When Britain abandoned the gold standard in 1931, it was not only forsaking a system for managing the currency but also acknowledging that it could no longer bear the mantle of empire, The Economist reported. When America broke the dollar’s peg with gold in 1971, it ushered in a decline that continued until Paul Volcker re-established confidence in the currency in the early 1980s.

The extraordinary events of the past week in Europe have included the shattering of a taboo that could have profound consequences for the Continent: the public discussion by European leaders that Greece could exit the common currency, The Wall Street Journal reported. The chances of Greece leaving the euro may have fallen on Thursday as the likelihood of a referendum receded.

“We are all reacting to headlines – every new headline triggers another move. There is so much uncertainty it’s difficult to navigate.”

Thus spoke Jack Ablin, chief investment officer of Harris Private Bank, quoted in an article published in The Guardian. The article first appeared online on Oct. 18 at 19.35 BST (14.35 EST) with the headline: “France and Germany ready to agree €2 trillion euro rescue fund.” Needless to say, as per Mr.

The future of banking is in question all around the world, but nowhere more so than in Central and Eastern Europe.

Financial markets and the governments of advanced economies around the world are inextricably tied together in an unbreakable marriage, a Brookings Institution paper reported. The two sides need each other. Governments borrow huge sums of money and, for its part, the financial system requires a large base of safe, liquid assets to function efficiently. In some times and places, however, that marriage is very troubled. Right now, the Eurozone is a prime example.

Funding fears, political gridlock and plunging stocks have pulled the eurozone deeper into crisis, CounterPunch.org reported in a commentary. On Friday, the gauges of market stress continued to widen signalling more turbulence in the days ahead. Libor –the rate at which London-based banks borrow from each other–increased for the eleventh straight day, while the Libor-OIS spread, (which indicates the reluctance of banks to lend to each other) soared to levels not seen since Lehman Brothers blew up in 2008.

The global economy has entered a dangerous new phase. There is a path to sustained recovery, but it is narrowing. To navigate it, we need strong political will around the world – leadership over brinksmanship, cooperation over competition, and action over reaction, IMF Director Christine Lagarde wrote in a Reuters commentary. One of the main problems today is too much debt in the global financial system – among sovereigns, banks, and households, especially among the advanced economies. This is denting confidence and holding back spending, investment, and job creation.