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We must also bear in mind that the stock exchanges, economic thermometers are true: if the economy is doing well, the prices go up, when it goes wrong or a company has problems, the values fall, as their owners want to sell all costs before fall more.

In recent years, financial systems have been undergoing momentous changes and institutional innovations have appeared in the money and capital markets have a decisive influence in its operation. Untying the international monetary system on gold, the development of unregulated offshore markets credit and securities, derivatives trading, etc., have greatly increased the liquidity of financial markets, forcing central banks to change their strategies to achieve the objectives of monetary policy and even changing the scale of priorities of these goals [1].

Deregulation and financial innovations have had three important effects:
1 – They have increased the risks of financial systems.
2 – have accentuated the dependence of countries with weak currencies with respect to the hegemonic countries in the international monetary system.
3 – has become obsolete some assumptions of the theoretical paradigms that supported traditional patterns of monetary policy.

The interdependence of national economies through globalization has affected international financial liberalization and other international shocks that have suffered different countries, are caused precisely the untidy speculation in the stock markets.

In the 90s, the financial crisis that stood out were:
• The Japanese crisis since 1990
• The Mexican crisis “Tequila Effect” in 1995
• The Asian crisis “Effect Dragon” in 1997
• The Russian crisis “Vodka Effect in 1998
• The crisis in Brazil “Effect Zamba” in 1999

Financial instability in the 90s, took on great importance for its harmful effects on these economies and global reach. The world economy has encouraged a movement of capital accumulation. Until the U.S. economy has been challenged in its cycle of economic growth was going through. The effects arising from Walll Street influence worldwide.

credit to: Msc. Ernesché Rodríguez Asien
Source: www.gestiopolis.com/canales8/fin/especulacion-financiera-y-sus-consecuencias.htm
image source: www.michigan.gov/images/deq-logo-financial_assistance_10384_7.jpg

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