The Instability of the International Financial System and Its Implications for Trade and Investment

  • Gunter Dufey
Conference paper


The topic is the instability of the international financial system and its implications for trade and investment. This is a very vast and difficult subject, but recognizing its significance is important. Due to its nature, the thrust of the paper must be in identifying the relevant issues. While the literature on various aspects of the subject is extensive, the very volume attests to the fact that definite answers are few, and those that exist are contested. Nevertheless, an increase or decrease in instability represents an important strategic forecast. It affects the actions of companies as well as individuals to arrange their affairs in such a way as to minimize the effect of instability. This includes the possibility of a reduction in the scope and volume of economic activity, i.e., economic growth. The significance of these matters justifies even a degree of speculation that goes beyond conventional economic analysis.


Exchange Rate Foreign Direct Investment Real Exchange Rate Financial Asset Exchange Rate Regime 
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© Springer-Verlag Berlin · Heidelberg 1993

Authors and Affiliations

  • Gunter Dufey

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