FINANCIAL STABILITY - THE AIM OF STABILIZATION POLICY

The aim of the article is to present the relationship between the overall economic situation and the situation on the financial markets, and the consequences for the financial markets arising from it. First of all, the concept of financial instability is explained and main theories accounting for its origins are discussed. On the basis of that theoretical reflection, the author outlines the observed relation between the overall economic situation and the state of financial markets. Finally, he describes problems which economic authorities face in case of speculation bubbles' appearance.