Financial sanctions and future of globalization

O. Buklemishev
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O. Buklemishev: Lomonosov Moscow State University, Moscow, Russia

Journal of the New Economic Association, 2022, vol. 55, issue 3, 207-212

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.

Keywords: sanctions; international relations; international payment systems; globalization; deglobalization; network effect; reserve currencies (search for similar items in EconPapers)
JEL-codes: F33 F51 F65 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:nea:journl:y:2022:i:55:p:207-212

DOI: 10.31737/2221-2264-2022-55-3-12

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