Global Financial Interconnections and Systemic Risks

This chapter explores the complex interplay of the global economy, historical crises, and the evolution of financial systems, with a focus on pro-cyclicality and export-led growth. It discusses the vulnerabilities arising from regulatory shifts, the declining influence of traditional banking, and the impact of excessive debt on emerging markets. The chapter emphasizes the urgent need for comprehensive reforms in the international financial system to prevent future crises and establish stability.