Important because the world has realized that every

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important because the world has realized that every country relies on others in different ways to stimulate their own economy and markets in their economies. The third and final economic change is the evolution of financial markets. Mandel defined financial markets as encompassing all parts of the economy that have to do with borrowing, investing, or transferring money. Financial markets have a serious effect on
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things that are sold at high values, such as houses or cars. With these expensive things being bought and sold, financial markets come into play. For example, some people don’t have cash to straight up pay for these expensive things. So an example of a financial market is a bank and their low interest loans. Because banks are able to loan these high amounts of money to people who may not have that much money at the time, this stimulates the economy through interest and long term contracts in paying money back. Thus, giving us a financial market. Sure, this sounds like a great idea in the moment, but eventually could lead to foreclosure of homes and items, but more importantly could lead to an economic recession.
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