MODERN TRANSFORMATIONS OF NATIONAL ECONOMIES IN RESPONSE TO THE GLOBALIZATION OF FINANCE AND CREDIT

Abstract

The study's relevance is determined by the fact that the global economy is a chaotic system composed of millions of interconnected elements (economies of individual countries). In this context, it is emphasized that each national economy experiences periods of growth and decline. These cycles have an irregular nature and can be triggered by intermittenсies in the finance and credit sectors in globalized economies, specifically phenomena of sudden, unpredictable surges in activity or volatility that cause their transformation, while in periods of relative stability, they ensure their sustainability. Thus, the article's aim is a comprehensive analysis of typical transformations of national economies as a response to the globalization of the finance and credit. The study emphasizes that the globalization of the finance and credit creates a highly dynamic and complex environment where the economies of various countries are closely interconnected. As a result of globalization, financial crises, technological innovations, and geopolitical events can rapidly spread across the globe, triggering significant changes in the economies of different nations. These processes are quite chaotic, but they exhibit certain recurring patterns. The transformations of national economies, driven by core intermittent events, manifest in the liberalization of financial markets, the development of financial innovations, the strengthening of central banks, and the reinforcement of international cooperation. Most countries have liberalized their financial markets by lowering barriers for foreign investors and expanding access to financial services. National economies are actively developing financial innovations such as fintech, blockchain, and cryptocurrencies to adapt to the new conditions of global competition. Central banks are playing an increasingly important role in stabilizing financial systems and mitigating the effects of financial crises. Countries are collaborating internationally to develop common rules and standards in the financial and credit sectors, aiming to minimize the risks of global financial crises. The transformations of national economies affect developed and developing countries, bringing about positive and negative consequences.