Chapter 1 Understanding the Great Recession
... Of course the obvious candidate for the trigger that forced both consumption and residential construction to plummet was over-extended mortgage debt and the dramatic financial crisis this debt created. Not since the early 1930s has the U.S. economy gotten close to the kind of financial collapse that ...
... Of course the obvious candidate for the trigger that forced both consumption and residential construction to plummet was over-extended mortgage debt and the dramatic financial crisis this debt created. Not since the early 1930s has the U.S. economy gotten close to the kind of financial collapse that ...
Regulatory impact assessment of Basel III capital requirements in New Zealand.
... economy, would limit people s access to funds, could put other banks into difficulty, and could lead to a system-wide crisis. System-wide bank crises can have disastrous real and financial effects for an economy. As a result, regulators set minimum capital requirements that take account of the wider ...
... economy, would limit people s access to funds, could put other banks into difficulty, and could lead to a system-wide crisis. System-wide bank crises can have disastrous real and financial effects for an economy. As a result, regulators set minimum capital requirements that take account of the wider ...
Resilience Central and Eastern Europe: Moving up the value chain
... typically focused on producing manufactured goods for export. Notable exceptions to this pattern were investments into underdeveloped financial sectors and infrastructure, which, by their very nature, service the domestic market. The CEE countries competed fiercely among themselves for each and ever ...
... typically focused on producing manufactured goods for export. Notable exceptions to this pattern were investments into underdeveloped financial sectors and infrastructure, which, by their very nature, service the domestic market. The CEE countries competed fiercely among themselves for each and ever ...
Kiss Me Deadly: From Finnish Great Depression to Great Recession
... In early 1990s Finland witnessed a protracted economic contraction, one of the biggest to be experienced by an industrialized economy after World War II. This “Finnish Great Depression” started at the beginning of 1990, after several years of rapid economic expansion. The cumulative drop of real GDP ...
... In early 1990s Finland witnessed a protracted economic contraction, one of the biggest to be experienced by an industrialized economy after World War II. This “Finnish Great Depression” started at the beginning of 1990, after several years of rapid economic expansion. The cumulative drop of real GDP ...
Risk-adjusted Covered Interest Parity: Theory and Evidence
... Funding liquidity risk refers to the risk of being unable to obtain funding to meet financial obligations. It differs from market liquidity risk, which refers to the risk of being unable to convert assets to cash at market prices. However, the two are closely linked. For a detailed discussion, see B ...
... Funding liquidity risk refers to the risk of being unable to obtain funding to meet financial obligations. It differs from market liquidity risk, which refers to the risk of being unable to convert assets to cash at market prices. However, the two are closely linked. For a detailed discussion, see B ...
May 2003 - Banco de España
... As regards the structure of assets, the relative weight of credit to the private sector increased by somewhat more than three percentage points to 56.9 %. This notwithstanding, the growth of this item slowed to 6.7 % from 11.4 % in the previous year. Meanwhile, doubtful assets grew by 13 %, as again ...
... As regards the structure of assets, the relative weight of credit to the private sector increased by somewhat more than three percentage points to 56.9 %. This notwithstanding, the growth of this item slowed to 6.7 % from 11.4 % in the previous year. Meanwhile, doubtful assets grew by 13 %, as again ...
Government report - World Trade Organization
... 12 manufactured export items growing at double-digit rates. ...
... 12 manufactured export items growing at double-digit rates. ...
Who Regulates Whom and How? An Overview of U.S. Financial
... financial markets, and how?” At the federal level, the answer often depends on first identifying both the policy problem and the proposed solution. For example, there are federal regulatory overlaps in which one agency can oversee a firm because of the firm’s charter, a second agency regulates some ...
... financial markets, and how?” At the federal level, the answer often depends on first identifying both the policy problem and the proposed solution. For example, there are federal regulatory overlaps in which one agency can oversee a firm because of the firm’s charter, a second agency regulates some ...
presentation file
... 3. Inflows of Capital (FDI+ portfolio): Change in the stock of portfolio equity and direct investment liabilities; 56 countries, (WS: 60), 1970-1998, (Lane and Milessi-Feretti, 2001) (LM). 4. Inflows of Capital + Inflows of Debt: 3 + change in the stock of portfolio debt liabilities and other invest ...
... 3. Inflows of Capital (FDI+ portfolio): Change in the stock of portfolio equity and direct investment liabilities; 56 countries, (WS: 60), 1970-1998, (Lane and Milessi-Feretti, 2001) (LM). 4. Inflows of Capital + Inflows of Debt: 3 + change in the stock of portfolio debt liabilities and other invest ...
Balancing the Banks: Global Lessons from the Financial Crisis
... competition from other less regulated financial institutions (e.g., money-market mutual funds and investment banks). Although details vary from country to country, the removal of interest-rate controls promoted competition at first. In the turbulent macroeconomic environment of the 1970s and 1980s, ...
... competition from other less regulated financial institutions (e.g., money-market mutual funds and investment banks). Although details vary from country to country, the removal of interest-rate controls promoted competition at first. In the turbulent macroeconomic environment of the 1970s and 1980s, ...
The Lender of Last Resort in the Eurozone
... finance sector with the necessary liquidity. One option is to provide liquidity for the entire system, via its monetary-policy operations (macro-level liquidity supply). The other option is for the central bank to use bilateral transactions to provide individual institutions with liquidity aid in th ...
... finance sector with the necessary liquidity. One option is to provide liquidity for the entire system, via its monetary-policy operations (macro-level liquidity supply). The other option is for the central bank to use bilateral transactions to provide individual institutions with liquidity aid in th ...
Trade openness, financial liberalization and volatility The Latin American experience Esteban Pérez Caldentey
... Caeteris paribus it is assumed that in developing countries consumers favor present over future consumption (higher subjective discount rates and lower ratios of capital to labor (higher marginal product of capital). As a result, developing countries have higher rates of interest than developed coun ...
... Caeteris paribus it is assumed that in developing countries consumers favor present over future consumption (higher subjective discount rates and lower ratios of capital to labor (higher marginal product of capital). As a result, developing countries have higher rates of interest than developed coun ...
Macroprudential Policies in Open Emerging Economies Joon-Ho Hahm, Frederic S. Mishkin,
... the financial crisis started in August 2007, central bank actions to contain it seemed to work. Many officials at the central banks, although still concerned about the disruption to the financial markets, hoped that the worst was over and that the financial system would begin to recover (see Mishkin ...
... the financial crisis started in August 2007, central bank actions to contain it seemed to work. Many officials at the central banks, although still concerned about the disruption to the financial markets, hoped that the worst was over and that the financial system would begin to recover (see Mishkin ...
Towards a General Theory of Financial Regulation
... because they were being developed largely during the 1970’s pre the deregulation era and applied only to a tightly controlled function in the economy, such as the provision of accounting information (Watts and Zimmerman, 1977; Jensen and Meckling, 1976). None of the authors ever considered regulatio ...
... because they were being developed largely during the 1970’s pre the deregulation era and applied only to a tightly controlled function in the economy, such as the provision of accounting information (Watts and Zimmerman, 1977; Jensen and Meckling, 1976). None of the authors ever considered regulatio ...
This PDF is a selection from a published volume from... Bureau of Economic Research Volume Title: Quantifying Systemic Risk
... real risk and systemic financial risk, as well as stress tests of these indicators as impulse responses to structurally identifiable shocks. This framework is novel in two respects. First, it uses a dynamic factor model with structural identification based on theory. This permits us to extract infor ...
... real risk and systemic financial risk, as well as stress tests of these indicators as impulse responses to structurally identifiable shocks. This framework is novel in two respects. First, it uses a dynamic factor model with structural identification based on theory. This permits us to extract infor ...
mmi11 Piccillo 15082658 en
... which includes more complex, agent based portfolio choice rules. This paper combines previous DSGE literature with a new and original way of studying portfolio choice issues. The approach taken in this paper is building a dynamics of a similar kind. The second approach is the one of Rigobon and Pavl ...
... which includes more complex, agent based portfolio choice rules. This paper combines previous DSGE literature with a new and original way of studying portfolio choice issues. The approach taken in this paper is building a dynamics of a similar kind. The second approach is the one of Rigobon and Pavl ...
1 - Hans-Böckler
... For example, non-banks normally accept deposits at commercial banks as means of payment; however commercial banks among themselves accept only central bank money to settle their respective debts. In the US, one would hardly accept Euros as means of payment, however many countries in the world do acc ...
... For example, non-banks normally accept deposits at commercial banks as means of payment; however commercial banks among themselves accept only central bank money to settle their respective debts. In the US, one would hardly accept Euros as means of payment, however many countries in the world do acc ...
money, finance and the real economy
... operate, but the quantity of money available for the carrying out of transactions can be permanently adjusted in order to enable output to attain its full-employment level. With bank lending now the source of money issue, all that is needed is for the banks to grant the necessary volume of loans. Th ...
... operate, but the quantity of money available for the carrying out of transactions can be permanently adjusted in order to enable output to attain its full-employment level. With bank lending now the source of money issue, all that is needed is for the banks to grant the necessary volume of loans. Th ...
Week 4
... to the average percentage change in a foreign country's exchange rate with the U.S. dollar. The figure shows that those countries with relatively high inflation rates tend to have depreciating (lower) exchange rates to the dollar while those with relatively low inflation rates tend to experience ap ...
... to the average percentage change in a foreign country's exchange rate with the U.S. dollar. The figure shows that those countries with relatively high inflation rates tend to have depreciating (lower) exchange rates to the dollar while those with relatively low inflation rates tend to experience ap ...
Islamic Monetary Policy
... Islamic financial instruments should be usury-free and efficient in applying monetary, fiscal and financial policies at different levels of central bank, government and commercial banks and non-banking money and financial institutions. Conventional interest-bearing bonds are not allowed in Islamic c ...
... Islamic financial instruments should be usury-free and efficient in applying monetary, fiscal and financial policies at different levels of central bank, government and commercial banks and non-banking money and financial institutions. Conventional interest-bearing bonds are not allowed in Islamic c ...
Financial intermediaries, markets, and growth
... cost, invest directly in assets on a financial market. In equilibrium, the larger the fraction of household active on the financial market, the more investment there is in a productive technology. This creates an endogenous trade-off between risk-sharing provided by intermediaries and growth. The mo ...
... cost, invest directly in assets on a financial market. In equilibrium, the larger the fraction of household active on the financial market, the more investment there is in a productive technology. This creates an endogenous trade-off between risk-sharing provided by intermediaries and growth. The mo ...
Why is the UK banking system so big and is that a
... Over the past 40 years the size of the UK banking system has undergone a dramatic shift, with total assets rising from around 100% to around 450% of nominal GDP. It is plausible that the UK banking system will continue to grow rapidly. Though there are a number of ways to define the size of a bankin ...
... Over the past 40 years the size of the UK banking system has undergone a dramatic shift, with total assets rising from around 100% to around 450% of nominal GDP. It is plausible that the UK banking system will continue to grow rapidly. Though there are a number of ways to define the size of a bankin ...
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.