Author information:
János Müller https://orcid.org/0009-0009-2216-3621: Hungarian Banking Association, Chief Adviser; Asian Financial Cooperation Association (AFCA), Executive Deputy Director in the Belt and Road Financial Cooperation Committee. E-mail: mullerj1@t-online.hu
Ádám Kerényi https://orcid.org/0000-0002-5069-7577: Centre for Economic and Regional Studies, Researcher. E-mail: kerenyi.adam@krtk.hun-ren.hu
Abstract:
The emerging new world order will be subject to a number of strong and unexpected effects, transforming and fragmenting the international financial system. The multilateral world economy has come under the influence of a multipolar power structure, triggering geopolitical tensions, which has led to the creation of economic and financial blocs, and the struggle to strengthen power positions. Financial fragmentation poses risks to international financial and monetary stability. Reducing negative impacts requires international cooperation, but the regulatory activities of international financial institutions are constrained by power blocs. This paper seeks to answer the question of how the fragmented world order affects the international monetary system, flows of capital, monetary policies and financial stability.
Cite as (APA):
Müller, J., & Kerényi, Á. (2024). The Challenges of Fragmentation of the International Financial System – Towards a Brave New World Order. Financial and Economic Review, 23(2), 131–155. https://doi.org/10.33893/FER.23.2.131
Column:
Essay
Journal of Economic Literature (JEL) codes:
E3, E5, G1, F02, F12, F65
Keywords:
world order, fragmentation, deglobalisation, integration, central bank digital currency, financial stability
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