Transformation of the Global Financial System in the First Two Decades of the Twenty-first Century
https://doi.org/10.23932/2542-0240-2020-13-4-4
Abstract
The article analyzes the changes that have occurred in the global financial system in the XXI century. Moreover, the study covers the global financial system in its integrity as a combination of different financial markets and international financial institutions. Based on the analysis of statistical data, it is shown that the global economic and financial crisis of 2007-2009 led to a reduction in international capital flows, a change in their structure (towards an increase in the share of foreign direct investment) and a decrease in cross-border financial activity. In the post-crisis period, government debt and equity markets developed relatively more dynamically, while banking activity was restrained, including as a result of intersectoral arbitrage caused by international financial system reforms. The process of reforming the global financial system has reduced risks in certain segments of the global financial market (banking services markets, over-the-counter derivatives), but retained relatively less regulated segments that may be subject to risks of financial shocks. Changes in the global financial architecture have led to the formal involvement of emerging markets in the process of reforming the global financial system (through the Group of 20) and to some strengthening of the supranational component of regulation. However, in general, the interests of countries with emerging markets both in the reform processes and in the construction of the global financial architecture are not fully taken into account.
About the Author
M. Yu. Golovnin
Institute of Economics of the Russian Academy of Sciences
Russian Federation
Russian Federation
Corresponding Member RAS, DSc in Economics, Deputy Director
117418, Nakhimovsky Av., 32, Moscow, Russian Federation
References
1. A Decade after Global Financial Crisis: What Has (and Hasn’t) Changed (2018). McKinsey Global Institute Briefing Note. September 2018. Available at: https://www.mckinsey.com/~/media/Mc-Kinsey/Industries/Financial%20Services/Our%20Insights/A%20decade%20after%20the%20global%20financial%20crisis%20What%20has%20and%20hasnt%20changed/MGI-Briefing-A-decade-after-theglobal-financial-crisis-What-has-and-hasnt-changed.ashx, accessed 25.05.2020.
2. Aldasoro I., Ehlers T. (2019) Concentration in Cross-border Banking. BIS Quarterly Review. June 2019. Available at: https://www.bis.org/publ/qtrpdf/r_qt1906b.htm, accessed 25.05.2020.
3. BIS Annual Economic Report (2020). Available at: https://www.bis.org/publ/arpdf/ar2020e.htm, accessed 25.05.2020.
4. Borio C., Disyatat P. (2011) Global Imbalances and the Financial Crisis: Link or no Link? BIS Working Papers. No. 346.
5. Brasilia Declaration (2019). 11th BRICS Summit, November 14, 2019. Available at: http://en.kremlin.ru/supplement/5458, accessed 25.05.2020.
6. Bussiere M., Schmidt J., Valla N. (2016) International Financial Flows in the New Normal: Key Patterns (and Why We Should Care). EIB Working Papers. No. 2. Available at: https://www.econstor.eu/bitstream/10419/144175/1/863303153.pdf, accessed 25.05.2020.
7. Clayes G., Demertzis M., Efstathiou K., Raposo I.G., Huettl P., Lehmann A. (2017) Analysis of Developments in EU Capital Flows in the Global Context. Taking the Perspective of the Capital Market Union. Bruegel Final Report. FISMA/2016/032/B1/ST/OP. European Commission. November 2017. Available
8. at: http://bruegel.org/wp-content/uploads/2018/01/171215study-bruegel-capital-flows_en.pdf, accessed 25.05.2020.
9. COVID-19 Pandemic: Financial Stability Implications and Policy Measures Taken (2020). FSB, April 15, 2020. Available at: https://www.fsb.org/2020/04/covid-19-pandemic-financial-stability-implications-and-policy-measures-taken/, accessed 25.05.2020.
10. Degterev D.A. (2016) Political Influence in the International Financial System. International Organisations Research Journal, vol. 11, no 4, pp. 77–105. Available at: https://iorj.hse.ru/data/2016/12/14/1111732297/%D0%94.%D0%90.%20%D0%94%D0%B5%D0%B3%D1%82%D0%B5%D1%80%D0%B5%D0%B2_14.12.pdf, accessed 25.08.2020 (in Russian).
11. Khudyakova L.S. (2019) Ten Years of Global Financial Regulatory Reform: What Lies Ahead? MGIMO Review
12. of International Relations, vol. 12, no 5, pp. 91–113 (in Russian). DOI: 10.24833/2071-8160-2019-5-68-91-113
13. Kindleberger Ch.P., Aliber R. (2005) Manias, Panics, and Crashes, Hoboken, New Jersey: John Wiley & Sons, Inc.
14. Larionova M.V., Shelepov A.V. (2019) G20, BRICS and G7 in Global Economic Governance. International Organisations Research Journal, vol. 14, no 4, pp. 48–71 (in Russian). DOI: 10.17323/1996-7845-2019-04-03
15. Mirkin Y.M. (2019) Global Finance: Future, Challenges for Growth (in co-authorship with T.V. Zhukova, A.V. Komova, M.M. Kudinova), Moscow: Lingua-F (in Russian).
16. Nekipelov A.D. (2010) Causes and Development of the Global Economic Crisis. New Challenges for Monetary Policy in Modern Conditions. Book 1. A View from Russia (eds. Nekipelov A.D., Golovnin M.Yu.), Moscow: Institute of Economics (in Russian).
17. Obstfeld M. (2018) Twenty-Five Years of Global Imbalances. Sustaining Economic Growth in Asia (eds. Cohen-Setton J., Helbling T., Posen A., Rhee C.), Peterson Institute for International Economics. Quarles R.K. (2019) The Financial Stability Board at 10 Years – Looking Back and Looking Ahead. Speech at the European Banking Federation’s Banking Summit “Building A Positive Future For Europe”. Available at: https://www.fsb.org/wp-content/uploads/S031019.pdf, accessed 25.05.2020.
18. Progress in Implementation of G20 Financial Regulatory Reforms (2019). FSB, June 25, 2019. Available at: https://www.fsb.org/2019/06/progressin-implementation-of-g20-financialregulatory-reforms/, accessed 25.05.2020.
19. Schmukler S.L., Zoido P., Halac M. (2003) Financial Globalization, Crisis, and Contagion. Background Paper for the Globalization World Bank Policy Research Report. The Financial System We Need. From Momentum to Transformation (2016). UNEP. October 2016. Available at: http://unepinquiry.org/wp-content/uploads/2016/09/The_Financial_System_We_Need_From_Momentum_to_Transformation.pdf, accessed 25.05.2020.
20. Troshin N.N. (2017) International Monetary Fund Reforms and Russia’s Interests. Russia: Development Trends and Prospects, vol. 2, part 2, pp. 189–192 (in Russian).
21. Vestergaard J. (2011) The World Bank and the Emerging World Order. Adjusting to Multipolarity at the Second Decimal Point. Danish Institute for International Studies (DIIS) Report. No. 5.
22. World Economic Outlook Update. June 2020 (2020), Washington DC; International Monetary Fund.
23. Zvonova E.A., Ershov M.V., Kuznetsov A.V., Navoj A.V., Pischik V.Ya. (2016) Reforming the International Financial Architecture and Russian Financial Market, Moscow: RUSAINS (in Russian).
Review
For citations:
Golovnin M.Yu. Transformation of the Global Financial System in the First Two Decades of the Twenty-first Century. Outlines of global transformations: politics, economics, law. 2020;13(4):74-96. (In Russ.) https://doi.org/10.23932/2542-0240-2020-13-4-4
Views:
1591
Email this article 