Currency hierarchy and financial globalization in emerging economies: how far does Riese’s critique of growth by external debt still hold?

IF 0.8 Q3 ECONOMICS European Journal of Economics and Economic Policies-Intervention Pub Date : 2022-09-01 DOI:10.4337/ejeep.2022.02.07

B. Fritz, L. F. de Paula, D. Prates

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Abstract

How has financial globalization changed the nature of the external vulnerability of emerging economies? The authors first present an overview of the changes in international capital flows and cross-border stocks involving emerging economies from the 1970s to the COVID-19 crisis, and then identify relevant recent shifts in financial globalization. They depart from the critique of growth by debt strategies, put forward, among others, by Riese, and the concept of currency hierarchy. Their question is whether this critique still holds when one considers the main recent features of financial globalization. They find that Riese’s contributions are still relevant when analysing the external vulnerability of emerging-market economies (EMEs), even with caveats that stem from his oversimplified view of the financial sector. They conclude that financial vulnerability overall has not decreased, but rather has changed its nature and the channels through which it affects EMEs, becoming more complex. © 2022 The Author.

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新兴经济体的货币等级制度和金融全球化:里斯关于依靠外债实现增长的批评还能站得住多少脚?

金融全球化如何改变了新兴经济体外部脆弱性的性质?作者首先概述了从20世纪70年代到2019冠状病毒病危机期间涉及新兴经济体的国际资本流动和跨境存量的变化，然后确定了近期金融全球化的相关变化。他们背离了里瑟等人提出的债务战略对增长的批判，以及货币等级的概念。他们的问题是，当人们考虑到金融全球化最近的主要特征时，这种批评是否仍然成立。他们发现，在分析新兴市场经济体(EMEs)的外部脆弱性时，里斯的贡献仍然是相关的，即使他对金融部门的过于简化的观点也有一些警告。他们的结论是，金融脆弱性总体上并没有减少，而是改变了其性质和影响新兴市场经济体的渠道，变得更加复杂。©2022作者。

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来源期刊

European Journal of Economics and Economic Policies-Intervention ECONOMICS-

CiteScore

1.70

自引率

0.00%

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期刊介绍： The European Journal of Economics and Economic Policies: Intervention (EJEEP) is a peer-reviewed journal which serves as a forum for studies in macroeconomic theory, economic institutions and economic policies. The managing editors aim for productive debates involving one or more variants of heterodox economics, and invite contributions acknowledging the pluralism of research approaches. The submission of both theoretical and empirical work is encouraged. The managing editors contend that a wide variety of institutional and social factors shape economic life and economic processes. Only a careful study and integration of such factors into economics will lead to theoretical progress and to competent economic policy recommendations. This was clearly demonstrated by the inadequacy of orthodox economics, based on neoclassical foundations, to provide suitable explanations and responses to recent financial and economic crises.