GLOBAL LIQUIDITY AS AN INSTITUTIONAL PHENOMENON

Abstract

The content of present day contradictory processes in the world economy plays an important role in choosing the strategy of social and economic development of Ukraine. The article is devoted to the estimation of the «reverse» tendencies of the global financial and institutional environment on the basis of substantiation of the actual and historical significance of global liquidity, and determination on this basis of the content of modern global financial and institutional transformations Liquidity is treated as the amount of available financing for the acquisition of both internal and cross-border assets; it describes the ability and willingness of the parties to take part in financial transactions, including mediation, and the ability of the financial markets to absorb temporary fluctuations in demand and supply of certain assets. The globality of liquidity is manifested through the interconnection of the national financial space and the cross-border movement of financial capital. The mechanisms for transmitting information on the internal conditions of the development of countries to the world financial markets and operators, which influences the rapid movement of financial flows in space and time, plays an important role. The modern development of financial technologies has given rise to such recent phenomena as liquidity and information surplus. As a result, the public need in financial intermediation institutions is gradually disappearing or regenerating. Global liquidity has national institutional sources of origin and reflects the interests of specific issuers and investors. This causes difficulty in institutional provision of international coordination on its regulatation. When circulating in the global financial and institutional space, liquidity has significant influence on supply and demand fluctuations not only in the financial markets, but in the economy as a whole. The current tendency towards decreasing the volume of the world interbank lending is not the sign of globalization, but the sign of change in the vectors of the development of globalization towards other financial mechanisms. The active introduction of new financial instruments (cryptocurrencies) into the world’s payment cycle and the policies of the leading regulators in the financial markets show that financial globalization is going on.

Keywords

• global liquidity
• financial intermediation
• institutional phenomenon
• financial and institutional transformations