In this episode, William De Vijlder gives a definition of what financial stability is: not only does it create a favourable environment for the smooth functioning of the economy but it also helps absorbing shocks brought about by unforeseen events which put interconnected economic agents (companies, households, the public sector) at risk. He also reviews the four factors which make countries vulnerable and reveals how shocks (whether endogenous or exogenous) may deeply impact the economy.
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