AMERICAN MODEL OF INTERNATIONAL FINANCIAL ORDER: PROBLEMS AND PROSPECTS OF DEVELOPMENT
Keywords:
Key words, world financial order, Bretton Woods Currency System, Jamaican Foreign Exchange System, gold standard, foreign exchange reserves, exchange rate.Abstract
Kaftia M.A. AMERICAN MODEL OF INTERNATIONAL FINANCIAL ORDER: PROBLEMS AND PROSPECTS OF DEVELOPMENT
Purpose. The aim of the article is to highlight the historical stages of the formation of the American model of world financial order and the comparative analysis of the main elements of the Bretton Woods and Jamaican foreign exchange systems. Research and outline of the positive and negative aspects of the evolution of the Bretton Woods and Jamaican foreign exchange systems is also defined.
Methodology of research. The following methods are used in the process of research: historical (during the analysis of the Bretton Woods system, where the US dollar gained monopoly currency hegemony and turned into a standard for the world monetary system); comparison and analogy (when comparing the Bretton Woods model of the world monetary order, despite its obvious competitive advantages and the monetary system of the Jamaican currency system, which is based on the introduction of the standard of special rights of borrowings, gold parities and the amortization of US dollars on gold, and also giving countries the right to choose the exchange rate regime).
Findings. It has been established that the structural dynamics of the development of the international monetary system has always reflected the main economic contradiction of social development, namely: between the form of monetary relations and the development of productive forces. It is determined that this contradiction since the acquisition of the Jamaican currency system of force has formed a powerful self-supporting mechanism of reproduction of the global scale of the main world economic imbalance – the possibility of expanding public consumption over the magnitude of the gross product created for a certain period of time.
It is envisioned that the modern monetary format of the international economic order may be qualified as the post-Bretton Woods, characterized by the transition from monocentrism to polycentrism with the temporary restoration of the role of monetary metals. It is determined that the growing dependence of the world economic system on the macroeconomic dynamics of the United States of America and on the permanent fluctuations of the exchange rate of the US dollar, by its nature and inherent features, reflects the key contradiction between the state form and the monetary substance of the development of the world financial market.
Originality. The theoretical positions are substantiated and the conceptual approach to eliminating contradictions in the American financial order generated by an increase in inconsistency between the international nature of use and the national nature of monetary units is developed.
Practical value. The obtained results of the research are the basis for solving practical problems related to the implementation of monetary policy by central banks, mechanisms for the functioning of national monetary systems, balancing demand and supply of money, the constant volatility of foreign exchange rates, ensuring international liquidity, managing official gold and currency reserves of countries, a constant decrease in the purchasing power of money, an increase in the level of monetization of national economies while simultaneously reducing wages cash flows.
Key words: world financial order; Bretton Woods Currency System; Jamaican Foreign Exchange System; gold standard; foreign exchange reserves; exchange rate.
References
Eichengreen, B. (2013), Nepomernaya privilegiya: Vzlet i padeniye dollara [Exorbitant Privilege: The Rise and Fall of the Dollar], Moscow, Russia, 320 p.
Soboliev, B.V. (2013), “The world financial order and national credit strategy”, Aktualni pytannia suchasnoi svitovoi ekonomiky i MEV, iss. 115 (1), pp. 89-93.
Kolinets, L.B. (2016), “Transformation of world financial order: the role of keynesianism and neoliberalism”, Naukovyi visnyk Uzhhorodskoho natsionalnoho universytetu. Seriia: Mizhnarodni ekonomichni vidnosyny ta svitove hospodarstvo. iss. 8, part 1, pp. 102-105.
Lukianenko, D.H., Poruchnyk, A.M., Stoliarchuk, Ya.M. et al. (2010), Antytsyklichne rehuliuvannia rynkovoi ekonomiky: hlobalizatsiina perspektyva [Countercyclical regulation of market economy: the globalization perspective], monograph, KNEU, Kyiv, Ukraine, 334 p.
Keynes, J.M. (1923), A Tract on Monetary Reform, London: Macmillian and Co., Limited.
Novak, S.M. and Serhiienko, O.V. (2010), “The evolution of exchange rate theories”, Sotsialno-ekonomichni problemy suchasnoho periodu Ukrainy. Finansovyi rynok Ukrainy: stabilizatsiia ta yevrointehratsiia: zb. nauk. prats, NAN Ukrainy, Instytut rehionalnykh doslidzhen, iss. 1 (81), pp. 46-58.
Hawley, J.P. (1987), Dollars and Borders: US Government Attempts to Restrict Capital Flows, 1960–1980, New York: M.E. Sharpe, 218 p.
Mishchenko, S.V. (2012), “Main contradictions of modern monetary systems and mechanisms to ensure their stability”, Izvestiya Sankt-Peterburgskogo universiteta ekonomiki i finansov, no. 3, pp. 33-43.
Moshenskiy, S.Z. (2018), Khaos i sinergiya: Rynok tsennykh bumag postindustrialnoy epokhi [Chaos and Synergy: The Securities Market of the Post-Industrial Epoch], Vipol VB, Kyiv, Ukraine, 504 p.
Novak, S.M. (2014), “Evolution of the global monetary system”, Finansovo-kredytna diialnist: problemy teorii ta praktyky, no. 1, pp. 213-220.
Kudryashova, I.V. and Pleshakova, M.V. (2017), “The role of modern world currencies in private sector”, Vestnik VolGU, Seriya 3: Ekonomika, Ekologiya, Vol. 19, no. 3, pp. 224-233.
Downloads
Published
Issue
Section
License
Open-access articles (open-access journals)
Authors whose articles are published in open-access retain all rights to the content of the articles.
Open access articles are committed to be published under Creative Commons Attribution (CC BY) 4.0. This license allows others to distribute, edit, correct and build upon your work, even commercially, as long as they indicate your authorship. Detailed information at Creative Commons site: https://creativecommons.org/licenses/by/4.0/
Permissions for open-access journals
If the article is published in open-access under CC BY 4.0 or CC BY-NC 4.0 (which was possible till the 15th of December, 2018) licenses, users may reproduce it in accordance with their terms.
Additionally, if the article had been published under CC BY-NC 4.0 (this license authorizes others to download your works and share them with others as long as they indicate your authorship, but they can’t use them commercially in any case.), the use for the following commercial purposes requires permission:
– reproduction of content in a work or product intended for sale;
– reproduction in presentations, brochures or other marketing materials used for commercial purposes;
– distribution of the content to promote or market a person, product, course, service or organization;
– text and data mining for the purpose of creating a saleable product or product which benefits from promotional or advertising revenue;
– use of the content by a commercial entity or individual for the purposes of remuneration, directly or indirectly through sale, licensing, promotion or advertising;
– linking to the content (in an email, webpage, portable electronic device or otherwise) for the specific purpose of marketing or advertising a person, product, course, service or organization for commercial benefit.
For further details and permission requests, please contact.
