Vinokurov, E. and Levenkov, A. (2021) The global financial safety net: Evolution of the anti-crisis function in the global financial architecture. Voprosy Ekonomiki, 5:26–42. (In Russian). https://doi.org/10.32609/0042-8736-2021-5-26-42

21 May 2021

In the global financial architecture, the functions of anti-crisis support and macroeconomic stabilization are performed by the institutions of the global financial safety net (GFSN). The volume of available financing within the framework of GFNS has grown 10 times over the past decade and reached the equivalent of 4% of world GDP. The literature’s standard understanding of a system of national reserves, swap agreements, regional financial mechanisms, and the IMF requires enlargement. The article proposes the concept of an enlarged global financial safety net, namely by including two new elements — multilateral development banks and bilateral financial support. The manifestations of this phenomenon in many regions of the world are shown in the activities of the largest international development banks and at the level of macroeconomic stabilization financing by individual donor countries, including during the current COVID crisis.

Keywords: financial safety, financial crisis, global financial architecture, regional financial mechanism, international reserve assets, swap agreements, macroeconomic stability, multilateral development banks

JEL: F02, F33, F34, F36, G01, H63 

Related publications:

Vinokurov E., Levenkov A. (2021) The Enlarged Global Financial Safety Net. Global Policy, 12 (1). doi.org/10.1111/1758-5899.12906

EFSD Working Paper WP/19/1 “The Eurasian Fund for Stabilization and Development: A Regional Financing Arrangement and Its Place in the Global Financial Safety Net”

EFSD Working Paper WP/20/2 “Global Financial Safety Net in Eurasia: Accessibility of Macroeconomic Stabilization Financing in Armenia, Belarus, Kyrgyzstan, and Tajikistan”

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