Problem
Instability of the world economy
Experimental visualization of narrower problems
Other Names:
Deterioration in international economic environmentInstability of financial markets
Financial destabilization of world trade
Unregulated monetary markets
Monetary instability
International financial system instability
Fluctuations in world monetary conditions
Vulnerability of national economies
Nature:
The stable expansion and balanced growth of world trade is hampered by instability of exchange rates, inadequate multilateral systems of payment, disequilibrium in balance of payments, and destructive national and international measures taken to correct maladjustments in balance of payments.
Broader Problems:
InstabilityEconomic uncertaintyInternational insecurity Narrower Problems:
High interest ratesInstability in tradeInstability of pricesUnstable economic baseGlobal shortage of fundsExchange rate volatilityUncontrolled flow of fundsSpeculation on money marketsForeign exchange restrictionsNet outflow of capital from countriesFinancial instability of national economiesDestabilizing movements of short-term capitalDeterioration of international terms of tradeEconomic and industrial production instabilityInadequate mechanism for balance of payments adjustmentInability of countries to adopt appropriate exchange rate policies Related Problems:
Discriminatory exchange rate policies Aggravates:
Financial panicPolitical instabilityGlobal financial crisisEconomic underdevelopmentGlobal economic stagnationRisk of capital investmentInstability in export earningsCommunist political imperialismDisruption of financial marketsImbalance in international trade patternsFragmentation of the international trading system Strategies:
Destabilizing economic systemsTaking advantage of market turbulenceCreating complementary currenciesIncreasing international economic cooperationRegulating monetary marketsProtecting against vulnerability of national economiesStabilizing world monetary conditionsTaking advantage of fluctuations in real value of moneyDestabilizing world economy Values:
EconomyInvulnerabilityStabilityDeteriorationFluctuationInstabilityUneconomicUnregulatedVulnerability References:
Gowda, K G V: Eurodollar Flows and International Monetary StabilitySargent, J R: Europe and the Dollar in the World-Wide DisequilibriumChinkin, Davidson and Ricquier: Current Problems of International Trade FinancingLundberg, Erik: Instability and Economic Growth Subject(s):
Commerce → FinanceCommerce → Market
Commerce → Money
Commerce → Trade
→ Systems
Economics → Economic
Economics → Economy
Environment → Environment
Societal Problems → Instability
Societal Problems → Vulnerability
Related UN Sustainable Development Goals:
Problem Type:
C: Cross-sectoral problems Date of last update
17.04.2019 – 14:00 CEST