Challenges for the Global Financial System
According to the governor of the Bank of England, Mark Carney, the global financial system is currently lagging behind the evolution of the global economy, facing asymmetric concentrations of financial assets in advanced economies relative to economic activity. As the world re-orders, this disconn...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Nicolae Titulescu University
2019-06-01
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| Series: | Global Economic Observer |
| Subjects: | |
| Online Access: | http://www.globeco.ro/wp-content/uploads/vol/split/vol_7_no_1/geo_2019_vol7_no1_art_008.pdf |
| _version_ | 1818115899053309952 |
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| author | SERGHEI MARGULESCU ELENA MARGULESCU |
| author_facet | SERGHEI MARGULESCU ELENA MARGULESCU |
| author_sort | SERGHEI MARGULESCU |
| collection | DOAJ |
| description | According to the governor of the Bank of England, Mark Carney, the global financial system is
currently lagging behind the evolution of the global economy, facing asymmetric concentrations of financial
assets in advanced economies relative to economic activity. As the world re-orders, this disconnect between the
real and financial is likely to reduce, and in the process other reserve currencies may emerge. By 2030, seven
of the world’s top 10 economies will be current emerging markets, according to the latest report by Londonbased multinational banking and financial service company Standard Chartered.
On the other hand, global tensions caused by economic sanctions and trade conflicts triggered by Washington
have forced targeted countries to take a fresh look at alternative payment systems currently dominated by the
US dollar. The global importance of the Chinese yuan seems destined to rise, according to strategists and
economists who say flows in the currency will grow over the long term if Beijing continues to gradually open
its financial system. The yuan will be increasingly driven by capital account flows, and not just trade-related
flows.
Looking for a proper anchor of value for the international monetary system is becoming also an issue of a
paramount importance. Gold is seen by an increasing number of players as a natural anchor of value and some
are already preparing themselves to that by increasing their gold reserves. Holding physical gold is definitely
the best hedge against a crash of any paper currency but nevertheless, we need a trustful worldwide monetary
and financial system. |
| first_indexed | 2024-12-11T04:13:57Z |
| format | Article |
| id | doaj.art-c72b5a24645e416799966f95d2aa6221 |
| institution | Directory Open Access Journal |
| issn | 2343-9742 2343-9750 |
| language | English |
| last_indexed | 2024-12-11T04:13:57Z |
| publishDate | 2019-06-01 |
| publisher | Nicolae Titulescu University |
| record_format | Article |
| series | Global Economic Observer |
| spelling | doaj.art-c72b5a24645e416799966f95d2aa62212022-12-22T01:21:18ZengNicolae Titulescu UniversityGlobal Economic Observer2343-97422343-97502019-06-01716979Challenges for the Global Financial SystemSERGHEI MARGULESCU0ELENA MARGULESCU1Professor, PhD, Faculty of Faculty of Economics and Business Administration, „Nicolae Titulescu” University of Bucharest margulescu@univnt.roLector, PhD, Faculty of Faculty of Economics and Business Administration, „Nicolae Titulescu” University of Bucharest elena.margulescu@univnt.roAccording to the governor of the Bank of England, Mark Carney, the global financial system is currently lagging behind the evolution of the global economy, facing asymmetric concentrations of financial assets in advanced economies relative to economic activity. As the world re-orders, this disconnect between the real and financial is likely to reduce, and in the process other reserve currencies may emerge. By 2030, seven of the world’s top 10 economies will be current emerging markets, according to the latest report by Londonbased multinational banking and financial service company Standard Chartered. On the other hand, global tensions caused by economic sanctions and trade conflicts triggered by Washington have forced targeted countries to take a fresh look at alternative payment systems currently dominated by the US dollar. The global importance of the Chinese yuan seems destined to rise, according to strategists and economists who say flows in the currency will grow over the long term if Beijing continues to gradually open its financial system. The yuan will be increasingly driven by capital account flows, and not just trade-related flows. Looking for a proper anchor of value for the international monetary system is becoming also an issue of a paramount importance. Gold is seen by an increasing number of players as a natural anchor of value and some are already preparing themselves to that by increasing their gold reserves. Holding physical gold is definitely the best hedge against a crash of any paper currency but nevertheless, we need a trustful worldwide monetary and financial system.http://www.globeco.ro/wp-content/uploads/vol/split/vol_7_no_1/geo_2019_vol7_no1_art_008.pdfglobal financial systemreserve currenciesfiat currenciesgolddollar |
| spellingShingle | SERGHEI MARGULESCU ELENA MARGULESCU Challenges for the Global Financial System Global Economic Observer global financial system reserve currencies fiat currencies gold dollar |
| title | Challenges for the Global Financial System |
| title_full | Challenges for the Global Financial System |
| title_fullStr | Challenges for the Global Financial System |
| title_full_unstemmed | Challenges for the Global Financial System |
| title_short | Challenges for the Global Financial System |
| title_sort | challenges for the global financial system |
| topic | global financial system reserve currencies fiat currencies gold dollar |
| url | http://www.globeco.ro/wp-content/uploads/vol/split/vol_7_no_1/geo_2019_vol7_no1_art_008.pdf |
| work_keys_str_mv | AT sergheimargulescu challengesfortheglobalfinancialsystem AT elenamargulescu challengesfortheglobalfinancialsystem |