Global: Financial instability as a threat to sustainable development

As seen over and again during recurrent financial crises in both developing and advanced economies, including the recent global crisis originating in the US and Europe, financial instability and boom-bust cycles undermine all three ingredients of sustainable development – economic development, social development and environmental protection. Financial bubbles generate excessive investment which remains unutilized for an extended period even after full recovery from the ensuing financial crisis, argues this South Centre policy brief.