EFFECTS OF FINANCIAL MARKET DEVELOPMENT ON GLOBAL ECONOMIC CHANGES

Abstract

Financial markets channel large amount of funds from those who have surplus to those who do not have enough money to cary out a desired avtivity. This channels represent the lifeblood of every economy and every change in their course and their volume affects the behavior of market participants How much money should you spend, and how much should you invest? This is the dilema of all business entities, as well as of those who are not participants in the financial market. Whether they are aware of the effects of financial marekts on their consumption or not, changes in the financial markets cause sometimes ineffective, but sometimes dramatic changes in the dynamics of economic trends.