Global Financial Issues, Article Review Example

Source: Mishkin, Frederic S. 1999. “Global Financial Instability: Framework, Events, Issues” Journal of Economic Perspectives. Volume 13 (4). 3-20.

Financial risks are particular issues that financial advisers have to deal with especially in this development driven society. It could be analyzed that somehow, the primary issues that need to be given attention to is the fact of having the need to prevent specific instability and practically cope with the matter especially when it already occurs. Understandably, the even though financial issues could not be avoided, Mishkin points out that they could be worked around with which suggests that they are to be given specific attention while strategic considerations are applied by the business operators who are the primary actors in the financial industry.

To be able to make his point more realistic and viable, he utilized the actual situation of Mexico and the East Asian crisis countries during the years 1994 to 1998. These years, being the height of the financial crunch of the 1990s, showed indication on whether or not a country could survive financial issues utilizing its own assets and embracing strategies that are designed to give them an edge in the market amidst all the financial turmoil happening around the globe.

In conclusion, Mishkin indicates that the readiness of the economy to handle the issue especially when the situations in the market already show specific conditions of financial instability would be the primary source of support not only for businesses but for the whole nations economy. Notably, with the strategy of working around the situation through making sure that the current loss of finances could be revived later on through creating business alternatives at present.

Pointing out more on what went wrong and how likely could they have been treated with proper assumptions of financial strength, Mishkin utilizes the examples of several countries that suffered so much from the turmoil that happened in the international financial market in the late 1990s. To this he notes that the crisis countries were already experiencing hard times even before the financial crunch. The incapability to handle the needed adjustments even made it worse for the countries to face the new challenges of the incoming financial issues that were sourced out from international points of operation in the business industry. The hope of contending with the situation through strategic utilization of available assets to set forth a new future that would regain strength for the current market’s stability has been described by MIshkin as a primary key to financial success in the international scene.