An Argument That Financial Liberalization and Speculation Display the Financial Market's Instability
The soaring volume of international financing and increased interdependence in
recent decades has increased concerns about volatility and threats of a financial crisis.
It has led many to investigate and examine the origins, transmission, effects and policies
aimed to impede fiscal instability. This paper argues that financial liberalization and
speculation are the virtually all reflective explanations for instability in monetary markets and that
financial instability may very well be transmitted globally with significant implications on real
sector effectiveness. I conclude the paper with the argument a global transaction tax
will be the most effective coverage to curb economical instability and that other proposed
policies, such as for example focus on zones and the creation of a supranational organization, are either
unfeasible or unattainable.
INSTABILITY IN FINANCIAL MARKETS
In this section I analyze four interpretations of how personal instability arises.
The first interpretation handles speculation and the next Р’вЂњbandwagoningР’вЂќ in
financial markets. The second