Global trends of transformation of world financial architecture

Abstract

The article is devoted to the determination of global trends of the world financial architecture transformation. The views of scientists on the term "world financial architecture" were considered, the institutional and economic aspect of this term was studied in the context of financial globalization. It was determined that the global economy is at the stage of significant financial and currency crises. This is accompanied by the weakness of the financial sector in emerging markets, the increase in the number of offshore financial centres, the limitation of the international institutions’ ability to provide financial support to developing countries, etc. Reasonably, the global financial architecture and the need for its transformational shifts directly depends on the trends in the world financial market and the stability of the world economy, which has been experiencing crisis phenomena in recent years. The global economy is experiencing persistently high inflation, the highest in last decade, amid heightened economic and geopolitical uncertainty and disruptions in energy and commodity markets caused by the COVID-19 pandemic and Russia's ongoing war in Ukraine. An analysis of world commodity price trends is provided. It determines the high inflation of consumer prices, that is especially high in developing countries. It was determined that the national regulators of developed countries apply a stricter monetary policy and curtail measures to support the economy. It was concluded that the situation on the world commodity markets, high inflation, the increase in the cost of borrowing and the weaker growth of the leading economies significantly undermine the growth prospects of developing countries with emerging markets. This group of countries is in a more unfavourable condition than others and undermines the global stability of the world financial architecture. It is necessary to carry out stabilization measures if inflation indicators will grow not only in developing countries, but also in developed countries, whose destabilizing effect on the global economic system will be more impressive.