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028_041_cina_east10ingl
028_041_cina_east10ingl

... The saving glut, combined with a bankcentered financial system which lacks a credit culture has resulted in misallocation of investment. The fall in measured TFP growth (Angang and Zheng, (2004) estimate that TFP growth has fallen from 3.7% in 1991-95 to 0.6% during 19962001) should probably not be ...
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8. Non-current liabilities- bonds

... historical cost accounting for assets. Since the book values of liabilities are based on historical rates, whereas their market values are based on current rates, book values and market values will differ subsequent to issuance. As we will see, this creates the potential for income management by ret ...
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...  Introduction of a macroeconomic safety network among OIC countries may be needed to reduce possible fall outs of the crises on weaker members  Policy coordination among central banks, ministers of finance and banking regulators is essential ...
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... The current ratio for Disney is 0.94 which is a very low ratio. In isolation, it might seem like an indication of trouble but analysts would look at much more information. For example, Disney was able to generate over $6 billion in cash from its operations. Analysts would also compare the ratio to s ...
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Fund Analysis, Cash-Flow Analysis, and Financial Planning

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... time, given the overhang of debt from before the crisis. In advanced economies, deleveraging in the private sector appears to have started, but will take a long time – perhaps a generation. Very cautious households are a large part of the story of a slow and fragile recovery. They have been hit hard ...
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... rate. If so the purchasing power of savings declines. This discourages savings. • People who have borrowed money benefit as the real value of loans decreases as price levels rise (loans are easier to repay in the future as prices and income rise over time). ...
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... discounts (Swamy, 2010). During 2003-07, the US economy was booming due to loose monetary policy and low interest rates, which led to rise in the global international trade due to surge in US imports. However, in August 2007, a mild recession hit the US economy, which was enough to trigger and casca ...
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... which assumed much more onerous scenarios than those we face today. We are in a slowdown rather than a full-blown solvency crisis. There have been concerns about the commercial real estate market, but banks are much less exposed to this sector than in the past and have been careful to apply more str ...
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... in first quarter NEW YORK, 20 April, 2016 — Breaking Q1 2015’s record, the first quarter of 2016 saw new issuance volume of $2.0 billion of non-life capacity, the most of any first quarter in history, according to the latest ILS market update from Willis Capital Markets & Advisory, the investment ba ...
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... sheet account that tracks the stocks of tangible assets, financial assets, and liabilities. In the current NIPA and FFA for example, only a sophisticated user investing a significant amount of time could navigate the published tables to produce estimates of net lending and borrowing across the major ...
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2016205 Jaime Caruana Transcript_updated

... I am very happy to be back at the LSE. I was here in the same lecture theatre in 2005 when I was chairman of the Basel Committee on Banking Supervision to deliver an update on banking regulation. Then, as now, the LSE was at the forefront of the economic debates facing policymakers, and I remember s ...
part 3: decision-makers in the financial system
part 3: decision-makers in the financial system

... subdivided into i) banks and near banks, ii) insurance companies and pension funds, and iii) other private financial institutions. The government sector includes federal, provincial, and municipal governments. The foreign sector is often referred to as the rest of the world or the external sector. T ...
Wynne  Godley’s  short CV
Wynne Godley’s short CV

... to Stein, if foreigners had not been buying government bonds, U.S. residents would have had to buy them instead - so that there would have been correspondingly fewer funds available for domestic investment. It is certainly true that if there were no deficit, total domestic expenditure would have to ...
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Global saving glut

Global saving glut (also global savings glut, GSG, cash hoarding, dead cash, dead money, glut of excess intended saving, shortfall of investment intentions), describes a situation in which desired saving exceeds desired investment. By 2005 Ben Bernanke, chairman of the Federal Reserve, the central bank of the United States, expressed concern about the ""significant increase in the global supply of saving"" and its implications for monetary policies, particularly in the United States. Although Bernanke's analyses focused on events in 2003 to 2007 that led to the 2007–2009 financial crisis, regarding GSG countries and the United States, excessive saving by the non-financial corporate sector (NFCS) is an ongoing phenomenon, affecting many countries. Bernanke's ""celebrated (if sometimes disputed)"" global saving glut (GSG) hypothesis argued that increased capital inflows to the United States from GSG countries were an important reason that U.S. longer-term interest rates from 2003 to 2007 were lower than expected.Alan Greenspan testifying at the Financial Crisis Inquiry Commission in 2010 explained, ""Whether it was a glut of excess intended saving, or a shortfall of investment intentions, the result was the same: a fall in global real long-term interest rates and their associated capitalization rates. Asset prices, particularly house prices, in nearly two dozen countries accordingly moved dramatically higher. U.S. house price gains were high by historical standards but no more than average compared to other countries.""An 2007 Organisation for Economic Co-operation and Development (OECD) report noted that the ""excess of gross saving over fixed investment (i.e. net lending) in the ""aggregate OECD corporate sector"" had been unusually large since 2002. In a 2006 International Monetary Fund report, it was observed that, ""since the bursting of the equity marketbubble in the early 2000s, companies in many industrial countries have moved from their traditional position of borrowing funds to finance their capital expenditures to running financial surpluses that they are now lending to other sectors of the economy."" David Wessell in a Wall Street Journal article observed that, ""[c]ompanies, which normally borrow other folks’ savings in order to invest, have turned thrifty. Even companies enjoying strong profits and cash flow are building cash hoards, reducing debt and buying back their own shares—instead of making investment bets."" Although the hypothesis of excess cash holdings or cash hoarding has been used by the Organisation for Economic Co-operation and Development (OECD), the International Monetary Fund and the media Wall Street Journal, Forbes, Canadian Broadcasting Corporation, the concept itself has been disputed and criticized as conceptually flawed in articles and reports published by the Hoover Institute, the Max-Planck Institute and the CATO Institute among others. Ben Bernanke used the phrase ""global savings glut"" in 2005 linking it to the U.S. current account deficit.In their July 2012 report Standard and Poors described the ""fragile equilibrium that currently exists in the global corporate credit landscape."" U.S. nonfinancial corporate sector NFCS firms continued to hoard a ""record amount of cash"" with large profitable investment-grade companies and technology and health care industries (with significant amounts of cash overseas), holding most of the wealth.By January 2013, NFCS firms in Europe had over 1 trillion euros of cash on their balance sheets, a record high in nominal terms.
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