Household debt - Banca d'Italia
... Before the subprime crisis and the global recession economists had regarded debt as an instrument for smoothing the inter-temporal allocation of consumers’ resources and for productive investment. After the crisis academic analysts and international organisations began to point out the risks of exce ...
... Before the subprime crisis and the global recession economists had regarded debt as an instrument for smoothing the inter-temporal allocation of consumers’ resources and for productive investment. After the crisis academic analysts and international organisations began to point out the risks of exce ...
Capital Controls and Optimal Chinese Monetary Policy
... This section introduces a benchmark DSGE model with capital controls. Section III.1 highlights the key departures of the model from the standard DSGE model. Section III.2 provides some details of our model specification. III.1. Key features of the model. Our model generalizes the standard DSGE frame ...
... This section introduces a benchmark DSGE model with capital controls. Section III.1 highlights the key departures of the model from the standard DSGE model. Section III.2 provides some details of our model specification. III.1. Key features of the model. Our model generalizes the standard DSGE frame ...
Macroeconomic Concepts and Applications
... overspending. "Net taxes" can mean that social security benefits are downplayed when addressing of fiscal policy options. While we simply refer to increasing or decreasing taxes, we rarely discuss an increase in the unemployment benefit as an example of a tax cut. Arguably the most problematic biase ...
... overspending. "Net taxes" can mean that social security benefits are downplayed when addressing of fiscal policy options. While we simply refer to increasing or decreasing taxes, we rarely discuss an increase in the unemployment benefit as an example of a tax cut. Arguably the most problematic biase ...
Document
... Wage controls to reduce demand and to prevent inflation Elimination of import quotas and export taxes Reduction of ad valorem tariffs to “moderate” levels of 10-15% Privatization of state-owned enterprises Liberalization of domestic financial markets Has been a tendency for the IMF and Wor ...
... Wage controls to reduce demand and to prevent inflation Elimination of import quotas and export taxes Reduction of ad valorem tariffs to “moderate” levels of 10-15% Privatization of state-owned enterprises Liberalization of domestic financial markets Has been a tendency for the IMF and Wor ...
NBER WORKING PAPER SERIES
... macroeconomic accounts for the United States that integrate financial and real data from these distinct sources using the System of National Accounts (SNA; 1993), a framework for macroeconomic accounts constructed by a number of national and international statistical agencies around the world.1 The ...
... macroeconomic accounts for the United States that integrate financial and real data from these distinct sources using the System of National Accounts (SNA; 1993), a framework for macroeconomic accounts constructed by a number of national and international statistical agencies around the world.1 The ...
Globalization Dynamics in Latin America: South Cone and Iberian
... European and North American post-Industrial Revolution capitalism. The second European capitalist expansion, basically British but also North American, enables the integration of Latin America economy with its global scale expansion through great companies - mainly in oil, copper, iron, cattle, grai ...
... European and North American post-Industrial Revolution capitalism. The second European capitalist expansion, basically British but also North American, enables the integration of Latin America economy with its global scale expansion through great companies - mainly in oil, copper, iron, cattle, grai ...
Global Financial Crisis of 2007: The Case of Albania Ditmir Sufaj
... 2. Overview of the Financial Crisis The world economic and financial crisis began by 2007 in USA, which was caused mainly from the liquidity problems in the banking system at the United States of America, where the fall in value of the real estate assets caused many damages to the financial institut ...
... 2. Overview of the Financial Crisis The world economic and financial crisis began by 2007 in USA, which was caused mainly from the liquidity problems in the banking system at the United States of America, where the fall in value of the real estate assets caused many damages to the financial institut ...
Talk: Exchange Rates
... in the interest rate which can make the economy unstable. Exchange rate may overshoot for a long time Lecture 18 ...
... in the interest rate which can make the economy unstable. Exchange rate may overshoot for a long time Lecture 18 ...
Elisabetta Croci Angelini Francesco Farina(*) SOVEREIGN
... Schmitz and von Hagen, 2011). The increase in easy cross-border credit sustained a strong GDP expansion, followed by a worsening of trade balances due to the rise in imported consumption goods. Most important, the anticipated remarkable result of a substantial catching-up by laggard economies did no ...
... Schmitz and von Hagen, 2011). The increase in easy cross-border credit sustained a strong GDP expansion, followed by a worsening of trade balances due to the rise in imported consumption goods. Most important, the anticipated remarkable result of a substantial catching-up by laggard economies did no ...
455 KB - Financial System Inquiry
... According to staff of the Bank for International Settlements (BIS), the relaxation of credit constraints in the finance industry in a group of countries including Australia, when combined with pre-existing tax provisions which encouraged indebtedness, ‘provided fertile ground for a self-reinforcing ...
... According to staff of the Bank for International Settlements (BIS), the relaxation of credit constraints in the finance industry in a group of countries including Australia, when combined with pre-existing tax provisions which encouraged indebtedness, ‘provided fertile ground for a self-reinforcing ...
Exotic Currencies in Foreign Exchange
... Exotic currencies bring with them considerable confusion and a widespread lack of understanding. If considering operating in a country with an exotic currency, it is absolutely essential to fully understand what your business is getting into before making any decisions. As an FX currency provider, a ...
... Exotic currencies bring with them considerable confusion and a widespread lack of understanding. If considering operating in a country with an exotic currency, it is absolutely essential to fully understand what your business is getting into before making any decisions. As an FX currency provider, a ...
Does Financial Openness Lead to Deeper Domestic Financial
... IDB ECONNET Seminar Series The World Bank – March 5, 2011 ...
... IDB ECONNET Seminar Series The World Bank – March 5, 2011 ...
Sources for Financing Domestic Capital
... SFR increased, especially post-1997 crisis Asia has financed domestically its rapid increase in K Precautionnary savings post-crisis: increased SFR High growth rates ...
... SFR increased, especially post-1997 crisis Asia has financed domestically its rapid increase in K Precautionnary savings post-crisis: increased SFR High growth rates ...
Carbaugh, International Economics 9e, Chapter 14
... supply and causing prices to fall Lower prices would make their exports more competitive and lessen demand for imports, restoring equilibrium ...
... supply and causing prices to fall Lower prices would make their exports more competitive and lessen demand for imports, restoring equilibrium ...
The financialization of modern Economics in monetary circuit theory
... to wreck havoc on the economy: “the financial economy is growing to a level where it is starting to influence more profoundly the fundamentals of the real economy [...] regulators are focusing much more on asset bubble risks or a potential hedge fund crisis with risks crystallising in the financial ...
... to wreck havoc on the economy: “the financial economy is growing to a level where it is starting to influence more profoundly the fundamentals of the real economy [...] regulators are focusing much more on asset bubble risks or a potential hedge fund crisis with risks crystallising in the financial ...
Economic Crisis and Chaebol Reform in Korea
... that financial institutions would never be permitted to fail. They even shifted their funds into failing financial institutions, which offered high interest rates to avoid liquidity problems after the financial crisis broke out. Such a lack of market discipline also worked to bolster moral hazard in ...
... that financial institutions would never be permitted to fail. They even shifted their funds into failing financial institutions, which offered high interest rates to avoid liquidity problems after the financial crisis broke out. Such a lack of market discipline also worked to bolster moral hazard in ...
NBER WORKING PAPER SERIES GOLD STANDARD ERA
... The academic literature on contemporary financial crises largely supports the idea that financial crises are often accompanied by economic downturns. Many authors cite financial panics and crises as the cause of economic downturns4. Bordo, Eichengreen Klingebiel, and Martínez-Peria (2001) looked at ...
... The academic literature on contemporary financial crises largely supports the idea that financial crises are often accompanied by economic downturns. Many authors cite financial panics and crises as the cause of economic downturns4. Bordo, Eichengreen Klingebiel, and Martínez-Peria (2001) looked at ...
Are we all Keynesians?
... • In 2009, there was a “Keynes moment” when nearly all governments implemented fiscal stimulus packages. • These were based on Keynesian demand-side ideas regarding the merits of running budget deficits in times of recession. • These ideas, defended by policy makers, were in strong conflict with the ...
... • In 2009, there was a “Keynes moment” when nearly all governments implemented fiscal stimulus packages. • These were based on Keynesian demand-side ideas regarding the merits of running budget deficits in times of recession. • These ideas, defended by policy makers, were in strong conflict with the ...
policy designed to change the money supply, credit availability, and
... - buying and selling securities by the Bank of Canada in the open market 2. Switching government deposits - transfer deposits from a commercial bank to the Bank of Canada to decrease money supply - transfer deposits to a commercial bank to increase money supply 3. Targeting the overnight rate 4. Mor ...
... - buying and selling securities by the Bank of Canada in the open market 2. Switching government deposits - transfer deposits from a commercial bank to the Bank of Canada to decrease money supply - transfer deposits to a commercial bank to increase money supply 3. Targeting the overnight rate 4. Mor ...
Proceedings of the 19 th Annual Global Finance Conference
... the joint “high” volatility regime for the TED spread, return on the NYSE index, and capital-weighted CDS spread for large banks is closely related to periods of financial stress. This result suggests that the probability of the joint high volatility regime of these financial variables can be consid ...
... the joint “high” volatility regime for the TED spread, return on the NYSE index, and capital-weighted CDS spread for large banks is closely related to periods of financial stress. This result suggests that the probability of the joint high volatility regime of these financial variables can be consid ...
Economic Growth Controlling Capital : focusing on the 1960s
... helpful to implement full employment and egalitarian policies. National governments may lose policy autonomy under an open capital market because of the possibilities of capital outflow and currency attacks (Crotty, 1989). The ‘golden age’ of capitalism was based on capital controls that enabled the ...
... helpful to implement full employment and egalitarian policies. National governments may lose policy autonomy under an open capital market because of the possibilities of capital outflow and currency attacks (Crotty, 1989). The ‘golden age’ of capitalism was based on capital controls that enabled the ...
class9
... Question 2 Search the web (or elsewhere) for at least Two examples of countervailing and/or antidumping duties imposed by Ireland or Europe in the recent years. Name the products and their exporting countries and the nature of the imposed duties. Clearly list your sources. ...
... Question 2 Search the web (or elsewhere) for at least Two examples of countervailing and/or antidumping duties imposed by Ireland or Europe in the recent years. Name the products and their exporting countries and the nature of the imposed duties. Clearly list your sources. ...
The Euro, the US Dollar and World Currency Markets Potential for
... EU’s chief executives were all forced to resign under allegations of fraud, mismanagement and nepotism. This political crisis clearly translated into a weakening of the euro. Policy. In April 1999, the EU had its first interest rate cut from 3% to 2.5%. As might be imagined, this did little to suppo ...
... EU’s chief executives were all forced to resign under allegations of fraud, mismanagement and nepotism. This political crisis clearly translated into a weakening of the euro. Policy. In April 1999, the EU had its first interest rate cut from 3% to 2.5%. As might be imagined, this did little to suppo ...
Global financial system
The global financial system is the worldwide framework of legal agreements, institutions, and both formal and informal economic actors that together facilitate international flows of financial capital for purposes of investment and trade financing. Since emerging in the late 19th century during the first modern wave of economic globalization, its evolution is marked by the establishment of central banks, multilateral treaties, and intergovernmental organizations aimed at improving the transparency, regulation, and effectiveness of international markets. In the late 1800s, world migration and communication technology facilitated unprecedented growth in international trade and investment. At the onset of World War I, trade contracted as foreign exchange markets became paralyzed by money market illiquidity. Countries sought to defend against external shocks with protectionist policies and trade virtually halted by 1933, worsening the effects of the global Great Depression until a series of reciprocal trade agreements slowly reduced tariffs worldwide. Efforts to revamp the international monetary system after World War II improved exchange rate stability, fostering record growth in global finance.A series of currency devaluations and oil crises in the 1970s led most countries to float their currencies. The world economy became increasingly financially integrated in the 1980s and 1990s due to capital account liberalization and financial deregulation. A series of financial crises in Europe, Asia, and Latin America followed with contagious effects due to greater exposure to volatile capital flows. The global financial crisis, which originated in the United States in 2007, quickly propagated among other nations and is recognized as the catalyst for the worldwide Great Recession. A market adjustment to Greece's noncompliance with its monetary union in 2009 ignited a sovereign debt crisis among European nations known as the Eurozone crisis.A country's decision to operate an open economy and globalize its financial capital carries monetary implications captured by the balance of payments. It also renders exposure to risks in international finance, such as political deterioration, regulatory changes, foreign exchange controls, and legal uncertainties for property rights and investments. Both individuals and groups may participate in the global financial system. Consumers and international businesses undertake consumption, production, and investment. Governments and intergovernmental bodies act as purveyors of international trade, economic development, and crisis management. Regulatory bodies establish financial regulations and legal procedures, while independent bodies facilitate industry supervision. Research institutes and other associations analyze data, publish reports and policy briefs, and host public discourse on global financial affairs.While the global financial system is edging toward greater stability, governments must deal with differing regional or national needs. Some nations are trying to orderly discontinue unconventional monetary policies installed to cultivate recovery, while others are expanding their scope and scale. Emerging market policymakers face a challenge of precision as they must carefully institute sustainable macroeconomic policies during extraordinary market sensitivity without provoking investors to retreat their capital to stronger markets. Nations' inability to align interests and achieve international consensus on matters such as banking regulation has perpetuated the risk of future global financial catastrophes.