The Risk of Financial Networks in the Context of Globalization
11 Pages Posted: 7 Aug 2019
Date Written: August 4, 2019
The process of globalization inevitably leads to the rethinking (conceptual reconstruction) of the paradigm of growth and economic development at local, regional, national, European and global level, implicitly on the financial market as a whole. The high challenge, on the one hand, of the depletion and / or deterioration of the resources (especially natural) and, on the other hand, of our optimization model - the maximization of the objective functions at the level of the economic and financial actors, is likely to advertise a radical change in the options and means we address this important activity of the individual and society: the economic and financial activity.
At the same time, it is obvious that financial activity can no longer be regarded in itself as a mode governed by discreet rationality distinct from others, rationality based on consistent and sufficient logic. Logic and rationality at the level of financial markets must accept, under the pressure of global problems, a permanent and fundamental communication with the other logic of individual and social behavior (praxis). In addition, they must accept the possibility and desirability of re-evaluations, repositions or even refunds, in light of the new paradigms of the economic process, including the process of finance and a knowledge of the financial network's risks.
Keywords: finance, financial network, sustainability
JEL Classification: F17, G23, O16
Suggested Citation: Suggested Citation