Why do financial crises occur? Will the global economy create more crises or solve future problems?

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Financial crises occur when there is an imbalance in the flow of money and credit between different countries, or when certain economic sectors become too over-leveraged. This can lead to a collapse of confidence in financial markets as people start to worry about their investments and are less willing to spend.

The current global economy creates both opportunities for prosperity as well risks instability due its interconnected nature; while increased international trade/investment has led faster growth rates across board it has also left many economies vulnerable external shocks. For instance, if one country defaults on its debt then this could ripple outwards causing more widespread losses since creditors will likely be hesitant lend anymore money until situation resolved.

Hence with all factors considered it is hard say whether more crises will arise future or not – although given recent history seems like chances high that some degree instability remains unavoidable especially considering how quickly markets can change direction nowadays! Ultimately though I think key question should focus less on predicting exact outcomes but rather finding ways proactively mitigate potential issues before they even have chance materialize; thus having better safeguards place prevent sudden losses from occurring will help ensure safety global economy long run.