International Financial Markets in the Conditions of Transformation of Financial System

Abstract

The authors consider the role of financial markets, which have become a dominating factor of globalization of the world economy. They allowed taking international economic relations to a new qualitative level, which determines the modern character of global economic relations. Since the second half of the 20^th century, financial markets have become a leading force of the crisis process, which role grows with economy’s globalization.

Formation of the global financial market in the conditions of transformation of financial capital and development of banking sector is analyzed. With development of stock trading, financial of stock deals became a more attractive form of investing free capital than crediting of real sector. The process of liberalization of financial markets is studied – which was performed in the course of general integration processes, including within decisions of international economic organizations.

At present, financial liberalization, with appeared as economic phenomenon, acquires larger social and political role. National authorities’ refusal from regulating the inflow of financial capital led to transformation of the status of a sovereign state. The issue of “blurring” and “disappearance” of national sovereignty began to be discussed, as it is threated by global financial flows, the Internet, global media empires, transnational corporations, etc.

Recommendations for corrections into conditions of financing of the global financial system are of non-specific and cosmetic character. At that, objective shifts in functioning of the global economy, determined by financial globalization and large changes in inter-state and inter-regional balance, will stimulate international society for cardinal reconsideration of conditions of functioning of this system.