Unkovska T.
Ph. D. (Economics), Doctor of Economic Sciences, Professor of the Banking
Department of the Kyiv National Economical University named after Vadym Hetman,
Managing Director of the Expert Analytical Center “Optima”, Kyiv, Ukraine
Grydzhuk D.
Ph. D. (Economics), Associate Professor of the Banking Department of the Kyiv
National Economic University named after Vadym Hetman, Deputy Director of the
Expert Analytical Center “Optima”, Kyiv, Ukraine
CONCEPTION OF FINANCIAL STABILITY:
SYSTEMIC DYNAMIC APPROACH
Introduction. It is impossible to overestimate an importance of comprehensive
understanding of financial stability conception and mechanisms of financial
destabilisation essence. The problems of banks financial instability, non-financial
corporations, householders, financial markets, national economies and the global
economy have been staying in the focus of keen discussions since start of the past
global financial crisis until now.
Much has been done in the framework of economic sciences and financial
regulation methodology for deepening the understanding of financial instability
mechanisms and preventing the next global financial crisis risks. Besides of appeal to
old fundamental financial instability research of John Keynes, Irving Fisher, and
Hyman Minsky, a huge number of new bright and profound books, papers and
analytical reports had been developed that include a wide historical analysis, innovative
approaches, deep insights, and new paradigms in the sphere of financial instability and
financial crises research [1-21]. There are books and papers of Joseph Stiglitz, Adair
Turner,
Carmen M. Reinhart,
Kenneth Rogoff, Viral Acharya, Franklin Allen, Oliver
Blanchard, Markus Brunnermeier, Stephen G. Cecchetti, Andrey Crockett, Philip
Davis, Kenneth A. Froot, Douglas Gale, Charles Goodhart, Huerta de Soto, Henry
Kaufman, Paul Krugman, Frederik Mishkin, Garry Schinasi, Steven L. Schwarcz,
Hyun Song Shin, Roel Theissen. These and many others distinguished authors devoted
their work to research financial instability and systemic risks complex problems. It is
a great progress in understanding the different mechanisms of financial instability and
crises, channels of financial contagion and financial soundness indicators.
However, there are still some important conceptual problems and discussions in
the theoretical and methodological basis of understanding financial stability and
financial instability essence. In this paper [22-25], we accomplish the modest attempt
to participate in these methodological discussions and suggest systemic dynamic
approach to definition and quantitative description of financial stability phenomenon.
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