eurozone crisis: beggar thyself and thy neighbour
... The public debt crisis of Greece and other peripheral eurozone countries has the potential to harm the European Monetary Union. But the eurozone project has already inflicted damage onto Greece and other peripheral countries. There are two related reasons for the crisis: first, the skewed nature of ...
... The public debt crisis of Greece and other peripheral eurozone countries has the potential to harm the European Monetary Union. But the eurozone project has already inflicted damage onto Greece and other peripheral countries. There are two related reasons for the crisis: first, the skewed nature of ...
NBER WORKING PAPER SERIES DEPRESSION Peter F. Basile
... Keynesians. Section 3 explores a view of the transmission mechanism that underlies much thinking by economic historians about the liquidity trap: the view that monetary policy effects must spread in diminishing waves from assets that are very similar to money to assets that are very different from m ...
... Keynesians. Section 3 explores a view of the transmission mechanism that underlies much thinking by economic historians about the liquidity trap: the view that monetary policy effects must spread in diminishing waves from assets that are very similar to money to assets that are very different from m ...
WP-EMG-28-2009 - Cass Business School
... In the case of transition economies, both portfolio and country-specific risk factors would seem to be important a priori. Portfolio considerations rest in part on the fact that, prior to the transition, there had been very little capital outflow from these countries due to currency inconvertibility ...
... In the case of transition economies, both portfolio and country-specific risk factors would seem to be important a priori. Portfolio considerations rest in part on the fact that, prior to the transition, there had been very little capital outflow from these countries due to currency inconvertibility ...
Assessing Fiscal Policy in an Accrual Environment
... So far I have focused on the flow measures within the cash and accrual frameworks. However, a range of stock measures is also available for assessing the government’s fiscal performance. These measures are primarily used to assess the sustainability of the government’s fiscal stance rather than for ...
... So far I have focused on the flow measures within the cash and accrual frameworks. However, a range of stock measures is also available for assessing the government’s fiscal performance. These measures are primarily used to assess the sustainability of the government’s fiscal stance rather than for ...
The globalisation of inflation - Bank for International Settlements
... wages, and its relationship with the prices of domestic output are also influenced by supply conditions elsewhere. Global slack and bottlenecks become relevant for pricing both inputs and outputs. The global view suggests that trade in final goods and services is an important, but incomplete, measur ...
... wages, and its relationship with the prices of domestic output are also influenced by supply conditions elsewhere. Global slack and bottlenecks become relevant for pricing both inputs and outputs. The global view suggests that trade in final goods and services is an important, but incomplete, measur ...
Macroeconomic Shocks, Housing Market and Banks` Performance
... An aspect of great relevance for policy-makers is whether credit and asset price booms can endanger the stability of the financial system and the entire economy. One way to answer this question has been to establish the different experiences of countries in terms of identifying the conditions that l ...
... An aspect of great relevance for policy-makers is whether credit and asset price booms can endanger the stability of the financial system and the entire economy. One way to answer this question has been to establish the different experiences of countries in terms of identifying the conditions that l ...
NBER WORKING PAPER SERIES Indrit Hoxha Sebnem Kalemli-Ozcan
... The essential idea of our paper is that the welfare gains increase when capital varieties within a country are not perfect substitutes, as is the case in the typical production functions used so far in this literature. Once we allow for an elasticity of substitution between capital varieties of less ...
... The essential idea of our paper is that the welfare gains increase when capital varieties within a country are not perfect substitutes, as is the case in the typical production functions used so far in this literature. Once we allow for an elasticity of substitution between capital varieties of less ...
how individual capital requirements affect capital
... with a higher capital ratio. In fact, this is the intention behind the 8% ratio of the current Basel Accord, BCBS (1999). In the UK, the regulator sets individual capital requirements in excess of the 8% as minima with the expectation that firms will always exceed even them. The FSA inherited from t ...
... with a higher capital ratio. In fact, this is the intention behind the 8% ratio of the current Basel Accord, BCBS (1999). In the UK, the regulator sets individual capital requirements in excess of the 8% as minima with the expectation that firms will always exceed even them. The FSA inherited from t ...
Discussion Papers
... Standard economic models assume that individuals are well equipped with the skills to manage financial risks and to optimize consumption and savings over the life cycle. However, we know from empirical studies that many individuals lack the skills for basic financial concepts and, thus, are financia ...
... Standard economic models assume that individuals are well equipped with the skills to manage financial risks and to optimize consumption and savings over the life cycle. However, we know from empirical studies that many individuals lack the skills for basic financial concepts and, thus, are financia ...
The effects of government debt market financialization
... process of change, it encompasses a set of transformations led by agents in the form of financial corporations, governments and supranational institutions. Financial markets, experience greater or lesser degrees of financialization depending on the rules and structure of markets that enable actors t ...
... process of change, it encompasses a set of transformations led by agents in the form of financial corporations, governments and supranational institutions. Financial markets, experience greater or lesser degrees of financialization depending on the rules and structure of markets that enable actors t ...
Three essays on risk management and financial stability
... Prague, Karolinum, ISBN 978-80-246-1500-4. The third essay Risk Management Lessons From The 2008 Financial Crisis deals with the pending crisis in more detail. In this essay, we discuss the history, macroeconomic conditions, and milestones of the US mortgage crisis that later resulted in the global ...
... Prague, Karolinum, ISBN 978-80-246-1500-4. The third essay Risk Management Lessons From The 2008 Financial Crisis deals with the pending crisis in more detail. In this essay, we discuss the history, macroeconomic conditions, and milestones of the US mortgage crisis that later resulted in the global ...
FINANCIAL LITERACY AND INFLUENCE OF PSYCHOSOCIAL
... individuals of Pakistan were found to be financially illiterate and there existed a positive relationship between financial literacy and other psychosocial factors which were hopelessness, religiosity, financial satisfaction, retirement plan intention and risk preference. Financial literacy was also ...
... individuals of Pakistan were found to be financially illiterate and there existed a positive relationship between financial literacy and other psychosocial factors which were hopelessness, religiosity, financial satisfaction, retirement plan intention and risk preference. Financial literacy was also ...
The 1997 Thai Financial Crisis: Causes and
... time Thailand’s growth was actually outpacing China, but in just two short years Thailand would go from an Asian miracle economy to the first domino in the chain that brought down much of the success Asia had been experiencing over the previous decade. Throughout the early and mid-1990s Thailand rec ...
... time Thailand’s growth was actually outpacing China, but in just two short years Thailand would go from an Asian miracle economy to the first domino in the chain that brought down much of the success Asia had been experiencing over the previous decade. Throughout the early and mid-1990s Thailand rec ...
the CSRI report
... shock to the global trade and growth outlook (see Figure 2). Although transport costs remained low even after the war, merchandise flows were disrupted by the adoption of activist trade policies and the steady erection of protectionist measures. The Great Depression (1929) was a major breaking point ...
... shock to the global trade and growth outlook (see Figure 2). Although transport costs remained low even after the war, merchandise flows were disrupted by the adoption of activist trade policies and the steady erection of protectionist measures. The Great Depression (1929) was a major breaking point ...
The data are collected at a quarterly frequency, over a
... overall capital market conditions. Some authors have emphasised that, in the presence of portfolio adjustment costs, money demand depends on a “spectrum of yields”, and it might therefore be a good summary indicator of the latter (Meltzer, 1999; Nelson, 2002, 2003). Other authors have highlighted h ...
... overall capital market conditions. Some authors have emphasised that, in the presence of portfolio adjustment costs, money demand depends on a “spectrum of yields”, and it might therefore be a good summary indicator of the latter (Meltzer, 1999; Nelson, 2002, 2003). Other authors have highlighted h ...
Financial Innovation: The Bright and the Dark Sides
... development over the past centuries, as the emergence of specialized lenders and investment banks to finance railroad expansion in the 19th century, the emergence of venture capital firms to finance high-technology firms in the 20th century and the financing of biotech firms through pharmaceutical c ...
... development over the past centuries, as the emergence of specialized lenders and investment banks to finance railroad expansion in the 19th century, the emergence of venture capital firms to finance high-technology firms in the 20th century and the financing of biotech firms through pharmaceutical c ...
Optimal Currency Areas: Theory and Evidence for an African Single
... The main outcome of this example is to demonstrate that the optimal currency areas in this case are the regions of East and West. With currencies arranged along these lines, exchange rate flexibility will allow external and internal balance between the two regions. It also serves to demonstrate that ...
... The main outcome of this example is to demonstrate that the optimal currency areas in this case are the regions of East and West. With currencies arranged along these lines, exchange rate flexibility will allow external and internal balance between the two regions. It also serves to demonstrate that ...
International Institutions and Domestic Compensation: The IMF and the Politics of Financial Liberalization
... U.S. dollar), but retained the ability to use monetary policy for domestic purposes—such as to stimulate employment in the event of an economic downturn. The combination of stable exchange rates and discretionary interest rates is only possible when governments prevent the cross-national flow of ca ...
... U.S. dollar), but retained the ability to use monetary policy for domestic purposes—such as to stimulate employment in the event of an economic downturn. The combination of stable exchange rates and discretionary interest rates is only possible when governments prevent the cross-national flow of ca ...
IFC and Local Capital Markets Development
... Past financial crisis and equity market volatility in 2008-2009 stressed the importance of fully active domestic debt markets. In the absence of debt markets, ...
... Past financial crisis and equity market volatility in 2008-2009 stressed the importance of fully active domestic debt markets. In the absence of debt markets, ...
Fiscal policy - WorkBank247.com
... CHANGES IN MONETARY POLICY • In an open economy, the effects are larger. Why? • The initial effect of a contractionary monetary ...
... CHANGES IN MONETARY POLICY • In an open economy, the effects are larger. Why? • The initial effect of a contractionary monetary ...
Qatar Financial Centre Authority PO Box 23245 Doha, Qatar T +974
... Doha Securities Market (DSM) was opened to investors in May 1997 and in June 2008 had 43 companies listed on its exchange with new listings occurring on a regular basis. In June 2008 it was announced that NYSE Euronext would be taking a 25% shareholding in the DSM and would play a significant role i ...
... Doha Securities Market (DSM) was opened to investors in May 1997 and in June 2008 had 43 companies listed on its exchange with new listings occurring on a regular basis. In June 2008 it was announced that NYSE Euronext would be taking a 25% shareholding in the DSM and would play a significant role i ...
The Sterling Devaluation of 1967, the International
... (announced in May) to apply for membership of the EEC. There was a general expectation, encouraged by statements on the part of the French government, that devaluation would be a necessary accompaniment to British entry into the EEC; the subject of a change in the exchange rate became discussed in t ...
... (announced in May) to apply for membership of the EEC. There was a general expectation, encouraged by statements on the part of the French government, that devaluation would be a necessary accompaniment to British entry into the EEC; the subject of a change in the exchange rate became discussed in t ...
Improving Access to Finance for SME:International Good
... economy-wide efficiency, innovation, and aggregate productivity growth. From this perspective, supporting of SME will help countries to exploit the social benefits from greater competition and entrepreneurship. Second, proponents of SME support frequently claim that SME are generally more productiv ...
... economy-wide efficiency, innovation, and aggregate productivity growth. From this perspective, supporting of SME will help countries to exploit the social benefits from greater competition and entrepreneurship. Second, proponents of SME support frequently claim that SME are generally more productiv ...
IOSR Journal of Business and Management (IOSR-JBM)
... problem is old as well as very new. The economy is the basic of a nation. So if the civilization exist the issue of the research will remain be the valuable. Though lot of studies and research has been done on this topic, still it is unsolved issue. It is not a new problem but present recession is t ...
... problem is old as well as very new. The economy is the basic of a nation. So if the civilization exist the issue of the research will remain be the valuable. Though lot of studies and research has been done on this topic, still it is unsolved issue. It is not a new problem but present recession is t ...
Saving, Investment, and the Financial System
... Summary • National income accounting identities reveal some important relationships among macroeconomic variables. • In particular, in a closed economy, national saving must equal investment. • Financial institutions attempt to match one person’s saving with another person’s investment. © 2007 Thom ...
... Summary • National income accounting identities reveal some important relationships among macroeconomic variables. • In particular, in a closed economy, national saving must equal investment. • Financial institutions attempt to match one person’s saving with another person’s investment. © 2007 Thom ...
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.