“In an interconnected world economy, regional conflicts increasingly generate systemic financial risks.” Examine this statement. Assess the impact of such conflicts on global investment flows and interest rates. Outline policy measures to mitigate these risks.

Q6. “In an interconnected world economy, regional conflicts increasingly generate systemic financial risks.” Examine this statement. Assess the impact of such conflicts on global investment flows and interest rates. Outline policy measures to mitigate these risks. (15 M)