IDEAS home Printed from https://ideas.repec.org/a/nea/journl/y2022i55p207-212.html
   My bibliography  Save this article

Financial sanctions and future of globalization

Author

Listed:
  • Buklemishev, O.

    (Lomonosov Moscow State University, Moscow, Russia)

Abstract

The dynamics of fi nancial sanctions over the past decades is considered. The outstripping growth of the role of fi nancial and other "smart" sanctions is explained by their painfulness for target states, organizations and citizens, the asymmetry of the impact and the possibility of minimizing damage to third parties. It is shown that although the heyday of fi nancial sanctions coincides with the period of the rollback of globalization, in many respects they are generated precisely by the process of globalization and the growth of network interactions. The assumption of the mutually reinforcing infl uence of deglobalization and sanctions is considered in view of the fact that the network effects of international fi nancial institutions increase over time. Nevertheless, as a result of fi nancial sanctions, the active processes of replacing traditional international payment and settlement mechanisms with alternative ones and the US dollar - with other reserve currencies (primarily the Chinese yuan) have not yet started. Historical experience confi rms the conclusion that despite the negative effects of fi nancial sanctions, in the modern world they may not contradict to the continuation of globalization.

Suggested Citation

  • Buklemishev, O., 2022. "Financial sanctions and future of globalization," Journal of the New Economic Association, New Economic Association, vol. 55(3), pages 207-212.
    • Handle: RePEc:nea:journl:y:2022:i:55:p:207-212
    DOI: 10.31737/2221-2264-2022-55-3-12
    as

    Download full text from publisher

    File URL: http://www.econorus.org/repec/journl/2022-55-207-212.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.31737/2221-2264-2022-55-3-12?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Besedeš, Tibor & Goldbach, Stefan & Nitsch, Volker, 2021. "Cheap talk? Financial sanctions and non-financial firms," European Economic Review, Elsevier, vol. 134(C).
    2. Stephen P. Borgatti & Rob Cross, 2003. "A Relational View of Information Seeking and Learning in Social Networks," Management Science, INFORMS, vol. 49(4), pages 432-445, April.
    3. Ahn, Daniel P. & Ludema, Rodney D., 2020. "The sword and the shield: The economics of targeted sanctions," European Economic Review, Elsevier, vol. 130(C).
    4. Gutmann, Jerg & Neuenkirch, Matthias & Neumeier, Florian, 2023. "The economic effects of international sanctions: An event study," Journal of Comparative Economics, Elsevier, vol. 51(4), pages 1214-1231.
    5. Soramäki, Kimmo & Bech, Morten L. & Arnold, Jeffrey & Glass, Robert J. & Beyeler, Walter E., 2007. "The topology of interbank payment flows," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 379(1), pages 317-333.
    6. Felbermayr, Gabriel & Morgan, T. Clifton & Syropoulos, Constantinos & Yotov, Yoto V., 2021. "Understanding economic sanctions: Interdisciplinary perspectives on theory and evidence," European Economic Review, Elsevier, vol. 135(C).
    7. Michael D. Bordo, 2017. "The Second Era of Globalization Is Not yet Over: An Historical Perspective," Economics Working Papers 17103, Hoover Institution, Stanford University.
    8. Arslanalp, Serkan & Eichengreen, Barry & Simpson-Bell, Chima, 2022. "The stealth erosion of dollar dominance and the rise of nontraditional reserve currencies," Journal of International Economics, Elsevier, vol. 138(C).
    9. Kaempfer, William H. & Lowenberg, Anton D., 2007. "The Political Economy of Economic Sanctions," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 2, chapter 27, pages 867-911, Elsevier.
    10. Mr. Serkan Arslanalp & Mr. Barry J. Eichengreen & Chima Simpson-Bell, 2022. "The Stealth Erosion of Dollar Dominance: Active Diversifiers and the Rise of Nontraditional Reserve Currencies," IMF Working Papers 2022/058, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ohyun Kwon & Constantinos Syropoulos & Yoto V. Yotov, 2022. "The Extraterritorial Effects of Sanctions," CESifo Working Paper Series 9578, CESifo.
    2. Teemu Makkonen & Timo Mitze, 2021. "Geo-political conflicts, economic sanctions and international knowledge flows," Papers 2112.00564, arXiv.org.
    3. Ina C. Jäkel & Søren Østervig & Erdal Yalcin, 2024. "The effects of heterogeneous sanctions on exporting firms: Evidence from Denmark," Review of International Economics, Wiley Blackwell, vol. 32(1), pages 161-189, February.
    4. Felbermayr, Gabriel & Kirilakha, Aleksandra & Syropoulos, Constantinos & Yalcin, Erdal & Yotov, Yoto V., 2020. "The global sanctions data base," European Economic Review, Elsevier, vol. 129(C).
    5. Tao Liu & Dong Lu & Liang Wang, 2023. "Hegemony or Harmony? A Unified Framework for the International Monetary System," Working Papers 202305, University of Hawaii at Manoa, Department of Economics.
    6. Mikhail Mamonov & Anna Pestova, 2023. "The Price of War: Macroeconomic and Cross-Sectional Effects of Sanctions on Russia," CERGE-EI Working Papers wp756, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    7. Jun Qian & Xiao Sun & Ziyang Wang & Yueting Chai, 2022. "Negative Feedback Punishment Approach Helps Sanctioning Institutions Achieve Stable, Time-Saving and Low-Cost Performances," Mathematics, MDPI, vol. 10(15), pages 1-16, August.
    8. Nobuhiro Hosoe, 2022. "Quantifying the Impacts of Sanctions Following Russia’s Invasion of Ukraine," GRIPS Discussion Papers 22-06, National Graduate Institute for Policy Studies.
    9. Paweł Kowalewski & Dominik Skopiec, 2023. "Wzrost znaczenia złota w rezerwach dewizowych banków centralnych gospodarek wschodzących," Bank i Kredyt, Narodowy Bank Polski, vol. 54(3), pages 259-284.
    10. Vincenzo Bove & Jessica Di Salvatore & Roberto Nisticò, 2023. "Economic Sanctions and Trade Flows in the Neighborhood," Journal of Law and Economics, University of Chicago Press, vol. 66(4), pages 671-697.
    11. Joseph Hickey, 2023. "Simple model of market share dynamics based on clients' firm-switching decisions," Papers 2304.08727, arXiv.org, revised Nov 2023.
    12. Berthou Antoine, 2023. "International sanctions and the dollar: Evidence from trade invoicing," Working papers 924, Banque de France.
    13. Ricardo Hausmann & Ulrich Schetter & Muhammed A. Yildirim, 2022. "On the Design of Effective Sanctions: The Case of Bans on Exports to Russia," CID Working Papers 417, Center for International Development at Harvard University.
    14. Moghaddasi Kelishomi, Ali & Nisticò, Roberto, 2022. "Employment effects of economic sanctions in Iran," World Development, Elsevier, vol. 151(C).
    15. Lu, Dong & Mu, Yuhao, 2023. "A parsimonious model of trade, finance and endogenous currency choices in international reserves," Economics Letters, Elsevier, vol. 225(C).
    16. Piotr Lukaszuk, 2021. "You can smuggle but you can't hide: Sanction evasion during the Ukraine crisis," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 71(01), pages 73-125, December.
    17. Meyer, Klaus E. & Fang, Tony & Panibratov, Andrei Y. & Peng, Mike W. & Gaur, Ajai, 2023. "International business under sanctions," Journal of World Business, Elsevier, vol. 58(2).
    18. Görg, Holger & Jacobs, Anna & Meuchelböck, Saskia, 2023. "Who Is to Suffer? Quantifying the Impact of Sanctions on German Firms," IZA Discussion Papers 16146, Institute of Labor Economics (IZA).
    19. Devasmita Jena & C. Akash & Prachi Gupta, 2023. "Deflecting Economic Sanctions: Do Trade and Political Alliances Matter?," Working Papers 2023-248, Madras School of Economics,Chennai,India.
    20. Kuehnlenz, Sophia & Orsi, Bianca & Kaltenbrunner, Annina, 2023. "Central bank digital currencies and the international payment system: The demise of the US dollar?," Research in International Business and Finance, Elsevier, vol. 64(C).

    More about this item

    Keywords

    sanctions; international relations; international payment systems; globalization; deglobalization; network effect; reserve currencies;
    All these keywords.

    JEL classification:

    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nea:journl:y:2022:i:55:p:207-212. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexey Tcharykov (email available below). General contact details of provider: https://edirc.repec.org/data/nearuea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.