Abstract:
International contribution of capital flow to the financial instability filled in a few additional elements that influence on the crisis mechanism. First, the policy adopted by different national authorities that counterbalances through growth of interest rate can brake out to financial instability. Second, the complications which are filled by financing the external
specification of the public and private sector, results from the fact that the position of equilibrium is sensible to the exchange rate that lead's to a potential link between the depreciation in the context of a currency crisis and financial instability.
