The paper discusses whether US dollar based financial sanctions will undermine the dollar's dominant international role. Despite long-standing attempts to reduce the role of the dollar, these have had limited success so far. I discuss why this is the case and why alternatives to the dollar are...

The international financial architecture is misaligned with the goals set out in the UN Sustainable Development Goals and the Paris climate agreement. External financing flows to emerging-market and developing countries (excluding China) need be increasing by at least US$1 trillion annually from...

The 28th Geneva Report examines how rising geopolitical tensions are reshaping global finance. As the cooperative order that supported decades of economic integration gives way to fragmentation, trade, investment, and financial linkages are being redrawn along strategic lines.The authors explore...

This paper considers the impact of Central Bank Digital Currencies (CBDCs) on the world’s financial systems with a special emphasis on G20 economies. Using quarterly macro-financial data for the period of 2000 to 2024, collected from the IMF, BIS, World Bank, and Atlantic Council, a Global...

The idea of a Banking Union emerged in the aftermath of the global financial crisis. Ten years on, two of its three pillars, the Single Supervisory Mechanism and the Single Resolution Mechanism, have proven to be a success with regard to financial integration and stability. In this Policy Brief,...

This paper challenges the prevailing view in the sovereign debt literature by arguing that sovereign debt markets, in many respects, behave similarly to other credit markets. These markets are hierarchical rather than flat, inherently hybrid in nature, blending elements of public order and...

In this paper, we examine the prospects for, and implications of, the dollar's continued pivotal role in the international financial system. We find, first, that the dollar remains dominant by a wide margin and will likely retain its dominance for the foreseeable future-none of the other...

A workshop held on 19 March 2024 addressed issues affecting developing countries' economic situation, and how it is shaped by policies and global governance. Key subjects include the International Monetary Fund and its policies, taxes and sovereign debt. Several experts addressed different...

Achieving Sustainable Development Goals and climate targets in the face of rising debt levels requires financial resources which the current Global Financial Architecture (GFA) is failing to meet. In this context, calls for reforming the GFA have taken both front and centre stage. These calls...

This paper empirically examines the effects of financial crises on the organization of production of multinational enterprises. We construct a panel of European multinational networks from 2003 through 2015. We use as a financial shock the increase in risk premia between August 2007 and July...

The present international financial architecture (IFA) has been weakening since the early 2010s. Several factors have hindered the reorganization of the current IFA, accelerated the bipolarization of international financial relations, and reshaped the balance of power between sovereign debtors...

This paper empirically examines the effects of financial crises on the organization of production of multinational enterprises. We construct a panel of European multinational networks from 2003 through 2015. We use as a financial shock the increase in risk premia between August 2007 and July...

The 1944 "Bretton Woods Agreement" gave birth to the new international financial system marked by the centrality of the US dollar which is a crucial pillar of the global power of the United States. Over the past eight decades, the asymmetry of the shrinking US economic weight in the world...

We develop a general-equilibrium model in which the safety of a country's currency and the choice of its exchange-rate regime arise endogenously. Calibrated to pre-2025 data, the model replicates the U.S. dollar's safety premium, low Treasury yields, and its status as the world's anchor...

"This edited volume explores the interplay between political, economic, and financial development in twentieth-century European authoritarian regimes. The book features case studies that explore the impact of domestic and international finance on the rise, stabilization, and decline of various...

"The struggle for world leadership between China and the United States, resulting in Russia's war with Ukraine, among other things, underscore the reality of structural changes in the global economy and the global system. A new era of egocentrism and polycrisis in a multipolar system has emerged...

In March 2020, international markets seized up with a violence unequaled since the global financial crisis nearly a dozen years before. As economies around the world locked down in the face of the potentially deadly but completely novel SARS-CoV-2 virus, stock markets fell, firms and governments...

For the last two decades, non-US firms have lower valuations than similar US firms. We study the evolution of this valuation gap to assess whether financial markets are less integrated after the 2008 global financial crisis (GFC). The valuation gap for firms from developed markets increases by...

The US derives enormous economic benefits from issuing the dominant global currency. This exorbitant privilege has been put at risk by the combination of the 2022 sanctions against Russia and new technological developments, specifically Central Bank Digital Currencies. CBDCs promise faster,...

Using a new equity price-based measure of the global financial cycle, this paper evaluates the relative importance of global financial shocks for quarterly equity returns and output growths in a large sample of advanced and emerging economies, as well as in South Korea and China--two countries...

We provide a model-free framework to study the global factor structure of exchange rates. To this end, we propose a new methodology to estimate international stochastic discount factors (SDFs) that jointly price cross-sections of international assets, such as stocks, bonds, and currencies, in...

Hegemonic powers, like the United States and China, exert influence on other countries by threatening the suspension or alteration of financial and trade relationships. Mechanisms that generate gains from integration, such as external economies of scale and specialization, also increase the...

"Today's global financial system bears little resemblance to what it was at the end of the twentieth century. Shadow banking--financial activity taking place outside existing regulatory frameworks--has grown so important that it now serves as the backbone of the entire system. The shadow banking...

We present new long-run samples of r-g series over centuries for key economies in the international financial system. Across a wide variety of econometric approaches, and including duration-matched constructions, we demonstrate strong evidence of trend stationarity in these series. Although we...

"Seeks to understand the nature and global impact of the Chinese lending by looking at China's national policy banks -- the China Development Bank and the Export-Import Bank of China -- and the financial giants that capitalize China's overseas infrastructure and industrial projects."

World Bank Group President David Malpass remarked that early in the pandemic, the World Bank Group set out to use aggressive financial programming and leverage to increase commitments as rapidly as possible. The World Bank group used a number of powerful financial programming and leveraging...