Deepening Integration

2017 ◽  
Author(s):  
Yilmaz Akyüz
Keyword(s):  
Emerging Economies ◽  
Financial Integration ◽  
Foreign Currency ◽  
Financial System ◽  
The United States ◽  
Bank Loans ◽  
Capital Inflows ◽  
Resident Participation ◽  
International Financial System ◽  
Private And Public

After recurrent crises with severe consequences in the 1990s and early 2000s EDEs have become even more closely integrated into what is now widely recognized as an inherently unstable international financial system. This chapter discusses the factors accelerating global financial integration of EDEs, including monetary policies in major advanced economies, notably the United States. It examines capital inflows and outflows, external balance sheets, the size and composition of gross external assets and liabilities, distinguishing between equity and debt, private and public sectors, local currency and foreign currency debt, bond issues and bank loans, and cross-border and local lending by international banks. It provides data and information on the currency composition of external debt, and non-resident participation in domestic financial markets of emerging economies. These are used to identify the changes in the depth and pattern of integration of emerging economies into the international financial system since the early 1990s.

From IMF Poster Child to Wayward Student

2019 ◽  
pp. 185-193
Author(s):  
Jerome Roos
Keyword(s):  
United States ◽  
International Monetary Fund ◽  
Financial System ◽  
The United States ◽  
Fiscal Discipline ◽  
Enforcement Mechanism ◽  
International Financial System ◽  
The International Monetary Fund ◽  
The Imf

This chapter considers why the International Monetary Fund (IMF) did it not prevent Argentina's record default of 2001. It suggests that the IMF was both unable and unwilling to stop it. While the second enforcement mechanism of conditional IMF lending was initially fully operative, helping to enforce Argentina's compliance in the first years of the crisis, the outcome of the megaswap greatly reduced the risk of an Argentine default to the international financial system. Combined with mounting domestic opposition in the United States to further international bailout loans, this greatly weakened the IMF's capacity to impose fiscal discipline on Argentina, eventually leading the Fund to pull the plug on its own bailout program, causing the second enforcement mechanism to break down altogether. The chapter recounts the process through which this breakdown occurred.

scholarly journals Problems and prospects of financing innovative development in sub-Saharan African countries

2019 ◽  
Vol 2019 (4) ◽  
pp. 59-67
Author(s):  
Tijani Alhassan
Keyword(s):  
Financial Services ◽  
Financial Integration ◽  
Financial System ◽  
Bank Loans ◽  
Sub Saharan Africa ◽  
Financial Resources ◽  
Innovative Development ◽  
African Countries ◽  
Sub Saharan

The article discusses the place and role of the financial system in the development of national economic systems in developing countries. There have been identified the main func-tions of the financial system: mobilizing financial resources, creating a database of investment projects and investors, monitoring and corporate deposit management, forming a block of information on diversification, transformation and risk management, facilitating the sale of goods through a payment system. The existing approaches to determining the concept of accessibility of financial resources are considered. The role of the financial sector in advancing technological innovations and industrialization in sub-Saharan African countries has been identified. The analysis of reasons for low financial integration, low access to financial services in the shadow economy has been carried out. The main reasons for the lack of access to banking services include the language barrier, lack of simple identification documents or data due to a poorly organized local infrastructure. It is noted that about 52% of the population of sub-Saharan Africa have access to formal financial services; 65% of small, medium and micro-enterprises (90% of the economic sector in Africa) do not have access to bank loans. Research and development expenditures in the economic regions have been systematized. The conclusions have been made about the underdevelopment and lag of infrastructure in sub-Saharan African countries, low availability of financial resources retarding the economic growth and innovative development of small and medium-sized businesses. Possibilities for improving the systems of financial innovative development in the investigated countries have been given.

Dollar’s triumph in Bretton Woods: how was it done?

2015 ◽  
pp. 58-72
Author(s):  
O. Butorina
Keyword(s):  
United States ◽  
Historical Data ◽  
Financial System ◽  
The United States ◽  
Economic Power ◽  
Bretton Woods ◽  
Fiat Money ◽  
International Financial System ◽  
Dollar Standard ◽  
The U.S

The increased economic power of the United States and their enormous golden reserves are the main reasons used by economists to explain why the Bretton Woods conference of 1944 put the dollar in the centre of a new international financial system. However, it is not clear if these conditions were sufficient for the introduction of a gold (de facto dollar) standard and excluded any other type of international financial order. The study of historical data reveals an effective diplomatic maneuver conducted by the U.S. administration with an aim to prevent a global transit to fiat money, to keep the importance of gold and to build a strictly hierarchical international financial system.

International Capital Flow Reversals (Sudden Stops)

2019 ◽  
Author(s):  
Eduardo A. Cavallo
Keyword(s):  
Current Account ◽  
Capital Flows ◽  
Financial Stability ◽  
Foreign Currency ◽  
The United States ◽  
Capital Inflows ◽  
Sudden Stops ◽  
Lender Of Last Resort ◽  
Current Account Deficits ◽  
Combustible Materials

Sudden stops in capital flows are a form of financial whiplash that creates instability and crises in the affected economies. Sudden stops in net capital flows trigger current account reversals as countries that were borrowing on net from the rest of the world before the stop can no longer finance current account deficits. Sudden stops in gross capital flows are associated with financial instability, especially when the gross flows are dominated by volatile cross-border banking flows. Sudden stops in gross and net capital flows are episodes with an external trigger. This implies that the spark that ignites sudden stops originates outside the affected country: more specifically, in the supply of foreign financing that can halt for reasons that may be unrelated to the affected country’s domestic conditions. Yet a spark cannot generate a fire unless combustible materials are around. The literature has established that a set of domestic macroeconomic fundamentals are the combustible materials that make some countries more vulnerable than others. Higher fiscal deficits, larger current account deficits, and higher levels of foreign currency debts in the domestic financial system are manifestations of weak fundamentals that increase vulnerability. Those same factors increase the costs in terms of output losses when the crisis materializes. On the flip side, international reserves provide buffers that can help countries offset the risks. Holding foreign currency reserves hedges the fiscal position of the government providing it with more resources to respond to the crisis. While it may be impossible for countries to completely insulate themselves from the volatility of capital inflows, the choice of antidotes to prevent that volatility from forcing potentially costly external adjustments is in their own hands. The global financial architecture can be improved to support those efforts if countries could agree on and fund a more powerful international lender of last resort that resembles, at the global scale, the role of the Federal Reserve Bank in promoting financial stability in the United States.

scholarly journals COMPARATIVE ANALYSIS OF FINANCIAL SYSTEMS OF THE CANADA AND THE USA

2020 ◽  
pp. 107-117
Author(s):  
Tetiana DERKACH
Keyword(s):  
United States ◽  
Comparative Analysis ◽  
Financial Integration ◽  
Financial System ◽  
The United States ◽  
Financial Systems ◽  
Analysis And Synthesis ◽  
The Usa ◽  
Strategic Goals ◽  
Further Development

Introduction. To determine the strategic goals of transforming the financial system of Ukraine, it is especially important to study the experience of successful and effective world economies. The iconic examples of such systems are the financial systems of Canada and the United States. The purpose of this article is to analyze the dynamics of the United States and Canadian financial systems’ indicators and determine the characteristics of the development of these countries in terms of their future closest financial integration. Methods. The research methodology was based on a combination of such scientific methods as: generalization, graphic and comparative analysis, analysis and synthesis, this made possible to determine the development details of the USA and Canadian financial system and the possibilities for their financial sector further integration and harmonization. Results. The USA and Canadian financial systems are analyzed, especially, the causes and consequences of the financial integration of these systems, as well as possible ways for their further development are thoroughly studied. Such stability indicators of the financial system as inflation, money supply, interest rate dynamics and public debt are researched. Risk assessment of the further development of the financial system of the USA and Canada is also done. Conclusions. The Canadian and US financial systems are closely interconnected through many years of cooperation. Accordingly, the risks in these systems are the same, and factors that are similar for both countries hinder their development. Although, regardless of these factors, in general, the development of the financial systems of the United States and Canada is stable and consistent.

scholarly journals Before the ‘locomotive’ runs: the impact of the 1973–1974 oil shock on Japan and the international financial system

2020 ◽  
Vol 27 (3) ◽  
pp. 418-435
Author(s):  
Kazuhiko Yago
Keyword(s):  
Financial System ◽  
Working Party ◽  
The United States ◽  
International Banking ◽  
International Financial System ◽  
Oil Shock ◽  
Key Policy ◽  
Japanese Perspective ◽  
The Impact ◽  
Global Growth

This article offers a Japanese perspective on the debate about the international financial system immediately after the first oil shock of 1973–4. Using archival records from the OECD and Bank of Japan, I analyze the three key policy issues discussed at the meetings of Working Party 3 (WP3) of the OECD: petrodollar recycling, balance-of-payments adjustments, and the management of global growth. Documents show that the Japanese approach to capital controls, exchange rate management, state-led growth orientation and international banking strategies was rather strengthened by the impact of the oil shock. By 1975 the OECD viewed Japan, together with Germany and the United States, as one of the ‘locomotives’ that would trigger a revival of economic growth in the industrialized West.

scholarly journals ADVANTAGES AND DISADVANTAGES OF THE LIBERALIZATION OF FOREIGN CURRENCY EXCHANGE ARRANGEMENTS IN UKRAINE

2017 ◽  
pp. 136-146
Author(s):  
Anzhela KUZNIETSOVA ◽  
Nataliia MISIATS
Keyword(s):  
Financial Markets ◽  
Financial Integration ◽  
Foreign Currency ◽  
Capital Inflows ◽  
Institutional Reforms ◽  
Developed Economies ◽  
Advantages And Disadvantages ◽  
Currency Exchange ◽  
Exchange Transactions

Introduction. The high openness level of the Ukrainian economy determines the necessity of join to the worldwide financial integration by means of gradual liberalization as a part of the foreign currency exchange arrangements reform. Purpose. The main aim of the paper is to develop methodological and applied principles for the foreign currency exchange liberalization in Ukraine. Results. It has been summarized the liberalization advantages and disadvantages, identified current economic items which prevent to achieve the liberalization positive consequences in Ukraine, defined the favorable sequence of the liberalization steps in Ukraine which also contains measures of recognizing foreign currency exchange transactions aimed for capital outflow. For successful liberalization it is necessary to enroot a precondition complex which is consists of economic, monetary, financial and institutional reforms. Conclusion. Tht main goals of the liberalization in Ukraine are the next: to attract the long-term capital inflows from developed economies, to obtain access to the global financial markets, to take liberalization advantages and to reduce its disadvantages and risks.

scholarly journals Shopping for Anonymous Shell Companies: An Audit Study of Anonymity and Crime in the International Financial System

2010 ◽  
Vol 24 (4) ◽  
pp. 127-140 ◽  
Author(s):  
J. C Sharman
Keyword(s):  
United States ◽  
United Kingdom ◽  
Service Providers ◽  
Financial System ◽  
The United States ◽  
Small Island ◽  
Corporate Transparency ◽  
International Financial System ◽  
The United Kingdom ◽  
Transparency And Disclosure

The last few years have seen an international campaign to ensure that the world's financial and banking systems are “transparent,” meaning that every actor and transaction within the system can be traced to a discrete, identifiable individual. I present an audit study of compliance with the prohibitions on anonymous shell companies. In particular, I describe my attempts to found anonymous corporate vehicles without proof of identity and then to establish corporate bank accounts for these vehicles. (Transactions processed through the corporate account of such a “shell company” become effectively untraceable—and thus very useful for those looking to hide criminal profits, pay or receive bribes, finance terrorists, or escape tax obligations.) I solicited offers of anonymous corporate vehicles from 54 different corporate service providers in 22 different countries, and collated the responses to determine whether the existing legal and regulatory prohibitions on anonymous corporate vehicles actually work in practice. To foreshadow the results, it seems that small island offshore centers may have standards for corporate transparency and disclosure that are higher than major OECD economies like the United States and the United Kingdom.

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