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At the core of the international financial system

Author

Listed:
  • Valentina Feroldi
  • Edoardo Gaffeo

Abstract

This paper o§ers additional evidence on the structure of the international financial network as emerging from the Coordinated Portfolio Investment Survey (CPIS) dataset collected by the IMF. Making use of blockmodeling techniques which allow us to Öt a given community partition to real data, we show that the system is characterized by the presence of a particular type of meso-scale structure known as core-periphery, in which a densely connected subset of nodes (core) coexists with a sparsely connected partition (periphery), while the members of the core act as intermediaries between members of the periphery. The composition of the core - whose constituents are identiÖed as the set of systemically- important international Önancial centers - is rather small and remains stable over time. In addition to very large economies playing host to well-known global Önancial centers, the core comprises several o§-shore Önancial markets.

Suggested Citation

  • Valentina Feroldi & Edoardo Gaffeo, 2013. "At the core of the international financial system," DEM Discussion Papers 2013/05, Department of Economics and Management.
    • Handle: RePEc:trn:utwpem:2013/05
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    More about this item

    Keywords

    International financial system; intermediation; network analysis;
    All these keywords.

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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