The Effect of Financial Globalization on Economic Instability: The Case of the Global Financial Crisis

Abstract

Objective: Financial globalization has become a phenomenon that influences economic dynamics at the global level. The impact of financial globalization on economic instability, especially in the global financial crisis, presents complex challenges and requires in-depth understanding. This research aims to investigate the impact of financial globalization on economic instability, especially in the context of the global financial crisis.   Theoretical Framework: The research began by looking at the dynamics of financial globalization that are currently occurring. After that, we will look at the various driving factors that cause economic instability. After the existing factors have been explored, we will examine the impact of this instability on economic development. Only then in the next stage will we look at the policy response to the global financial crisis. This research then concludes by looking at future challenges and opportunities for economic development.   Method: The research method used is a descriptive qualitative approach, where data is obtained from the results of relevant research and previous studies. It is hoped that this data analysis will provide in-depth insight into the complexity of the impacts of financial globalization.   Results and Conclusion: The research results show that adaptation to global economic changes is a necessity. International cooperation in managing financial risks is also of key importance. In conclusion, integration of sustainability dimensions in global economic policy is necessary, while understanding the challenges and opportunities faced by global society.   Originality/Value: This research contributes to a holistic understanding of global economic dynamics and provides a basis for developing more sustainable and responsive policies in the future.