International Financial Relations Research Articles

Mining in Russia. Cryptocurrencies as investment

In modern conditions, when parity international financial and monetary relations are turning from traditional instruments of economic interaction into instruments of neocolonial political pressure and blackmail of economically strong countries against weaker ones, the need for a new global financial order and monetary standard, that would be independent of the will of any central bank, but with a value as reliable as that of modern fiat currencies, is increasingly realized. Today, the global economy feels the urgent need for fundamentally new opportunities for market interaction and monetary exchange. Cryptocurrencies have become such tools — electronic decentralized money issued by specific individuals in specialized open computer networks through the transformation of electricity into fixed computer codes. The process of such transformation is called mining, which uses ASIC miners as computer equipment to obtain cryptocurrency. The concept of cryptocurrencies and the specifics of investing in them are considered. The characteristic is presented of the current state and dynamics of the development of the crypto market. The possibilities and methods of forecasting the development of the cryptocurrency market are shown both using classical methods of economic forecasting and a fundamentally new methodology based on the current assessment of the psychological state of participants in the crypto market and their readiness to commit certain economic actions. An assessment is given of the possibilities of investing in mining as a technology for mining cryptocurrencies. Requirements to special mining equipment — ASIC miners — are described. An assessment is given of the prospects for the development of the crypto economy.

Архитектура международных финансово-экономических отношений и транснациональная организованная преступность в сфере легализации криминального капитала, обращающегося на мировом рынке инвестиционно-финансовых услуг

The article examines the mechanism of interaction between the system of international financial and economic relations and transnational organized crime in the field of legalization of criminal capital circulating on the world market of investment and financial services. The author draws a conclusion about the structural and functional dependence between the architecture of international financial and economic relations and criminological characteristics of transnational organized crime in the field of legalization of criminal capital circulating on the world market of investment and financial services.

Механизмы международных финансовых отношений в условиях кризиса глобализации

In recent years, the development of the world economy and world finance has been characterized by such concepts as “deglobalization,” “regionalization,” and “politicization,” as climatic, structural, and geopolitical transformations have had a destructive impact on international financial relations that mediate the movement of international liquidity between countries. Regulatory impulses for the activation of certain mechanisms for stimulating international financial relations are set by the leading consultative forums of the emerging multipolar world, such as the G20 and the BRICS, as well as classical multilateral institutions – the IMF and the World Bank Group. Meanwhile, productive interaction between countries at G20 venues is extremely complicated by the lack of consensus on a wide range of pressing issues – from financing measures to mitigate the effects of climate change in developing countries to reforming the IMF and WTO. The BRICS countries are taking cautious steps towards implementing collective initiatives in the international financial sphere, which is connected with the still very serious dependence on the markets and financial infrastructure of the most developed Western countries and the fear of becoming dependent on a new reserve currency. In the Bretton Woods institutions, the G7 countries account for two-fifths of the votes, which effectively allows them to block any decisions taken in favor of developing countries. Currently, new mechanisms of international financial relations are being formed, based on the use of digital financial technologies to service foreign economic activity. At the same time, the United States, as the world leader in cryptocurrency mining, demonstrates a rather passive attitude towards the need to introduce its own digital currency, striving not so much to implement the latest digital financial technologies, but to maintain control over the establishment of global rules of the game in the financial markets. Thus, crisis of globalization could be attributed to the crisis in international financial relations due to the diversity of interests between the bloc of developed countries centered in the United States and the bloc of developing countries centered in China. With ever-increasing production volumes, the group of fastest-growing countries continues to be discriminated against when it comes to the creation and distribution of international liquidity, which is invariably denominated predominantly in US domestic currency. In the context of global geopolitical confrontation, Russia’s role in international financial relations is also changing. Today, Russia’s access to the global banking system, opportunities to replenish international liquidity through swap lines of central banks, and the use of credit mechanisms of leading international financial organizations are blocked. Nevertheless, Russia continues to fulfill its financial obligations within the G20, the IMF, the World Bank Group and BRICS financial institutions. This position is becoming increasingly vulnerable and costly given the seizure of Russian foreign assets and threats of their confiscation, as well as the almost complete suspension of the inflow of foreign capital into the Russian Federation in the context of growing secondary sanctions, including those with respect to new international financial mechanisms.

Грошове забезпечення військовослужбовців в умовах реформування системи управління державними фінансами

The invasion of Russian troops into Ukraine created new challenges for Ukraine, its society and government. In the article, a systematic analysis was conducted to study the effectiveness of the government's measures to manage state finances in the conditions of martial law and to ensure the performance of the main functions of the state, in particular in the field of social protection of military personnel. It was investigated that the following measures were implemented to stabilize the financial system and the smooth functioning of the country's economy: military refinancing to maintain the liquidity of the banking system, a fixed exchange rate and restrictions on the foreign exchange market, which were aimed at avoiding rapid devaluation of the national currency, as well as sequestration of public expenditures from with the aim of reducing inefficient or unnecessary budget expenditures and their redistribution, in particular, for the needs of military servicemen. Some of these measures include the introduction of military bonds of the Government of Ukraine, the transfer of profits to the state budget, the development of international financial relations with organizations and governments of other countries. It was determined that over the past two years, the financing of defense expenditures has increased significantly, and the system of monetary support for military personnel is being constantly modernized. This requires stable filling of the revenue part of the budget to support economic security and sovereignty of the country.

Prospects for using the Chinese yuan as a reserve currency in international settlements

The article reveals the prospects and possibilities of using the Chinese yuan in the system of international monetary, credit and financial relations. The advantages and disadvantages of using the yuan as a reserve currency have been identified. An analysis of factors contributing to the nomination of the Chinese yuan for the role of the reserve currency in the near future is presented.

Cryptocurrency as a Possible Alternative to the De-dollarization of the Global Monetary System

The article analyzes the ongoing changes associated with the financial instability of the current global monetary system. In the course of the study, the prerequisites aimed at changing the world monetary order were considered; an assessment was made of the possible use of cryptocurrency as a new global monetary standard. The concept of supranational currency is formulated. The paper proposes an alternative theoretical solution for the circulation of the world monetary system, based on the simultaneous circulation of several types of world currencies at once, including cryptocurrencies. The purpose of this study was to study and determine the trends of ongoing changes associated with the transformation of the world monetary system, the circulation of cryptocurrency and a decrease in the level of confidence on the part of the world community in the US dollar. As a hypothesis of the study, the judgment is formulated that the improvement of the world monetary system must be carried out through the introduction and development of cryptocurrency as a new independent financial instrument that meets the requirements of modern society, as well as the processes of functioning of international monetary relations. The analysis of the actual problems of the current state and the prospects for the circulation of the current global monetary system made it possible to formulate the factors that influence the increase in the demand for cryptocurrencies among market participants. An assessment of the future of cryptocurrencies was carried out, the prospects for the influence of the existing world monetary system on international financial relations, as well as the further role of cryptocurrencies in it, were considered.

Post-Keynesian Economics: New Foundations, by Marc LavoieChapter 7: Open Economy Macroeconomics

ABSTRACT Reviewing Marc Lavoie’s comprehensive and well-structured discussion of open-economy macroeconomics allows us to revisit some key Post-Keynesian contributions and confirm their continued relevance to our understanding of international economic, financial and monetary relations. In the process Lavoie draws a consistently sharp contrast with standard-theory concepts and models, much of it organized around his elaboration of endogenous money in an international context and modern trade flows embedded in a highly globalized and financialized world economy which have little to do with comparative advantage. He thereby provides us with a conceptual road map for a meta-economic revolution which recognizes that the world economy has a growth dynamic all of its own rather than being just the sum of its parts, the two-hundred or so national economies connected to each other through their balance of payments and exchange rates.

CONSOLIDATION PROCESSES IN THE BANKING SECTOR

The process of globalization in the banking sector has been an integral part of international economic and financial relations over the last few decades and has been growing rapidly ever since. Globalization offers opportunities for various integration processes in the regions, one of which is the consolidation process. Mergers and acquisitions banking is one of the means for banks to consolidate their processes, to manage their resources more efficiently, to gain a more competitive advantage and increase their profits by entering foreign capital markets. The ongoing consolidation processes in the banking sector are affecting economic growth and stability, and with the constant changes of the global economic climate, the banking sector is adapting, hence it is important to assess the factors behind the consolidation process and identify further developments in bank consolidation. In the article the following tasks were to be accomplished: 1) based on the analysis of the scientific literature, to identify the factors and reasons that promote the consolidation process, the execution of mergers and acquisitions in a global environment; 2) to perform a comparative analysis of the ratio of the share price and the value of tangible assets of banks of different regions engaged in mergers and acquisitions; 3) after evaluating the results of the comparative analysis, indicate further directions for mergers and acquisitions in different regions. After accomplishing the specified tasks, the most important factors were identified, which were attributed to internal and external motives, and the possibilities for consolidation processes in the banking regions were presented. The following research methods are used in the article – analysis of scientific literature, comparative analysis, analysis and evaluation of financial statements.

Financial geography I: The state-finance nexus

In the first of my reports on financial geography, I focus on a growing body of work that engages with the state as a vital and strategic actor in financial markets and in the global economy. After the 2008 global financial crisis, austerity measures and impacts on public finance have reshaped local-central government relationships with increasing use of financial instruments and market solutions. The growing prominence of sovereign wealth funds, shifting roles of national development banks and central banks, and impacts of currency internationalisation are raising questions about new forms of financial statecraft and opportunities for changing configurations of global hegemony. Taken together, a renewed engagement with a political economic lens and focus on state-finance relations illuminate the changing positionalities of economies and financial actors in the spatial organisation of international financial and monetary relations.

РОЛЬ ЄБРР У КРЕДИТУВАННІ МАЛОГО ТА СЕРЕДНЬОГО БІЗНЕСУ

The most intensive development of international financial and credit legal relations took place in the 20th century. in connection with the consequences of world wars and numerous economic crises. The number of international credit agreements is growing every year, but a comprehensive analysis of them has not yet been conducted in the science of international law. It should be noted that scientific approaches to these issues were formed separately by Soviet and Western scientists. In their research, they took into account the specifics of the political and economic system of their states. Since the collapse of the socialist camp, domestic science of international law has received new approaches to the study of the so-called "international currency law" (as a prototype of modern international financial law), which arose from the combination of the positions of the Soviet and Western schools of international law. However, taking into account the mutually exclusive nature of these studies, their results should be updated and establish how the legal regulation of financial and credit relations is carried out in international public law. These relations are characterized by industry-specific features of subject composition and sources of legal regulation. International credit agreements, in turn, contain relevant special essential conditions. In the process of implementing these relations, scientific disputes often begin about the expediency of including TNCs in the list of subjects of public international law as a whole. Given the fact that Ukraine is an active participant in international financial and credit relations, this topic requires further scientific research. The work examines and systematizes information on the role of the EBRD in lending to small and medium-sized businesses. The purpose of the study is to analyse the role of the EBRD in lending to small and medium-sized businesses. The relevance of the study of this topic in the context of the development of the international economy is determined. Information about the European Bank for Reconstruction and Development is provided, and the theoretical foundations of the creation and functioning of the EBRD are considered. The role of the EBRD in lending to small and medium-sized businesses is being studied. An evaluation of the current crediting of the Ukrainian economy by international financial organizations is carried out.

Восточный вектор трансформации мировой валютной системы

The article discusses the crisis-prone nature of the functioning of the modern monetary system, which is manifested by the low efficiency of large-scale financial measures aimed at stabilizing international economic and financial relations. Based on the analysis of the historical and modern role of the countries of the East in the world economy, the objective reasons for the transformation of the world monetary system are revealed. It is shown that the potential dominance of the countries of the East in the world economy is largely determined by the dependence on the previous development. The significant size of wealth, territory and population allowed the eastern monarchies until the middle of the 19th century to develop their economies in a relatively isolated mode from the outside world. However, the voluntary rejection of the introduction of their own technological achievements and neglect to conduct foreign trade has made the countries of the East chronically dependent on the countries of the West. The inability of Great Britain (as the outgoing hegemonic country) to abandon in the first quarter of the 20th century the use of its national currency as world money and to transfer this privilege to the United States (as the new leader of the world economy) led to the destruction of the world economic order. The subsequent period of coexistence of two parallel monetary systems, independently serving alternative socio-economic models in the conditions of a bipolar world order, once again proved the possibility of making a high-quality scientific, technological and economic breakthrough without large-scale direct interaction between West and East in the international economic and financial arena. On the contrary, the return to the unipolar model of economic and financial globalization has led to another destruction of the rule-based world economic order. At present time, in order to stabilize international economic and financial relations, it is objectively necessary to form a new international monetary standard, taking into account the enduring world significance and global interests of the most dynamically developing countries of the East. The inclusion of the countries of the East in the management of global economic and financial processes seems quite natural, given the growing size of their GDP, exports and financial assets. The problem, however, is that, despite their undeniable economic power, the countries of the East are not yet able to offer the world a unique (different from the Western) development model shared by most other countries of the world. This increases the risks of their joint drift towards the adoption of a universal Western (Anglo-Saxon) economic model as a simulacrum of their institutional interaction.

The impact of the development of the world monetary fund on international financial and economic relations

This article raises the issue of the development of the world currency market, as well as its influence on the development of international economic relations. For a deeper understanding of this problem, the author first of all considers the concept of a monetary and financial organization, the direction of its activities and lists the leading international monetary and stock organizations, namely: the IMF, WTO, World Bank. Further, the author proceeds to a more detailed consideration of these currency and stock organizations: their functions, goals and objectives are analyzed, the structure of organizations is indicated, and historical information is given. The author also draws attention to the fact that there are special currency and stock organizations whose activities are aimed at regulating the debts of foreign borrowers (for example, the London and Paris Club of creditor banks). The author comes to the conclusion that it is thanks to the functioning of currency and stock organizations that the regulation of credit activities, trade relations between countries, their debts and financial flows between them is carried out. The author then proceeds to consider the International Monetary Fund. The article provides the history of the emergence of this organization, the share of the authorized capital. In addition, the author examines the current structure of the IMF, its functions. Particular attention is paid to the role of the IMF in currency regulation. Within the framework of this aspect, the concept of SDR (special drawing rights), its course and purpose is revealed. The role of the IMF in providing short-term and medium-term loans in case of a deficit in the state's balance of payments is considered in more detail. Such aspects as the reserve share and its size, credit shares and its framework, stand-by stand-by loans are analyzed. In the final part, the author summarizes the importance of the world currency market in the global economy and international relations.

The Impact of International Currency and Financial Integration on the Countries Economic Development: European Experience

In the article, the author makes an attempt to identify economic effects for the countries participating in the currency union based on a detailed analysis of the studies of foreign economists. The world experience in the formation of currency unions is diverse, there are more than 100 integration associations in the world, which are characterized by their heterogeneity and uniqueness. However, of all regional unions, only the European Union has achieved a high level of integration, and the euro has become a full-fledged regional currency. Thus, most of the studies within the framework of this topic are devoted to the experience of the development of the eurozone. Most empirical studies reveal positive effects from the introduction of a single currency in the form of increased trade flows and incomes, reduced inflation and exchange rate volatility. On the other hand, other studies argue that a monetary union does not have a positive impact on the level of development of the national economy, but rather increases macroeconomic volatility in the participating countries. As a result of the study, the author's interpretation of the benefits and costs of the country's entry into international monetary and financial integration relations is given. It is concluded that the effects of the intensification of economic integration are different for each period of time and for a particular regional association. The validity of the conclusions was carried out on the basis of general scientific methods: monographic survey, analytical and systematic approaches, comparative and historical-logical analyzes, methods of induction and deduction. Key words: monetary union, economic integration, single currency. &nbsp

Evolution of legal regulation of issues of state immunity in international credit and financial relations

This article examines the process of development of legal regulation of the issue of state immunity in internationalcredit relations. Its importance is due to the continuity of the development of legal regulation of this issue, in connectionwith which an analysis of the historical development of regulation is valuable, which allows us to identify specific startingpoints, as well as to establish the reasons for the introduction of legal regulation. On the other hand, due to the importanceof the topic of immunity for international credit relations, consideration of primary legal regulation and its origins isimportant for understanding the context of current legal regulation, including court decisions. To this end, the articleanalyzes such stages as the transition to the theory of limited immunity, the prerequisites for such a transition, as well asthe stages of promoting national legal regulation of the issue of state immunity on the example of the United States, asthe most developed jurisdiction for regulating international credit and financial relations.

INTERNATIONAL FINANCIAL ACTIVITIES: ACCOUNTING, TAXATION AND INSURANCE

The need for the study of international financial relations is justified by the lack of modern scientific discourses on the methods of regulation of financial tensions in the new epidemiological conditions of business environment and appropriate methodology to manage the level of rejection of players in the international financial market. The purpose of this study is to find points of contact between accounting, tax and insurance accounting in the development of joint measures to overcome global financial risks in the process of international cooperation. The focus of the study: the development of modified accounting tools for a comprehensive and systemic solution to the internalization of international relations; unification of the national tax system, based on the requirements of the modern development of the global financial system; development of insurance measures to overcome global risks in the process of international financial cooperation. The research was conducted on the basis of expert reviews and assessments of the state of international financial relations, modern theoretical and methodological, normative-legal and legislative aspects of international financial activity; methods of dialectics, methods and principles of scientific knowledge, statistical and economic tools were used. The growth of cross-border cooperation, the emergence of new financial flows and the transformation of financial relations online have created a number of new financial linkages that not only change the traditional financial systems worldwide and the global financial system, but also require the universalization, modification, internalization of certain accounting, taxation and insurance instruments. In order to universalize the measurement of failure trends of business players in international financial markets, one of the possible models for managing a dynamic object – a system-situation model of behavior of international investors, based on combining the systemic and situational views of business players on the interpretation of financially sensitive information – is proposed; a schematic representation of the vulnerability of financial and innovation activities of business players in the context of unpredictable reactions to the proposed positions of the global financial market. It is determined that the development of international financial activity should move in the direction of: the coordination and development of countries in various financial spheres on the adoption of appropriate regulations supranational character; meaningful universalization in international financial relations; restructuring of the national financial system of Ukraine; the viability of the national financial system in the direction of centralized imperative regulation of international financial relations.

Analysis of international financial and economic relations of Russia with the benchmark countries

Subject — International financial and economic relations of Russia. The purpose of the work — determine the possibilities of maintaining a significant position of Russia in international financial and economic relations with benchmark countries. The methodology of work. The study is based on a systematic approach using the method of statistical, neural network and cluster analysis. The results of the work. The results of the analysis of the international financial and economic relations of Russia with the benchmark countries reflect the importance of the indicators: "GDP, in current prices (US dollars and at PPP, US dollars)", "Total government expenditures (% of GDP)" and "The volume of imports of goods (change in%)". For the preservation and monitoring of international financial and economic relations between Russia and the benchmark countries, common indicators are: "General government revenues (national currency)" — India; «GDP, in current prices (US dollars)» — China. To maintain these ties, Russia needs to adjust its relations with benchmark countries according to the indicators "Population" and "Inflation, consumer prices at the end of the period (index)". The Bank of Russia’s desire to target inflation, fixes the indicators "Population" and "Infl ation, consumer prices at the end of the period (index)" Government net lending, borrowing (% of GDP, local currency), and growth rate of domestic government debt. The scope of the results. The provisions of the study expand the scope of knowledge and develop the competencies of members of the government of the Russian Federation to assess opportunities for economic growth and choose a way of development. Conclusions. The possibilities of maintaining a significant position of Russia in international financial and economic relations with benchmark countries are linked with India in terms of total government revenues in national currency and China in terms of GDP in current prices in US dollars. The Bank of Russia is able to maintain this position and maintain target inflation.

Suchasnyi stan vzaiemodii mizhnarodnykh orhanizatsii ta orhaniv derzhavnoi vlady v Ukraini u sferi publichnykh finansiv

In this article states that Ukraine continues to implement active measures to reform public authorities, local governments, energy system, economic climate, law enforcement, social protection systems for vulnerable groups and more. The state aims to form a stable and perfect national financial system, as this is one of the main conditions for the effective development of the national economy and creating the conditions for the well-being of the population. However, the construction of an effective national financial system is impossible without its interaction with the world economy, which is characterized by the process of globalization. In addition, such modernization and reform require significant resources, which are usually lacking in Ukraine. That is why the cooperation of Ukraine with international organizations in the field of public finance comes to the fore. International financial organizations are becoming increasingly important in international economic and financial relations, as their network carries a significant share of global investment, there is a purchase and sale of currency to finance export-import operations, and so on. In addition, given the globalization processes in the world and the needs of developing countries, international financial organizations today play a key role in implementing reforms in major areas of public life, helping to minimize possible crises in national financial systems. Cooperation with international financial organizations is also an integral part of the foreign policy of our state, as well as an activist for the development of financial and economic Ukraine. Such cooperation has an impact on public financial activities, the peculiarities of the formation, distribution and use of monetary resources, as well as the organization of money circulation and financial control. What is meant by «international financial organization»? To address this issue should turn to the achievements of international science. Administrative and financial law. International financial organizations are organizations established under several states that are subjects of public international law and which provide financial resources to member states of international financial organizations on the terms specified in their documents. In the international steam literature, the concept of international financial organizations is also understood as such an organization, which is endowed by its members with competent activities in the monetary and financial sphere and which is more or less involved in the functioning of the international financial system.

The role of international courts’ decisions in the system of sources of international financial law

The paper deals with the analysis of the legal nature of international courts’ decisions and their impact on the international financial legal order. The author claims that decisions of international courts, creating no new international legal financial norms, act as an additional source of international financial law, having no autonomy, and in combination with other sources of international law, performs the following functions: 1) regulatory-prescriptive (via opinio juris of existing traditions in interstate practice in the financial sphere transforming them into international customary law); 2) regulatory-affirming (confirming the legal nature of the international agreement between the subjects of international financial legal relations which caused a disputable situation). The judicial practice on financial issues and specificity of functioning of such judicial institutions as the Permanent Court of International Justice, the International Court of Justice, the CIS Economic Court, the Court of Justice of the European Union, the Court of Justice of the Central African Economic and Monetary Community, etc. are examined. The features of the provisions of international agreements on financial issues regarding the procedure for resolving disputes between the parties of the agreement about its implementation are analyzed. The paper explores particularities of the origin and development of the idea of the creation of an international financial court. Amid modern processes of the rapid growth of the amount of cross-border financial flows in the context of globalization, which is the consequence of the implementation of numerous international financial agreements, the idea of creation of an international financial court, which was first suggested in 1935, due to the complexity of legal nature of interstate financial disputes, is an objective necessity. The following features intrinsic to decisions of international courts (including decisions on financial issues) have been identified: 1) locality (binding only on the parties involved in the case, and only in the current case); 2) situatedness and unprompted appearance; 3) impartiality (due to the judges’ lack of political interest); 4) authority (international courts include generally recognized experts in international law).

The role of offshore zones in international financial relations

Offshore companies typically do not carry out any economic activity at their place of registration in the relevant tax haven, but where their official headquarters and management are. In most offshore zones, such restrictions on their activities are legally enforceable. Jurisdictions with a preferential tax regime are often associated with tax evasion and money laundering in organized crime. In practice, however, there is no international company or large bank that has not registered a legal entity in any of the offshore zones.

Far East Location in the Prospective Development Model of the Russian Federation

The need to transform economic and social policies into more effective policies requires the special attention of the authorities and the expert community to the Far East as a region with significant potential for economic growth. The article, through the prism of historical events, examines the place of the Far East in the world economy within the framework of the current system of international political, foreign trade and financial relations against the background of a decrease in the level of confidence in these areas, which largely depends on excessive regulation of the most significant regional entities and tightening of various kinds of sanctions by the most developed states. The reason for the turn of Russia to the east is justified. Historical milestones of the development and development of the Far East over a 300-year period and its potential, place in the economic activity of the Russian Federation and its foreign economic relations are analyzed in detail. Examples are given to a certain extent confirming the emerging transition from a purely subsidized policy of past decades to an investment strategy for the future development of the region. Optimal forms and mechanisms of interaction aimed at improving the investment climate, developing transport, energy, industrial and tourism infrastructure, as well as ensuring a high level of environmental safety of the region are identified.