Currency hierarchy and financial globalisation: a conclusion

Luiz Fernando de Paula, Barbara Fritz and Daniela Magalhães Prates

A chapter in Currency Hierarchy and Financial Globalisation, 2026, pp 134-141 from Edward Elgar Publishing

Abstract: This book explored the concept of currency hierarchy within the context of financial globalisation, emphasising the structural asymmetries faced by peripheral economies. It outlined how integration into the global financial market has increased these economies’ macroeconomic instability. Drawing on Keynesian and Latin American structuralist approaches, the book developed a formal framework to analyse the liquidity premium disparities among central and peripheral currencies. As for policy considerations, key policy implications include the strategic use of capital controls, competitive real exchange rates, and regional financial cooperation. The analysis highlights the limitations of the IMF framework and advocates for tailored, context-sensitive macroeconomic regimes. Regional payment systems and liquidity-sharing mechanisms emerge as viable tools to increase macroeconomic autonomy and resilience. Ultimately, the book calls for both national strategies and global reforms to empower peripheral countries in an unequal international monetary and financial system.

Keywords: Currency hierarchy; Peripheral economies; Financial globalisation; Financial asymmetries; Capital controls; Regional monetary cooperation (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035328826
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