The Politics of Central Banking and Implications for Regulatory
... have been the worst financial crisis ever. And yet a view emerging among African policymakers and development practitioners is that central banks should play a role that goes beyond safeguarding monetary and financial stability and seeks to develop a responsible financial sector, particularly throug ...
... have been the worst financial crisis ever. And yet a view emerging among African policymakers and development practitioners is that central banks should play a role that goes beyond safeguarding monetary and financial stability and seeks to develop a responsible financial sector, particularly throug ...
Falling apart together: State interest and domestic political structure
... The exercise of interest in the European Union and the euro zone is a hotly debated issue owing to the larger theoretical questions it raises. Literature relating to ways in which state interests play out in Europe paints a picture of the limits different areas of European integration have placed on ...
... The exercise of interest in the European Union and the euro zone is a hotly debated issue owing to the larger theoretical questions it raises. Literature relating to ways in which state interests play out in Europe paints a picture of the limits different areas of European integration have placed on ...
Financial Innovation, Macroeconomic Stability and Systemic Crises
... mediation with nancial constraints and state-contingent contracts. Systemic nancial crises are generated through a clearly de ned pecuniary externality associated with asset ` re sales' during periods of stress. Moreover, the potential for instability is present ex ante and does not rely on sunspot ...
... mediation with nancial constraints and state-contingent contracts. Systemic nancial crises are generated through a clearly de ned pecuniary externality associated with asset ` re sales' during periods of stress. Moreover, the potential for instability is present ex ante and does not rely on sunspot ...
Investment
... capital. An increase in workforce or technology will make capital more productive and shift MPK curve out. ...
... capital. An increase in workforce or technology will make capital more productive and shift MPK curve out. ...
Real Economic Consequences of Financial Crises
... have ceased to exist as independent firms, and the government has intervened extensively to support financial stability. Due to the sharp aggravation of the international financial crisis in the autumn of 2008, real GDP growth in Denmark was around 6 percentage points lower in 2009 than forecast by ...
... have ceased to exist as independent firms, and the government has intervened extensively to support financial stability. Due to the sharp aggravation of the international financial crisis in the autumn of 2008, real GDP growth in Denmark was around 6 percentage points lower in 2009 than forecast by ...
OPEN JOINT STOCK COMPANY “AEROFLOT – RUSSIAN AIRLINES”
... The Group’s principal currency exchange risks relate to its ability to recover investments in non-monetary assets, specifically property, plant and equipment, as well as exposure to currency exchange losses on monetary assets and liabilities linked to currencies other than the functional currency of ...
... The Group’s principal currency exchange risks relate to its ability to recover investments in non-monetary assets, specifically property, plant and equipment, as well as exposure to currency exchange losses on monetary assets and liabilities linked to currencies other than the functional currency of ...
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... Computational and Financial Econometrics (CFE 2015) for helpful comments on an earlier draft of this paper Support by funds of the Jubiläumsfonds of the Oesterreichische Nationalbank (project number 16244) is gratefully acknowledged. ...
... Computational and Financial Econometrics (CFE 2015) for helpful comments on an earlier draft of this paper Support by funds of the Jubiläumsfonds of the Oesterreichische Nationalbank (project number 16244) is gratefully acknowledged. ...
Transmission of Policy Shocks in a Monetary Asset-Pricing
... International asset markets have grown in size and importance during the last decades and there has been a expansion in the variety of traded assets. It is of increased interest in assessing the efficiency and examining the behavior of asset prices denominated in alternative currencies. In this pape ...
... International asset markets have grown in size and importance during the last decades and there has been a expansion in the variety of traded assets. It is of increased interest in assessing the efficiency and examining the behavior of asset prices denominated in alternative currencies. In this pape ...
The Financial Accelerator in a Quantitative Business Cycle Framework
... the severity of the Great Depression in part to the heavy burden of debt and ensuing financial distress associated with the deflation of the early 1930s, a theme taken up half a century later by Bernanke (1983). More recently, distressed banking systems and adverse credit-market conditions have been ...
... the severity of the Great Depression in part to the heavy burden of debt and ensuing financial distress associated with the deflation of the early 1930s, a theme taken up half a century later by Bernanke (1983). More recently, distressed banking systems and adverse credit-market conditions have been ...
Mankiw 5/e Chapter 12: Agg Demand in the Open Economy
... In the early 1990s, Mexico was an attractive place for foreign investment. During 1994, political developments caused an increase in Mexico’s risk premium ( ): • peasant uprising in Chiapas • assassination of leading presidential candidate Another factor: The Federal Reserve raised U.S. interest ra ...
... In the early 1990s, Mexico was an attractive place for foreign investment. During 1994, political developments caused an increase in Mexico’s risk premium ( ): • peasant uprising in Chiapas • assassination of leading presidential candidate Another factor: The Federal Reserve raised U.S. interest ra ...
The financial crisis as a tsunami
... the main reference frameworks of economists with different paradigmatic orientation and prove whether there are any differences among them. A far‐reaching and dramatic event as the global financial crisis beginning with 2007/08 could eventually have offered a possibility o ...
... the main reference frameworks of economists with different paradigmatic orientation and prove whether there are any differences among them. A far‐reaching and dramatic event as the global financial crisis beginning with 2007/08 could eventually have offered a possibility o ...
Mankiw 5/e Chapter 12: Agg Demand in the Open Economy
... In the early 1990s, Mexico was an attractive place for foreign investment. During 1994, political developments caused an increase in Mexico’s risk premium ( ): • peasant uprising in Chiapas • assassination of leading presidential candidate Another factor: The Federal Reserve raised U.S. interest ra ...
... In the early 1990s, Mexico was an attractive place for foreign investment. During 1994, political developments caused an increase in Mexico’s risk premium ( ): • peasant uprising in Chiapas • assassination of leading presidential candidate Another factor: The Federal Reserve raised U.S. interest ra ...
THE POLITICS OF FINANCIAL DEVELOPMENT: EVIDENCE FROM
... industries may weigh differently the benefits of easier access to credit associated with a more developed financial system against the costs of more intense competition. Using industry level data for a large cross section of countries we exploit the de-facto heterogeneous impact of cross-country fi ...
... industries may weigh differently the benefits of easier access to credit associated with a more developed financial system against the costs of more intense competition. Using industry level data for a large cross section of countries we exploit the de-facto heterogeneous impact of cross-country fi ...
TRADING RULE PROFITS AND FOREIGN EXCHANGE MARKET
... intervention matters and the studies exploring the effects are done using new data and econometric techniques. There are two possible channels trough which intervention can influence the exchange rate: the portfolio and the expectation channels. In the portfolio channel it is assumed that investors ...
... intervention matters and the studies exploring the effects are done using new data and econometric techniques. There are two possible channels trough which intervention can influence the exchange rate: the portfolio and the expectation channels. In the portfolio channel it is assumed that investors ...
NBER WORKING PAPER SERIES Randall Morck
... and others find for state-controlled banking systems. However, family-controlled banking systems also correlate with financial instability and slower per capita GDP and productivity growth; while statecontrolled banking systems do not. These findings are highly robust - including to reasonable sourc ...
... and others find for state-controlled banking systems. However, family-controlled banking systems also correlate with financial instability and slower per capita GDP and productivity growth; while statecontrolled banking systems do not. These findings are highly robust - including to reasonable sourc ...
Economics of Monetary Union 10e
... government debt creates negative spillover effects for the rest of the monetary union. • First, such a country will have increasing recourse to the capital markets of the union – The union interest rate increases. – This higher union interest rate increases the burden of the government debts of the ...
... government debt creates negative spillover effects for the rest of the monetary union. • First, such a country will have increasing recourse to the capital markets of the union – The union interest rate increases. – This higher union interest rate increases the burden of the government debts of the ...
1. EMU
... forming a monetary union – will find it difficult to adjust to country-specific shocks in the absence of a high degree of price and wage flexibility. Building on this analysis, Mundell (1961) argued that members of a supranational monetary union could still adjust to country-specific shocks without ...
... forming a monetary union – will find it difficult to adjust to country-specific shocks in the absence of a high degree of price and wage flexibility. Building on this analysis, Mundell (1961) argued that members of a supranational monetary union could still adjust to country-specific shocks without ...
Why I Changed My Mind About Bitcoin
... • How are they going to get their financial and banking services? • With Bitcoin, you can be your own bank • If you can put software on someone’s phone that replaces banking functions, that is a big deal • Doesn’t matter if you were born in the first world or the third world • Provides financial ind ...
... • How are they going to get their financial and banking services? • With Bitcoin, you can be your own bank • If you can put software on someone’s phone that replaces banking functions, that is a big deal • Doesn’t matter if you were born in the first world or the third world • Provides financial ind ...
Will the Bretton Woods 2 Regime Unravel Soon?
... See the discussion by David Hale, Financial Times, January 26, 2005. ...
... See the discussion by David Hale, Financial Times, January 26, 2005. ...
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.