Abstract
Countries around the world are facing many challenges concerning their domestic financial structure, the level of integration to international markets, and possible contagion to external financial crisis (Balakrishnan et al. 2009; Barth et al. 1999). A key policy objective should not only be to address any immediate symptoms of domestic financial crisis, but also to address any underlying structural causes. These responses need to be effective to instill resilience into the system to avoid curbing domestic financial and economic growth (Chinn and Ito 2008; Kose et al. 2009). The global financial crisis of 2008 has left its mark on the various countries of the GCC, but vigorous countercyclical policies through government expenditures and financial sector support measures have helped to contain the external contagion impact (Sturm 2008; Chatham House 2008). While the announcement of the November 2009 Dubai World’s debt standstill dampened some market sentiments (Khamis and Abdelhak 2010), the outlook for the GCC, compared to many other countries, remains encouraging. The crisis, however, revealed financial sector vulnerabilities in some GCC countries that need to be addressed in order to limit future disruptions in sustainable economic growth (Deutsche Bank 2012; Woertz 2011).
It is easy to be wise after the event.
English proverb
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© 2014 Springer International Publishing Switzerland
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Ramady, M.A. (2014). Indicators of Financial Risk. In: Political, Economic and Financial Country Risk. Springer, Cham. https://doi.org/10.1007/978-3-319-02177-5_3
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DOI: https://doi.org/10.1007/978-3-319-02177-5_3
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