DEFINING FINANCIAL STABILITY - A LITERATURE REVIEW

In the context of global financial crisis and financial globalization, the importance of defining and maintaining financial stability is widely accepted. Even if financial markets recover slowly, vulnerabilities remain significant. Financial stability and its opposite financial instability have to be analyzed taking into account the interdependences between financial system and real economy. Because there is no single definition of financial stability generally accepted, our paper provides an overview of research in this field that is rapidly evolving.