global financial stability

Global financial stability refers to a condition where the global financial system operates smoothly, allowing for the efficient flow of capital, credit, and investment across countries. It means that economies can grow without experiencing severe risks, like financial crises or major disruptions. Key factors include sound banking practices, effective regulation, and the ability to withstand economic shocks. When global financial stability is at risk, it can lead to economic downturns, increased unemployment, and uncertainty, affecting people's lives and businesses worldwide. Ensuring this stability is crucial for sustainable economic development and peace in the international community.