"Financial Revolution", "rapid financial development" - would now scientific authority mitigate premature praise?
The article was published in the Serbian language, on the site http://radmilovicstanko.com/ with title "Finansijska revolucija", "rapidni finansijski razvoj"... – da li bi danas naučni autoriteti ublažili preuranjene hvalospeve?
There is almost no dispute about that in the past few decades there has been great, "dramatic", "fundamental", "revolutionary"changes in the world of finance, which many authors call the "new" financial "revolution". These changes have led to the modern financial world changed drastically, that is unrecognizably different from the one of the only 30 days - 50 years.
Increasingly, we meet the term "financial world". It is used as a synonym for Finance to refer to the fact that they gained greater individuality than they had before, when they been encompassed, too, eith the colloquial notion of "world money". However, the notion "World Money" and "World Finance", althoughi closely, not identical. But neither quite different: the world of money and financial world can be said to have been part of the same, but also that each of them is different (narrower and / or wider) than the other. Compiled term "World Money and Finance" is comprehensive, but it is enough pleonastic and thus not absolutely accurate.
Nobel laureate Robert C. Merton (1995) speaks of the great, "revolutionary changes" that led to all - to the users of financial services, the producers of financial services and products to persons performing surveillance and control in the financial system.
MERTON, R. C. (1995): “Financial Innovation and the Management and Regulation of Financial Institutions”, Journal of Banking and Finance 19, 461-481; and National Bureau of Economic Research Working Paper 5096 (April 1995)
Even before mentioned Mertono's work, at the beginning of the nineties, many other authors have amounted to the same or similar notions. Among them Frederic Mishkin (1990), who is from the September 2006, the member of the Board of Governors of the Federal Reserve USA. He points out that the earlier (before the 1990. when he wrote it), the financial markets and institutionsI in the U.S. have undergone revolutionary changes, which resulted in the fact that many financial instruments and institutions, who at that time were taken as a given , twenty, or even ten years ago, did not exist.
Financial markets and institutions in the United States have been undergoing revolutionary changes in recent years. Twenty, or even ten years ago, many of the financial instruments and institutions that we now take for granted did not exist.
Starting in the 1960s, individuals and financial institutions operating in financial markets in the United States were confronted with drastic changes in the economic environment: Inflation and interest rates climbed sharply and became harder to predict, while computer technology advanced rapidly.
- Quote paper
- Professor Doctor Stanko Radmilovic (Author), 2013, Financial Revolution, rapid financial development. Would scientific authority mitigate premature praise?, Munich, GRIN Verlag, https://www.grin.com/document/267625