What are the causes of financial crisis?
... The rapid growth in dollar-indexed Mexican government debt (Cetes) led to a large devaluation and depreciation of the Mexican peso – hence, a financial crisis as foreign investors refused to buy new Cetes. The contagion effect ( "tequila effect") spread the crisis to other Latin American countries. ...
... The rapid growth in dollar-indexed Mexican government debt (Cetes) led to a large devaluation and depreciation of the Mexican peso – hence, a financial crisis as foreign investors refused to buy new Cetes. The contagion effect ( "tequila effect") spread the crisis to other Latin American countries. ...
Chapter Seven
... a source of funds. The primary securities purchased by the FI often have maturity and liquidity characteristics that are different from the secondary securities issued by the FI. For example, a bank buys medium- to long-term bonds and makes medium-term loans with funds raised by issuing short-term d ...
... a source of funds. The primary securities purchased by the FI often have maturity and liquidity characteristics that are different from the secondary securities issued by the FI. For example, a bank buys medium- to long-term bonds and makes medium-term loans with funds raised by issuing short-term d ...
Financial Statility in a Brave New World – Workshops No. 15
... common, of course, that they have aimed to cushion economies against the full impact of external financial shocks, while in most cases also calling for significant fiscal adjustment to help restore financial confidence. However, the nominal exchange rate and financing profiles of the packages have d ...
... common, of course, that they have aimed to cushion economies against the full impact of external financial shocks, while in most cases also calling for significant fiscal adjustment to help restore financial confidence. However, the nominal exchange rate and financing profiles of the packages have d ...
Introduction
... At the initial points labeled A, workers and firms have established an initial base wage given their expectation of the price level and their anticipation of the value of the marginal product of labor. If workers and firms form expectations rationally and recognize that a policy action is likely to ...
... At the initial points labeled A, workers and firms have established an initial base wage given their expectation of the price level and their anticipation of the value of the marginal product of labor. If workers and firms form expectations rationally and recognize that a policy action is likely to ...
NBER WORKING PAPER SERIES A THEORY AND EVIDENCE FROM EAST ASIA
... from balanced by surpluses of the other industrialized countries (see Figure 1). The first strand of studies proposes that the recent deterioration in the U.S. current account primarily reflects a decline of the U.S. domestic saving and an increase in the U.S. demand for foreign goods. The second st ...
... from balanced by surpluses of the other industrialized countries (see Figure 1). The first strand of studies proposes that the recent deterioration in the U.S. current account primarily reflects a decline of the U.S. domestic saving and an increase in the U.S. demand for foreign goods. The second st ...
Financial and Economic Crisis in Eastern Europe Abstract Rainer Kattel
... The above suggests that most EE economies play a wait-and-see game with the crisis and are betting on the pre-crash FDI and export markets to simply re-appear at one point. In essence, EE countries wait for the exports to pick up again and drag them out of the pit. Here, however, most EE countries f ...
... The above suggests that most EE economies play a wait-and-see game with the crisis and are betting on the pre-crash FDI and export markets to simply re-appear at one point. In essence, EE countries wait for the exports to pick up again and drag them out of the pit. Here, however, most EE countries f ...
Monetary movements in the U.K. balance of payments
... bring about an equivalent change in the official reserves an inflow producing a rise, and an outflow a fall. However, because monetary items b and d also reflect in part the financing of transactions on current and long term capital account, it is impossible to determine to what extent they have le ...
... bring about an equivalent change in the official reserves an inflow producing a rise, and an outflow a fall. However, because monetary items b and d also reflect in part the financing of transactions on current and long term capital account, it is impossible to determine to what extent they have le ...
NBER WORKING PAPER SERIES WELFARE ECONOMICS OF DEBT SERVICE Dani Rodrik Working Paper
... Dornbusch (1987) expresses the budget deficit in reduced form as an increasing function of the real exchange rate, arguing that "the real value of the service of an external debt contracted in dollars will increase when the As the discussion in the text shows, real exchange rate depreciates" (p. 68) ...
... Dornbusch (1987) expresses the budget deficit in reduced form as an increasing function of the real exchange rate, arguing that "the real value of the service of an external debt contracted in dollars will increase when the As the discussion in the text shows, real exchange rate depreciates" (p. 68) ...
WORKING PAPER SERIES Estimates of Fundamental Real
... The fundamental real exchange rate (FRER) is defined as the real exchange rate that is in line with economic fundamentals in the medium term. If we knew the values of the FRERs, we could learn very important information for the policy debate relating to EMU entry. First, significant deviations of th ...
... The fundamental real exchange rate (FRER) is defined as the real exchange rate that is in line with economic fundamentals in the medium term. If we knew the values of the FRERs, we could learn very important information for the policy debate relating to EMU entry. First, significant deviations of th ...
Investment opportunities for foreign capital and International financial Crisis: Evidence from Russia and Hong Kong
... only the real exchange rate and real stock market index within the framework of causality. Secondly, use of capital inflows and outflows separately enables the measurement of the asymmetry effect. Thirdly and most importantly, the researches questioning the capital flows, exchange rate and financial ...
... only the real exchange rate and real stock market index within the framework of causality. Secondly, use of capital inflows and outflows separately enables the measurement of the asymmetry effect. Thirdly and most importantly, the researches questioning the capital flows, exchange rate and financial ...
01/2016 Hasan Cömert Abstract Central Banking in Developing Countries after
... exchange rate to their best interest although they officially declared that they had a flexible exchange rate regime. This practice can be considered as a key difference between the mainstream framework and its implementation in developing countries. The emphasis on inflation rendered such a policy ...
... exchange rate to their best interest although they officially declared that they had a flexible exchange rate regime. This practice can be considered as a key difference between the mainstream framework and its implementation in developing countries. The emphasis on inflation rendered such a policy ...
Demutualization of Stock Exchanges - SelectedWorks
... of revenue. On the other hand, regulatory activity can compel expenditures which cannot be recouped easily. So far as the demutualization of stock exchanges is concerned it has raised some specific conflict of interest issues pertaining to listing activity, regulatory market operation and business c ...
... of revenue. On the other hand, regulatory activity can compel expenditures which cannot be recouped easily. So far as the demutualization of stock exchanges is concerned it has raised some specific conflict of interest issues pertaining to listing activity, regulatory market operation and business c ...
Weekly FX Insight - Citibank Hong Kong
... • The ECB will buy 43 billion euros worth of government bonds, 6 billion euros worth of supranational bonds and 11 billion euros worth of covered bonds and ABS through September 2016 (Chart 2). • The disinflationary pressures in the Eurozone are powerful. Although the ECB implemented a QE programme ...
... • The ECB will buy 43 billion euros worth of government bonds, 6 billion euros worth of supranational bonds and 11 billion euros worth of covered bonds and ABS through September 2016 (Chart 2). • The disinflationary pressures in the Eurozone are powerful. Although the ECB implemented a QE programme ...
NBER WORKING PAPER SERIES CRISES AND SUDDEN STOPS:
... bond market. In fact, issuance in the bond market surpasses that of the syndicated- loan market, with Latin American countries’ bond issuance increasing from 1 billion dollars in 1990 to 64 billion dollars in 1997. The Brady plan, with its initiative of restructuring distressed commercial bank loan ...
... bond market. In fact, issuance in the bond market surpasses that of the syndicated- loan market, with Latin American countries’ bond issuance increasing from 1 billion dollars in 1990 to 64 billion dollars in 1997. The Brady plan, with its initiative of restructuring distressed commercial bank loan ...
Sovereign Debt and Development
... primary fiscal balances, real interest rates and growth rates is untenable. – Market final arbiter of sustainable debt level for MACs. ...
... primary fiscal balances, real interest rates and growth rates is untenable. – Market final arbiter of sustainable debt level for MACs. ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... not fully offset the rise in interest payments, causing a decline in net profit shares in 1981 and 1982.5 The resulting illiquidity, and in some cases insolvency, problems were partly eased by the provision of full tax deductibility of interest payments, which lowered the corporate tax burden. In th ...
... not fully offset the rise in interest payments, causing a decline in net profit shares in 1981 and 1982.5 The resulting illiquidity, and in some cases insolvency, problems were partly eased by the provision of full tax deductibility of interest payments, which lowered the corporate tax burden. In th ...
NBER WORKING PAPER SERIES CAPITAL CONTROLS AND FINANCIAL CRISES Joshua Aizenman Working Paper
... multinationals would bid up real wages, thereby reducing the rents of domestic capitalists. In these circumstances, if domestic capitalists are in control, thereby determining domestic policies, there would be a one sided integration with the global capital market. Inward FDI would be prohibited, wh ...
... multinationals would bid up real wages, thereby reducing the rents of domestic capitalists. In these circumstances, if domestic capitalists are in control, thereby determining domestic policies, there would be a one sided integration with the global capital market. Inward FDI would be prohibited, wh ...
Gerhard Illing
... mechanism. Secondly, balance sheet effects – the most prominent propagator of asset price changes to the real economy – may loose part of their impact, since a financial system with relationship banking may reduce the amount of asymmetric information central to these phenomena. For similar reasons, ...
... mechanism. Secondly, balance sheet effects – the most prominent propagator of asset price changes to the real economy – may loose part of their impact, since a financial system with relationship banking may reduce the amount of asymmetric information central to these phenomena. For similar reasons, ...
essential facts about inflation.p65
... price increases results in several subsequent rounds of price increase is referred to as an inflation spiral. As such, negotiations for excessive wage increases are not usually a sustainable means of hedging against inflation. Investments Jamaicans can also avoid the effects of inflation on the valu ...
... price increases results in several subsequent rounds of price increase is referred to as an inflation spiral. As such, negotiations for excessive wage increases are not usually a sustainable means of hedging against inflation. Investments Jamaicans can also avoid the effects of inflation on the valu ...
Bulgarian Academy of Sciences Economic Research Institute
... • By the end of 2007, the number of listed companies was 30, which provided an opportunity for a professional management of assets, amounting to a value of BGN 900 millions, managed by 60 Mutual Funds. • However, the volume of the managed assets created some fears that it could be a signal for a sys ...
... • By the end of 2007, the number of listed companies was 30, which provided an opportunity for a professional management of assets, amounting to a value of BGN 900 millions, managed by 60 Mutual Funds. • However, the volume of the managed assets created some fears that it could be a signal for a sys ...
INSTITUTE OF ECONOMIC STUDIES
... seasonally corrected) from peak of 11,2% (8,4% seasonally corrected) in May 2009.” These are common statements about the Icelandic economy. The last one is true, but only tells part of the story, while the rest is either misleading or wrong. In spite of occasional good news, Iceland will not fully r ...
... seasonally corrected) from peak of 11,2% (8,4% seasonally corrected) in May 2009.” These are common statements about the Icelandic economy. The last one is true, but only tells part of the story, while the rest is either misleading or wrong. In spite of occasional good news, Iceland will not fully r ...
Slide 1
... There are two sides on the balance sheet: the left side and the right side. On the left side, there is nothing right. and on the right side, there is nothing left. ...
... There are two sides on the balance sheet: the left side and the right side. On the left side, there is nothing right. and on the right side, there is nothing left. ...