206 Uremadu
... Previous studies have been conducted before by authorities in other lands on FDI and its impact on productivity and real country growth. A few examples here will suffice like those of Alfaro, et al (2001), Aitken and Harrison (1999), Borensztein and Gregorio (1988), Carkovic and Levine (2003), Hanso ...
... Previous studies have been conducted before by authorities in other lands on FDI and its impact on productivity and real country growth. A few examples here will suffice like those of Alfaro, et al (2001), Aitken and Harrison (1999), Borensztein and Gregorio (1988), Carkovic and Levine (2003), Hanso ...
Download Executive Summary
... CED+GER estimates are again closer to the IMF’s estimates than any other. However, for the next six-year period 2006-2011, the difference between the IMF and GFI estimates widen considerably due mainly to an increase in trade misinvoicing outflows, which are not included in the IMF estimates. In gen ...
... CED+GER estimates are again closer to the IMF’s estimates than any other. However, for the next six-year period 2006-2011, the difference between the IMF and GFI estimates widen considerably due mainly to an increase in trade misinvoicing outflows, which are not included in the IMF estimates. In gen ...
Keynes, Keynesians and Contemporary Monetary Theory and Policy
... Despite the rejection of Keynes’s theory, Keynes also made two crucial policy proposals that follow from his revolutionary theory and these have indeed been taken up, but, of course, without an appreciation of the theoretical framework from which they are derived. These two ...
... Despite the rejection of Keynes’s theory, Keynes also made two crucial policy proposals that follow from his revolutionary theory and these have indeed been taken up, but, of course, without an appreciation of the theoretical framework from which they are derived. These two ...
86007026I_en.pdf
... pegs are supposed to bring about more fiscal discipline, due to the loss of inflationary finance and its immediate effect on intertemporal budget constraints, they can also act in an opposite way if they are accompanied by a twin credit and consumption boom that ends up boosting public expenditures ...
... pegs are supposed to bring about more fiscal discipline, due to the loss of inflationary finance and its immediate effect on intertemporal budget constraints, they can also act in an opposite way if they are accompanied by a twin credit and consumption boom that ends up boosting public expenditures ...
The growth of emerging economies and global macroeconomic
... Since the early 1990s, emerging countries have accumulated ‘positive’ net positions while industrialized countries have accumulated ‘negative’ net positions. Therefore, the increase in the relative size of emerging economies has been associated with a significant accumulation of safe financial asset ...
... Since the early 1990s, emerging countries have accumulated ‘positive’ net positions while industrialized countries have accumulated ‘negative’ net positions. Therefore, the increase in the relative size of emerging economies has been associated with a significant accumulation of safe financial asset ...
Chapter 33: Open Economy Macroeconomics: The
... the Trade Feedback Effect • The demand for U.S. exports depends on economic activity in the rest of the world. If foreign output increases, U.S. exports tend to increase. • Because U.S. imports are somebody else’s exports, the extra import demand from the United States raises the exports of the rest ...
... the Trade Feedback Effect • The demand for U.S. exports depends on economic activity in the rest of the world. If foreign output increases, U.S. exports tend to increase. • Because U.S. imports are somebody else’s exports, the extra import demand from the United States raises the exports of the rest ...
University of Groningen Capital flight and the uncertainty of
... these countries appeared to be voluminous in absolute terms. This posed a threat to national solvency and economic growth perspectives. From the end of the 1980s and early 1990s the debt crisis appeared to be solved and attention for capital flight phenomenon waned. Certainly, capital flight had not ...
... these countries appeared to be voluminous in absolute terms. This posed a threat to national solvency and economic growth perspectives. From the end of the 1980s and early 1990s the debt crisis appeared to be solved and attention for capital flight phenomenon waned. Certainly, capital flight had not ...
PDP-Working Paper
... risk assessment and projection. Overcoming these constraints requires changes in behavior, as well as in the institutional set-up. This paper analyzes the procyclical investment behavior of a wide variety of classes of institutional investors during the recent crisis. Their individual and collective ...
... risk assessment and projection. Overcoming these constraints requires changes in behavior, as well as in the institutional set-up. This paper analyzes the procyclical investment behavior of a wide variety of classes of institutional investors during the recent crisis. Their individual and collective ...
The Globalization Rorschach Test
... declined by more than 25%) was more predictable, dominated by nations from the Middle East and Sub-Saharan Africa. But the list also includes Japan, where declining trade went hand-inhand with economic stagnation. The countries in which international capital flows increased the most were nothing if ...
... declined by more than 25%) was more predictable, dominated by nations from the Middle East and Sub-Saharan Africa. But the list also includes Japan, where declining trade went hand-inhand with economic stagnation. The countries in which international capital flows increased the most were nothing if ...
the relationship between globalization and the economic crisis
... economy and also on globalization. Regarding the influence of the crisis on the process of globalization there are several points of view in the economic literature. By 2007 globalization has developed unprecedented. But the crisis began in the United States has shaken confidence in the globalizing ...
... economy and also on globalization. Regarding the influence of the crisis on the process of globalization there are several points of view in the economic literature. By 2007 globalization has developed unprecedented. But the crisis began in the United States has shaken confidence in the globalizing ...
Economic Adjustment in the Baltic Countries
... significant rise in the estimates for the growth of potential output and longrun growth projections. Similarly the observed growth rates in several key economic and financial variables such as wages and property prices were often extrapolated into the future. All of this had a clear impact on invest ...
... significant rise in the estimates for the growth of potential output and longrun growth projections. Similarly the observed growth rates in several key economic and financial variables such as wages and property prices were often extrapolated into the future. All of this had a clear impact on invest ...
Download: Optimal Financial Structure and Economic Development (pdf)
... Any suggestions and comments are welcomed. Please contact us at [email protected].. ...
... Any suggestions and comments are welcomed. Please contact us at [email protected].. ...
Reproducing the North-South Divide: the role of
... Liberals have generally assumed that capital inflows swell the available pool of investment funds and thus generate future growth in the South. Eichengreen and Mussa (1998:12) put the classic case for international capital mobility this way: “Flows from capital-abundant to capitalscarce countries ra ...
... Liberals have generally assumed that capital inflows swell the available pool of investment funds and thus generate future growth in the South. Eichengreen and Mussa (1998:12) put the classic case for international capital mobility this way: “Flows from capital-abundant to capitalscarce countries ra ...
Working Paper, No. 121 - Wirtschaftswissenschaftliche Fakultät der
... further amplified of the degree of asymmetry in monetary policy making. The ultimate outcome has been the convergence of central bank interest rates towards zero and the advent of unconventional monetary policy. There are three possible reasons for a too expansionary monetary policy during crisis, ...
... further amplified of the degree of asymmetry in monetary policy making. The ultimate outcome has been the convergence of central bank interest rates towards zero and the advent of unconventional monetary policy. There are three possible reasons for a too expansionary monetary policy during crisis, ...
PDF, 348
... How do fundamental factors determine nominal exchange rates? Our rationale is based on a simple macroeconomic textbook model of an open economy according to Mankiw (2004). This model focuses on the money, credit and foreign exchange markets. Important macroeconomic factors influencing the nominal ex ...
... How do fundamental factors determine nominal exchange rates? Our rationale is based on a simple macroeconomic textbook model of an open economy according to Mankiw (2004). This model focuses on the money, credit and foreign exchange markets. Important macroeconomic factors influencing the nominal ex ...
Of Markets and Men
... It seems strange to me to be writing something that calls for a radical reshaping of the business and financial landscape. I have worked in the City for over 30 years, and I have always believed that business and finance have much to contribute towards building a better world. For most of my career ...
... It seems strange to me to be writing something that calls for a radical reshaping of the business and financial landscape. I have worked in the City for over 30 years, and I have always believed that business and finance have much to contribute towards building a better world. For most of my career ...
NBER WORKING PAPER SERIES BOOM-BUST CYCLES IN MIDDLE INCOME COUNTRIES: Aaron Tornell
... banks and firms. While the T-sector has access to several sources of external finance, the N-sector is heavily dependent on bank credit. Banks in turn are strongly exposed to the N-sector and denominate their liabilities mostly in foreign currency. Furthermore, banks’ lending is constrained both by ...
... banks and firms. While the T-sector has access to several sources of external finance, the N-sector is heavily dependent on bank credit. Banks in turn are strongly exposed to the N-sector and denominate their liabilities mostly in foreign currency. Furthermore, banks’ lending is constrained both by ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... bank securities at market prices, but holdings of those securities could not expand by more than 10 percent per year.4 The plan effectively converted the central bank into a currency board that could issue domestic currency only in exchange for foreign currency at a fixed rate. The government encoura ...
... bank securities at market prices, but holdings of those securities could not expand by more than 10 percent per year.4 The plan effectively converted the central bank into a currency board that could issue domestic currency only in exchange for foreign currency at a fixed rate. The government encoura ...
Financialization and Neoliberalism
... Dumenil and Levy (2005, 38) found that in France the rate of profit of financial corporations was far below that of nonfinancial corporations in the early 1980s, but by the late 1990s the financial profit rate had far surpassed that for nonfinancials. Epstein and Jayadev (2005, 51-52) found that the ...
... Dumenil and Levy (2005, 38) found that in France the rate of profit of financial corporations was far below that of nonfinancial corporations in the early 1980s, but by the late 1990s the financial profit rate had far surpassed that for nonfinancials. Epstein and Jayadev (2005, 51-52) found that the ...
International Financial Integration in the Aftermath of the
... liabilities, which we refer to as international financial integration, since the onset of the global financial crisis, and relate it to the main macroeconomic and financial developments affecting the world economy over the past decade. These include: (i) the global financial crisis and associated hi ...
... liabilities, which we refer to as international financial integration, since the onset of the global financial crisis, and relate it to the main macroeconomic and financial developments affecting the world economy over the past decade. These include: (i) the global financial crisis and associated hi ...
Monetary Policy Spillovers and the Trilemma in the New Normal
... tantrum”. Following close on the heels of complaints about unconventional monetary policy implementation in the preceding years, it is clear that – at a minimum – policymakers in emerging market economies perceive an increasing vulnerability to the whims of the global financial system. The idea that ...
... tantrum”. Following close on the heels of complaints about unconventional monetary policy implementation in the preceding years, it is clear that – at a minimum – policymakers in emerging market economies perceive an increasing vulnerability to the whims of the global financial system. The idea that ...
A Basic Critique of Economic Arguments for Local
... alternative policy is to poll consumers about their type. However, low-demand types have an incentive to falsely claim they are high-types, knowing that the firm will choose a lower marginal cost production technology leading to lower prices. Another policy Jayaraman and Oak consider is one in which ...
... alternative policy is to poll consumers about their type. However, low-demand types have an incentive to falsely claim they are high-types, knowing that the firm will choose a lower marginal cost production technology leading to lower prices. Another policy Jayaraman and Oak consider is one in which ...
IOSR Journal Of Humanities And Social Science (IOSR-JHSS)
... rule law (Gray, 2002). Be that as it may, it is truism that global capitalism and liberal democracy had triumphed and some group of individuals and countries have attended appreciable level of prosperity under it (Malaysia, Indonesia, China, Japan etc). However, contemporary reality occasioned by th ...
... rule law (Gray, 2002). Be that as it may, it is truism that global capitalism and liberal democracy had triumphed and some group of individuals and countries have attended appreciable level of prosperity under it (Malaysia, Indonesia, China, Japan etc). However, contemporary reality occasioned by th ...
NBER WORKING PAPER SERIES PRODUCTIVITY GROWTH AND CAPITAL FLOWS: Francisco J. Buera
... resources. The rise is gradual and persistent because the underdeveloped domestic financial markets can reallocate capital only slowly over time. Productive-but-poor individuals have to work for wage for a while before they can save up enough collateral and enter into entrepreneurship. In addition, ...
... resources. The rise is gradual and persistent because the underdeveloped domestic financial markets can reallocate capital only slowly over time. Productive-but-poor individuals have to work for wage for a while before they can save up enough collateral and enter into entrepreneurship. In addition, ...
Monetary Policy and Asset Prices: When Cleaning
... policy reaction. However, there is a natural limit in how much central banks can lower their instrument rates to stimulate the economy. Estimates based on Taylor rule calculations show that the federal funds rate would have needed to be cut by -4% to -6% in 2009. In such severe instances, the abilit ...
... policy reaction. However, there is a natural limit in how much central banks can lower their instrument rates to stimulate the economy. Estimates based on Taylor rule calculations show that the federal funds rate would have needed to be cut by -4% to -6% in 2009. In such severe instances, the abilit ...
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.