Financial globalization fuels ongoing global financial crises and economic instability.
Financial globalization played a significant role in spreading the world financial crisis of the early 21st century. The crisis, which began in 2008, led to high unemployment and slow economic recovery in many countries. The Eurozone's sovereign debt crisis followed, adding to the global financial instability. Emerging markets, including the BRICS, have also faced challenges since 2016, with capital outflows and currency depreciation causing concerns about financial stability worldwide.