INTERNATIONALIZATION OF STOCK EXCHANGES AND OF FINANCE. WORKING OF THE GOLD STANDARD AND THE EUROPEAN SINGLE CURRENCY

Within the broad field generated by the relationship between finance and economics, two issues attracted particular attention. The financial crises of international and growing role in worldwide stock markets and institutions related to stock markets, focus our attention in this article. We describe the basic features of the international financial system, among which financial instability and volatility of markets. In shaping our economic knowledge is very important to the thinking of Keynes. The 1987 crash on Wall Street was transmitted to all world markets, prompting widespread public intervention to support the liquidity and solvency of the institutions. The country that suffered least the crash was Japan, whose stock seemed immunized although PER levels tripling to that in the other markets.