A good financial system is essential for a well functioning economy and effective. Capital to its most productive uses is assigned and manages risk. However, the financial systems are fragile, and this fragility can cause financial crises that generally affect the real economy, such as Japan and the United States have experienced. The causes of the financial crisis are many and varied, but there are commonalities. Financial crises often create long periods of slow economic growth.
by
Robert C. Klemkosky
Source: Business Horizons
9 pages.
Date Posted: November 15, 2013. Prod #: BH563-PDF-ENG
Case Solution fragility of the financial system
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