AMERICAN MODEL OF INTERNATIONAL FINANCIAL ORDER: PROBLEMS AND PROSPECTS OF DEVELOPMENT

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.