Project description
Mapping the shifting global financial system
The international monetary and financial system shapes capital flows, currency values, and global economic stability. Yet rapid shifts, such as rising Asian trade, the green energy transition, and China’s growing influence, are creating new patterns of risk, wealth transfer, and policy impact. With this in mind, the ERC-funded NIMFE project investigates these transformations by mapping trade, financial, and commodity networks. Using detailed firm-level data and granular currency analysis, researchers will uncover how shocks propagate, how actors hedge risks, and how power shifts among central banks affect the global economy. The project aims to provide a comprehensive understanding of the evolving international monetary and financial architecture.
Objective
The structure of the international monetary and financial system has first-order implications for capital flows, financial stability, the value of currencies and the way shocks propagate across countries. The world is changing rapidly: the share of the United States and Europe in international trade has declined, while the share of Asia has increased since the 2000s. International finance is still dominated by the US dollar, but China is emerging. There are wealth transfers due to the restructuring of commodity markets and the green energy transition. These constitute significant transformations of the international monetary and financial environment.
This proposal aims to study interlinkages of countries to shed light on global cycles and transmission of shocks and policies of dominant currency powers over time. It has five tightly interconnected parts: (i) construct the trade, financial and commodity networks of countries to understand interdependencies and the role of main Central Banks, in particular the People’s Bank of China (ii) focus on the channels of international transmission of shocks to the real economy at the firm level using rich micro-data sets (iii) study the international finance network at the granular level and provide a brand new empirical and theoretical analysis of determinants of currency values (iv) uncover granular evidence on hedging strategies of economic actors facing those shocks using unexploited data sets (v) analyze changes in the structure of commodities international demand and supply networks (e.g. rare metals) using an original methodology based on textual analysis and track wealth transfers and their implications. These five complementary research streams will together elucidate the anatomy of the changing international financial and monetary environment and allow us to understand the origin, mechanism and consequences of the shifts in the balance of monetary and financial power in the world economy.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
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Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
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HORIZON.1.1 - European Research Council (ERC)
MAIN PROGRAMME
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Topic(s)
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Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
HORIZON-ERC - HORIZON ERC Grants
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Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) ERC-2024-ADG
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Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
NW1 4SA London
United Kingdom
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