Deglobalization in International Finance and Payments: A New Paradigm or a Phase in Globalization’s Evolution?

Abstract This paper examines the phenomenon of deglobalization in international finance and payments, assessing whether it represents a fundamental shift or a temporary phase within the broader process of globalization. Using a combination of theoretical analysis and empirical assessment, the research introduces the Deglobalization Coefficient, a novel metric that synthesizes key financial indicators, including cross-border capital flows, trade restrictions, and international payment diversification. Data from sources such as the United Nations Trade and Development and the Bank for International Settlements provide insights into trends from 2007 to 2022, a period marked by financial crises, trade policy shifts, and geopolitical tensions. The findings indicate that the world economy is undergoing a moderate level of financial deglobalization, with increasing regionalization of finance and greater national autonomy in monetary policy. However, the study also highlights the counterbalancing role of digitalization, which sustains financial integration despite protectionist tendencies. The research contributes to the ongoing debate on the future of globalization, offering a systematic approach to measuring deglobalization trends in financial markets.