The Financial Balancing Act

1315 Words5 Pages
The Financial Balancing Act Name Institutional Affiliation: The Financial Balancing Act Do you agree with this view? I do not agree with the view provided in the article. Governments and policy makers must enhance the emerging economic growth prospects in order to adjust financial markets and globalization. The current era of globalization has been characterized with financial imbalances and governments must learn to navigate a financial landscape that is fragile. Without the government intervention, the recent economic imbalances will continue to make uneven shifts in the market policies and mechanisms. When governments attempt to fight global imbalances, they are likely to confront a new phase of opportunities and risks (Hufbauer & Shet, 2006). The threat of a global downturn could be increased if economies suffer slumps or remain lethargic. Governments must effectively implement financial policies in order to stop the threat of another global economic crisis. Without any government intervention, there will be a reverse in the flow of net capital and investment will be drained away from developed nations thus triggering protectionism. Inequality could widen and even persist. With the limping of the Doha Round, the free trade environment could face increasing pressure. Economic and political reforms may halt, stall, or even reverse the current progress. The government needs to devote time and energy to correct the current financial imbalance rather than risk
Open Document