Global Financial Safety Net: Fragmenting International Monetary Law vs. Regionalisation?
Abstract
The article studies a trend that forms a Global Financial Safety Net. The author analyses difference in approaches of Western countries and some G20 states and BRICS Member States to regulate international financial mechanisms’ activities, which form the Net. Thus, the former believe that international financial mechanisms for providing foreign liquidity should be regulated based on uniform rules within the IMF, while the latter advocates a decentralized, horizontally oriented net of mechanisms. The research is based on the deductive method using mainly synthesis. This is due to the Global Financial Safety Net’s current state, that requires to develop in international currency law the concept of international financial mechanism institutions that provide foreign liquidity (which is the reason why deductive method is chosen). Also studying causes and trends of fragmentation in international monetary law requires synthesis as an approach to achieve the aim in this article. The author concludes that a regionalization in a global monetary system, driven by regional international processes, is the reason why international financial mechanisms emerged. The latter reflects interests of those countries, whose interests are not properly taken into account in the IMF, as it is dominated by Western countries. So, to solve the problems associated with the functioning of the Global Financial Safety Net, it is necessary to determine the status of central banks in international monetary relations in order to streamline the network of swap agreements between central banks – the main tool for providing foreign liquidity, which has become a reliable tool to overcome the balance of payments deficit worldwide.
About the Author
M. G. Mekhtiyev
Institute of Legislation and Comparative Law under the Government of the Russian Federation
Russian Federation
Russian Federation
Postgraduate Student, Researcher of the Department of Scientific Support for the Secretariat of the Russian Delegation to the European Commission for Democracy through Law (Venice Commission)
22/24 Bolshoy Kharitonyevskiy Lane, Moscow, 107078
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Mekhtiyev M.G. Global Financial Safety Net: Fragmenting International Monetary Law vs. Regionalisation? ECONOMICS. LAW. SOCIETY. 2019;(3):33-43. (In Russ.)
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