subjects: 
crisis
crisis life cycle
financial sustainability
safety network
financial system
contagion of crisis
transmission of crisis
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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