Global Liquidity Challenges in International Economic Relations

Abstract

The article is devoted to the analysis of key challenges to global liquidity in international economic relations, in particular, their impact on emerging markets and on the policy responses of central banks of the world's leading economies. Particular attention is paid to the implications of monetary policy for developing countries, as well as the role of non-bank financial institutions in the context of tightening global liquidity conditions. The article addresses such issues as the impact of central bank decisions on financial stability, including the vulnerability of non-bank financial institutions to liquidity changes, as well as the risks associated with debt refinancing in the context of tightening global credit conditions.

The impact of interest rate hikes by central banks, such as the US Federal Reserve and the European Central Bank, on international capital flows and financial stability in both developed and emerging markets is also analyzed. Economies that are dependent on external financing and have high levels of foreign currency debt are particularly vulnerable.

The article also emphasizes the need to revise regulatory mechanisms to effectively manage liquidity risks of non-bank financial institutions, which play an important role in supplying liquidity to financial markets during crises, but are also vulnerable to stressful situations, especially in the context of a global liquidity squeeze.

In addition, it is noted that a reduction in liquidity can lead to higher lending costs and reduced availability of financial resources, which creates additional difficulties for governments and corporations, especially in countries with lower levels of economic development. The author emphasizes the importance of effective coordination between central banks and international financial institutions to ensure global financial stability.