BACKGROUND
AND THE PECULIARITIES OF MANIFESTATION OF THE MODERN WORLD FINANCIAL
INSTABILITY
PHEI Vinnitsa Institute
of designing of clothes
and Entrepreneurship
Filonova I.B, Pukhtitska N.O
Human civilization is constantly faced with global and national
financial, environmental, political and food crisis, creating a constant
pressure on the economic and social environment of states.
However, the current global instability feature is that it in addition to
financial and economic components it also has a social one.
Already it is clear that social stratification is growing deeper , more
acute risks of decay and degradation of society. As Hzh._Kolodko says this
current crisis could not occur in
countries with well-functioning social market economy, such as the Scandinavian
countries, - rich soil for it are conditions of neoliberal Anglo-American
model [1, p. 4].
In our opinion, among the main factors of global financial instability
is to provide the following:
·
transition to a post-industrial
stage of civilization, becoming the sixth technological structure (typical for
which is nano-and biotechnology, information products);
·
existence of disparities and contradictions between countries of first and third world (in 2012 the correlation of GDP per capita in the
richest countries and the average income in the poorest countries is 140:1, and
in 1960 - 30:1);
·
significant dollarization of the
global economy (if in 1995 in circulation was 380 billion dollars. (2/3 outside
the U.S.), in 2012 this figure exceeded 2 trillion dollars);
·
the decisive role of the United States in international monetary-credit institutions (IMF, World Bank, etc.);
·
deregulation of global financial markets and the lack of
effective global coordination and control system on Banking Supervision (the
total assets of the five bank holding companies in the United States at the
beginning of 2012 amounted to 8 trillion. dollars and total assets of the
entire banking system exceed 12 trillion);
·
rapid growth in the financial
services sector and increase their mass compared to the real sector of the
economy (in the 2012 issue of derivatives accounted for over 500 trillion
dollars. U.S.);
·
increasing debt and excessive
consumption (U.S. commitment to the world is 3.6 trillion dollars.
Recently there has been scientific community in the search for effective
ways of overcoming the global financial instability. Since 2012, central banks of
different countries use of real liquidity support and market stabilization QE
(eng. - Quantitative Easing), LTRO (Long Term Refinancing Operation), and the
ESM (European Stability Mechanism). For example, just because of these financial operations The U.S. Federal
Reserve is pouring into the country $ 4 billion a day [1]
[2]. ] However, the struggle with
the effects of a high debt burden by creating more debt does not solve the
problem but only pushes them over time. So the statement of Harvard professor N._Ferhyuson is entirely
accurate about this, "Planet Earth
is a dwarf planet on the background of" finance ", also the last much faster spins on its axis" [3, p. 132].
It is obvious that nowadays no
national financial system can not operate in isolation. Therefore, given that
the holders of American securities by major European banks (Credit Agricole,
Intesa SanPaolo, BNP Paribas, UniCredit, Commerzbank, ING Bank, SEB, etc..), problems
in the U.S. banking sector will lead to increased financial and economic
problems in European countries. Under these conditions, the most likely scenario for
future deployment of global financial instability is a possible collapse of the
euro, due to intensification of the contradictions between the major donor
countries of the European Union (Germany and France) and debtor countries
(Ireland, Portugal, Greece, Spain and Cyprus) [4 ]. Moreover, given the fact that Ukraine's economy is directly linked to European
countries, there is a high probability that in the case of deterioration of the
Western banks and companies of the domestic financial system will be drawn into
the crisis processes.
Thus, the
peculiarities of the current global financial instability should be the subject
of constant attention of the national regulator to an adequate and timely
response to new problems, prevent the decrease of financial stability of banks and reasonable prediction of further
development of the national economy.
Literature
1. Kolodko H. From the ideology of neoliberalism to a new pragmatism
[Text] / H.Kolodko / / Economy of Ukraine. - ¹ 9. - 2010. - P. 4 - 9.
2. Duncan R. The Dollar Crisis: causes, consequences, cures / John Wiley
& Sons P/Ltd, 2012. – 478 p.
3. Ferguson N. Ascent of money: translation from
English. / Niall Ferguson. - Moscow: Astrel, 2012. - 265 p.
4. Lukyanov V. Financial Economics: nature,
imperatives and trends in today's [Text] / V. Lukyanov / / Banking. - 2012. - ¹
3. - P. 40 – 45.
