IDEAS home Printed from https://ideas.repec.org/a/nea/journl/y2022i55p207-212.html

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. 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.
    3. Michael D. Bordo, 2017. "The Second Era of Globalization is Not Yet Over:An Historical Perspective," Globalization Institute Working Papers 319, Federal Reserve Bank of Dallas.
    4. 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.
    5. Ahn, Daniel P. & Ludema, Rodney D., 2020. "The sword and the shield: The economics of targeted sanctions," European Economic Review, Elsevier, vol. 130(C).
    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. 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.
    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)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Drapkin, I. & Simachev, Yu. & Fedyunina, A. & Pastukhova, P., 2025. "The impact of financial sanctions on countries' participation in global value chains: An assessment with the synthetic control method," Journal of the New Economic Association, New Economic Association, vol. 69(4), pages 151-172.

    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. Douch, Mustapha & Wu, Yupei & Gao, Bo, 2025. "Impact of U.S. sanctions on Russian trade: Firm-level evidence from the NTR act," Journal of Economic Behavior & Organization, Elsevier, vol. 240(C).
    2. Dominika Langenmayr & Mikayel Tovmasyan & Sebastian Vosseler, 2025. "Bypassing Sanctions: Hide 'N Seek in Tax Havens?," Working Papers 202536, Center for Global Policy Analysis, LeBow College of Business, Drexel University.
    3. Jerg Gutmann & Matthias Neuenkirch & Florian Neumeier, 2024. "Political Economy of International Sanctions," Research Papers in Economics 2024-07, University of Trier, Department of Economics.
    4. Tyazhelnikov, Vladimir & Romalis, John, 2024. "Russian counter-sanctions and smuggling: Forensics with structural gravity estimation," Journal of International Economics, Elsevier, vol. 152(C).
    5. de Souza, Gustavo & Hu, Naiyuan & Li, Haishi & Mei, Yuan, 2024. "(Trade) War and peace: How to impose international trade sanctions," Journal of Monetary Economics, Elsevier, vol. 146(C).
    6. Marco Garofalo & Giovanni Rosso & Roger Vicquéry, 2025. "Sanctions and Currencies in Global Credit," Economics Series Working Papers 1079, University of Oxford, Department of Economics.
    7. Petrevski, Goran, 2025. "Economic sanctions and output growth: Empirical evidence," EconStor Preprints 325283, ZBW - Leibniz Information Centre for Economics.
    8. Crosignani, Matteo & Han, Lina & Macchiavelli, Marco & Silva, André F., 2026. "Securing technological leadership? The cost of export controls on firms," Journal of Financial Economics, Elsevier, vol. 175(C).
    9. Kwon, Ohyun & Syropoulos, Constantinos & Yotov, Yoto V., 2024. "Identifying and quantifying the extraterritorial effects of sanctions," European Economic Review, Elsevier, vol. 170(C).
    10. Teemu Makkonen & Timo Mitze, 2021. "Geo-political conflicts, economic sanctions and international knowledge flows," Papers 2112.00564, arXiv.org.
    11. Ohyun Kwon & Constantinos Syropoulos & Yoto Yotov, 2022. "The Extraterritorial Effects of Sanctions," School of Economics Working Paper Series 2022-3, LeBow College of Business, Drexel University.
    12. Michael Lloyd, 2022. "The Future of Money: Central Bank Digital Currencies," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 50(3), pages 85-98, December.
    13. 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.
    14. 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.
    15. Devasmita Jena & C. Akash & Prachi Gupta, 2024. "Deflecting economic sanctions: do trade and political alliances matter?," International Economics and Economic Policy, Springer, vol. 21(3), pages 543-567, July.
    16. 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.
    17. 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.
    18. 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.
    19. Liu, Ziheng & Zhang, Jiahui & Gu, Ran & Hu, Qizheng & He, Shouchao, 2025. "Driving effects of U.S. monetary policy and geopolitical risks on gold reserve share," International Review of Financial Analysis, Elsevier, vol. 105(C).
    20. 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.

    More about this item

    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.