Economic reasons for government intervention
... barriers. We then examine the instruments countries use to restrict imports and exports. Efforts to promote trade by reducing barriers within the context of the global trading system are then presented. In Chapter 8 we discuss how smaller groups of countries are eliminating barriers to both trade an ...
... barriers. We then examine the instruments countries use to restrict imports and exports. Efforts to promote trade by reducing barriers within the context of the global trading system are then presented. In Chapter 8 we discuss how smaller groups of countries are eliminating barriers to both trade an ...
National Saving and International ~ves~ment Norman S. Fieleke*
... a view to stimulating private saving. For example, the reductions in personal income tax rates, the tax-exemption for interest on "All-Savers" certificates, and the liberalization of the use of Individual Retirement Accounts are measures that tend to raise the after-tax rate of return on capital inv ...
... a view to stimulating private saving. For example, the reductions in personal income tax rates, the tax-exemption for interest on "All-Savers" certificates, and the liberalization of the use of Individual Retirement Accounts are measures that tend to raise the after-tax rate of return on capital inv ...
Quarterly Report on the Euro Area Vol. 14, No. 1 (2015)
... contrast, high surpluses in creditor countries such as Germany and the Netherlands have persisted and are forecast to remain high. As a result, the euro area as a whole is now posting a current account surplus. In a past issue of the Quarterly Report on the Euro Area, the nature of this rebalancing ...
... contrast, high surpluses in creditor countries such as Germany and the Netherlands have persisted and are forecast to remain high. As a result, the euro area as a whole is now posting a current account surplus. In a past issue of the Quarterly Report on the Euro Area, the nature of this rebalancing ...
A new approach to assessing risks to financial stability
... of the major UK banks, which are at the core of the UK financial system. This measure was derived by aggregating estimates of potential losses on credit and market exposures, from reductions in income generation, from additional funding costs and from operational risk. The major UK banks account for ...
... of the major UK banks, which are at the core of the UK financial system. This measure was derived by aggregating estimates of potential losses on credit and market exposures, from reductions in income generation, from additional funding costs and from operational risk. The major UK banks account for ...
Evaluating the Net Benefits of Macroprudential Policy: A Cookbook
... action by the time the Boom threshold is breached provides a meaningful range for policy implementation and could enhance transparency and market discipline.7 ...
... action by the time the Boom threshold is breached provides a meaningful range for policy implementation and could enhance transparency and market discipline.7 ...
IOSR Journal of Business and Management (IOSRJBM)
... Furthermore, domestic credit was not statistically significant, even though it could be used as a policy variable to account for inflation. Based on these findings, it was recommended that monetary supply, interest rates and exchange rates should be the principal policy variables to be manipulated i ...
... Furthermore, domestic credit was not statistically significant, even though it could be used as a policy variable to account for inflation. Based on these findings, it was recommended that monetary supply, interest rates and exchange rates should be the principal policy variables to be manipulated i ...
ECON 202 - Macroeconomic Principles
... These lecture notes are customized for the Macroeconomics Principles 202 course at Towson University. They are not guaranteed to be error-free. Comments and corrections are greatly appreciated. They are derived from c slides from online resources provided by Pearson the Powerpoint Addison-Wesley. T ...
... These lecture notes are customized for the Macroeconomics Principles 202 course at Towson University. They are not guaranteed to be error-free. Comments and corrections are greatly appreciated. They are derived from c slides from online resources provided by Pearson the Powerpoint Addison-Wesley. T ...
Capital Account Liberalisation and Foreign Direct Investmentin Nigeria
... diminishing returns, is the only channel through which liberalization affects growth in the neoclassical model (Henry, 2007). Besides, one of the key conclusions of the new literature is that the principal benefit of financial openness for developing economies may not be access to foreign capital th ...
... diminishing returns, is the only channel through which liberalization affects growth in the neoclassical model (Henry, 2007). Besides, one of the key conclusions of the new literature is that the principal benefit of financial openness for developing economies may not be access to foreign capital th ...
Financial Intermediation and Capital Reallocation
... productivity in south Europe. None of the above papers focus on the effect of financial frictions and capital reallocation on aggregate volatility dynamics as we do. The idea that shocks may directly originate from the financial sector and affect economic activities is related to the setup of Jerman ...
... productivity in south Europe. None of the above papers focus on the effect of financial frictions and capital reallocation on aggregate volatility dynamics as we do. The idea that shocks may directly originate from the financial sector and affect economic activities is related to the setup of Jerman ...
Gold and currencies: hedging foreign-exchange risk
... international investment face not only the prospect of high correlation risk among domestic assets, but also the effect that inflation and/or capital outflows can have in their own currency. The potential for enhanced returns on investments in a diverse set of international assets is significant, pr ...
... international investment face not only the prospect of high correlation risk among domestic assets, but also the effect that inflation and/or capital outflows can have in their own currency. The potential for enhanced returns on investments in a diverse set of international assets is significant, pr ...
Vo l u m e 6 6 ... C o n t e n t s
... Recent trends in world financial markets reflect a perception of improved economic growth prospects. Equity markets in most countries are higher than they were a year ago, although they have been highly variable during this time ...
... Recent trends in world financial markets reflect a perception of improved economic growth prospects. Equity markets in most countries are higher than they were a year ago, although they have been highly variable during this time ...
The Value Relevance of Regulatory Capital Components
... Empirical papers supporting Admati et al. (2013) include that by Mehran and Thakor (2011), who show that bank value increases with capital and thus respond to Modigliani and Miller (1958) and Miller (1995), who cling to capital structure irrelevance. Berger and Bouwman (2013) show that banks’ odds o ...
... Empirical papers supporting Admati et al. (2013) include that by Mehran and Thakor (2011), who show that bank value increases with capital and thus respond to Modigliani and Miller (1958) and Miller (1995), who cling to capital structure irrelevance. Berger and Bouwman (2013) show that banks’ odds o ...
The Eurozone Crisis
... an outcome. Finally, they do not find a feedback loop from rising public debt to banking crises, from which they infer that it is primarily the surge in private debt that causes banking crises. While private debt may instigate the initial incidence of a banking crisis, our results show that the perp ...
... an outcome. Finally, they do not find a feedback loop from rising public debt to banking crises, from which they infer that it is primarily the surge in private debt that causes banking crises. While private debt may instigate the initial incidence of a banking crisis, our results show that the perp ...
Financial services For development: promoting access in latin america
... with the relation between the value of intermediate resources and the overall size of the economy in question, with more direct measurements of access to financial services among the population and firms. The Report provides new information on the different dimensions of various services based on a ...
... with the relation between the value of intermediate resources and the overall size of the economy in question, with more direct measurements of access to financial services among the population and firms. The Report provides new information on the different dimensions of various services based on a ...
Surprising Similarities: Recent Monetary Regimes of Small Economies Andrew K. Rose
... strongly countercyclical. Yet this time was different, at least for the two monetary regimes of concern here. Most countries with hard fixed exchange rates in 2006 (before the onset of the crisis) still retained them in 2012. More striking though was the performance of inflation targeters. While the ...
... strongly countercyclical. Yet this time was different, at least for the two monetary regimes of concern here. Most countries with hard fixed exchange rates in 2006 (before the onset of the crisis) still retained them in 2012. More striking though was the performance of inflation targeters. While the ...
NBER WORKING PAPER SERIES THE FELDSTEIN-HORIOKA FACT Domenico Giannone Michele Lenza
... estimator is achieved as both the number of series and observations increase. These estimates are robust with respect to some form of non-stationarity in the data6 . Moreover, the estimated factors can be considered as they were known provided that the number of countries is not too small relative t ...
... estimator is achieved as both the number of series and observations increase. These estimates are robust with respect to some form of non-stationarity in the data6 . Moreover, the estimated factors can be considered as they were known provided that the number of countries is not too small relative t ...
Download attachment
... as a 40 percent shareholder in the fund’s General Partner. Some of the key members of the current Ithmaar Private Equity team were instrumental in the formation and development of that pioneering fund, thereby helping to set the stage for other major infrastructure funds to follow suit. This Ithmaar ...
... as a 40 percent shareholder in the fund’s General Partner. Some of the key members of the current Ithmaar Private Equity team were instrumental in the formation and development of that pioneering fund, thereby helping to set the stage for other major infrastructure funds to follow suit. This Ithmaar ...
Food prices: smallholder farmers can be part of the solution, IFAD
... Key findings: Country analysis prepared as the basis for mapping out the development challenges that the Kingdom of Swaziland faces as well as for identifying the priorities to be addressed under the new United Nations Development Assistance Framework (UNDAF) 20112015. The analysis was undertaken by ...
... Key findings: Country analysis prepared as the basis for mapping out the development challenges that the Kingdom of Swaziland faces as well as for identifying the priorities to be addressed under the new United Nations Development Assistance Framework (UNDAF) 20112015. The analysis was undertaken by ...
Europe in Crisis: Challenges and Scenarios for
... address the related issues, and based on this framework, they outline the required stance for alternative economic policies. Furthermore, they discuss the implications for alternative monetary, wage/incomes and fiscal policies in the Euro area as a whole as well as the consequences for structural a ...
... address the related issues, and based on this framework, they outline the required stance for alternative economic policies. Furthermore, they discuss the implications for alternative monetary, wage/incomes and fiscal policies in the Euro area as a whole as well as the consequences for structural a ...
Systemic Risk: A New Trade-off for Monetary Policy?
... because, unlike policy rates, it is unburdened with trying to also achieve inflation and output objectives at the same time. ...
... because, unlike policy rates, it is unburdened with trying to also achieve inflation and output objectives at the same time. ...
Overview: Miracle, Crisis and Beyond
... ‘coherence article’ in the field of development co-operation (Hoebink 1999). Furthermore, Sweden has become the first nation in the world to pass into law an integrated global development policy (IDRC Press Release, 28/1/2004). The country’s agriculture, environment, migration, trade and other polic ...
... ‘coherence article’ in the field of development co-operation (Hoebink 1999). Furthermore, Sweden has become the first nation in the world to pass into law an integrated global development policy (IDRC Press Release, 28/1/2004). The country’s agriculture, environment, migration, trade and other polic ...
“Macroeconomics with Financial Frictions”
... market liquidity or to preserve high funding liquidity. When individuals face funding constraints, simply the desire to smooth consumption makes it optimal for them to hold a “liquidity buffer.” This is the case even in a setting without aggregate risk, for example when individuals only face (uninsu ...
... market liquidity or to preserve high funding liquidity. When individuals face funding constraints, simply the desire to smooth consumption makes it optimal for them to hold a “liquidity buffer.” This is the case even in a setting without aggregate risk, for example when individuals only face (uninsu ...
Bank Stress Tests and Financial Stability
... important banks and links between these banks and large nonbank financial institutions/sectors; (2) the resources, legal authority, and independence of the supervisor conducting the tests; (3) the relevance and severity of the adverse scenarios analyzed in the tests; (4) the quality of the suite of ...
... important banks and links between these banks and large nonbank financial institutions/sectors; (2) the resources, legal authority, and independence of the supervisor conducting the tests; (3) the relevance and severity of the adverse scenarios analyzed in the tests; (4) the quality of the suite of ...
International Dimensions Of Monetary And Fiscal Policy
... The Effect on Exchange Rates via Interest Rates Expansionary fiscal policy increases interest rates because the government sells bonds to finance the deficit. Higher Canadian interest rates cause foreign capital to flow into Canada. ...
... The Effect on Exchange Rates via Interest Rates Expansionary fiscal policy increases interest rates because the government sells bonds to finance the deficit. Higher Canadian interest rates cause foreign capital to flow into Canada. ...
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.