Currency Hierarchy and Financial Globalization

This insightful book investigates how financial globalization shapes the hierarchical order of currencies in the international monetary system, evaluating the implications for peripheral countries.Authors Luiz Fernando de Paula, Barbara Fritz and Daniela Magalhães Prates explore currency hierarchy through a new Keynesian-Structuralist perspective, highlighting how peripheral economies are subject to greater macroeconomic and financial volatility. They outline how the current hierarchy fosters global and national inequalities, limiting peripheral countries’ capacity to implement social and redistributive policies, and preventing them from achieving income parity. The book traces the historical evolution of the global monetary order, examines a new channel of external vulnerability, and illustrates the asymmetries between the two groups of peripheral countries, namely emerging market economies and frontier market economies. Adopting a forward-thinking approach, this book assesses potential policy shifts and their effectiveness in fostering growth, sustainability and equity.Currency Hierarchy and Financial Globalisation is a valuable resource for scholars and students in the fields of financial and international economics. The financial analysis and empirical research presented in this book will also be of great benefit to policy makers and practitioners.