World Money Research Articles

Features and Factors of the Implementation of the Function of World Money by Reserve Assets in the Modern GMFS

Features and Factors of the Implementation of the Function of World Money by Reserve Assets in the Modern GMFS

Exchange Market Pressure, Government Debt, US Money Supply, GDP Growth and Maritime Trade: An Empirical Evidence from India

Exchange Market Pressure (EMP) indices are used as comprehensive indicators of pressure on a currency. This paper examines the relationship of India government debt, India’s GDP, world money supply and world GDP with exchange market pressure in India. We use quarterly data from 1992: II to 2018: III. The results suggest a significant positive relationship between EMP and the India government debt and GDP and a negative relationship between EMP and world money supply. The relationship between EMP and world GDP is found to be insignificant. This study sheds light on the complex dynamics of EMP and its determinants in India, highlighting the impact of key economic factors and historical events on currency stability. These findings have important implications for policymakers and stakeholders in maritime trade, providing insights into the economic factors influencing currency stability in maritime trade.

Investments: classic instruments of the stock exchange or cryptocurrency

The article is devoted to regular analysis of the advantages and disadvantages of various investment tools, namely investing in classic securities of the world stock market or in cryptocurrencies on different platforms. Note that there is very little research on the chosen topic in the Ukrainian scientific environment, and the need for them is growing every day, since practical actions must be based on a theoretical basis. Technological progress is constantly accelerating, currently most of the world's money is concentrated in electronic accounts and wallets. The purpose of scientific work is to analyze the risks and opportunities caused by the chosen direction of investment. The issue of centralization of capital investments on stock markets and cryptocurrency exchanges is considered. The history of the creation of centralized stock markets and decentralized crypto-platforms is traced. The article analyzes the dynamics of growth of the total amount of shares on the New York Stock Exchange and the dynamics of growth and decline of the price of one bitcoin in recent years. The article also analyzes the changes in the Ukrainian stock exchange over the past three years and explains how the situation has developed in the world and separately in the country affects investment and the state of the main joint-stock companies of Ukraine. The actions that led to the stabilization of the stock exchange after the full-scale invasion of Russia and COVID-19 are considered. The study compared two major currency exchanges: the US New York Stock Exchange and the Binance cryptocurrency exchange. It is also indicated how the world's largest stock and cryptocurrency markets reacted to the state of war in Ukraine and ways to help fight against the aggressor country. The largest fraudulent cyber-thefts on the world's cryptocurrency exchanges are analyzed and the amounts of lost funds in millions of US dollars and in the same crypto-coins that were stolen are indicated. Unlike cryptocurrency exchanges, the article describes that stock exchanges have not been robbed of millions of dollars. A SWOT analysis of the advantages, disadvantages, threats and opportunities of investing in instruments of classic stock exchanges and crypto-platforms was carried out. Comparing all the above-mentioned aspects, conclusions were drawn regarding the reliability of the respective exchange and the investment of monetary units of the subjects in the appropriate direction.

Criptomonedas y energía: ¿hacia un nuevo patrón para el sistema financiero mundial?

This article proposes a hypothetical reflection based on anticipating a possible shift in the world financial system from the current standard-dollar to the energy-standard on which generation and circulation cryptocurrencies are based. Considering certain principles on the agiotage derived from the White Paper, some events are predicted and, therefore, such or such movements of social readjustment in the face of this new model of world financial system. The article begins with a genealogy of these systems reflected in world money patterns, then develops the link between cryptocurrencies and access and use of energy to conclude with the predictions of projecting the hypothetical scenario of displacement of the dollar-pattern to the energy-pattern.

Marketing Research of Financial Literacy Factors and Sustainable Development of the Region

In the modern world money and all issues connected with financial wellbeing take an extremely important place. The relevance of the research topic is explained by the fact that nowadays it is necessary the regular monitoring of the mood and needs of citizens and tracking the dynamic of demand for certain financial products, identifying errors and misunderstanding that citizens face when making financial decisions. The Georgian consumer is unique and his financial behaviour has an expressed national, cultural and geographical specificity. The financial culture, literacy and experience of our population are just starting to take shape. This research aims to deepen regional studies concerning various factors of financial literacy (financial skills, financial behaviour, values, style of money management, financial knowledge), in particular, to study the level of financial education of students and young people. In the article, we studied the influence of financial literacy factors on the financial behaviour of pupils and students, using the synthesis and analysis of various scientific approaches, questionnaires and statistic processing methods, concerning the research problem. A financial education center was established at Akaki Tsereteli State University for the first time in the region, based on the analyses and the data obtained as a result of marketing research. Based on the centre, various measures have already been implemented in terms of improving the financial literacy of students and pupils. The main goal of the centre for the future will be the promotion of the culture of financial education of students and pupils within the available resources. Keywords: financial knowledge, financial culture, financial behavior, financial skills, financial institutions, financial education, financial competence, values.

NEOLIBERAL INSTITUTIONALISM OF THE EUROPEAN CENTRAL BANK: AN ANALYSIS OF BANKING SUPERVISION REGULATION

The contemporary world financial crisis is characterized by complexity in global effects, which has not been recorded in economic history so far. The crisis originated in the financial sphere, but it spread to the entire real sector and the world economy as a whole. The question is often asked: was the crisis orchestrated or the result of tectonic disturbances in the functioning of the modern neoliberal credit-market system. Entering into the analysis of the world crisis, it is indisputable that the imposed neoliberal and monetarist model experienced its complete collapse, which fundamentally shook the pillars of neoliberal capitalism. Neoliberalism "opened up" national economies and made them vulnerable to the penetration of Western capital, and unprecedented exploitation through the virtual clapboard and dollar, as national and world money without a real basis and cover. With worthless paper, everything was bought around the world and broke the "disobedient, Basically, it is about the creation of "peripheral states and economies in the interest of large financial capital.
 In the paper, we analyze the scope of financial regulations, primarily banking supervision, with the aim of assessing possible limitations and effects as well as implications for the financial systems of countries on the way to European integration.

Capital and World Labor: The Rise and Fall of Slavery in the Nineteenth Century

Objective/context: The boom-and-bust of New World slavery in the nineteenth century has always been a major topic of scholarship. In this essay, I suggest that the literature devoted to this theme, the so-called “capitalism and slavery debate,” has made capital invisible as a category of analysis due to its over-reliance on classical and neoclassical economics. As a result, slavery itself has been poorly historicized. My purpose is to put forth an alternative framework to restore the historicity of capital and slavery. Methodology: The article explores critical value theory to conceptualize capital and capitalism in historically meaningful terms. It argues that value creation is never confined to one country. It requires a historically transnational social formation that turns concrete labor into abstract labor and use-values into commodities through the multi-scale operatives of world money and world markets. The history of slavery should be narrated within this broader globalizing setting. Originality: The article’s claim is that the global value relations of industrial capital redetermined spatial relations between town and country, capital and labor, and production and consumption, engendering overlapping layers of a world geography of accumulation that both stimulated and challenged slavery. Conclusions: While most scholars present the relation between slavery and capitalism as constant for the period 1780-1880, I conclude that New World slavery went through two moments of boom-and-bust (c.1780-c.1820 and c.1830-1880), which were formed through, respectively, the global value relations of cotton production and coal-and-iron industrialism.

Bank Statement Analyzer using SVC

Abstract: In today’s world money transfer has become an easy process because of evolving technologies in the banking domain , people are doing hundreds of transactions in a day, and thousands in month which makes it difficult to manage their spending’s to have control over their spending.so having the system or technology which analyse the transactions provided it in PDF format like Bank Statement and it provides you back with the data in easy and understandable format that helps you to manage your spending’s will be beneficial for all the users. Bank Statement Analysis is a methodology to study the bank statement provided by various banks as per your spending/earnings. Bank Statement Analysis helps individual to keep track of his/her spending’s and have control over it. It will also help banks to have maximum satisfaction of their members/customers. There are various pre-existing systems , websites which provide the analysis of the bank statement but it’s complexity is high to understand and it cost more than expected for individual to do analysis of his/her bank statement. the output provided by pre-existing systems is not simplified hence it costs time for user to understand and reduces their progress.

Эволюция и тенденции развития мировой валютно-финансовой системы

Introduction. Structural changes in the world economy and trade and its financialization contributed to the growth of instability and necessitated the building a new structure for the world monetary and financial system. Theoretical analysis. The evolution of the global monetary and financial system, when the function of world money shifted from gold to fiduciaries and SDR, resulted in the formation of a two-level structure. The top level consists of countries with reserve currencies and, thanks to this, such countries have the privilege of forming long and cheap liabilities by creating public and corporate debt, financing the balance of payments deficit through monetary issuance. The rest of the countries that do not have significant sources of long-term investments belong to the lower level, since they are obliged to maintain the compliance of their national monetary base with the volume of international reserves. The development of the global monetary and financial system within the framework of such structure was supported by an increase in the volume of financial transactions and the appearance of derivatives, the purpose of which was not only hedging, but also speculation. Empirical analysis. It was found out that, while the chronic deficit of the trade and balance of payments and growing volume of public debt were not a problem for the United States for the last 20 years, a sharp increase of Federal Reserve System rates in 2022, that resulted in increased nominal yield of the treasuries, significantly increased the cost of debt servicing. The decrease in the degree of confidence in the dollar pushes central banks to diversify international reserves, as a result the share of gold in the structure of these reserves has begun to increase. Those countries that do not have reserve currencies are now more interested in CBDCs. Results. The increasing importance of tangible assets against the background of political and financial instability in the world, as well as the need to use modern digital forms of money, open up the possibility for the ruble to become one of the world’s reserve currencies in the new structure of the multipolar world monetary and financial system.

World money, China and the USA and global mercantilism. A Monetary-Keynesian interpretation

China and the USA are caught up in an exacting and complex competition for world hegemony. Both countries seek to instrumentalise the world market to their advantage and deploy their global power strategies at monetary, financial and economic levels, the USA as a means to maintain its global hegemony China to challenge this order and establish its own dominance. The current function of the national currency of the largest international net debtor as the dominant world money entails a systemic market-logical contradiction. Rising tensions between the USA and its allies and China will not be reduced by the renminbi becoming a world money.

Russia’s development strategy in the context of the global geo-economic paradigm shift

Aim.The presented study aims to substantiate the paradigm shift in global economic development and to identify the impact of this process on the Russian economy.Tasks.The author investigates scientific papers on the research topic; analyzes the mechanism of interaction between nominal and resource systems and substantiates the use of the dollar and the euro as world currencies as a prerequisite for determining the nominal demand system in the resource market; examines the trend of the dollar and euro losing their dominant position in the global financial system and its stability; advances arguments for a paradigm shift in global economic development and determines the impact of this process on the Russian economy in the medium and long term.Methods.This study uses the methods of analysis, synthesis, generalization, and a systems approach.Results.World economy is presented as a mechanism based on the interaction between the real and the resource systems. The increasing gap between these systems at the present time is substantiated. Arguments in favor of the existence of a stable process of de-dollarization as a prerequisite for such a gap are provided. Based on the conducted analysis, a steady trend of the dollar losing major functions of world money in certain countries and country associations that are strategically important for Russia has been revealed. The existence of a paradigm shift in global world development, which consists in replacing the demand for reserves with the demand for resources, is substantiated. It is shown that for Russia, the existing changes make it possible to effectively distribute raw energy resources from the perspective of the country’s geo-economic and geopolitical interests. It is substantiated that the export of energy commodities from Russia will be irrelevant in the long term. In conclusion, the author suggests appropriate directions for a long-term development strategy.Conclusions.Currently, there is a global economic paradigm shift, which involves demand for raw materials being replaced by demand for foreign exchange reserves. Considering Russia’s role in the global mineral commodity market, the existing changes make it possible to effectively distribute raw energy resources from the perspective of the country’s geo-economic and geopolitical interests. In the medium term, the demand for Russian hydrocarbon resources will be ensured by the growing economic potential of major importers. In the long term, the leading importers of hydrocarbons will develop renewable and hydrogen energy, which will lead to the rejection of energy imports. Thus, Russia’s long-term geo-economic strategy should focus on the development and export of scientific, technological, and innovative products.

Accounting and control of foreign economic electronic transactions using cryptocurrencies

Introduction. Digitization of socio-economic processes and the active development of information and communication technologies have led to the emergence of a new phenomenon - “cryptocurrency”, which requires the improvement of accounting and control of electronic transactions. The use of cryptocurrencies in electronic transactions is associated with six stages of their evolution from the accounting and control theory: 1) intangible assets, 2) stocks, 3) investment property, 4) financial instruments, 5) cash equivalents, 6) cash. Today, in international regulations, accounting and control policies, cryptocurrencies are at the initial stage of formation and are positioned as intangible assets. However, the realities of their foreign economic use are ahead of legal and accounting and control regulations. There was a need to transform the methodology and organization of accounting and control of foreign economic electronic transactions using cryptocurrencies.The purpose of the article is to improve the accounting and control of cryptocurrencies in the context of their use in foreign economic electronic monetary transactions.Methods. In the process of the article purpose realization the system, innovative, institutional approaches and methods of economic and mathematical modeling, bibliographic and comparative analysis are used.Results. The need for progressive evolution of the accounting and control understanding of cryptoassets as stocks, investment property, financial instruments and, at the final stage, money is substantiated. The ability of cryptocurrencies to perform the functions of money has been studied: a measure of value, a means of circulation, a means of accumulation, a means of payment, world money. It was determined that cryptographic monetary units can be considered money only in the case of the ability to be a means of international exchange. It has been proven that the final stage of the formation of the concept of “cryptocurrencies” is their recognition as monetary units for international monetary exchange as a component of foreign economic activity. The expressed author’s vision regarding the use of cryptocurrencies in foreign economic electronic transactions, which requires reducing the speculative nature of the cryptocurrency market, avoiding their improper and illegal use, and increasing the level of international control of monetary transactions. It is necessary to establish parity in the control of electronic transactions using cryptocurrencies and confidentiality, which can be implemented with the involvement of international independent audit institutions. An information scheme of an innovative information environment of foreign economic electronic transactions using cryptocurrencies has been developed, in which multi-level integration processes take place with the formation of: An integrated system of electronic communications based on the combination of “Client- bank”, “Internet-bank” and block-chain structuring of account data; Integrated system of information synchronization of banking and accounting and control software; An integrated system of business communications, which connects all participants of international monetary settlements; Integrated accounting and control system.Prospects. The practical implementation of the developed information scheme of the innovative information environment of foreign economic electronic transactions is the basis for the formation of virtual meta-environments in which all financial and economic processes take place exclusively in an electronic format, which requires further research in this direction.

World Money and Oil: Theoretical and Historical Considerations

Over recent years, Marx's category of world money has proven to be a useful analytical tool for understanding the preeminent global role of the US dollar. However, accompanying the emergence of the US dollar, there was a second transformation receiving much less attention in the Marxist literature on world money: the shift towards an oil-centered global capitalism. Situating oil within the account of world money can provide numerous insights. Most notably, it helps illuminate the constitutive role of violence and imperial force in the money form, as well as the linkages between social and class structures in oil-producing countries and the dominant forms of world money issued by core countries. It also raises important questions around the possible future of world money, particularly in the context of an apparent US decline and the necessary transition away from fossil fuels.

IMPACT OF THE START OF THE CONVENTIONAL RUSSIAN-UKRAINIAN WAR ON THE VALUE OF THE MAJOR CRYPTOCURRENCIES IN 2022

Introduction. The cryptocurrency market is relatively young, however, its impact on the development of the economy is significant due to the significant capitalization of the cryptocurrency market. According to the Index proposed by chainalysis.com, Ukraine is one of the world leaders in the adoption of cryptocurrencies. The dynamics of the price behavior of the main cryptocurrencies is extremely important for the economy of many countries, and for Ukraine, as a leader in Europe in this segment, it is critically important. Therefore, studying the impact of conventional wars on the price dynamics of cryptocurrencies is necessary for the effective development of the global economy. In our article, we will consider the impact of the start of the conventional Russian-Ukrainian war on the value of the Ether cryptocurrency. The purpose of the article is to investigate the impact of the initial stage of the conventional Russian-Ukrainian war on the price dynamics of the Ether cryptocurrency. Results. The start of the conventional Russian-Ukrainian war, which began on February 24, 2022, had various effects on individual components of the financial market: the Russian stock market collapsed; the excessive emission of national currencies in Ukraine and Russia led to their devaluation and inflation, and the emission of currencies that function as world money and the increase in the cost of energy and food provoked significant imbalances in the foreign exchange market and accelerated global inflation, which negatively affected the development of the money market; the increase in demand for cryptocurrencies led to an active growth in the value of the Ether cryptocurrency and its prevalence. However, it should be noted that a month and a half after the start of the acute conventional Russian-Ukrainian military-political confrontation, the global economy adapted to the war, which, in turn, led to a decrease in their value. Conclusions. From the research, we can conclude that the price of cryptocurrencies actively reacts to the wars taking place on the planet. We found that the beginning of the conventional Russian-Ukrainian confrontation led to a sharp increase in the price of the Ether cryptocurrency at the beginning of the war, but after the global economy adapted to this crisis, the value of the cryptocurrency began to gradually decrease. However, it should be noted that due to the relatively short historical period of the existence of cryptocurrencies, the impact of the conventional war on the development of cryptocurrencies has not been sufficiently studied, and the study of this impact will require its reflection in new economic studies.

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.

Budućnost dolara kao svetske rezervne valute u novim međunarodnim okolnostima

The US dollar is the world's reserve currency, and it is also the currency most often used for trade and other international transactions. Due to the current geopolitical, economic and monetary developments, it is evident that a large number of countries are looking for ways to move away from the dominance of the dollar, as the leading world currency. The risk of de-dollarization has increased recently, partly due to the current Russian-Ukrainian crisis, as well as American economic sanctions against certain countries, and partly due to the growing role of the BRICS countries in the world economy. This paper argues and proves the hypothesis that the dollar as the world's reserve currency and the international monetary system are two sides of the same coin, that a complete loss of confidence in the dollar leads to the collapse of the global monetary system and vice versa, as well as that the destruction of the monetary system would lead to the disappearance of the dollar. The paper elaborates on dollar as a reserve world currency, theories of money, the dollar as a debt, deficits and monetary equivalents, the dollar and free markets, the IMF as a world bank and the SDR as a world money, the demand for gold as an indicator of distrust in the dollar, new global players and the world reserve currency, BRICS expansion and de-dollarization, and it is finalised with concluding remarks.

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Using Cryptocurrency to Increase Student Motivation and Agency: Thoughts from Vietnam

This paper will argue that cryptocurrency can be used as a tool to motivate and increase the agency of students in higher education. Although just a few cryptocurrencies, or coins, dominate the headlines (bitcoin, ether, etc.), more than 10,000 different coins currently exist. Each coin targets specific problems (inter-user payments, unlocking specific services, etc.) and two key problems in Vietnamese higher education are student motivation and student agency. The argument is that by rewarding particular behaviors (good grades, attendance, etc.) with a grant of coins to each student, the coin can bring the benefits of badging but can go even further because coins, unlike badges, can be spent. One major weakness of cryptocurrencies is that they are like money but with less utility. This paper argues that this weakness can be turned into a strength by making a new coin that is targeted specifically to education. Students with better academic performance would receive more coins than other students. These coins can then be used to purchase exclusive options such as entry to watch or even meet a guest speaker or the student could buy time from the teacher to help them improve their study plan. While teachers do offer office hours, some students are hesitant to attend as they feel they do not deserve to consume the teacher’s time, because it was their parents, not the students, who paid the tuition. However, by earning the coins to buy the teacher’s time, it is anticipated that students would become more agentic and more willing to take advantage of those resources that have been available yet remain underutilized. Students without coins may be able to buy them from other students at a market price. This can provide even greater motivation for students, especially those from disadvantaged backgrounds, to perform well because their reward (the coins) can be exchanged for real world money.

Effect of Market Value Ratios on Stock Price Volatility of Listed Companies on Nairobi Securities Exchange in Kenya

Stock price volatility is widely regarded as one of the factors eroding investor confidence in the world's money markets. The share price fluctuates dramatically depending on a variety of factors. Knowledge of such factors and their potential impact on share prices is highly valuable because it enables investors to make sound investment decisions and firms to increase their market value. This article examined the effect of market to book value ration and earnings per share on stock price volatilities of listed firms in Nairobi Securities Exchange (NSE). It employed a longitudinal research design specifically random effect model and fond substantive evidence that both market to book value ratio and earnings per share are negatively affect stock price volatilities. Stock price volatilities varied from one firm to the other. These deviations may be as a result internal and external factors. Both have an impact on stock price fluctuations. The article suggests these internal factors may include the company's earnings, annual asset growth, liquidity, total net worth, and sales. External factors include government policies and their impact, other maybe interest rate movements, currency exchange rate fluctuations, and market sentiment, and the merger.

The world monetary system: Specifics of the current stage of development and directions of evolution

Subject. The article investigates the world monetary system and specific aspects of the present stage of its development. Objectives. The purpose is to unveil features of the current stage of the world monetary system development and outline the main directions. Methods. The study draws on principles of historical, logical, and systems approaches, general scientific methods of analysis and synthesis, and comparative analysis. Results. The specifics of the modern world monetary system and directions of its evolution are determined by the specifics of the modern global economy. As alternative directions for further evolution of the world monetary system, we analyzed (1) the increased use of SDR, (2) strengthening the role of gold, (3) creation of a global currency issued by a specially established global central bank or the IMF, (4) the development of multicurrency, i.e. the use of US dollar, yuan, euro as world money. In the current foreign economic conditions, Russia's interests consist in non-inclusion of ruble in any of the emerging currency zones or, more precisely, zones of influence of euro, dollar, yuan. Conclusions. The findings may be used by public authorities, financial market participants, research-and-development, and educational organizations to analyze modern trends in the development of the world monetary system and the international financial market.