Krasnostanova N., PhD (Economics), Head of the Organizations Management Department, Odesa Regional Institute for Public Administration, National Academy for Public Administration under the President of Ukraine, Odesa, Ukraine

ORCID ID: 0000-0003-2151-3633
e-mail: krasnostanova7718-2@unesp.co.uk

Yatskevych I., Doctor in Economics, Professor of the Department of Organization Management Odesa Regional Institute for Public Administration, National Academy for Public Administration under the President of Ukraine, Odesa, Ukraine

ORCID ID: 0000-0003-0210-6135
e-mail: yatskevych@lund-univer.eu

Trends in Reforming the Global Financial System

Abstract. Introduction. The relevance of the study of trends in the reform of the global financial system is due to the fact that it is currently going through one of the most difficult and critical stages of its existence. The traditional challenges in the field of international currency circulation include the steady development of globalization of all economic processes, the development of digital technologies, as well as the impact of powerful exogenous factors such as rapid climate change and the COVID-19 pandemic, which requires a rapid and comprehensive response.

Purpose. In this regard, this article aims to identify key aspects of the current stage of reforming the global financial system, their general characteristics, as well as changes in theoretical and political approaches to solving problems of the global financial system from the standpoint of complexity. The main research method was the method of induction, which based on the study of a number of primary international documents, theoretical studies and research focused on the initial analysis of individual problems of the global financial system allowed to form a comprehensive vision, identify and systematize major trends in global financial system reform.

Results. The article provides a brief overview of trends in global financial architecture, emphasizes the awareness of major players – politicians, international economic and financial organizations, most scholars and key bankers of central banks – the need for closer linkage of monetary and financial processes with the needs of the real economy and international trade, increasing the regulatory role of the state in financial processes, as well as closer international coordination of efforts in the financial sphere, which is especially important for an adequate response to climate change and in the fight against the COVID-19 pandemic. The impact of digital technologies and exogenous factors (climate change and the COVID-19 pandemic) has forced politicians and financiers to focus on the Global Tax Agreement and the European Union’s introduction of a transboundary carbon regulation mechanism.

Conclusions. The identified trends in reforming the global financial system and their key characteristics, given in this article, can serve as a starting point for further research, both comprehensive and more specialized, as well as contribute to a broader understanding of modern global financial processes in shaping financial policy and adoption management decisions.

Keywords: financial architecture; international financial organizations; tax system; financial instruments; anti-crisis measures.

References:

1. Carney, M. (2019). The growing challenges for monetary policy in the current international monetary and financial system. The Jackson Hole Symposium 2019. Retrieved from : https://www.bankofengland.co.uk/speech/2019/mark-carney-speech-at-jackson-hole-economic-symposium-wyoming [in English].
2. Mozgovyy, O. (2005). International Finance. Kyiv : KNEU [in Ukrainian].
3. Zagorodniy, A. , Voznyuk, G. L., & Smovzhenko, T. S. (2002). Financial dictionary. Kyiv: Znannya [in Ukrainian].
4. Herringm, R., & Litan, R. (2005). Financial regulation in a global economy. Washington: Brooking Institution [in English].
5. Klochko, V. (2002). Financial globalization: positives and negatives for the transition economy. Actual Problems of Economy, 5, 43-50 [in English].
6. Yilmaz, A. (2000). The debate on the international fiinancial architecture : Reforming the reformers. Retrieved from: https://unctad.org/system/files/official-document/dp_148.en.pdf [in English].
7. Our shared agenda for global action to build back better. (2021). Carbis Bay G7 Summit Communique. Retrieved from : https://www.g7uk.org/wp-content/uploads/2021/06/Carbis-Bay-G7-Summit-Communique-PDF-430KB-25-pages-5.pdf [in English].
8. Third Finance Ministers and Central Bank Governors meeting 9-10 July 2021. (2021). Communique Italian G20 Presidency. Retrieved from : https://www.g20.org/wp-content/uploads/2021/07/Communique-Third-G20-FMCBG-meeting-9-10-July-2021.pdf [in English].
9. World Trade Report. (2020). https://www.wto.org/english/res_e/booksp_e/wtr20_e/wtr20_e.pdf [in English].
10. White, J. (2021). This week in tax: European disharmony ahead of G20 tax summit. ITR. Retrieved from: https://www.internationaltaxreview.com/article/b1sb80wx9bvzp4/this-week-in-tax-european-disharmony-ahead-of-g20-tax-summit [in English].
11. Carbon Border Adjustment Mechanism. European Commission. Retrieved from : https://ec.europa.eu/taxation_customs/green-taxation-0/carbon-border-adjustment-mechanism_en [in English].
12. Blanchard, O., & Summers, L .H. (2019). Evolution or revolution? Rethinking macroeconomic policy after the great recession. Cambrige: MIT Press [in English].
13. Mackintosh, S.P.M. (2020). The redesign of the global financial architecture: state authority, new risks and dynamics. London : Routledge [in English].
14. Buiter, W. H. (2018). The financial system ten years after the financial crisis: Lessons learnt. Retrieved from : https://www.oecd.org/naec/10-years-after-the-crisis/W_Buiter_NAEC_14_Sept_2018.pdf [in English].
15. Franklin, A., & Xian, Gu. 2016. The Interplay between Regulations and Financial Stability. The Interplay of Financial Regulations, Resilience, and Growth” at the Federal Reserve Bank of Philadelphia. Retrieved from : https://poseidon01.ssrn.com/delivery.php?ID=939124067092026068001008122083065122024055052015007029075097090030114090117070004117010025040030028099033028101080071082106086058032042047078119105064126079081072007017066053119085124012067068090030110006091102007105081069107088117119028099095096024091&EXT=pdf&INDEX=TRUE [in English].
16. Bordo, M. (2021). Monetary policy cooperation/coordination and global financial crises in historical perspective. Open Economies Review, 32, 587-611 [in English].
17. Güven, A. B. (2018). Whither the post-Washington Consensus? International financial institutions and development policy before and after the crisis. Review of International Political Economy, 25(3), 392-417 [in English].
18. Jones, E., & Knaack, P. (2019). Global financial regulation: Shortcomings and reform options. Global Policy, 10, 193-206 [in English].
19. Yin, X., Xu, X., Chen, Q., & Peng, J. (2019). The sustainable development of financial inclusion: How can monetary policy and economic fundamental interact with it effectively? Sustainability, 11, article number 2524 [in English].
20. Tskhadadze, N. V., & Chernorizova, N. V. (2019). International financial markets in the conditions of transformation of financial system. In: Popkova E. (Ed.) Lecture notes in networks and systems (757-764). Springer : Cham [in English].
21. Abor, J. Yi., Adjasi, C.K.D., & Lensinkm, R. (2020). Contemporary issues in development finance. London : Routledge [in English].
22. Caldentey, P. E. (2019). The reform of the global financial architecture. In : Roy Harrod (Ed.). Great Thinkers in Economics. London : Palgrave Macmillan. 301-347 [in English].
23. Samorodov, B., & Zhytar, M. (2021). Conceptual principles of formation of world finance architecture. Financial and Credit Systems : Prospects for Development, 1(1). 47-54 [in English].
24. Vishnevsky, V. P., & Shelud’ko, N. M. (2017). World monetary centres at the stage of global financial instability: Risks, challenges and perspectives. Industrial Economics, 4(80). 75-96 [in English].
25. Hynes, W., Trump, B. D., Love, P., Kirman, A., Galaitsi, S. E., Ramos, G., & Linkov, I. (2020). Resilient financial systems can soften the next global financial crisis. Challenge, 63(6), 311-318 [in English].
26. Ens, E., & Craig, J. (2020). Scenario analysis and the economic and financial risks from climate change. Bank of Canada Staff Discussion Paper, 2020-3. Retrieved from : http://hdl.handle.net/10419/227814 [in English].
27. Bibow, J. (2019). Evolving International monetary and financial architecture and the development challenge : A liquidity preference theoretical perspective. Economics Working Paper. 1-22 [in English].
28. Dom, R., & Miller, M. (2018). Reforming tax systems in the developing world : What can we learn from the past? ODI Report. Retrieved from : http://hdl.handle.net/10419/190850 [in English].
29. Liow, J.C.Y. (2017). Taking shape : New global financial architecture. RSIS Commentary, 190. Retrieved from : https://dr.ntu.edu.sg/bitstream/10356/86061/1/CO17190.pdf [in English].
30. Artie, W. N. (2018). From sustainability accounting to a green financing system: Institutional legitimacy and market heterogeneity in a global financial centre. Journal of Cleaner Production, 195. 585-592 [in English].