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The Enlarged Global Financial Safety Net

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  • Evgeny Vinokurov
  • Artem Levenkov

Abstract

The institutions and instruments of the Global Financial Safety Net (GFSN) represent the part of the global financial architecture that is responsible for providing an anti‐crisis and stabilization support to the countries in need. We argue that the standard understanding of the GFSN as a system consisting of four layers – national reserves, bilateral swaps, regional financing arrangements and the IMF – demands rethinking. We suggest the concept of an enlarged GFSN, namely its expansion by two additional elements – multilateral development banks and bilateral financial support. Both elements of the international financial architecture are partly involved in providing an anti‐crisis and macroeconomic stabilization support at concessional terms. We demonstrate how the enlarged GFSN functions, including at the time of the COVID‐19 crisis.

Suggested Citation

  • Evgeny Vinokurov & Artem Levenkov, 2021. "The Enlarged Global Financial Safety Net," Global Policy, London School of Economics and Political Science, vol. 12(1), pages 15-23, February.
    • Handle: RePEc:bla:glopol:v:12:y:2021:i:1:p:15-23
    DOI: 10.1111/1758-5899.12906
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    References listed on IDEAS

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    1. C. Randall Henning, 2019. "Regime Complexity and the Institutions of Crisis and Development Finance," Development and Change, International Institute of Social Studies, vol. 50(1), pages 24-45, January.
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    Cited by:

    1. Evgeny Y. Vinokurov & Marina V. Grichik & Taras V. Tsukarev, 2022. "New approaches to international reserves: The lack of credibility in reserve currencies," Russian Journal of Economics, ARPHA Platform, vol. 8(4), pages 315-332, December.
    2. Graciela Schiliuk & Tullio Buccellato & Jens Lapointe-Rohde & Georgios Palaiodimos & Habib Attia & Marthe Memoracion Hinojales & Catharine Kho & Gennady Vasiliev & Tigran Kostanyan & Alexandra de Carv, 2021. "Regional responses to the Covid-19 crisis: a comparative study from economic, policy, and institutional perspectives," Discussion Papers 18, European Stability Mechanism, revised 08 Nov 2021.

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