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Recent Financial Crisis (recent + financial_crisis)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting66%
Humanities and Social Sciences33%

Selected Abstracts

Corporate Governance: And the Bargaining Power of Developing Countries to Attract Foreign Investment

CORPORATE GOVERNANCE, Issue 2 2000
Enrique Rueda-Sabater
Following the rapid growth of foreign investment flows in the 1980s and 1990s some countries that had been dependent on official aid are now (even after the recent financial crises) obtaining most of their external financing from private sources. But low-income countries still receive little private capital flows. Arguing that corporate governance, broadly defined to include many business practices, is an important determinant of inward foreign investment this paper explores links between corporate Governance: And the ability of developing countries to attract foreign investment. It raises policy questions for developing countries and points to the need for complementary actions by government, businesses associations and institutional investors to promote corporate governance improvements. [source]

OPTIMAL FOREIGN BORROWING REVISITED

THE JAPANESE ECONOMIC REVIEW, Issue 3 2010
HYEON-SEUNG HUH
Foreign capital has become increasingly important in financing investment and growth in developing countries. Foreign capital flows, however, can be volatile as is evident from the recent financial crises. It has also recently been noted by researchers that there is little systematic empirical evidence that foreign capital contributes to the economic growth of developing countries. In this context, this paper attempts to theoretically reevaluate the borrowing behaviour of a developing economy that relies on foreign borrowing for its capital formation. In particular, this paper investigates the implications of different lending policies of international financial institutions. It is found that no matter whether the borrowing interest rate increases with the level of foreign debt per capita or with the foreign-capital/total-capital ratio, the economy always moves toward the stationary state. The result holds even when the representative agent regards the interest rate given as constant. This implies that foreign borrowing does help economic growth, irrespective of lending policies of international financial institutions. [source]

The impact of the 2007-2009 crisis on social security and private pension funds: A threat to their financial soundness?

INTERNATIONAL SOCIAL SECURITY REVIEW, Issue 2 2010
Ariel Pino
Abstract Social security and pension funds were affected on an unparalleled scale by the recent financial crisis. They reported massive unrealized investment losses and their governance mechanisms have been challenged, therefore endangering their financial soundness and questioning their capacity to deliver adequate benefits. The year 2009 ended with financial markets recovering, but also with portfolio reallocations and traditional risk management approaches being revisited. Governments have reacted to the crisis and implemented recovery plans that could issue a warning about the mid-term fiscal situation. Post-crisis fiscal stress may generate a trade-off between a re-establishment of a sound fiscal situation and a reduction in social expenditure. This article analyses the impact of the crisis on social security and pension funds and address all the aforementioned issues. [source]

The Federal Home Loan Bank System: The Lender of Next-to-Last Resort?

JOURNAL OF MONEY, CREDIT AND BANKING, Issue 4 2010
ADAM ASHCRAFT
government-sponsored enterprise; lender of last resort; liquidity The Federal Home Loan Bank (FHLB) System is a large cooperatively owned government-sponsored liquidity facility that lends predominately to U.S. depository institutions. This paper documents the significant role played by the FHLB System at the outset of the recent financial crisis and provides evidence on the uses of FHLB funding by member banks and thrifts during that time. We then compare lending activity by the FHLB System and the Federal Reserve during 2007 and 2008, discuss the types of institutions seeking government-sponsored liquidity at various times, and identify the trade-offs faced by borrowers eligible to tap liquidity from both facilities. [source]

Presidential Address: Asset Price Dynamics with Slow-Moving Capital

THE JOURNAL OF FINANCE, Issue 4 2010
DARRELL DUFFIE
ABSTRACT I describe asset price dynamics caused by the slow movement of investment capital to trading opportunities. The pattern of price responses to supply or demand shocks typically involves a sharp reaction to the shock and a subsequent and more extended reversal. The amplitude of the immediate price impact and the pattern of the subsequent recovery can reflect institutional impediments to immediate trade, such as search costs for trading counterparties or time to raise capital by intermediaries. I discuss special impediments to capital formation during the recent financial crisis that caused asset price distortions, which subsided afterward. After presenting examples of price reactions to supply shocks in normal market settings, I offer a simple illustrative model of price dynamics associated with slow-moving capital due to the presence of inattentive investors. [source]

Money Games: Currencies and Power in the Contemporary World Economy

ANTIPODE, Issue 2010
John Agnew
Abstract:, A well-known cliché has it that "money makes the world go round" Certainly, monetary arrangements, specifically exchange-rate mechanisms, can serve to show the degree to which markets and states intersect to direct the workings of the world economy. It is common to assume that the singular model over recent decades has been a neoliberal one based on independent floating exchange rates. I challenge this assumption by showing that a number of different combinations of money and power have operated in the recent past, creating a number of distinctive "money games". Only one of these, the globalist/transnational, is facing a particularly severe crisis. The others, what I term the classic/territorial, integrative/shared, and imperialist/substitute provide available alternatives. The recent history, geographical features, and future prospects of the various money games are the main concerns of the essay. The analysis welcomes the recent financial crisis as providing an opportunity to further pluralize political-economic visions beyond the perceived dominant one-size-fits-all neoliberal ideology of the globalist regime. [source]