Mitigating Systemic Risk in Emerging Economies: A Robust Framework for Financial Stability amid Global Volatility

Abstract

In the wake of increasing financial crises, particularly in emerging economies, this study investigates the systemic risks that threaten economic stability. Utilizing a combination of econometric modeling and comparative analysis, we assess the impact of macroeconomic variables on financial resilience. Our findings reveal significant correlations between policy interventions and stability indicators, suggesting that tailored economic policies can mitigate risks effectively. Furthermore, we demonstrate how adaptive financial frameworks can respond to external shocks, thereby enhancing economic resilience. This research underscores the urgency for policymakers to adopt proactive measures to fortify their economies against global volatility, with empirical evidence supporting our recommendations for sustainable financial practices.