Subject The paper studies the specifics of currency liberalization being one of the main trends in the development of the global monetary system at the present stage. Objectives The aim is to structure major elements of the policy and practice of currency liberalization. Methods Using general methods of scientific knowledge, we consider various aspects of the policy of currency liberalization in different countries, and identify trends that are specific to the modern condition of currency liberalization. Results We reveal distinguishing features of currency liberalization undertaken by countries with developed, developing economies and economies in transition, and identify three types of currency liberalization patterns. The experience of foreign countries proves that the prerequisites of benefits from currency liberalization include the creation of macroeconomic conditions ensuring the usefulness and efficiency of the process, the readiness of the national economy structure, and the degree of financial markets development. Conclusions Studying the best practices of currency liberalization as a process and distinguishing specific features based on the level of development of the country, the world region, the degree of integration into the world economy enable to unveil general and specific problems of capital flow and exchange rate regulation, and to form an idea about factors that provide favorable results of liberalization.
Keywords: global monetary system, currency liberalization, capital flows, exchange rate, regulation
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