Global Financial Systems: Stability and Risk

Global Financial Systems: Stability and Risk is an innovative textbook that explores the ‘why’ behind global financial stability, providing insightful discussions on the international financial system and the contemporary issues of today.

It is suitable for both undergraduate and masters students, and early versions of the book have been used successfully in a masters course at the London School of Economics, FM 447, Global Financial Systems.

The book uses economic theory, finance, mathematical modelling, risk theory, and policy to posit a  comprehensive, coherent and current economic analysis of the inherent instabilities of the financial system, and the design of optimal policy response.two on-line chapters, hosted here, that contain the latest developments in financial regulations and the European sovereign debt crisis. These chapters are updated regularly as merited by current developments.

Key questions:

  • Under what circumstances have we achieved financial stability?
  • Which previous crises inform the current ones and in what way?
  • What are the common themes and lessons for policy, regulation and financial theory?


Nicely and clearly written for an undergraduate audience…the book has a fresh perspective that will differentiate it from pre-crisis texts
Professor Goodhart, Professor Emeritus, London School of Economics
“Global Financial Systems: Stability and Risk, looks to be an important book… it will appeal to those interested in regulation as well as those more on the regulatory side.
Professor Caprio, William Brough Professor of Economics at Williams College and Chair, Center for Development Economics