The Impact of Digital Currencies, Trade Policies, and Climate Change Mitigation on Global Economic Stability

Abstract

This study examines the impact of digital currencies, trade policies, and climate change mitigation on global economic stability. The primary objective is to qualitatively analyze the literature to understand how these factors interact to influence economic systems worldwide. The research employs a qualitative literature review methodology, synthesizing findings from academic articles, policy reports, case studies, and empirical studies to provide a comprehensive overview of current knowledge in this field.

The literature review methodology involves systematically collecting and analyzing scholarly sources that discuss various aspects of digital currencies, trade policies, and climate change mitigation. The study categorizes the literature into key themes, such as the role of digital currencies in reshaping financial markets and transactions, the influence of trade policies on global economic relationships and stability, and the impact of climate change mitigation efforts on economic sustainability. Thematic analysis is used to identify patterns and trends in how these factors affect global economic stability.

The findings indicate that digital currencies have the potential to enhance financial inclusion and efficiency but also pose risks related to regulatory challenges and market volatility. Trade policies significantly shape global economic interactions, where protectionist measures can lead to economic uncertainty, while liberal trade policies may promote growth and stability. Climate change mitigation efforts, including green investments and sustainable practices, are crucial for long-term economic stability but require substantial coordination and investment from global actors.