Latin American Integration Experiments: The Case of Mercosur
... of Ouro Preto and economic data, this paper attempts to evaluate the success or failure of the agreement in achieving its integration objectives. The first section of this paper seeks to tell the story of integration experiments in Latin America and how Mercosur’s development is unique from the Euro ...
... of Ouro Preto and economic data, this paper attempts to evaluate the success or failure of the agreement in achieving its integration objectives. The first section of this paper seeks to tell the story of integration experiments in Latin America and how Mercosur’s development is unique from the Euro ...
The Politics of Investment Partisanship and the Sectoral Allocation of
... recent contributions assume that investors put emphasis on minimizing ex-post expropriation risk, and look at the role of policy and political stability on investment decisions: FDI would strategically flow to countries that look politically and institutionally stable, and whose economy is well-mana ...
... recent contributions assume that investors put emphasis on minimizing ex-post expropriation risk, and look at the role of policy and political stability on investment decisions: FDI would strategically flow to countries that look politically and institutionally stable, and whose economy is well-mana ...
Form ADV Part 2A/2B Firm Brochure
... RTD Financial Advisors, Inc.’s registration was granted by the United States Securities and Exchange Commission on June 13, 1983. Richard Joseph Busillo (CRD Number 725324) owns more than ten percent but less than twenty-five percent of the equity of the firm and is Chairman & CEO. Jeffrey Alan Weia ...
... RTD Financial Advisors, Inc.’s registration was granted by the United States Securities and Exchange Commission on June 13, 1983. Richard Joseph Busillo (CRD Number 725324) owns more than ten percent but less than twenty-five percent of the equity of the firm and is Chairman & CEO. Jeffrey Alan Weia ...
foreign reserves and international adjustments under the bretton
... writers, and did not indeed play any prominent roles in either academic policy analyses of the problem until the Second World War. […] The main function of reserves is no longer to preserve the overall liquidity of individual central banks, but to permit the financing of short-run deficits in the co ...
... writers, and did not indeed play any prominent roles in either academic policy analyses of the problem until the Second World War. […] The main function of reserves is no longer to preserve the overall liquidity of individual central banks, but to permit the financing of short-run deficits in the co ...
NBER WORKING PAPER SERIES SYSTEMIC RISKS AND THE MACROECONOMY Gianni De Nicolò
... risk (FSaR) is defined as the worst predicted realization of a system-wide financial risk indicator at 5 percent probability over a pre-determined forecasting horizon. The underlying joint dynamics of GDP growth and the system-wide financial risk indicator is modeled through a factor-augmented VAR ( ...
... risk (FSaR) is defined as the worst predicted realization of a system-wide financial risk indicator at 5 percent probability over a pre-determined forecasting horizon. The underlying joint dynamics of GDP growth and the system-wide financial risk indicator is modeled through a factor-augmented VAR ( ...
Measuring financial conditions in major non
... to being comprehensive, it is by no means complete since the field has become extensive, sometimes with the contribution of single studies being rather narrow. In the 1990s, central banks such as the Bank of Canada started to take into account or to explicitly target Monetary Condition Indices (MCI ...
... to being comprehensive, it is by no means complete since the field has become extensive, sometimes with the contribution of single studies being rather narrow. In the 1990s, central banks such as the Bank of Canada started to take into account or to explicitly target Monetary Condition Indices (MCI ...
Measuring financial sector output and its
... An obvious example of this is transaction services provided to depositors. Many banks offer their customers automated payment facilities, bookkeeping services and safekeeping of money in exchange for a steady flow of funding for their own lending and investment activities. Measuring the output of se ...
... An obvious example of this is transaction services provided to depositors. Many banks offer their customers automated payment facilities, bookkeeping services and safekeeping of money in exchange for a steady flow of funding for their own lending and investment activities. Measuring the output of se ...
THE COLOMBIAN ECONOMY IN THE NINETIES: CAPITAL FLOWS
... the economy to keep a large and increasing current account deficit of the balance of payments between 1992 and 1997. At the same time, they implied that, during most of the nineties, the foreign exchange market was characterized by excess supply of dollars and by a pressure towards a real appreciati ...
... the economy to keep a large and increasing current account deficit of the balance of payments between 1992 and 1997. At the same time, they implied that, during most of the nineties, the foreign exchange market was characterized by excess supply of dollars and by a pressure towards a real appreciati ...
Equilibrium Exchange Rates: a Guidebook for the Euro
... Surprisingly, the buoying literature on global imbalances (e.g. Obstfeld and Rogoff, 2004; Blanchard et al., 2005; Gourinchas and Rey, 2007; Lane and Milesi-Ferretti, 2007) has developed largely aside from that on equilibrium exchange rates, although one outcome of this literature is to provide esti ...
... Surprisingly, the buoying literature on global imbalances (e.g. Obstfeld and Rogoff, 2004; Blanchard et al., 2005; Gourinchas and Rey, 2007; Lane and Milesi-Ferretti, 2007) has developed largely aside from that on equilibrium exchange rates, although one outcome of this literature is to provide esti ...
NBER WORKING PAPER SERIES CURRENT ACCOUNT ADJUSTMENT: SOME NEW THEORY AND EVIDENCE
... reduces resource reallocation between the two tradable sectors, must increase, rather than reduce, the size of the current account response. Assuming that the distribution of the underlying shocks is the same for all economies, a testable implication of our model is that the variance of the current ...
... reduces resource reallocation between the two tradable sectors, must increase, rather than reduce, the size of the current account response. Assuming that the distribution of the underlying shocks is the same for all economies, a testable implication of our model is that the variance of the current ...
NBER WORKING PAPER SERIES THE LONG OR SHORT OF IT:
... that may hedge various macroeconomic shocks. However, there is little empirical evidence on the foreign currency exposures that are embedded in international balance sheets. Using a new database, we provide stylized facts concerning the cross-country and time-series variation in aggregate foreign cu ...
... that may hedge various macroeconomic shocks. However, there is little empirical evidence on the foreign currency exposures that are embedded in international balance sheets. Using a new database, we provide stylized facts concerning the cross-country and time-series variation in aggregate foreign cu ...
Leaving the EU: Implications for the UK financial services
... funding costs, which is mitigated to some extent by more recent regulatory requirements to hold higher levels of long-term debt. Alternatively, banks could seek to pass on these costs to businesses, but they are constrained by competitive pressures. However, the FS sector is also deeply-linked to th ...
... funding costs, which is mitigated to some extent by more recent regulatory requirements to hold higher levels of long-term debt. Alternatively, banks could seek to pass on these costs to businesses, but they are constrained by competitive pressures. However, the FS sector is also deeply-linked to th ...
MULTINATIONAL FINANCIAL MANAGEMENT: AN OVERVIEW
... Whereas shareholder wealth maximization is generally accepted as the ultimate goal of financial management in ‘Anglo-Saxon’ countries, such as Australia, Canada, the United Kingdom, and especially the United States, it is not as widely embraced a goal in other parts of the world. In countries like F ...
... Whereas shareholder wealth maximization is generally accepted as the ultimate goal of financial management in ‘Anglo-Saxon’ countries, such as Australia, Canada, the United Kingdom, and especially the United States, it is not as widely embraced a goal in other parts of the world. In countries like F ...
whitepaper: future trends in optimization collateral, regulatory capital
... At a strategic level, this looks at which business lines are making the most P&L per unit of economic capital. As efficient use of capital improves profitability and return on equity, it then attracts more tier-one equity capital from investors. This is a key element in making banks an attractive in ...
... At a strategic level, this looks at which business lines are making the most P&L per unit of economic capital. As efficient use of capital improves profitability and return on equity, it then attracts more tier-one equity capital from investors. This is a key element in making banks an attractive in ...
Design and Implementation of a Common Currency Area in the East
... regional monetary union projects are planned, for ECOWAS, COMESA, SADC and EAC, and a common currency for Africa is a long term goal of the African Union (Masson and Pattillo, 2004). The major benefits of a monetary union are the reduction of transaction costs, economies due to the pooling of intern ...
... regional monetary union projects are planned, for ECOWAS, COMESA, SADC and EAC, and a common currency for Africa is a long term goal of the African Union (Masson and Pattillo, 2004). The major benefits of a monetary union are the reduction of transaction costs, economies due to the pooling of intern ...
How Important Are Foreign Shocks in Small Open
... finds that US monetary expansion has a positive spillover effect on output in these countries. In addition, expansion leads to a short run deterioration of the trade balance, but the balance improves persistently in the medium to long run. Contrary to previous literature that suggested non-US G7 cou ...
... finds that US monetary expansion has a positive spillover effect on output in these countries. In addition, expansion leads to a short run deterioration of the trade balance, but the balance improves persistently in the medium to long run. Contrary to previous literature that suggested non-US G7 cou ...
An Evaluation of Money Market Fund Reform Proposals
... debt crisis in 2011, MMFs decreased funding of European banks, but correspondingly increased their funding of Japanese and Australian banks. As described by Shin (2012), the dollar liabilities of banks outside the US are substantial. According to data from the Bank of International Settlements, the ...
... debt crisis in 2011, MMFs decreased funding of European banks, but correspondingly increased their funding of Japanese and Australian banks. As described by Shin (2012), the dollar liabilities of banks outside the US are substantial. According to data from the Bank of International Settlements, the ...
The Composition of Capital Inflows When Emerging
... constraints they face. Since the early 1990s, there has been a surge in empirical work trying to establish whether changes ...
... constraints they face. Since the early 1990s, there has been a surge in empirical work trying to establish whether changes ...
Does Central Bank Independence Frustrate the Optimal Fiscal
... pursuit of a common objective [or, for that matter, cooperation between central banks and fiscal authorities to facilitate war finance] is inconsistent with the principle of national sovereignty.” Despite the fact that Governor Bernanke’s observations perfectly apply to the U.S. today, we do not he ...
... pursuit of a common objective [or, for that matter, cooperation between central banks and fiscal authorities to facilitate war finance] is inconsistent with the principle of national sovereignty.” Despite the fact that Governor Bernanke’s observations perfectly apply to the U.S. today, we do not he ...
Financial Capability in the United States
... Over the past five to six years, the financial resilience of the American people has been tested to a degree that had not been seen for many decades. A substantial decline in residential real estate prices, a roughly 50% collapse in the stock market and unemployment rates at 25-year highs combined t ...
... Over the past five to six years, the financial resilience of the American people has been tested to a degree that had not been seen for many decades. A substantial decline in residential real estate prices, a roughly 50% collapse in the stock market and unemployment rates at 25-year highs combined t ...
Currency Wars
... The devaluation means higher unemployment in developing economies as their exports become more expensive for Americans. The resulting inflation also means higher prices for inputs needed in developing economies like copper, corn, oil and wheat. Foreign countries have begun to fight back against U.S. ...
... The devaluation means higher unemployment in developing economies as their exports become more expensive for Americans. The resulting inflation also means higher prices for inputs needed in developing economies like copper, corn, oil and wheat. Foreign countries have begun to fight back against U.S. ...
Chapter 3. From Recession to Recovery: How Soon and How
... the absence of deposit insurance, they withdrew their deposits—the banks’ main external funding source. There were four waves of bank runs. Overall, about a third of all U.S. banks failed during 1930–33. Such bank failures and losses also played an important role in other economies. In particular, ...
... the absence of deposit insurance, they withdrew their deposits—the banks’ main external funding source. There were four waves of bank runs. Overall, about a third of all U.S. banks failed during 1930–33. Such bank failures and losses also played an important role in other economies. In particular, ...
Identifying channels of credit substitution when bank capital
... the control of aggregate credit supply. As already noted, raising capital requirements during an asset pricing bubble will improve the financial resilience of banks through its effects on banks’ capital ratios even if the regulatory change fails to slow the growth in the aggregate supply of credit. ...
... the control of aggregate credit supply. As already noted, raising capital requirements during an asset pricing bubble will improve the financial resilience of banks through its effects on banks’ capital ratios even if the regulatory change fails to slow the growth in the aggregate supply of credit. ...
No.253 / June 2008 Exposure in External Balance Sheets
... such as trade openness and the level of development help to explain the cross-sectional variation in foreign currency exposure: richer, more open economies take longer positions in foreign currency. Once the cross-sectional variation is eliminated by including a set of country …xed e¤ects in the est ...
... such as trade openness and the level of development help to explain the cross-sectional variation in foreign currency exposure: richer, more open economies take longer positions in foreign currency. Once the cross-sectional variation is eliminated by including a set of country …xed e¤ects in the est ...
A Primer on Bank Capital
... Rating agency capital requirements. Ratings from Standard & Poor’s, Moody’s, and Fitch have an important effect on the cost of doing business for the largest banks and to a lesser extent for smaller banks. The cost of raising funds through issuances of debt instruments and preferred shares is con ...
... Rating agency capital requirements. Ratings from Standard & Poor’s, Moody’s, and Fitch have an important effect on the cost of doing business for the largest banks and to a lesser extent for smaller banks. The cost of raising funds through issuances of debt instruments and preferred shares is con ...
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.