Geoeconomic Fragmentation and the Future of Multilateralism

By Shekhar Aiyar, Jiaqian Chen, Christian H Ebeke, Roberto Garcia-Saltos, Tryggvi Gudmundsson, Anna Ilyina, Alvar Kangur, Tansaya Kunaratskul, Sergio L. Rodriguez, Michele Ruta, Tatjana Schulze, Gabriel Soderberg, Juan P Trevino

January 15, 2023

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Shekhar Aiyar, Jiaqian Chen, Christian H Ebeke, Roberto Garcia-Saltos, Tryggvi Gudmundsson, Anna Ilyina, Alvar Kangur, Tansaya Kunaratskul, Sergio L. Rodriguez, Michele Ruta, Tatjana Schulze, Gabriel Soderberg, and Juan P Trevino. Geoeconomic Fragmentation and the Future of Multilateralism, (USA: International Monetary Fund, 2023) accessed November 13, 2024

Disclaimer: This Staff Discussion Note represents the views of the authors and does not necessarily represent IMF views or IMF policy. The views expressed herein should be attributed to the authors and not to the IMF, its Executive Board, or its management. Staff Discussion Notes are published to elicit comments and to further debate.

Summary

After several decades of increasing global economic integration, the world is facing the risk of policy-driven geoeconomic fragmentation (GEF). This note explores the ramifications. It identifies multiple channels through which the benefits of globalization were earlier transmitted, and along which, conversely, the costs of GEF are likely to fall, including trade, migration, capital flows, technology diffusion and the provision of global public goods. It explores the consequences of GEF for the international monetary system and the global financial safety net. Finally, it suggests a pragmatic path forward for preserving the benefits of global integration and multilateralism

Subject: Balance of payments, Economic sectors, Financial crises, Globalization, International trade, Money, Technology

Keywords: Capital flows, Costs of economic fragmentation, Geoeconomic fragmentation, Geopolitical blocs, Global, Global economic integration, Global financial safety net, Globalization, IMF AREAER report, International monetary system, Multilateralism, Rules-based multilateral system., Share of Global Foreign Exchange, Trade agenda, Trade barriers, Trade openness, U.S. Dollar share

Publication Details

Pages:

42
Volume:

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DOI:

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Issue:

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Series:

Staff Discussion Notes No. 2023/001
Stock No:

SDNEA2023001
ISBN:

9798400229046
ISSN:

2617-6750

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