Why do financial crises occur? Will the global economy create more crises or solve future problems?

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A financial crisis can occur when the money flow between countries is imbalanced or certain sectors of the economy are over leveraged. It can cause a crisis of confidence on the financial market as investors become more concerned about their investment and less inclined to spend.

Globalization has created both the opportunity and risk of instability. Increased international trade/investment, while resulting in faster rates of growth across the board has also made many economies more vulnerable to external shocks. If one country defaults, this can have a ripple effect that causes more losses because creditors are hesitant to lend money.

Hence with all factors considered it is hard say whether more crises will arise future or not – although given recent history seems like chances high that some degree instability remains unavoidable especially considering how quickly markets can change direction nowadays! I don’t think the main question to ask is how we can predict exactly what will happen, but instead find ways that we can proactively prevent potential problems before they have a chance to materialize.