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Study Notes

Financial Instability and the Real Economy (Financial Economics)

A Level, IB
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Why does financial instability matter for the economy? According to the Bank of England, “Financial stability – public trust and confidence in financial institutions, markets, infrastructure, and the system as a whole – is critical to a healthy, well-functioning economy.”

What is Systemic Risk?

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