Achieving This Phd Thesis Is Based on a Number of Concerns Relating to Globalization

INTERNATIONAL MONETARY FINANCIAL SYSTEM IN THE CONTEXT OF GLOBALIZATION

ABSTRACT

PhD Claudia Fratoştiţeanu

Achieving this PhD thesis is based on a number of concerns relating to globalization, international financial and monetary system, international financial vulnerability and contagiunea economic crisis. Economic globalization has led to economic growth but also to frequent and severe financial crises in emerging market economies, leaving the country without success in their efforts to generate growth and reduce poverty.

Result of economic development in the last centuries, international monetary financial relations have witnessed a strong explosion especially the second half of the twentieth century. Of growing integration of financial markets puts the full mark on how the progress and direction of international financial flows.

Financial globalization is an irreversible process that produces structural and functional changes in the whole world economy. Accordingly, understanding the functioning of international financial market, its specific mechanisms and instruments, is a prerequisite of economic development and overall progress.

In the present context in which any international trade transaction (regardless of its degree of complexity) can not run without direct access to international market, its knowledge by operators interested in developing their business in an international level is required.

The paper provides analysis of economic policy, on what countries can do to reduce their vulnerability, caused by financial crises and failures made in achieving economic growth and a number of general directions for systemic reform.

This sentence begins to examine some insights into the globalization process and then presents an overview of the international financial monetary system. Having a well shaped structure and a separate area of manifestation, international financial relations are in fact an extension of economic relations between countries emerged.

The most important aspects considered in the study show how and financial progress of the international monetary flows, and that the present thesis proposes to examine in detail are: international financial institutions with a universal vocation, development of the international monetary system, monetary arrangements The current international, the main instruments used in international financial markets, financial intermediation and its role in the unfolding international financial flows.

In the present context, understanding how the international financial system works in practice, the basic components of this system (money markets - foreign exchange and capital markets, financial intermediation institutions), tools used by operators of the system and especially the conduct underlying the allocation of financial resources are essential conditions for sustainable economic development.

The two major concerns regarding the economic aspects of the process of globalization - financial crises and failures of economic growth - have received considerable attention in this thesis. This led to a better understanding of the multitude of problems that contribute to the occurrence, frequency and severity of international financial crises, and hampering efforts to generate growth and reduce poverty.

As already mentioned, this thesis aims to provide insights into the various problems arising from the negative aspects of economic globalization, examines the steps that have been made or proposed to resolve these problems, and describes the activities of the International Monetary Fund and the factors which limits its effectiveness in preventing and mitigating financial crises.

In an attempt to capture an issue so complex and controversial present, and that new policies and international financial and monetary strategy, the work was based methodology developed in the conceptual boundaries and scientific justifications developed by deepening literature and informational resources statistical, nationally and internationally.

Analysis is performed in three parts, namely: Part I - The international financial and monetary global financial structure, Part II - The international financial crisis and obstacles to development, Part III - The prospects of international monetary financial system in terms of vulnerability external. Analysis for reform.

The first part provides an overview of the evolution of international monetary financial system in the context of globalization and financial impact of international monetary organizations, economic growth and promote global cooperation.

Creating an international financial monetary system should be seen as an expression of economic interdependence among sovereign states, and not as a way of making the national monetary systems. Once created, an international monetary system, including body designed to ensure cooperation and support the principles should be adapted to the requirements of any kind occurring in the economic, social and political system of the Member States.

Developed especially after the Second World War, after it took off phenomenon of institutionalization, the international financial system has evolved continuously, and face numerous times with profound crisis and reform, which led eventually to the emergence and proliferation of regional financial arrangements as an alternative to this system.

Analyzing the work of the most important international economic and financial organizations in the thesis, special attention was paid to history, present and their future because their knowledge is essential for proper integration of their existing functions. Many organizations were created, in order to eliminate previous discrepancies between countries and create a viable system of international rights and duties.

An important role in the development and direction of international financial flows is the international institutions created over time to promote international financial cooperation, facilitate access to financial resources to less developed countries or those experiencing temporary internal imbalances, to promote private foreign investment to stimulate economic and social development of member countries.

With the expansion and deepening process of globalization and international financial markets, the role of these international institutions has increased significantly. Currently there is also a large number of international financial organizations with different objectives and funding mechanisms: the International Monetary Fund, World Bank Group, European Bank for Reconstruction and Development, European Investment Bank, and Bank for International Settlements.

Each of these institutions have grown continuously over time, and continuously increasing financial strength they have, basically trying to take as active a role in international finance.

Part two of the doctoral thesis, examines the factors contributing to the emergence of international financial crises, the effects of such crises and controversies on how economic policy makers or should respond. It also provides different perspectives on the determinants of economic growth and obstacles on reducing poverty.

In other words, given the negative aspect of globalization process in terms of economic welfare analysis of the second part of the doctoral thesis focused on two major issues relating to global economic performance in recent decades: enough phenomenon întâlnitul financial crisis, and the fact that many countries face phenomena underdeveloped and excessive poverty.

A key objective was to build a list of development issues, and systematic countries that influence the extension and severity of financial crises and lack of economic growth.

The background dynamics phenomena of globalization and integration, monetary financial crises eloquently reflected in the qualitative development of the real economy - financial flows; expressing significant disparities between the economies participating in this comprehensive phenomenological approach.

In this context, the need for increased global cooperation process, to adopt a common stance regarding risk assessment and functional supervision of financial and monetary system, has become theme of international bodies with liabilities and responsibilities in this area.

Thus, at least in terms of economic developments of the last decades, monetary and financial balance has become the key global economic balance, and thus one of the determinants of the success of globalization.

According to the analysis, the global financial and monetary system architecture must be built on two main pillars: the definition of a spider configuration of the global financial and monetary system, based on national economies, and develop a functional structure of the market on an integrated model, governed by the policies of capital worldwide.

The term reticular characterized precisely that stage of the world economy, where states are integrated in a fair recovery of competitive advantages, based on building a global network of information and interpretation of data, to define global variables.

In the thesis outlined the tremendous growth of capital movements in the global economy in recent decades, also mentioned increasing the share of private capital to finance high deficits in developing countries. But if such figures are undeniable significance, other events - such as the crises that have succeeded quickly in recent years - requires a deeper examination of the evolution of the international financial system.

Thus, it highlighted a lack of substantive international financial system, which requires a response from those who have powers in the construction of institutional arrangements that govern it.

Methodology for management of these crises has forced the creation of specialized financial organizations, to find solutions and ways out of situations destabilizing financial systems, but not always promoted the policy proved to be appropriate. Thus, the IMF, and World Bank, two international institutions are often called upon to support leaving the poverty of nations.

Problems in one country, if not resolved in time, affects the economy of other countries, and then those effects are more serious crisis. Therefore proper management of financial crises requires not only policies and strategies for its prevention, but also management methods suited to the type of crisis.

Part three, the paper presents an analysis for reform, focusing on a list of issues that countries need to solve and a number of areas in which international financial system can be strengthened.

In the two chapters in this part of the doctoral thesis identified a number of issues which contribute to international financial crisis start, which prevents their resolution and increase their severity, or which creates an obstacle to economic growth and reduce poverty.

This list specific problems that countries differ in nature from those which relate to the overall functioning of the international financial system.

Chapters then describe the main ideas addressed to each individual problem, focusing on what countries can do to mitigate crises and to stimulate development, and guidance for achieving systemic reforms.

Countries that have experienced major international financial crises in recent decades were not selected at random, each of which has suffered significant microeconomic imbalances and vulnerabilities in the financial sector. Similarly, countries that have experienced economic stagnation or development of relatively small, tend to have institutional structures that limit opportunities for technological innovation and interests.

Thus, although some problems that contribute to financial crises and disappointing economic growth are against human nature and imperfect functioning international financial system, other specific countries.

Furthermore, the analysis identifies five types of specific problems of countries that have contributed to the financial crisis increasingly frequent and severe but also the lack of growth.

The list is arranged in the order that is advantageous to discuss these issues, not in the order of their relative importance is judged. It is necessary therefore to achieve an order of priority countries, namely, a set of challenges quite extensive and ongoing suffering continuous change.

Included in this analysis: a set of rational strategies to control and liberalization of domestic financial markets and international capital flows, strong institutions, information, and financial and corporate sectors, the adoption of controlled exchange rate regime, maintaining discipline in macroeconomic policy, promptly resolve any problems in the financial sector and other sectors threatens to diminish market confidence, opening the economy to international trade and foreign direct investment in a manner that exploits the opportunities of further development activities.

In the last chapter have considered several ways of reforming the international financial system that could help the process of economic globalization to work more efficiently. The ideas proposed to address these issues are grouped as follows:enhancing the quality and impact of IMF surveillance, inducing changes in the composition of international capital flows, the introduction of contracts contingent on shortages or other hedging mechanisms, used to cover macroeconomic risks, addressing information and incentives distorted due to imperfections in the supply flow international capital, review procedures for resolving deficits, strengthen teacher development aid and official loans nonconcesionale.

To ensure a dynamic international financial balance, economic globalization be governed, in its effect, by redefining the links between monetary and financial system and global economy.

Result dynamics globalization can not be just a new global economic order, which however must be reinvente or adjusted point of view, the role and position of each category of the national economy in the international economic and financial system

Thesis findings focus the main ideas and summarize the most relevant views, formulated in methodological research approach, with specific reference to the new architecture of international financial and monetary system and the new challenges at international institutions specialized in the specific context of recent developments financial and monetary relations and the global economy.

Taking into account the experience of the past three decades, the study undertaken, concluded that the new architecture of international financial and monetary system can make consistent and balanced only on major reforms in the direction of political consensus, involving all states in fair process of establishing strategies and policies for living together in conditions of globalization and economic integration.

Positive experiment of European integration provides a strong argument for promoting the idea that the world system has to evolve regional integrative stage, which then can be merged into a coherent system functioning with sufficient exercise in rapid formulation of common lines of action.

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