CC BY
3
6. Кульнева Е.Ю., Гащенко И.А. О характеристиках, влияющих на моделирование радиотехнических устройств // Современные наукоемкие технологии. 2014. № 5-2. С. 50.
7. Болучевская О.А., Горбенко О.Н. Свойства методов оценки характеристик рассеяния электромагнитных волн // Моделирование, оптимизация и информационные технологии. 2013. № 3. С. 4.
8. Ерасов С.В. Оптимизационные процессы в электродинамических задачах // Вестник Воронежского института высоких технологий. 2013. № 10. С. 20-26.
УДК 33
Айкалов С.С. студент 2 курса факультет «Экономический» Сергина С.А. научный руководитель Университет: ОмГУ им. Достоевского
Россия, г. Омск ГЛОБАЛИЗАЦИЯ ФИНАНСОВЫХ РЫНКОВ
Аннотация: В статье рассматриваются сущность и значение глобализации финансовых рынков, влияние финансовой глобализации на денежно-кредитную политику, преимущества и риски, связанные с глобализацией финансовых рынков.
Ключевые слова: глобализация финансовых рынков, денежно-кредитная политика, финансовая глобализация, финансовые рынки. экономическая политика, мировая экономика, интеграция национальных рынков.
Aikalov S.S.
Student of 2 course Faculty of Economics Scientific director: Sergina S.A. Omsk State University of F. M. Dostoevsky
Russia, Omsk
THE GLOBALIZATION OF FINANCIAL MARKETS
Abstract: The article discusses the essence and importance of the globalization of financial markets, the impact of financial globalization on monetary policy, benefits and risks associated with the globalization of financial markets.
Keywords: the globalization of financial markets, monetary policy, financial globalization, financial markets, economic policy, the world's economies, the integration of national markets.
Introduction
In the process of developing globalization of financial markets had been seen over recent decades, both technological advances and financial innovation played a key role in this process. In the past few decades, information systems have become able to compute and store more data more rapidly.
The globalization of financial markets includes issues such as vulnerability of the international financial system to crises or limited room for maneuver, which is available for economic policy pursuing specific objectives at the national level in the present day.
The concept of "the globalization of financial markets" refers to the process of integration and merging of the distinct world markets into a single market. This process involves the identification of some common norm, value, taste, preference and convenience and slowly enables the cultural shift towards the use of common product or service.
The relevance of this topic is explained to the advent of globalization in almost all spheres of public life: economics, politics, ideology, social sphere, culture, ecology, safety, lifestyle, as well as it influences on human existence.
The purpose of this work is to examine theoretical aspects of globalization, preconditions and consequences of its development, as well as to identify development prospects of globalization of financial markets.
The tasks of this work to:
• Review the evidence suggesting that financial markets have recently become more globalised;
• Examine various indicators of globalization;
• Discuss the benefits and risks associated with the globalization of financial markets.
1. The essence and importance of the globalization of financial markets
The globalization of financial markets means the integration of financial markets of all countries of the world into one. This is only possible provided uniformity can be brought in the terms and conditions across the globe for raising international loans. The existence of different currencies with their different degrees of convertibility prevents uniformity in the terms and the conditions for loans. Consequently, not only does the existence of different currencies act as a barrier to such integration, but it disproportionately benefits the developed countries. 12
Financial globalization and financial integration are, in principle, different concepts. Financial globalization is an aggregate concept that refers to increasing global linkages created through cross-border financial flows. Financial integration refers to an individual country's linkages to international capital markets. Clearly,
12 Sharpe M.E - Journal of Post Keynesian Economics (2005)
these concepts are closely related. For instance, increasing financial globalization is perforce associated with increasing financial integration on average. 13
Advances in technology and communication have increased the efficiency of the financial markets, therefore increasing the globalization of the financial markets. With a more efficient market increases the competition to key financial institutions therefore reducing the cost of financing. Globalization has also led to financial deregulation of the financial markets worldwide.
The economic development trend leading towards global markets is not straight-forward one: periods of growth of globalization and a relative decline of it are changing in turn. However, the secular trend seems to tend upwards. It is not surprising, because - generally speaking - the tendency of growth of economic globalization is interrupted by a counter-tendency of decline.
Financial markets present development can be used as an example: globalization of shares markets continues, but a counter-tendency of market segmentation works in an opposite direction. The cause of these opposite tendencies can be found both in the sphere of real economics and the sphere of financial market.
If financial markets are regulated (at present, this factor is growing), the "natural" financial markets' development can be supported through regulative measures, or distorted by them.
One of the results of difference theoretical and ideological views is the existence of differing views on financial markets' future. The "optimists" present the general tendency of economic globalization (financial markets included) as a prevailing, long-term (secular) tendency which cannot be stopped by any barrier.
From practical point of view, this general approach is not very inspiring for national and/or international economic policy.
At present, representatives of more skeptical views on globalization prefer the orientation on financial stability. The reason is clear: during the world financial crisis, strong players preferred their "national" solutions the international solutions and - in fact - were not interested in globalization problems.
More inspiring is the approach of pragmatists: they are striving to support the development of market segment which - in their opinion - are able to help to create the new capital necessary for economic growth in the world, without distorting the relative international financial stability. But: it is not probable that national capital formation would satisfy the present need: global financial markets are expected to satisfy it.
The present situation shows that feasible economic solutions are unable to surpass the coordination of national and international regulation of systemically important financial institutions which dominate financial markets (the global subsegments in the first place): this is the maximum which can be attained13.
13 Eswar S. Prasad, Kenneth Rogoff, Shang-Jin Wei, M. Ayan Kose - Effects of Financial Globalization on Developing Countries (2003)
New goals were not yet formulated. Inter alia, long-term development of economic globalization is still uncertain, except for a probable low rate of economic globalization.
2. The impact of financial globalization on monetary policy
A situation in which the international financial system is based on the free functioning of market forces can only be considered as beneficial for the economy if financial markets function in an efficient manner.
Monetary policy can provide two main contributions to financial market efficiency, thereby also contributing to economic growth over the medium term.
First, by firmly maintaining price stability, monetary policy will provide a strong anchor for the formation of expectations regarding future developments in consumer prices. When inflation is low and expected to remain low and subject to limited variations over the medium term, the prices of financial assets need not incorporate as high inflation risk premia as in a situation of high or uncertain inflation. As the inflation risk premium becomes relatively less important as a determinant of financial prices, other factors such as credit risk can take on a larger role in the price formation mechanism. Ultimately, this results in a more efficient allocation of financial resources.
Second, monetary policy can also contribute to market efficiency by reducing, to the extent possible, the occurrence of surprises related to monetary policy decisions. In such a way, monetary policy would avoid creating any unnecessary volatility in long-term interest rates, which would contribute to the quality of price formation on interest rate markets. The occurrence of surprises can be minimized by providing financial market participants as well as the public with a clear, detailed and honest description of the monetary policy strategy followed by the central bank.
According to the statute of the ECB (European Central Bank), the primary objective of the ECB is to maintain price stability. The statute of the ECB thereby provides not only a clear mandate for monetary policy, but also an anchor for market expectations. 14
In the context of the globalization of financial markets, there are two main challenges to be faced by monetary policy.
A first challenge is that, in its communication with the public, monetary policy should take into account the rapidity with which information is transmitted across the world. The increased speed of transmittal of information means that the reactions to monetary policy decisions can be rapid and widespread. Decisions therefore have to be explained immediately after they are taken, in a concise manner.
The second challenge is that monetary policy should be able to take into account structural changes to the economic environment which occur as a result of the globalization of financial markets. As highlighted by Okina, Shirakawa and Shiratsuka (1999), financial integration must be considered together with economic integration resulting from increased cross-border trade in goods and services,
14 Obstfeld, M. (1998) - The Global Capital Market (1998)
although the two forms of integration may not always progress at the same pace. [4] In any case, economic interdependence will increase as the international orientation of the economy augments. In particular, the relevance of various economic variables for assessing risks to price stability will change with the development of more globalised markets. Moreover, the pattern of transmission of the monetary policy stance to the economy may also change and, in the process, gain in complexity.15
3. Benefits and risks associated with the globalization of financial markets
Of course it's impossible to define uniquely whether globalization is good or bad. It has lots of supporters and opponents. Let's have a look at the influence of this process on different aspects of modern life and try to note c0its positive and negative sides.
First globalization has a great influence on state economics. The appearance of multinationals is one of its consequences. Today all the world knows lots of different brands. Wherever you are, you'll more likely have an opportunity to eat at a fast-food restaurant MacDonald's. You can wash down your dinner with Coca Cola or Lipton tea. As you see products of multinationals is offered in every country practically. These firms offer a great amount of working places. Corporations are engaged in charity sometimes.
But at the time the multinationals prosper little firms often incur losses. Actually it's sometimes very difficult to resist in competition with worldly recognized companies. As a result there is some aggregation and concentration of capitals in the hands of multinationals' leaders. Though there is a question if it's that bad? The business of such companies is quiet stable; therefore it promotes in some ways the installation of stable economical relationships and economical growth.
Another one peculiarity of globalization is speedup of life rhythm. There is an impression that distances among countries shorten. Today the trips for a couple of days on hundreds of kilometers have become a norm. And if it was considered to be a great distance then now it's not a problem. From the other side such things condition increases the opportunities of emigrants wishing to leave their country to live in another one. There is a new problem with this moment. It's a "brain drain" problem. Some countries loose their highly specialized specialists in the end, and the costs for their education become ineffective for the state. Though for the side accepting professionals it's quiet favorably.
Cultural peculiarities change with globalization too. They unify in some ways. Besides the mutual penetration of cultures and their exchange take place. For example being in Russia you can find Chinese, Japanese, Georgian, French and many other restaurants. With such means the inhabitants of one country get an opportunity to get acquainted with national peculiarities of other states. At the same
15 Edition of the Monthly Bulletin of the ECB - Monetary policy transmission in the euro area (2000)
time young generation is under big influence of American culture which appears in modern cinema, music etc.
But there is a negative side here. Unfortunately preferring unified world culture we sometimes forget about our own one. Traditions and customs are being lost. The youth stops to be interested in them. Besides less attention is paid to the development of the country culture in its own unique destination.
Also there are lots of discussions if it worth regulating the business of multinationals and in what degree the state has a right to interfere with it. Big companies open subsidiaries and representations all over the world. But ever country has its own laws which often differ from those working abroad. That is why it's important for company subsidiaries to function in coordination with those normative acts which are installed in this state.
The world economics theory proves that the most effective condition is achieved on an open market. But unfortunately the total world effectiveness is estimated here. Speaking of one country the conclusions can be quiet the opposite. Sometimes there is a decrease of profits when branches which are not so well developed as in other countries come to an open market. These branches incur losses and even stop functioning in the end. And for the whole state that means a partly loss of independence from foreign suppliers. Though developed countries win here of course. They increase the sphere of their influence and enlarge the areas of their markets.
The consequence of globalization is appearance of a flock of different international organizations which try to collaterally solve economical, political, and ethical and many other problems.
And the governments must carry on competent international politics. Each state needs in interaction with other countries. But they should open the broads and merge with the world in the degree when the state can worthy compete with other participants of the world market.
Conclusion
In conclusion I'd like to say that globalization is a process which is not yet finalized and will lead to a world in which countries and economic areas will become more and more interdependent. In financial markets, the process of globalization opens access to borrowing, lending and investing world-wide. In addition, it plays a central role in disciplining policies. When monetary and economic policy pursues stability-oriented objectives, the world's economies will be able to reap the full benefits of the globalization of financial markets despite some existing associated risks.
On the basis of our research we can state that:
1. Financial globalization is an inevitable process. Globalization presents some universal process, which is developed according to its laws;
2. The interdependence of countries is becoming one of the most important elements of the process of globalization. Such interdependence
increasingly determines the coordination of the activities of states in solving not only political and economic but also other global issues;
3. In the global financial environment, the main elements of which are the liberalization of international monetary relations, financial markets and increase of the integration of national markets of money and capital.
The potential benefits of financial globalization will likely lead to a more financially interconnected world and a deeper degree of financial integration of developing countries with international financial markets.
In the work I reviewed some theoretical aspects of globalization of financial markets, the preconditions and consequences of its development. I also identified development prospects of globalization of financial markets, as well as I examined various indicators of globalization and reviewed the benefits and risks associated with globalization of financial markets. So the purpose and the tasks of my work have been achieved.
Использованные источники:
1. Sharpe M.E. (2005, April) Journal of Post Keynesian Economics, 3, 507-531.
2. Eswar S. Prasad, Kenneth Rogoff, Shang-Jin Wei, M. Ayan Kose (2003). Effects of Financial Globalization on Developing Countries.
3. Obstfeld, M. (1998). The Global Capital Market.
4. Okina, K., M. Shirakawa and S. Shiratsuka (1999). Financial market globalization: present and future.
5. Edition of the Monthly Bulletin of the ECB (2000, July). Monetary policy transmission in the euro area.
6. Tobin, J. (2000). Financial Globalization.
7. Berger, A., R. DeYoung, H. Genay and G. Udell (2000). Globalization of financial institutions.
8. Kose, M. Ayhan, Eswar Prasad, Kenneth Rogoff, and Shang-Jin Wei (2006). Financial Globalization: A Reappraisal.
9. Akitoby, Bernardin, and Thomas Stratmann (2006). Fiscal Policy and Financial Markets.
10.Martin, Philippe, and Hélène Rey (2006). Globalization and Emerging Markets.
11.Frankel, J. (2000). Globalization of the Economy.
