2017: Journal no. 4

FINANCIAL STABILITY OF AN OPEN ECONOMY IN THE CONDITIONS OF AN EXOGENOUS CRISIS

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Authors:  
Piotr KOMOROWSKI, PhD, Cardinal Stefan Wyszyński University in Warsaw, Faculty of History and Social Sciences Department of Finance, Poland

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, labor, 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 or undesirable, negative effects on the country’s economy. Under these circumstances it is important for the internal economy, and financial system to be able to resist the destabilizing processes, especially to their particular intensity during a crisis. Given the fact that the initial crisis processes spread through financial markets, and primarily affect the financial system, its 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 sytem of an economy in absorption of the external crisis processes. Furthermore, the author analyses the specific course of an economic crisis phenomenon in the global conditions. Correct identification of the crisis development is crucial for building the economy’s resilience against the crisis effects.

Keywords:  
criză, ciclu de criză, sustenabilitate financiară, rețea de siguranță, sistem financiar, contagiune de criză, transmiterea crizei.