WorldWideScience

Sample records for global financial crisis

  1. Global financial crisis

    Directory of Open Access Journals (Sweden)

    MSc. Jusuf Qarkaxhija

    2011-03-01

    Full Text Available The most recent developments in economy are a clear indicator of many changes, which are a result of this high rate pacing, which also demonstrates as such. Market economy processes occur as a result of intertwining of many potential technological and human factors, thereby creating a system of numerous diver-gences and turbulences. Economics, a social science, is characteri-sed with movements from a system to another system, and is har-monized with elements or components which have impacted the development and application of economic policies as a result. This example can be illustrated with the passing from a commanded system (centralized to a self-governing (decentrali-zed system, while the movement from a system to another is known as transi-tion. Such transition in its own nature bears a number of problems of almost any kind (political, economic, social, etc., and is charac-terised with differences from a country to another. Financial crisis is a phenomenon consisting of a perception of economic policies and creation of an economic and financial stabi-lity in regional and global structures. From this, one may assume that each system has its own changes in its nature, and as a result of these changes, we have the crisis of such a system. Even in the economic field, if we look closely, we have such a problem, where development trends both in human and technological fields have created a large gap between older times and today, thereby crea-ting dynamics with a high intensity of action. If we dwell on the problem, and enter into the financial world, we can see that the so-called industrialized countries have made giant leaps in deve-lopment, while countries in transition have stalled in many fields, as a result of a high rate of corruption and unemployment in these countries, and obviously these indicators are directly connected, thereby stroking the financial system in these countries. Corruption is an element, which directly and indirectly

  2. THE GLOBAL FINANCIAL CRISIS AND NATIONAL FINANCIAL ...

    African Journals Online (AJOL)

    propose solutions aimed at reducing the effects of global financial crisis by ... rates of return leading to more investment and higher growth for developing countries. .... capital can without notice turn into outflows as it did in Russia and East Asia.

  3. Impact of Global Financial Crisis on Nigerian Stock Market | Onuoha ...

    African Journals Online (AJOL)

    Impact of Global Financial Crisis on Nigerian Stock Market. ... that the global financial crisis measured by currency crisis, credit crisis, liquidity crisis, ... relevant regulatory authorities should use the financial stress index (FSI) as proposed by ...

  4. Global Financial Crisis and Philanthropy: Malaysian Case

    OpenAIRE

    Janice Lay Hui Nga

    2015-01-01

    This paper investigates the issue of the global financial crisis and its impacts on philanthropy and civil society organisations (CSOs) in Malaysia. CSOs are popularly known as non-governmental organisations (NGOs) in Malaysia. Financial crisis has caused NGOs in many countries to receive less funding. This situation may threaten and discourage voluntary works. Undoubtedly, these beneficial contributions from the NGOs are needful services to the society. This paper examines the impact of fina...

  5. Global Financial Crisis – Policy Response

    Directory of Open Access Journals (Sweden)

    Dakić Milojica

    2014-01-01

    Full Text Available Six years after the outbreak of the financial crisis that had shaken the global financial system, experts and analysts all over the world continue discussing the effectiveness, scope and adequacy of mechanisms and measures implemented in the meantime, as well as the adequacy of the underlying theoretical concept. A global consent has been reached on ensuring financial stability through the interaction of monetary, fiscal and prudential policy to ensure the necessary macroprudential dimension of regulatory and supervisory frameworks. The USA crisis spilled over to Europe. Strong support of governments to bail out banks quickly resulted in sovereign debt crises in some peripheral EU Member States. Fiscal insolvency of these countries strongly shook the EU and increased doubts in the monetary union survival. The European Union stood united to defend the euro and responded strongly with a new complex and comprehensive financial stability framework. This supranational framework is a counterpart to the global financial stability framework created by the G20 member countries. Starting from the specific features of the monetary policy whose capacities are determined by euroisation, available instruments and resources for preventive supervisory activities, as well as the role of the government in crisis management, Montenegro created a framework for maintaining financial stability and prescribed fostering and maintaining financial stability as the main objective of the Central Bank of Montenegro.

  6. Global Financial Crisis and Philanthropy: Malaysian Case

    Directory of Open Access Journals (Sweden)

    Janice Lay Hui Nga

    2015-08-01

    Full Text Available This paper investigates the issue of the global financial crisis and its impacts on philanthropy and civil society organisations (CSOs in Malaysia. CSOs are popularly known as non-governmental organisations (NGOs in Malaysia. Financial crisis has caused NGOs in many countries to receive less funding. This situation may threaten and discourage voluntary works. Undoubtedly, these beneficial contributions from the NGOs are needful services to the society. This paper examines the impact of financial crisis through the lens of NGOs and philanthropy activities in Malaysia. It utilises primary and secondary data, employs a mixed method approach, and uses quantitative and qualitative data. While there are many influencing factors in this development, this paper presents several significant aspects in the Malaysian context, including the style and nature of giving, culture, religion, and political pressure. This study attempts to seek potential solutions, pathways and possible approaches beneficial to NGOs and philanthropy activities for their sustainability in facing the financial crisis and its consequences. Experiences and lessons learnt in Malaysia may well be useful and applicable to some extent in other countries.

  7. Values of financial services professionals and the global financial crisis as a crisis of ethics

    NARCIS (Netherlands)

    Hoorn, André van

    2013-01-01

    Many attribute the global financial crisis (GFC) to the ethical values of the people involved, financial services professionals (FSPs) such as stockbrokers or fund managers. The crisis-of-ethics debate is important, concerning one of the main policy challenges of our times, but is based on popular

  8. Europe's place in global financial governance after the crisis

    NARCIS (Netherlands)

    Mügge, D.

    2015-01-01

    In the years leading up the global financial crisis, the European Union (EU) had emerged as a central actor in global financial governance, almost rivalling the United States in influence. While the USA and the EU continue to dominate financial rule setting in the post-crisis world, the context in

  9. Impact of Global Financial Crisis on Nigerian Stock Market

    African Journals Online (AJOL)

    DrNneka

    Key words: Global financial crisis, Nigerian stock market, currency crisis, ... drop in all economic indices over a relatively short period of time leading to corporate .... magnitude and many countries with sound fundamentals also plunged into a ...

  10. THE IMPACT OF THE GLOBAL FINANCIAL CRISIS ON ALGERIAN ECONOMY

    Directory of Open Access Journals (Sweden)

    Zeyneb GUELLIL

    2015-04-01

    Full Text Available The Global Economic Crisis and 2008 financial crisis, is considered by many economists the worst financial crisis since the Great Depression of the 1930s , The financial crisis, brewing for a while, really started to show its effects in the middle of 2007 and into 2008. It is a situation where macro indicator like economic growth rate fall in most countries across the world. “Although economists largely failed to predict this global economic seismic shock, they have since made up for their oversight by generating a large and growing literature explaining the crisis.” In this discussion paper explores what happened and what issues arise from the Global Financial Crisis on the global economy and the Algerian economic in particular.

  11. Fiscal policy and the global financial crisis

    DEFF Research Database (Denmark)

    Andersen, Torben M.

     The financial crisis raises demands for fiscal policy interventions. While a fall in aggregate demand is an important consequence of the crisis, it also reflects more underlying structural problems and changes. Hence, appropriate policy designs have to take account of the nature of the crisis......-run objectives are discussed. Past experience shows that deep recessions become persistent due to marginalization of unemployed, and therefore labour market policies have to be considered as an integral part of policy packages. Finally the question of international policy coordination is addressed....

  12. Capital Structure and Firm Performance During Global Financial Crisis

    OpenAIRE

    Khodavandloo, Marzieh; Zakaria, Zukarnain; Nassir, Annuar Md.

    2017-01-01

    The relationship between capital structure and firm performance has been extensively investigated in the recent decades. However, only few studies investigate this relationship during financial crisis. Recent global financial crisis provides an opportunity to examine the effect of the crisis on the relationship between capital structure and firm performance. Therefore, this paper aims to investigate this relationship based on 45 listed companies involved in trading and services sector of the...

  13. Global Financial Crisis and Vulnerability in Cambodia | IDRC ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    The global financial crisis of 2008 has aggravated poverty and inequality through contractions in employment, consumption and investment. While there have been a number of ... Country(s). Cambodia, Far East Asia, Central Asia, South Asia ...

  14. Lessons and policy implications from the global financial crisis

    NARCIS (Netherlands)

    Claessens, S.; Dell'Ariccia, G.; Igan, D.; Laeven, L.A.H.; Caprio, G.; Beck, T.; Claessens, S.; Schmukler, S.L.

    2013-01-01

    The crisis has brought to light a number of deficiencies in financial regulation and architecture, particularly in the treatment of systemically important financial institutions, the assessments of systemic risks and vulnerabilities, and the resolution of financial institutions. The global nature of

  15. Impact of global financial crisis on the economy of Ukraine

    OpenAIRE

    Turko, Vasyl; Mukan, Andriy

    2013-01-01

    Thе primary concern of this research is to examine the impact of the global financial crisis on the economy of Ukraine. The principal result of this research is to identify the main causes and levers of that influence. The study proposes a new way out of economic crisis in Ukraine.

  16. Essays on globalization, monetary policy and financial crisis'

    NARCIS (Netherlands)

    Qian, Z.

    2012-01-01

    This thesis focuses on three interlinked topics. Chapter 2 studies the determinants of sovereign CDS spreads in Greece, Ireland, Italy, Portugal and Spain during the recent global financial crisis and European debt crisis. Chapter 3 introduces a model on the interactions between monetary policy

  17. Australian baby boomers face retirement during the global financial crisis.

    Science.gov (United States)

    Kendig, Hal; Wells, Yvonne; O'Loughlin, Kate; Heese, Karla

    2013-01-01

    This paper examines the impact in Australia of the global financial crisis on the baby boom cohort approaching later life. Data from national focus groups of people aged 50 to 64 years (N = 73), conducted in late 2008, found widespread but variable concern and uncertainty concerning work and retirement plans and experiences. A national survey (N = 1,009) of those aged 50 to 64 years in mid-2009 reported lower levels of financial satisfaction compared with other life domains; many planned to postpone retirement. Findings are interpreted in the context of policies and markets that differed significantly from those in the United States, notwithstanding the global nature of the financial crisis.

  18. Building Responsive and Responsible Financial Regulators in the Aftermath of the Global Financial Crisis

    NARCIS (Netherlands)

    Iglesias Rodriguez, P.

    2015-01-01

    The global financial crisis that started in 2007 sparked several academic debates about the role that financial sector regulators played in the crisis and prompted policy reforms in the financial supervision architectures of several countries. This book focuses on the question of what

  19. The future of financial reporting 2009 : a time of global financial crisis.

    OpenAIRE

    Jones, M.; Slack, R.E.

    2009-01-01

    A discussion paper based on the British Accounting Association Financial Accounting and Reporting Special Interest Group (FARSIG) Colloquium, 9 January 2009. The theme of the future of financial reporting at a time of global crisis was very topical. The papers and discussion, well captured in this summary, set out the main thoughts at that point, both on the role of accounting in the crisis and the impact of the crisis on accounting. The factors which provoked a crisis on that scale and t...

  20. Teacher Education, the Global Financial Crisis, Frogs and Bicycles

    Science.gov (United States)

    Ling, Lorraine

    2012-01-01

    Background: The extent to which the global financial crisis (GFC) has impacted upon teacher education in universities in Australia is potentially, like most other aspects of teacher education, a contested area. Purpose, aims/questions: The aim of this article is to examine the impact the GFC along with other funding constraints, has had on teacher…

  1. The Global Financial Crisis and currency crises in Latin America

    NARCIS (Netherlands)

    Boonman, Tjeerd M.; Jacobs, Jan P.A.M.; Kuper, Gerard H.

    2012-01-01

    The Global Financial Crisis (GFC) has aected many regions including Latin America. This paper focuses on currency crises in Argentina, Brazil and Mexico. We estimate an Early Warning System, consisting of a dynamic factor model and an ordered logit model, with monthly data for 1990-2007. Ex ante

  2. Global Financial Crisis and Educational Restructuring

    Science.gov (United States)

    Peters, Michael A.; Besley, Tina; Paraskeva, João M.

    2015-01-01

    "Financialisation" is a term that describes an economic system or process that attempts to reduce all value that is exchanged (whether tangible, intangible, future, or present promises, etc.) either into a financial instrument or a derivative of a financial instrument. The original intent of financialization is to be able to reduce any…

  3. A Comparison of Global Financial Market Recovery after the 2008 Global Financial Crisis

    Directory of Open Access Journals (Sweden)

    Foo Jennifer

    2017-06-01

    Full Text Available The Financial Crisis of 2007-2009 plunged countries into a Great Recession and focused the world’s attention on the global stock markets. The global contagion has a major impact on global stock markets, with the U.S. DJIA falling to 6,547.05 on March 9, 2009 from a high of 14,164.53 on October 9, 2007, with a loss of more than 54%. Other stock markets also had a precipitous drop during the financial crisis. However, some equity markets have recovered while others have not. This paper looks at how global markets compared in their recovery. This paper also investigates the advanced countries’ recovery relative to the emerging and developing countries in the aftermath of the financial crisis and their ability to climb back to the pre-financial crisis levels. Analysis is provided for 31 stock indexes from January 2005 to March 2013. In 2013 the majority of analysed stock markets recovered from the crises regardless of if they belong to the group of developed or emerging markets.

  4. The Current Global Financial Crisis 2008-2012

    Directory of Open Access Journals (Sweden)

    Albulena Shala

    2013-12-01

    Full Text Available The current global financial crisis is considered as one of the biggest crises after the crisis of the years of 30’s. The global financial crisis has affected all countries including developed and developing ones. It also has affected all the industries. Population with the low-income faced the greatest consequences. The last hope for the survival of the market economy was to undertake important steps for the nationalization of bankrupted banks and companies, thereby developing policies for the preservation of jobs. Through this analysis, we have included briefly some of the development followed the period of 2008 and onwards. A summary of statistics for some important economic indicators such as employment, exporting and importing is covered in this study as well.

  5. The Global Financial Crisis and the Arab World

    DEFF Research Database (Denmark)

    Brach, Juliane; Loewe, Markus

    2010-01-01

    Much has been written on the impact of the global financial crisis on Europe, Asia and the Americas but only little on the Arab states. This article makes an early attempt to take stock of recent developments in the Arab world and offers a systematic approach to disentangle the various inter......-linkages and effects of the crisis on the region. It argues that most Arab countries might be lucky and get off lightly, especially the energy-importing Arab countries which have proved not to be very vulnerable because they are only weakly integrated into global trade and capital markets. The energy exporters have...

  6. Trust, confidence, and the 2008 global financial crisis.

    Science.gov (United States)

    Earle, Timothy C

    2009-06-01

    The 2008 global financial crisis has been compared to a "once-in-a-century credit tsunami," a disaster in which the loss of trust and confidence played key precipitating roles and the recovery from which will require the restoration of these crucial factors. Drawing on the analogy between the financial crisis and environmental and technological hazards, recent research on the role of trust and confidence in the latter is used to provide a perspective on the former. Whereas "trust" and "confidence" are used interchangeably and without explicit definition in most discussions of the financial crisis, this perspective uses the TCC model of cooperation to clearly distinguish between the two and to demonstrate how this distinction can lead to an improved understanding of the crisis. The roles of trust and confidence-both in precipitation and in possible recovery-are discussed for each of the three major sets of actors in the crisis, the regulators, the banks, and the public. The roles of trust and confidence in the larger context of risk management are also examined; trust being associated with political approaches, confidence with technical. Finally, the various stances that government can take with regard to trust-such as supportive or skeptical-are considered. Overall, it is argued that a clear understanding of trust and confidence and a close examination of the specific, concrete circumstances of a crisis-revealing when either trust or confidence is appropriate-can lead to useful insights for both recovery and prevention of future occurrences.

  7. Financial Policies of Turkish Industrial Companies during the Global Crisis

    Directory of Open Access Journals (Sweden)

    Cenk Gokce Adas

    2016-01-01

    Full Text Available Latest global financial crisis that shrank the credit market affected the companies’ financial policies since the credit contraction led the firms to rely more on their own resources rather than external financing. The expectation during such crises is more equity issues along with less borrowing. In economic literature there are some evidence supporting this fact for developed countries. As an emerging country Turkey’s case is different than that of advanced countries. The era commenced with Lehman turmoil by passed Turkish economy in the first years due to the solid, strong and healthy banking sector due to the measurements taken after 2001 banking crisis of Turkey. Therefore, international lenders did not hesitate directing their funds to Turkish banks. As a result, Turkish companies did not suffer in financing their investments through bank loans. Moreover, the growth policy of Turkey based on current account deficit supported Turkish economy and in turn the firms due to the abundance of liquidity after the peak of the crisis. In this work we examined 164 industrial firms that are traded on Borsa Istanbul to see if there happened to be a shift in their financing preferences during the recent global crisis. We found that the importance of borrowing had not decreased and that contradicts the expectations. As of equity issues, before and after 2009 no radical change has been observed. In 2009 where the crisis hit worst Turkish economy leading a 4.7% GDP decrease, the equity issues were doubled.

  8. Foreign exchange risk in terms of global financial crisis

    Directory of Open Access Journals (Sweden)

    Michał Buszko

    2009-12-01

    Full Text Available Fx risk is one of the most important types of risk of financial activity. In practice, this risk comprises several risk aspects related to currencies exchanging, however most often it is identified with unexpected changes of their prices. In terms of the global financial crisis of 2007–2009, the fx risk has raised significantly, revealing a high daily volatility, increased spreads and the reversal of long-term exchange rate trends. Such increased risk especially influenced emerging markets economies, including Poland. Its consequence was quick strengthening of Polish currency at the beginning of the global crisis followed by a very sudden fall of its value. This event led to a substantial increase of banking risk, investment funds and corporate operations. It changed the structure of GDP sources as well as generated huge losses for exporting companies, using currency options hedging strategies.

  9. Strategic Decision Making in Times of Global Financial Crisis

    OpenAIRE

    Gawlik, Remigiusz

    2009-01-01

    The presented paper is a brief presentation of findings based on research lead on a group of small and medium businesses. The study has been made in conditions of global financial crisis and its effects, such as fall of production volumes in numerous companies. A number of indexes describing the actual economic situation and short – term prospects of discussed businesses has been presented to their medium- and high level executives in order to point out those most useful when taking strategic...

  10. The Effect of the Global Financial Crisis and the Sovereign Debt Crisis on Public Sector Accounting: A Contextual Analysis

    OpenAIRE

    Emmanuel Igbawase Abanyam; Paul Aondona Angahar

    2015-01-01

    This paper examines the effect of global financial crisis and the sovereign debt crisis on public sector accounting. The global financial crisis and sovereign debt crisis were contextually analysed bringing out clearly its effect on public sector accounting which include accounting issues related to public sector intervention, accounting for recapitalization of investment, accounting for fiscal support, accounting for financial guarantees. The paper found out that, the unresolved fiscal and d...

  11. Schooling the Crisis? Education in the Aftermath of the Global Financial Crisis

    Science.gov (United States)

    Morgan, John

    2014-01-01

    Five years on from the onset of the global financial crisis, there has been little sustained discussion of its implications for schooling. This is surprising when we consider that for the past three decades education has been shaped by assumptions about the need to prepare students for life in global capitalist economies. The consensus seems to be…

  12. Volatility in financial markets: The impact of the global financial crisis

    OpenAIRE

    Valls Ruiz, Natàlia

    2014-01-01

    This dissertation focuses on volatility in financial markets, with a special concern for: (i) volatility transmission between different financial markets and asset categories and, (ii) the effect of macroeconomic announcements on the returns, volatility and correlation of stock markets. These issues are analysed taking into account the phenomenon of asymmetric volatility and incorporating the period of financial turmoil caused by the Global Financial Crisis. The study focuses the attention on...

  13. A Commentary on "Contextualizing the Intermediate Financial Accounting Courses in the Financial Global Crisis"

    Science.gov (United States)

    Woods, Margaret

    2011-01-01

    The breadth of issues raised by the ongoing global financial crisis (GFC) has made accounting education potentially very exciting of late, particularly in the fields of financial reporting and auditing. Students can find it difficult to engage with the conceptual principles that underpin accounting regulation and it can be challenging for the…

  14. Australian baby boomers talk about the global financial crisis.

    Science.gov (United States)

    Humpel, Nancy; O'Loughlin, Kate; Snoke, Martin; Kendig, Hal

    2010-09-01

    The aim of this qualitative study was to explore baby boomers' views and plans in the early days of the global financial crisis (GFC) in 2008. Informants from National Seniors Australia were interviewed in 15 focus groups conducted nationally. Transcripts were analysed by themes from semi-structured questions. The GFC was found to shake the confidence and plans of boomers. Many workers decided to delay retirement and save longer following losses in superannuation. Those retired on market-linked superannuation felt forced to reduce expenses and restrain lifestyles. Those on full pensions were relatively unaffected. The GFC called into question boomers' expectations for retirement. While financial markets are showing signs of recovery, the GFC had precipitated a decision to work longer and to draw conservatively on retirement savings that may take many years to recover. The volatility of financial and employment markets underscores the value of the Age pension.

  15. MONETARY POLICY ADJUSTMENT AT THE GLOBAL FINANCIAL CRISIS CONSTRAINTS

    Directory of Open Access Journals (Sweden)

    Adina Criste

    2014-12-01

    Full Text Available The global financial crisis marked a border for central banks, as it raised challenges which constrained them both to extend the range of monetary policy instruments and to redefine their role in the financial system. The present paper aims to identify features of conducting the monetary policy of some central banks, during and after the global financial crisis outbreak. For that purpose, we apply to a comparative analysis between some central banks of European Union (EU, namely Czech National Bank (CNB, National Bank of Hungary (NBH, National Bank of Poland (NBP and National Bank of Romania (NBR. We also assume that the monetary policy could be characterised through both the challenges faced by the central banks and the type of measures adopted, as a reaction to these challenges. Analysis shows that central banks have different levels of burden, according to domestic condition, and also different ”pattern” of monetary policy adjustments, using more or less unconventional or macro-prudential measures. An important conclusion raised from this article refers to the increasing role of these special measures for central banks, which requires defining a new monetary policy framework in the near future.

  16. A Commentary on "Contextualizing the Intermediate Financial Accounting Courses in the Global Financial Crisis"

    Science.gov (United States)

    Adler, Ralph W.

    2011-01-01

    In their paper (Bloom and Webinger, 2011) the authors identify the multidisciplinary nature of accounting, in terms of how it influences and is influenced by other business disciplines, and suggests ways in which the current Global Financial Crisis (GFC) can be used as a potent teaching and learning device for both illustrating these…

  17. A Commentary on "Contextualising the Intermediate Financial Accounting Courses in the Global Financial Crisis"

    Science.gov (United States)

    Marzo, Giuseppe

    2011-01-01

    In response to Bloom and Webinger (2011), this article examines the basic idea that the Bloom and Webinger article promotes: the integration of global financial crisis (GFC) topics within accounting courses, the way in which this idea can be implemented, and the way a class can be stimulated in order to encourage higher participation in both the…

  18. Contextualizing the Intermediate Financial Accounting Courses in the Global Financial Crisis

    Science.gov (United States)

    Bloom, Robert; Webinger, Mariah

    2011-01-01

    This paper represents an attempt to incorporate concepts and issues stemming from the global financial crisis (GFC) into the typical Intermediate Accounting, two-course sequence as taught in North American colleges and universities. The teaching approach which the authors advocate embeds the GFC throughout these courses. The main expected outcome…

  19. The Impact of the Global Financial Crisis on Japan's Higher Education

    Science.gov (United States)

    Huang, Futao

    2011-01-01

    This paper deals with the impact of the global financial crisis on Japan's economy, especially on its higher education. The first section provides an overview of Japan's national economy with a focus on the impact of the global financial crisis on the national economy, then the author touches on the impact on the Japanese government's finances,…

  20. African Exporting Firms in the Turmoil of the Global Financial Crisis ...

    African Journals Online (AJOL)

    This paper adopts a different approach by examining the impact of the recent global financial crisis on exporting firms in the manufacturing and services sectors in low income countries of the African continent. The paper investigates the impact of the global financial crisis on three Sub Saharan African economies namely ...

  1. EFFECTIVE CRISIS MANAGEMENT FOR ISLAMIC FINANCIAL INDUSTRY AND THE INSTITUTION OF HISBAH: LESSONS FROM GLOBAL FINANCIAL CRISIS

    Directory of Open Access Journals (Sweden)

    Najeeb Zada

    2016-06-01

    Full Text Available The recent financial crisis resulted destructive effects on finance industry. Islamic financial industry (IFI is still naïve and largely untested in the face of a major financial turmoil. Major issues and uncertainties of the insolvency of IFI include the issue of moral hazard, government bailouts, excessive risk taking and deposit insurance. This paper addresses the issue of crisis management in IFI from the perspective of al-Siyasah al-Shar’iyyah and attempts to derive public policy guidelines that are useful in developing a timely and efficient crises management framework for Islamic finance industry. By using qualitative methods, the study found that the global financial crisis resulted in great destruction of financial institution. Although Islamic finance was quite immune to the global crisis as compared to its conventional peer, concerns still exist. It is time that Islamic finance industry learns from the financial woes of the rest of the world. =========================================== Krisis keuangan baru-baru ini mengakibatkan efek destruktif pada industri keuangan. Industri keuangan Islam (IKI masih naif dan sebagian besar belum teruji dalam menghadapi gejolak keuangan besar. Isu utama dan ketidakpastian dari kebangkrutan IKI meliputi moral hazard, dana talangan pemerintah, pengambilan risiko yang berlebihan dan asuransi deposito. Makalah ini membahas isu manajemen krisis dalam IKI dari perspektif al-Siyasah al-Shar'iyyah dan berusaha mendapatkan pedoman kebijakan publik yang bermanfaat dalam mengembangkan kerangka kerja manajemen krisis yang tepat waktu dan efisien bagi IKI. Dengan menggunakan metode kualitatif, studi ini menemukan bahwa krisis keuangan global mengakibatkan kehancuran besar bagi industri keuangan. Meskipun keuangan Islam cukup kebal terhadap krisis global dibandingkan dengan keuangan konvensional, kekhawatiran masih ada. Sudah saatnya industri keuangan Islam belajar dari krisis keuangan dari seluruh dunia.

  2. Public Policy Responses to the Global Financial and Economic Crisis

    African Journals Online (AJOL)

    This article aims to assess the impact of the global fi nancial and economic crisis on two sectors in South Africa, namely, the automobile sector and the textile and clothing sector. It also examines the role of public policy in responding to that crisis. Its main objective is to determine whether or not those responses were ...

  3. The Impact of the Global Financial Crisis on Banking Globalization

    NARCIS (Netherlands)

    Claessens, S.; van Horen, N.

    2014-01-01

    Although cross-border bank lending has fallen sharply since the crisis, extending our bank ownership database from 1995-2009 up to 2013 shows only limited retrenchment in foreign bank presence. While banks from OECD countries reduced their foreign presence (but still represent 89% of foreign bank

  4. Global financial crisis and surgical practice: the Greek paradigm.

    Science.gov (United States)

    Karidis, Nikolaos P; Dimitroulis, Dimitrios; Kouraklis, Gregory

    2011-11-01

    Apart from the significant implications of recent financial crisis in overall health indices and mortality rates, the direct effect of health resources redistribution in everyday clinical practice is barely recognized. In the case of Greece, health sector reform and health spending cuts have already had a major impact on costly interventions, particularly in surgical practice. An increase in utilization of public health resources, lack of basic and advanced surgical supplies, salary deductions, and emerging issues in patient management have contributed to serious dysfunction of a public health system unable to sustain current needs. In this context, significant implications arise for the surgeons and patients as proper perioperative management is directly affected by reduced public health funding. The surgical community has expressed concerns about the quality of surgical care and the future of surgical progress in the era of the European Union. Greek surgeons are expected to support reform while maintaining a high level of surgical care to the public. The challenge of cost control in surgical practice provides, nevertheless, an excellent opportunity to reconsider health economics while innovation through a more traditional approach to the surgical patient should not be precluded. A Greek case study on the extent of the current situation is presented with reference to health policy reform, serving as an alarming paradigm for the global community under the pressure of a profound financial recession.

  5. The global financial crisis and Australian general practice.

    Science.gov (United States)

    McRae, Ian S; Paolucci, Francesco

    2011-02-01

    To explore the potential effects of the global financial crisis (GFC) on the market for general practitioner (GP) services in Australia. We estimate the impact of changes in unemployment rates on demand for GP services and the impact of lost asset values on GP retirement plans and work patterns. Combining these supply and demand effects, we estimate the potential effect of the GFC on the market for GP services under various scenarios. If deferral of retirement increases GP availability by 2%, and historic trends to reduce GP working hours are halved, at the current level of ~5.2% unemployment average fees would decline by $0.23 per GP consultation and volumes of GP services would rise by 2.53% with almost no change in average GP gross earnings over what would otherwise have occurred. With 8.5% unemployment, as initially predicted by Treasury, GP fees would increase by $0.91 and GP income by nearly 3%. The GFC is likely to increase activity in the GP market and potentially to reduce fee levels relative to the pre-GFC trends. Net effects on average GP incomes are likely to be small at current unemployment levels.

  6. THE IMPACT OF THE GLOBAL FINANCIAL CRISIS ON CHINA’S TOURISM

    OpenAIRE

    MELINDA PLESCAN; MARIUS GAVRILETEA

    2009-01-01

    Statistics from the China National Tourism Administration show that China's inbound tourism declined overall in January this year due to the global financial crisis. It is understood that affected by the global economic depression, China's inbound, outbound and domestic travel markets are all in a weak state this year. China’s tourism industry experienced a hard time in 2008 due to natural disasters and the global financial crisis. Looking ahead, the structural adjustment will probably show u...

  7. EFFECTS OF THE GLOBAL FINANCIAL CRISIS IN THE BANKING SYSTEM OF KOSOVO

    Directory of Open Access Journals (Sweden)

    Myrvete Badivuku-Pantina

    2012-09-01

    Full Text Available Financial crises are phenomena that happened before and continue to happen even nowadays. There were many financial crises in the last century, starting with the Great Depression of 1929 and continuing with other financial crisis, and it was believed that people would learn from their previous experiences and would not allow the crisis to happen again. But the financial crisis of 2007, created the impression that no one wanted to learn for the real causes of their occurrence and consequences, often disastrous for countries and the globe, and as such allowed the crisis to be repeated. Effects of the 2007 financial crisis, which originally started in the USA’s mortgage market and which was quickly spread all over the world, even to this date it still continues to have effect on real economies of many states, e.g. Greece. The spread of the crisis was primarily due to globalization and commercial trades among countries. Because of the dependence of economies on one another it was created the domino effect and all the countries were affected from the crisis. As a result, the crisis seems to have revealed the disadvantages of globalization. Finances of the world were shocked and rapid fluctuations were reflected in the stock prices. Kosovo, as a new and small country in the Western Balkans is not much globalized and open which was beneficial in preventing it from being affected from the global financial crisis. Its economy has slightly felt the effect of the crisis because the banking system in Kosovo is not much open to the international financial markets as they operate mostly with their clients’ deposits. The purpose of this research is to assess the implications of the global financial crisis in the banking system of Kosovo, and also to identify the measures that the Central Bank and the Government should undertake in order to protect the economy from external implications.

  8. THE INDONESIAN STOCK MARKET PERFORMANCE DURING ASIAN ECONOMIC CRISIS AND GLOBAL FINANCIAL CRISIS

    Directory of Open Access Journals (Sweden)

    MARIA PRAPTININGSIH

    2011-04-01

    Full Text Available Volatility in the stock market had strongly affected by the movement of publicly or even inside information. The movements of this information will generate the perspectives and expectations of investors in decision-making. How strong is the level of market efficiency in determining the movement of stock market, especially to achieve stability in the stock market during the economic crisis? How effective are the policies of central banks in controlling the movement of the stock market? This study aims to measure the factors that influence changes in the movement of stock price in Indonesian stock market in terms of market efficiency hypothesis. This research also aims to investigate the effectiveness of central bank policy in controlling and stabilizing the movement of stocks in Indonesia. The research will focus on the economic crisis in 1997 and the global crisis in 2008 as case studies. Thepaperutilizesthe vector error-correction model, impulse responses and variance decomposition in measuring the contribution of the factors that affect the movement of stock and determine the effectiveness of central bank policy. The findings are beneficialto central banks, governments, companies and investors in strengthening the Indonesian Stock Market particularly in facing the threat of financial crisis.

  9. Spatial and Financial Fixes and the Global Financial Crisis: Does Labour Have the Knowledge and Power to Meet the Challenge?

    Science.gov (United States)

    Brown, Tony

    2013-01-01

    Five years after the global financial crisis, and trillions of dollars in stimulus spending later, the crisis not only remains unresolved, but risks entering a new deeper phase in southern Europe. The global turbulence, although experienced with differing degrees of intensity and dislocation around the world, manifests as high unemployment,…

  10. Global Financial Crisis and Vulnerability in Cambodia | CRDI ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    This project seeks to capture the impact of the global crisis on Cambodian households in terms of economic variables such as income, consumption, employment and assets. Analyzing data from two ... informal safety nets. And, they will provide input to high-level policy discussions on national social protection measures.

  11. Effects of global financial crisis on network structure in a local stock market

    Science.gov (United States)

    Nobi, Ashadun; Maeng, Seong Eun; Ha, Gyeong Gyun; Lee, Jae Woo

    2014-08-01

    This study considers the effects of the 2008 global financial crisis on threshold networks of a local Korean financial market around the time of the crisis. Prices of individual stocks belonging to KOSPI 200 (Korea Composite Stock Price Index 200) are considered for three time periods, namely before, during, and after the crisis. Threshold networks are constructed from fully connected cross-correlation networks, and thresholds of cross-correlation coefficients are assigned to obtain threshold networks. At the high threshold, only one large cluster consisting of firms in the financial sector, heavy industry, and construction is observed during the crisis. However, before and after the crisis, there are several fragmented clusters belonging to various sectors. The power law of the degree distribution in threshold networks is observed within the limited range of thresholds. Threshold networks are fatter during the crisis than before or after the crisis. The clustering coefficient of the threshold network follows the power law in the scaling range.

  12. rapid increase in precaution The global financial crisis: origin ...

    African Journals Online (AJOL)

    user

    2010-05-01

    May 1, 2010 ... provoked a global flight on quality, caused firms to cut back on ... despite coordinated easing of monetary policy by governments and trillions ... indicated in the scope of the study, the discussions will be based on financial .... financial investors in decision making, which would overvalue asset prices in.

  13. Global Financial Crisis and the City: Narrative, myth and the urban imaginary

    NARCIS (Netherlands)

    Meißner, M.M.

    2015-01-01

    This dissertation examines how urban imaginaries in international film, literature and photography feature as framings in Global Financial Crisis discourses. Drawing on methods and concepts from media and communication studies, cultural analysis, anthropology, and philosophy, it shows how such

  14. GLOBAL FINANCIAL CRISIS n#8211; AN ACCOUNTING LITERATURE REVIEW AND OVERVIEW

    Directory of Open Access Journals (Sweden)

    Toman Cristina

    2012-07-01

    Full Text Available Reflecting the magnitude of n#8220;financial crisisn#8221; in 2008, some academics started examining causal relationships between accounting and the crisis. The purpose of this article is to review the current state of academic research articles related to the global financial crisis that are published in ScienceDirect, Springerlink, Emerald and SSRN databases, in order to identify the trends and researchersn#8217; contributions and to analyze the interplay between the global financial crisis and the accounting. Although there are lots of articles about the current financial crisis, the number of academic articles that examine the relationship between accounting and the crisis are still few, but the research questions are increasing, more and more researchers becoming interested in this topic.

  15. Collective pensions and the global financial crisis : The case of the Netherlands

    NARCIS (Netherlands)

    Bovenberg, A.L.; Nijman, T.E.; Maurer, R.; Mitchell, O.S.; Warshawsky, M.J.

    2012-01-01

    The global financial crisis triggered a major redesign of the collective pension system in the Netherlands. The current Dutch system can be characterized as a defined benefit system with nominal guarantees, which are increased in line with inflation if investment returns are satisfactory. The crisis

  16. Considerations on the Impact of the Global Financial Crisis on Economies from Eastern Europe

    Directory of Open Access Journals (Sweden)

    Lucian Belașcu

    2016-01-01

    Full Text Available The paper investigates the causes and consequences of the 2007-2008 global financial crisis on five Eastern European countries, namely the Czech Republic, Hungary, Poland, Romania and Russia, with the purpose of identifying the common points and the differences between these economies in terms of crisis impact, with an accent on their capital markets. Our findings indicate that although the countries under scrutiny have displayed somehow different paths of economic development before the crisis, they were affected, to a higher or smaller extent, by the financial crisis. Also, the crisis was felt in these countries, at least in terms of impact on capital markets, with different lags: in some of these countries the crisis hit at beginning of 2008, while in others signs of the crisis were visible only towards the end of 2008.

  17. EFFECTIVE CRISIS MANAGEMENT FOR ISLAMIC FINANCIAL INDUSTRY AND THE INSTITUTION OF HISBAH: LESSONS FROM GLOBAL FINANCIAL CRISIS

    OpenAIRE

    Najeeb Zada; Ahcene Lahsasna; Muhammad Yusuf Saleem

    2016-01-01

    The recent financial crisis resulted destructive effects on finance industry. Islamic financial industry (IFI) is still naïve and largely untested in the face of a major financial turmoil. Major issues and uncertainties of the insolvency of IFI include the issue of moral hazard, government bailouts, excessive risk taking and deposit insurance. This paper addresses the issue of crisis management in IFI from the perspective of al-Siyasah al-Shar'iyyah and attempts to derive public policy guidel...

  18. Portraying the global financial crisis: Myth, aesthetics, and the city

    NARCIS (Netherlands)

    Meissner, M.

    2012-01-01

    From 2007 until today an intricate set of events has been unsettling the global financial markets. The naming of these incidents has been multifold, varying between a general rhetoric of economic downturn (‘crash’, ‘crunch’, ‘meltdown’, ‘hangover’) and more descriptive terminologies indicating the

  19. An Assessment of Malaysian Monetary Policy During the Global Financial Crisis of 2008-09

    OpenAIRE

    Selim Elekdag; Subir Lall; Harun Alp

    2012-01-01

    Malaysia was hit hard by the global financial crisis of 2008-09. Anticipating the downturn that would follow the episode of extreme financial turbulence, Bank Negara Malaysia (BNM) let the exchange rate depreciate as capital flowed out, and preemptively cut the policy rate by 150 basis points. Against this backdrop, this paper tries to quantify how much deeper the recession would have been without the BNM's monetary policy response. Taking the most intense year of the crisis as our baseline (...

  20. HRD Challenges Faced in the Post-Global Financial Crisis Period--Insights from the UK

    Science.gov (United States)

    Keeble-Ramsay, Diane Rose; Armitage, Andrew

    2015-01-01

    Purpose: The paper aims to report initial empirical research that examines UK employees' perceptions of the changing nature of work since the Global Financial Crisis (GFC) to consider how the financial context may have constrained HRD practice and more sustainable approaches. Design/methodology/approach: Focus group research was facilitated…

  1. A cross-country perspective on the causes of the global financial crisis

    NARCIS (Netherlands)

    Claessens, S.; Dell'Ariccia, G.; Igan, D.; Laeven, L.; Caprio, G.; Beck, T.; Claessens, S.; Schmukler, S.L.

    2013-01-01

    The global financial crisis is rooted in a combination of factors common to previous financial crises and some new factors. The four features in common with other crises are (1) asset price increases that turned out to be unsustainable, (2) credit booms that led to excessive debt burdens, (3)

  2. Illiquidity and financial crisis

    NARCIS (Netherlands)

    A.M. Pacces (Alessio)

    2013-01-01

    textabstractThis article analyzes the determinants of liquidity crises based on the dynamics of banking and finance under Knightian uncertainty. In this perspective, the facts of the global financial crisis seem to confirm Minsky's hypothesis of endogenous financial instability derived from Keynes's

  3. Comparative Analysis Of Financial Performance Banking Before And After The Global Economic Crisis In 2008

    Directory of Open Access Journals (Sweden)

    Sri Indrastuti S.

    2017-11-01

    Full Text Available This research was conducted at the Regional Development Bank BPD in Indonesia. This study aims to examine and obtain empirical evidence about the comparative financial performance of regional banks after the global crisis with a view of its financial ratio which includes a ratio ROA CAR COF GMP LDR NIM ROA and ROE. This study further whether there was a significant difference in the time before and after the global economic crisis of 2008.The method used is a saturated or census sampling of the 26 Bank Pembangunan Daerah BPD. This study uses secondary data obtained from financial statement data Regional Development Bank for the period 2006 to 2010. The analytical tool used to determine differences in financial performance before and after the global economic crisis of 2008 was Paired sample T test for normally distributed data. If the data were not normally distributed using the Wilcoxon Signed Rank Test.The results showed that the financial performance of the Bank Pembangunan Daerah BPD in the ratio of ROA CAR COF GMP LDR NIM and ROA before and after the global economic crisis in 2008 there are significant differences. While ROE ratios before and after the global economic crisis of 2008 was not a significant difference.

  4. Modeling exchange rate volatility in CEEC countries: Impact of global financial and European sovereign debt crisis

    Directory of Open Access Journals (Sweden)

    Miletić Siniša

    2015-01-01

    Full Text Available The aim of this study is to envisage the impact of global financial (GFC and European sovereign debt crisis (ESDC on foreign exchange markets of emerg- ing countries in Central and Eastern Europe CEEC countries (Czech Republic, Hungary, Romania, poland and Serbia. The daily returns of exchange rates on Czech Republic koruna (CZK, Hungarian forint (HuF, Romanian lea (RoL, polish zloty (pLZ and Serbian dinar (RSD, all against the Euro are analyzed during the period from 3rd January 2000 to15th April 2013, in respect. To examine the impact of global financial crisis and European sovereign debt crisis, dummy variables were adopted. overall results imply that global financial crisis has no impact on exchange rate returns in selected CEEC countries, while European sovereign debt crisis inf luencing in depreciation of polish zloty by 8% and Roma- nian lea by 6%. obtained results by our calculation, imply that global financial crisis increased enhanced volatility on exchange rate returns of Czech koruna, Romanian lea and polish zloty. Moreover, results of empirical analysis imply that this impact has the strongest inf luence in volatility on exchange rate returns of polish zloty.

  5. How did the Global Financial Crisis Influence the Automobile Industry: Comparison between the US and Japanese Auto Industry

    OpenAIRE

    SUN, YAN

    2013-01-01

    The 2008 global financial crisis was the worst one in seventy-five years and had great negative impact on the economy worldwide. Automobile industry, the pillar to the economic development, was hit most by the recession among the sectors. The purpose of this study is to analyze the financial crisis impacts on the automobile industry and find out strategies to decrease the occurrence rate and the loss if a similar crisis occurs. The study, firstly, describes the impact of financial crisis...

  6. Labour Markets Trends, Financial Globalization and the current crisis in Developing Countries

    NARCIS (Netherlands)

    R.E. van der Hoeven (Rolph)

    2010-01-01

    textabstractThe current wave of globalization has profound labour market effects, accentuated, in many cases, by the current financial and economic crisis. This paper reviews general labour market trends and country examples, arguing that the current globalization process makes labour’s position

  7. Impact of global financial crisis on stylized facts between energy markets and stock markets

    Science.gov (United States)

    Leng, Tan Kim; Cheong, Chin Wen; Hooi, Tan Siow

    2014-06-01

    Understanding the stylized facts is extremely important and has becomes a hot issue nowadays. However, recent global financial crisis that started from United States had spread all over the world and adversely affected the commodities and financial sectors of both developed and developing countries. This paper tends to examine the impact of crisis on stylized facts between energy and stock markets using ARCH-family models based on the experience over 2008 global financial crisis. Empirical results denote that there is long lasting, persists and positively significant the autocorrelation function of absolute returns and their squares in both markets for before and during crisis. Besides that, leverage effects are found in stock markets whereby bad news has a greater impact on volatility than good news for both before and during crisis. However, crisis does not indicate any impact on risk-return tradeoff for both energy and stock markets. For forecasting evaluations, GARCH model and FIAPARCH model indicate superior out of sample forecasts for before and during crisis respectively.

  8. Contagion effects of the global financial crisis in us and European real economy sectors

    Directory of Open Access Journals (Sweden)

    Kenourgios Dimitris

    2014-01-01

    Full Text Available This paper empirically investigates the contagion effects of the Global Financial Crisis (2007-2009 from the financial sector to the real economy by examining nine sectors of US and developed European region. We provide a regional analysis by testing stock market contagion on the aggregate level and the sector level, on the global level and the domestic/regional level. Results show evidence of global contagion in US and developed European aggregate stock market indices and all US sector indices, implying the limited benefits of portfolio diversification. On the other hand, most of the European regional sectors seem to be immune to the adverse effects of the crisis. Finally, all non-financial sectors of both geographical areas seem to be unaffected by their domestic financial systems. These findings have important implications for policy makers, investors and international organizations.

  9. The financial crisis and global health: the International Monetary Fund's (IMF) policy response.

    Science.gov (United States)

    Ruckert, Arne; Labonté, Ronald

    2013-09-01

    In this article, we interrogate the policy response of the International Monetary Fund (IMF) to the global financial crisis, and discuss the likely global health implications, especially in low-income countries. In doing so, we ask if the IMF has meaningfully loosened its fiscal deficit targets in light of the economic challenges posed by the financial crisis and adjusted its macro-economic policy advice to this new reality; or has the rhetoric of counter-cyclical spending failed to translate into additional fiscal space for IMF loan-recipient countries, with negative health consequences? To answer these questions, we assess several post-crisis IMF lending agreements with countries requiring financial assistance, and draw upon recent academic studies and civil society reports examining policy conditionalities still being prescribed by the IMF. We also reference recent studies examining the health impacts of these conditionalities. We demonstrate that while the IMF has been somewhat more flexible in its crisis response than in previous episodes of financial upheaval, there has been no meaningful rethinking in the application of dominant neoliberal macro-economic policies. After showing some flexibility in the initial crisis response, the IMF is pushing for excessive contraction in most low and middle-income countries. We conclude that there remains a wide gap between the rhetoric and the reality of the IMF's policy and programming advice, with negative implications for global health.

  10. Exploring Terra Incognita: Preliminary Reflections on the Impact of the Global Financial Crisis upon Human Resource Management.

    NARCIS (Netherlands)

    Zagelmeyer, S.J.; Gollan, P.J.

    2012-01-01

    Since 2007, the global financial crisis (GFC) appears not only to have shaken the foundations of the financial markets and the real economy; it also appears to have harmed the social and political life of many countries. For human resource management (HRM), the global crisis represents an external

  11. THE IMPACT OF THE GLOBAL FINANCIAL CRISIS ON THE PUBLIC AND PRIVATE FINANCES IN ROMANIA

    Directory of Open Access Journals (Sweden)

    SANDA GHEORGHE GABRIEL

    2014-08-01

    Full Text Available If the exit from the crisis is linked to the productivity, the technological boom, the orientation should take place by sectors with high growth potential. The idea is that the power of the Government to rely on increasing economic value and implementing effective measures to redress and not on fiscal destructive policies that can block even more the economic development. In order to exit from the economic and financial crisis it is necessary to identify the risks and vulnerabilities of the financial system as a whole. However, the emergence of malfunctions such as inaccurate assessment of risks and the inefficiency with which capitals are allocated can affect the equilibrium of the financial structure. Some solutions to overcome the negative effects of the global crisis to which has been submitted to Romania are represented by the design and implementation of strong macroeconomic frameworks, reviewing and improving the capacity of institutional, organizational level, to ensure a sustainable and environmentally sound growth of the economy in the long run, for the benefit of the society in general. The real cause of the economic crisis, whether it is called: recession, crisis, economic depression or another name, the content and the effect of the crisis are the same, however, can be solved if the policy makers choose to stabilize the financial conditions and to find solutions stimulus, achieving strong macroeconomic frameworks, improving the institutional capacity to ensure a sustainable and favorable growth of the economy, the society in general.

  12. The prospects of the Russian Oil Sector in the context of the global financial crisis

    International Nuclear Information System (INIS)

    Belyi, A.V.

    2009-01-01

    This article examines the history of the Russian oil industry. It shows in articular its progress to become a competitive producer, capable of adapting itself to new situations. At the same time, it must be emphasized that Russian oil prospects are highly dependent on the oil pipeline network. Construction o new infrastructures may be postponed as a result of the global financial crisis. (author)

  13. On the impact of the global financial crisis on the euro area

    NARCIS (Netherlands)

    He, Xiaoli; Jacobs, Jan; Kuper, Gerard; Ligthart, Jenny

    2013-01-01

    This paper analyses the impact of the Global Financial Crisis on the Euro area utilizing a simple dynamic macroeconomic model with interaction between monetary policy and fiscal policy. The model consists of an IS curve, a Phillips curve, a term structure relation, a debt accumulation equation and a

  14. What Effect Did the Global Financial Crisis Have upon Youth Wellbeing? Evidence from Four Australian Cohorts

    Science.gov (United States)

    Parker, Philip D.; Jerrim, John; Anders, Jake

    2016-01-01

    Recent research has suggested significant negative effects of the Global Financial Crisis (GFC) on mental health and wellbeing. In this article, the authors suggest that the developmental period of late adolescence may be at particular risk of economic downturns. Harmonizing 4 longitudinal cohorts of Australian youth (N = 38,017), we estimate the…

  15. Young people and homeownership in Europe through the global financial crisis

    NARCIS (Netherlands)

    Lennartz, C.; Arundel, R.; Ronald, R.

    2014-01-01

    In context of poorly performing national economies and sustained employment insecurity since the Global Financial Crisis of 2007-2008, various UK and US studies have suggested that access for younger people to independent living, and to owner-occupied housing in particular, has been in decline.

  16. Younger adults and homeownership in Europe through the global financial crisis

    NARCIS (Netherlands)

    Lennartz, C.; Arundel, R.; Ronald, R.

    2016-01-01

    In the context of poorly performing national economies and sustained employment insecurity since the Global Financial Crisis of 2007-2008, various UK and US studies have suggested that the transitions of younger people into independent living and into homeownership, in particular, have been in

  17. Bank Funding Structures and Risk; Evidence From the Global Financial Crisis

    OpenAIRE

    Pablo Federico; Francisco F. Vazquez

    2012-01-01

    This paper analyzes the evolution of bank funding structures in the run up to the global financial crisis and studies the implications for financial stability, exploiting a bank-level dataset that covers about 11,000 banks in the U.S. and Europe during 2001?09. The results show that banks with weaker structural liquidity and higher leverage in the pre-crisis period were more likely to fail afterward. The likelihood of bank failure also increases with bank risk-taking. In the cross-section, th...

  18. The global financial and economic crisis and the main priorities of the European Union for 2020

    Directory of Open Access Journals (Sweden)

    Constantinescu, A.

    2013-06-01

    Full Text Available This study focuses on the global financial-economic crisis and the main priorities of the European Union for 2020. The duration of a financial economic crisis depends on the macroeconomic factors taken into account, because their representation can have multiple nuances, generated by subjective and political influences. The financial and economic crisis had a significant impact on public finances, business, jobs and families. At all levels, the decision makers in public policy will have to find ways of triggering economic dynamism, while the margin of manoeuvre in what concerns the budget is limited. As the recorded deficit in the public sector will be again under control, public expenditure will be such organized that the targets for 2020 are met.

  19. GLOBAL FINANCIAL CRISIS 2008 CAUSES AND CONSEQUENCES FOR RUSSIAN MACROPRUDENTIAL REGULATION

    Directory of Open Access Journals (Sweden)

    Егор Николаевич Поляков

    2013-09-01

    Full Text Available This article analyzes the impact of volatility in global financial markets on the economy of developing countries and the analysis of factors contributing to a greater or lesser degree of vulnerability of the financial systems of developing countries in the global crisis of 2008-2010. Particular attention is paid to the influence of the global financial crisis on the economies of the two groups of developing countries of Southeast Asia and Central and Eastern Europe. On the basis of the analysis due to the dynamics of the main macroeconomic indicators of the Russian Federation during the acute phase of the crisis. The author presents an analysis of the vulnerability of the Russian economy in the event of possible instability in global financial markets at present. The author came to the conclusion that the main reason for which in 2009 the level of GDP growth Russia won 178 seats out of 184 countries, were 2 groups of errors. The first group of errors - errors are system of macro-prudential regulation made by the Central Bank from 2002 to 2007, such as: lack of control and regulation of borrowings of the private and banking sectors to foreign markets, as well as in the domestic market in foreign currency, the loss of control over domestic financial markets, such as: the interbank lending market, the stock market. The second group of errors - errors it committed securities during the crisis. The first error of the Central Bank - a rejection Vat refinance foreign debt of non-financial sector, resulting in an acute liquidity crisis. The second error is stretched for a few months, not a one-time devaluation of the ruble. Price of the second error was 200 billion USD, which the Central Bank lost and speculators earned.DOI: http://dx.doi.org/10.12731/2218-7405-2013-9-4

  20. The global financial crisis and health equity: early experiences from Canada.

    Science.gov (United States)

    Ruckert, Arne; Labonté, Ronald

    2014-01-06

    It is widely acknowledged that austerity measures in the wake of the global financial crisis are starting to undermine population health results. Yet, few research studies have focused on the ways in which the financial crisis and the ensuing 'Great Recession' have affected health equity, especially through their impact on social determinants of health; neither has much attention been given to the health consequences of the fiscal austerity regime that quickly followed a brief period of counter-cyclical government spending for bank bailouts and economic stimulus. Canada has not remained insulated from these developments, despite its relative success in maneuvering the global financial crisis. The study draws on three sources of evidence: A series of semi-structured interviews in Ottawa and Toronto, with key informants selected on the basis of their expertise (n = 12); an analysis of recent (2012) Canadian and Ontario budgetary impacts on social determinants of health; and documentation of trend data on key social health determinants pre- and post the financial crisis. The findings suggest that health equity is primarily impacted through two main pathways related to the global financial crisis: austerity budgets and associated program cutbacks in areas crucial to addressing the inequitable distribution of social determinants of health, including social assistance, housing, and education; and the qualitative transformation of labor markets, with precarious forms of employment expanding rapidly in the aftermath of the global financial crisis. Preliminary evidence suggests that these tendencies will lead to a further deepening of existing health inequities, unless counter-acted through a change in policy direction. This article documents some of the effects of financial crisis and severe economic decline on health equity in Canada. However, more research is necessary to study policy choices that could mitigate this effect. Since the policy response to a similar set of

  1. THE INSTITUTIONAL INVESTORS’ BEHAVIOUR UNDER THE IMPACT OF THE GLOBAL FINANCIAL CRISIS

    Directory of Open Access Journals (Sweden)

    PIRTEA MARILEN

    2013-02-01

    Full Text Available On the subject of financial globalization a lot of literature has been written, annalyzing all sorts of effects ithad. Still, the changes induced by globalization at the level of the financial markets are not always clear. The veritableflooding of capitals, constantly moving, created a continuous game of investment opportunities, of arbitrationpossibilities and funding sources, made institutional investors adopt various attitudes, the role of institutional investorsin the activation of capital markets being sustained by the financial globalization and the extension of multinationalfinancial groups, on one side, and by the increased performance of the share and bond markets, on the other side.By the present paper, we propose to underline the behaviour of the main institutional investors (mutual funds,pension funds and hedge funds under the impact of the current global financial crisis, the modifications whichintervened in asset assignment and investment relocation, showing that the instability generated in the global financialsystem had immediate effects on all the portfolios of institutional investors, regardless of their classificationcategory.Under conditions of capital flow increase, adjusted by the global financial crisis, the presented analysis andempirical proofs show a tendency of institutional investors’ asset reallocation on developed markets and thewithdrawal from the emergent ones.

  2. The Mexican Economy After the Global Financial Crisis

    Science.gov (United States)

    2010-09-09

    14% between 2000 and 2006. Mexico’s continuing problem of poverty is especially widespread in rural areas and remains at the Latin American average...49 In rural areas the percentage of those living in moderate poverty was 61% in 2008, while that of those living in extreme poverty was 32%. The rates...Política de Desarrollo Social (CONEVAL), July 18, 2009. 51 “Mexico Recovering, but Crisis Spotlights Challenges, says IMF,” IMF Survey Magazine: In

  3. THE IMPACT OF THE FINANCIAL AND ECONOMIC GLOBAL CRISIS OVER THE ROMANIAN BANKING SYSTEM

    Directory of Open Access Journals (Sweden)

    Ciobanu (Sireteanu Elena

    2011-12-01

    Full Text Available This paper analyzes the evolution of the Romanian banking system during 2007 - 2010 compared to the same segment of financial market dynamics in the Member States. Also seeks to detect the effects of the global financial and economic crisis on lending activity, the management of liquidity risk and thereby the effect on the profitability of the Romanian banking sector and outline the prospects of further development. The macroeconomic and financial international background has undergone negative changes, especially in the autumn of 2008. Romania's financial system has evolved but strongly marked by the virulent manifestations of global financial and economic crisis. The banking system which is the dominant component in the financial system is well capitalized, has resisted, until now, these pressures, without recording any bankruptcy. As a lending crunch from the increase in provision expenses, against the backdrop of bad loans it seems to be a poor performance of the banking system for the future period, taking into account the negative financial result recorded at the end of 2010. Given the high degree of capitalization, liquidity level indicators, on this, consider that local banks are well placed to support the real economy on long-term lending conditions imposed by prudential regulations in the field. Currently, at the level of the Romanian banking system, we consider it is necessary to continue the measures imposed by the monetary authority to ensure the reduction of uncertainty and reassure market participants in future developments, as trust is the essential factor for the crisis. In this sense, we consider very important the debate, the direct involvement of representatives of the central bank and academic themes reflecting the current state of the Romanian financial system, lessons learned from the crisis and Romania's objectives for the future - providing a sustainable process of nominal and real convergence of the Romanian economy

  4. The impact of financial globalization and financialization on the economy in the current crisis through banking corporate governance

    Directory of Open Access Journals (Sweden)

    Juan Antonio Azkunaga

    2013-10-01

    Full Text Available This work analyzes the role of governance of financial entities in the current crisis. Neoliberal economic policies, deregulation and liberalization have characterized financial globalization, giving rise to the financialization of the economy. This paper, using the analysis-synthesis method, shows that the corporate governance of entities has adapted to the new social environment under the influence of the interests of the investors. The results of this paper suggest the need to monitor the over-emphasis on the maximization of short-term shareholder value without relativizing the risk taken to achieve it, as such, the emphasis on short-term shareholder value is considered a crucial contributing factor to the present crisis.

  5. The global financial crisis: Is there any contagion between real estate and equity markets?

    Science.gov (United States)

    Hui, Eddie Chi-man; Chan, Ka Kwan Kevin

    2014-07-01

    This study examines contagion across equity and securitized real estate markets of Hong Kong, US and UK during the global financial crisis by the Forbes-Rigobon, coskewness and cokurtosis tests. In particular, this is the first study to use the cokurtosis test to examine contagion between real estate and equity markets. The results show that the cokurtosis test can detect additional channels of contagion, and hence is a more powerful test. In contrary to Fry et al. (2010), we find that the cokurtosis test shows a highly significant evidence of contagion between the equity and real estate markets in both directions. In particular, the contagion between US's equity and real estate markets is the most significant. This reflects that US is the centre of shock of the global financial crisis.

  6. Stability and change in political conservatism following the global financial crisis.

    Science.gov (United States)

    Milojev, Petar; Greaves, Lara; Osborne, Danny; Sibley, Chris G

    2015-01-01

    The current study analyzes data from a national probability panel sample of New Zealanders (N = 5,091) to examine stability and change in political orientation over four consecutive yearly assessments (2009-2012) following the 2007/2008 global financial crisis. Bayesian Latent Growth Modeling identified systematic variation in the growth trajectory of conservatism that was predicted by age and socio-economic status. Younger people (ages 25-45) did not change in their political orientation. Older people, however, became more conservative over time. Likewise, people with lower socio-economic status showed a marked increase in political conservatism. In addition, tests of rank-order stability showed that age had a cubic relationship with the stability of political orientation over our four annual assessments. Our findings provide strong support for System Justification Theory by showing that increases in conservatism in the wake of the recent global financial crisis occurred primarily among the poorest and most disadvantaged.

  7. The Global Financial Crisis: Analysis and Policy Implications

    Science.gov (United States)

    2009-05-12

    Ministerio de Economia y Finanzas Publicas. Instituto Nacional de Estadistica y Censos (INDEC). Utilizacion de la Capacidid Instalada en la Industria...2008 and International Monetary Fund. Global Markets Monitor. March 17, 2009. 102 Republica Argentina. Ministerio de Economia y Finanzas Publicas

  8. Financial Integration of European Money Market: from EMU to the Global Crisis and Beyond

    OpenAIRE

    Avadanei Andreea; Avadanei Anamaria; Ghiba Nicolae

    2010-01-01

    The scope of this article is to illustrate the general issues relevant for understanding the implications of the global crisis on European money market integration. We structured our paper on chapters that present the evolution of the considered market from the launch of euro until the financial turmoil, its main features in the actual context, and the central banks response to the rising tensions on the money market. Given its function of channeling funds to enable banks to cover their most ...

  9. ARCHITECTURE OF EUROPEAN SYSTEM OF FINANCIAL SUPERVISION AFTER THE GLOBAL ECONOMIC CRISIS

    Directory of Open Access Journals (Sweden)

    Mateusz Muszyński

    2015-12-01

    Full Text Available This paper indicates how the last global financial crisis has affected the european financial system. As the depression evolved it brought all the weaknesses in the system of financial supervision to the surface. Then it became clear that deeper integration of the banking system was strongly needed. To mitigate systemic stability risk and improve the coordination process with international organizations, the European Commission decided to establish the European System of Financial Supervision. However, it seemed that it was not sufficient to prevent from further fragmentation of the financial market in Europe. As a result, in 2012 the European Commission initiated the banking union, a new form of political and economic integration.

  10. The Global Financial Crisis: Analysis and Policy Implications

    Science.gov (United States)

    2009-10-02

    tariffs and new non-tariff measures (non-automatic licenses, reference prices, etc.) affecting merchandise trade. The WTO also compiled a list of new...stores, restaurants , and bars and could cost more than 40,000 jobs. Closing the assembly line in Fremont marks the end of large-scale auto manufacturing...and the 20- City Composite is down 29.1%. March 31. The World Trade Organization (WTO) predicted that the volume of global merchandise trade would

  11. The Global Financial and Economic Crisis: Analysis and Policy Implications

    Science.gov (United States)

    2009-02-20

    Takeover Plan. Bloomberg. October 21, 2008 and Latin American Monitor: Southern Cone. January 2009. 77 Republica Argentina. Ministerio de Economia y...Finanzas Publicas. Instituto Nacional de Estadistica y Censos. Intercambio Comercial Argentino. Buenos Aires, January 28, 2009. 78 Global Insight...fund a rescue of Bank of America which guarantees $118 billion in troubled assets. January 6. Chile announced a $4 billion stimulus package

  12. The global financial crisis and health: scaling up our effort.

    Science.gov (United States)

    Labonté, Ronald

    2009-01-01

    Economic events of the past year are beginning to create hardships for tens of thousands of Canadians. There are likely to be health effects as well, to the extent that unemployment and poverty rates rise. Conditions, however, will be much worse for those living in poorer countries. High-income countries are committing trillions of dollars in countercyclical spending and banking bail-outs. Poorer countries need to do the same, but lack the resources to do so. Yet foreign aid and fairer trade are widely expected to be among the first high-income country victims of the recession fallout as nations turn inwards and protectionist. This is neither good for global health nor necessary given the scale of untaxed (or unfairly taxed) wealth that could be harnessed for a truly global rescue package. Policy choices confront us. The Canadian public health community must hold our political leadership accountable for making those choices that will improve health globally and not further imperil the well-being of much of the world's population in efforts to secure our own future economic revival.

  13. GLOBAL FINANCIAL CRISIS AND AGRARIAN HOUSEHOLDS' INCOME, REMITTANCE AND PRICES IN RURAL NIGERIA AMID POLICY RESPONSES

    Directory of Open Access Journals (Sweden)

    Mmaduabuchukwu Mkpado

    2012-06-01

    Full Text Available The recent global financial crisis affected almost all aspect of human life. This paper explored effects of the global financial crisis on farmers' income, remittance and prices of food staples and highlighted certain government policy responses. The study was conducted in Nigeria. Secondary data were used. Data were analyzed using descriptive statistics, equivalent variation and Shannon index analysis. Results showed the global financial crisis affected the agrarian households/sector in Nigeria. The increase in prices meant more nominal income to farmers but grossly reduced their welfare due to decrease in real income as result of high inflation trend. Recommendations include that government should continue to sustain agrarian programs aimed at helping poor farmers to increase their capacity in production to meet the growing demand and changes. In both cases, the disturbed age structure has a reverse effect on the movement of the population (the size of reproductive contingent, but also to all other structures of the population (the size of contingent employment, population, compulsory school contingent, contingent dependent population ratio. Rating natural conditions aimed at separation of homogenous territorial units with some degree of benefits and limitations types of economic development.

  14. WHAT FIRMS ARE REWARDED AFTER GLOBAL FINANCIAL CRISIS? THE ROLE OF INNOVATION AND GLOBALIZATION STRATEGIES IN RECOVERY

    Directory of Open Access Journals (Sweden)

    Victoria Golikova

    2016-03-01

    Full Text Available The aim of the research is to conduct an empirical investigation and reveal what types of globalization and innovation strategies in turbulent and unfavorable regional institutional environment are most likely to be associated with different trajectories of Russian manufacturing firms’ performance in 2007- 2012. We employ the results of empirical survey of 1000 medium and large enterprises in manufacturing (2009 linked to financial data from Amadeus database and the data on the regional institutional environment. We test that (1 introduction of innovations before the crisis ceteris paribus helped the firms to successfully pass the crisis and recover. We expect that (2 companies that became globalized before the crisis (via importing of intermediate and capital goods; exporting; FDI; establishment of partner linkages with foreign firms ceteris paribus are more likely to successfully pass the crisis and grow. And (3 propose the positive effect of synergy of innovation efforts and globalization strategy of the firm. We expect that the abovementioned factors are complimentary and reinforce the ability of the firm to recover after crisis shock. We found strong support for the hypothesis that firms financing introduction of new products before the crisis and simultaneously managed to promote and sell them on the global market were rewarded by quick return to the growing path after global crisis. Other strategies, i.e. solely innovations without exporting play insignificant role while exporting without attempts to introduce new products contribute even negatively to post-crisis recover. Institutional environment also matters: in the regions with less level of corruption firms were more likely to grow after the crisis.

  15. EFFECTS OF THE GLOBAL FINANCIAL CRISIS IN THE BANKING SYSTEM OF KOSOVO

    OpenAIRE

    Myrvete Badivuku-Pantina; Anera Alishani

    2012-01-01

    Financial crises are phenomena that happened before and continue to happen even nowadays. There were many financial crises in the last century, starting with the Great Depression of 1929 and continuing with other financial crisis, and it was believed that people would learn from their previous experiences and would not allow the crisis to happen again. But the financial crisis of 2007, created the impression that no one wanted to learn for the real causes of their occurrence and consequences,...

  16. Analyzing the impact of global financial crisis on the interconnectedness of Asian stock markets using network science

    OpenAIRE

    Jitendra Aswani

    2015-01-01

    As importance of Asian Stock Markets (ASM) has increased after the globalization, it is become significant to know how this network of ASM behaves on the onset of financial crises. For this study, the Global Financial Crisis is considered whose origin was in the developed country, US, unlike the Asian crisis of 1997. To evaluate the impact of financial crisis on the ASM, network theory is used as a tool here. Network modeling of stock markets is useful as it can help to avert the spillover of...

  17. The impact of the global financial crisis on the structure of investment portfolios of insurance companies

    Directory of Open Access Journals (Sweden)

    Kočović Jelena

    2011-01-01

    Full Text Available This article deals with the impact of the global financial crisis on the scale and structure of investment portfolios of insurance companies, with respect to their difference compared to other types of financial institution, which derives from the specific nature of insurance activities. The analysis includes insurance companies’ exhibited and expected patterns of behavior as investors in the period before, during, and after the crisis, considering both the markets of economically developed countries and the domestic financial market of Serbia. The direction of insurers’ investments in the post-crisis period should be very carefully examined in terms of their future implications for the insurance companies’ long-term financial health, and defined in a broader context of managing all risks to which they are exposed, taking into account the interdependence of these risks. Pertinent recommendations in this regard have arisen from research of relevant past experience and current trends, and also from an analysis and comparison of views on this subject presented by a number of authors.

  18. Socioeconomic inequalities in smoking in The Netherlands before and during the Global Financial Crisis: a repeated cross-sectional study

    NARCIS (Netherlands)

    Benson, Fiona E.; Kuipers, Mirte A. G.; Nierkens, Vera; Bruggink, Jan-Willem; Stronks, Karien; Kunst, Anton E.

    2015-01-01

    The Global Financial Crisis (GFC) increased levels of financial strain, especially in those of low socioeconomic status (SES). Financial strain can affect smoking behaviour. This study examines socioeconomic inequalities in current smoking and smoking cessation in The Netherlands before and during

  19. Chinese CO2 emission flows have reversed since the global financial crisis.

    Science.gov (United States)

    Mi, Zhifu; Meng, Jing; Guan, Dabo; Shan, Yuli; Song, Malin; Wei, Yi-Ming; Liu, Zhu; Hubacek, Klaus

    2017-11-23

    This study seeks to estimate the carbon implications of recent changes in China's economic development patterns and role in global trade in the post-financial-crisis era. We utilised the latest socioeconomic datasets to compile China's 2012 multiregional input-output (MRIO) table. Environmentally extended input-output analysis and structural decomposition analysis (SDA) were applied to investigate the driving forces behind changes in CO 2 emissions embodied in China's domestic and foreign trade from 2007 to 2012. Here we show that emission flow patterns have changed greatly in both domestic and foreign trade since the financial crisis. Some economically less developed regions, such as Southwest China, have shifted from being a net emission exporter to being a net emission importer. In terms of foreign trade, emissions embodied in China's exports declined from 2007 to 2012 mainly due to changes in production structure and efficiency gains, while developing countries became the major destination of China's export emissions.

  20. Financial crisis and monetary policy

    NARCIS (Netherlands)

    Karatas, B.

    2014-01-01

    Written in the midst of the Global Financial Crisis, the goal of this dissertation is to investigate causes of financial crises in general in order to provide empirical evidence of the driving forces of various crises types. Specifically, this thesis analyses the most common types of financial

  1. Multivariate Models to Forecast Portfolio Value at Risk: from the Dot- Com crisis to the global financial crisis

    Directory of Open Access Journals (Sweden)

    Manuel Sousa Gabrie

    2014-09-01

    Full Text Available This study analyzed market risk of an international investment portfolio by means of a new methodological proposal based on Value-at- Risk, using the covariance matrix of multivariate GARCH-type models and the extreme value theory to realize if an international diversification strategy minimizes market risk, and to determine if the VaR methodology adequately captures market risk, by applying Backtesting tests. To this end, we considered twelve international stock indexes, accounting for about 62% of the world stock market capitalization, and chose the period from the Dot-Com crisis to the current global financial crisis. Results show that the proposed methodology is a good alternative to accommodate the high market turbulence and can be considered as an adequate portfolio risk management instrument.

  2. The impact on chinese economic growth and energy consumption of the Global Financial Crisis: An input-output analysis

    International Nuclear Information System (INIS)

    Yuan, Chaoqing; Liu, Sifeng; Xie, Naiming

    2010-01-01

    The dependence on foreign trade increased sharply in China, and therefore Chinese economy is obviously export-oriented. The Global Financial Crisis will impact the Chinese economic growth violently. Chinese government has recently adopted some effective measures to fight against the Global Financial Crisis. The most important measure is the 4 trillion Yuan ($586 billion) stimulus plan which was announced on November 9, 2008. This paper discusses the influence on energy consumption and economic growth of Global Financial Crisis and the stimulus plan against it by input-output analysis. The results show that the fall of exports caused by the Global Financial Crisis will lead to a decrease of 7.33% in GDP (Gross Domestic Production) and a reduction of 9.21% in energy consumption; the stimulus plan against the Global Financial Crisis will lead to an increase of 4.43% in economic growth and an increase of 1.83% in energy consumption; In the Global Financial Crisis, energy consumption per unit GDP will fall in China. (author)

  3. The evolution of corporate governance in the global financial crisis: the case of Russian industrial firms

    Directory of Open Access Journals (Sweden)

    Ichiro Iwasaki

    2016-12-01

    Full Text Available In this paper, using a unique dataset of industrial firms obtained from enterprise surveys conducted across the Russian Federation in 2005 and 2009, we trace back structural changes in the corporate governance system before and after the global financial crisis. We also empirically examine the impacts of the crisis on the organization of boards of directors and audit systems. Our survey results reveal that, in the Russian industrial sector, the quality of corporate governance has been improved through the crisis. Furthermore, we found that, corresponding to the alignment hypothesis, in firms that decisively reformed their management and supervisory bodies in response to the 2008 financial shock, the total number of worker representative directors significantly declined, as did their proportion to all board members. On the other hand, we also found that, in firms that substantially reorganized their audit system to cope with the crisis, the independence of the audit system was undermined remarkably, corresponding to the expropriation hypothesis. Findings that management behaviors predicted by the two conflicting hypotheses are simultaneously detected—and that their targets are significantly different—deserve special mention.

  4. The effects of the late 2000s global financial crisis on Australia’s construction demand

    Directory of Open Access Journals (Sweden)

    Heng Jiang

    2013-09-01

    Full Text Available An accurate measurement of the impacts of external shocks on construction demand will enable construction industry policymakers and developers to make allowances for future occurrences and advance the construction industry in a sustainable manner. This paper aims to measurethe dynamic effects of the late 2000s global financial crisis on the level of demand in the Australian construction industry. The vector error correction (VEC model with intervention indicators is employed to estimate the external impact from the crisis on a macro-level construction economic indicator, namely construction demand. The methodology comprises six main stages to produce appropriate VEC models that describe the characteristics of the underlying process. Research findings suggestthat overall residential and non-residential construction demand were affected significantly by the recent crisis and seasonality. Non-residentialconstruction demand was disrupted more than residential construction demand at the crisis onset. The residential constructionindustry is more reactive and is able to recover faster following the crisis in comparison with the non-residential industry. The VEC model with intervention indicators developed in this study can be used as an experiment for an advanced econometric method. This can be used to analyse the effects of special eventsand factors not only on construction but also on other industries.

  5. Global Financial and Economic Crisis and the EU Economic Governance Failure – Evidence From Spain

    Directory of Open Access Journals (Sweden)

    Iulia Monica Oehler-Șincai

    2012-10-01

    Full Text Available The process of public sector restructuring, known in the economic literature as the New Public Management (NPM, came to a deadlock as the global financial and economic crisis broke out in 2008. The expansion of cheap credit, market dereglementation and asset securitization, speculative bubbles, the mixture of euphoria, greed and even naivety and ignorance of the economic players outlined an international financial system which was not subordinated any more to the real economy, but to the own principles, similar to Ponzi schemes or casino rules (Posner, 2011, Kindleberger and Aliber, 2011, Rajan, 2010, Stiglitz, 2010, Roubini and Mihm, 2010. All these generated, at global level, the deepest recession after the Great Depression. The anti-crisis measures came without delay, but they did not produce the expected results. At the Euro Zone level, an almost immediate and direct effect of the crisis and the accompanying countercyclical fiscal measures was that of enhancing the fiscal burden for governments. The levels of fiscal deficit and the public debt as percentages of GDP substantially increased and, gradually, another crisis broke out: the Euro Zone sovereign debt crisis. As a result, at the level of the EU governance, in order for the authorities to be able to improve it, there were adopted distinct strategies, programs and instruments. In spite of the converging efforts at the EU as well as national levels, the majority of the countries in the Euro Zone were not able to find the right formula of restarting economic growth. The present analysis brings to the forefront Spain’s experience, which represents a clear example of governance (and NPM failure, as neither the countercyclical measures adopted for the recovery, in accordance with the keynesyan principles, nor the austerity packages that followed them were not able to induce the economic growth, so essential for diminishing unemployment.

  6. IMPACT OF THE GLOBAL FINANCIAL CRISIS ON THE CREDIT RISK MANAGEMENT IN A BANK

    Directory of Open Access Journals (Sweden)

    Jerzy Piotr Gwizdała

    2016-06-01

    Full Text Available The main purpose of this article is to present the role of risk in the activity of a commercial bank with particular reference to the global financial crisis. The introductory part presents the origins of economic crises, especially the contemporary crisis from 2007-2010, which began in the United States subprime mortgage market. Dating back to the 1831, considerations allow to undetstand the causes of the crises. Then the impact of the global financial crisis on the scale of the crediting activities of banks in Poland was analyzed, presenting a credit portfolio structure, with a particular focus on the structure of loans to households and enterprises. In the second part of the article the process of credit risk management was discussed, paying attention to the crucial role of the bank's credit policy, and the conditions and prospects of commercial bank credit activity development were specified. It presents also the criteria for the proper credit management, indicating as the optimal solution the development of the so-called „credit textbook”.

  7. The Policy Responses and Implications of the Global Financial Crisis in Asia: A Case Study for Malaysia

    OpenAIRE

    Goh Soo Khoon; Lim Mah Hui; Tan Yao Sua

    2012-01-01

    This paper examines the impact of the 2008 Global Financial Crisis (GFC) on Malaysia’s economy as well as challenges and responses of the government in countering this crisis. It argues that the impact of the GFC is different from the 1997 Asian Financial Crisis (AFC). The AFC impacted the financial industry with the resultant collapse of Malaysia’s currency, while the GFC impacted the export sector with direct repercussions on Malaysia’s real economy. This paper explores the structural weakn...

  8. Banks' Stability: The effect of Monetary Policies in the light of Global Financial Crisis

    Directory of Open Access Journals (Sweden)

    Wael Bakhit

    2014-04-01

    Full Text Available This paper employs a quarterly time series to determine the timing of structural breaks for interest rates in USA over the last 60 years. The Chow test is used for investigating the non-stationary, where the date of the potential break is assumed to be known. Moreover, an empirically examination of the financial sector to check if it is positively related to deviations from an assumed interest rate as given in a standard Taylor rule. The empirical analysis is strengthened by analysing the rule from a historical perspective and look at the effect of setting the interest rate by the central bank on financial imbalances. The empirical evidence indicates that deviation in monetary policy has a potential causal factor in the build up of financial imbalances and the subsequent crisis where macro prudential intervention could have beneficial effect. Thus, my findings tend to support the view which states that the probable existence of central banks has been one source of global financial crisis since the past decade.

  9. Shining a Light on the Dark Side: How the Global Financial Crisis Exposed the Dark Side of Leadership

    OpenAIRE

    Andrews, Holly; Francis-Smythe, Jan; Jellis, Matthew

    2015-01-01

    The global financial crisis has had innumerate outcomes around the globe. Whilst most of these are generally perceived to be negative, there are outcomes which could be considered positive for society. One such outcome is the spotlight that the financial crisis has shone on corruption within organisations and in particular, the role that destructive leaders play in the promotion of negative behaviours within organisations. This interest in identifying so-called ‘dark-side’ traits in leaders i...

  10. Fractal Markets Hypothesis and the Global Financial Crisis: Scaling, Investment Horizons and Liquidity

    Czech Academy of Sciences Publication Activity Database

    Krištoufek, Ladislav

    2012-01-01

    Roč. 15, č. 6 (2012), 1250065-1-1250065-13 ISSN 0219-5259 R&D Projects: GA ČR GA402/09/0965 Grant - others:GA UK(CZ) 118310; SVV(CZ) 265 504 Institutional support: RVO:67985556 Keywords : fractal markets hypothesis * scaling * fractality * investment horizons * efficient markets hypothesis Subject RIV: AH - Economics Impact factor: 0.647, year: 2012 http://library.utia.cas.cz/separaty/2012/E/kristoufek-fractal markets hypothesis and the global financial crisis scaling investment horizons and liquidity.pdf

  11. Fractal Markets Hypothesis and the Global Financial Crisis: Wavelet Power Evidence

    Science.gov (United States)

    Kristoufek, Ladislav

    2013-10-01

    We analyze whether the prediction of the fractal markets hypothesis about a dominance of specific investment horizons during turbulent times holds. To do so, we utilize the continuous wavelet transform analysis and obtained wavelet power spectra which give the crucial information about the variance distribution across scales and its evolution in time. We show that the most turbulent times of the Global Financial Crisis can be very well characterized by the dominance of short investment horizons which is in hand with the assertions of the fractal markets hypothesis.

  12. The impact of global financial crisis on audit and non-audit fees

    OpenAIRE

    Alexeyeva, Irina; Svanström, Tobias

    2015-01-01

    This is the accepted and refereed manuscript to the article Purpose - The paper aims to investigate audit and non-audit fees during the global financial crisis (GFC) in an environment that is relatively sparsely regulated with regard to the provision of non-audit services. Design/methodology/approach - Audit and non-audit fees were studied during pre-GFC (2006-2007), GFC (2008-2009) and post-GFC (2010-2011) periods. Findings - During the GFC Swedish companies benefited from an increa...

  13. Wage Tendency in Albania; The Reaction to the Global Economic and Financial Crisis

    Directory of Open Access Journals (Sweden)

    Imelda Sejdini

    2011-01-01

    Full Text Available Wage of both public and private sectors is a very important source of incomes for most of the population in Albania. The importance of public sector wage policy exceeds the sector's actual share of total employment, because the level of wages in this sector is, to a certain extent, a point of reference for wages in the private sector, too. During the first transition years the wages of a great number of the employees, whose enterprises had stopped being operational, were practically a form of social support. The data for this paper are gathered from all the surveys done on wages during transition from the public sources and the institute of statistics. From these data results that the wages have increased recurrently, first of all to counter the inflationary effects and to provide a better remuneration to the employees in both sector, despite the global financial crisis. This is due to the lack of full integration in the global markets. In this paper we discuss about the wage tendency in Albania as a country in further development, exposed to the risks of the global financial crisis, and the reaction to the difficulties encountered while the country is preparing for the EU integration.

  14. Global and Domestic Politics in the Wake of the Financial and Economic Crisis

    OpenAIRE

    Pontusson, Harry Jonas

    2013-01-01

    The December 2012 issue of SPSR featured a collection of short essays that explored the domestic politics of the financial crisis, the ensuing international recession and the ongoing difficulties of managing the debt problems and trade imbalances of the Eurozone. The contributors to the first installment of our debate on crisis politics engaged in historical and comparative discussions of government responses to the crisis of 2007-10 and the political repercussions of the crisis. For this, th...

  15. THE SOUNDNESS OF THE BANKING SYSTEM DURING THE GLOBAL FINANCIAL CRISIS

    Directory of Open Access Journals (Sweden)

    Ioana-Iuliana TOMULEASA

    2014-04-01

    Full Text Available The economic world is currently under the sign of profound changes, determined, in a significant extent, by the mutations in financial markets, the regulatory and institutional changes, illustrating its powerful impact on the financial system actors. The paper’s main purpose is to provide a comparative analysis of the performance and efficiency of commercial banks in seven European Union countries and an empirical analysis regarding the soundness of the Romanian banking system. The analysis undertaken in the paper highlights the need for banks to apply essential adjustments in their activity, such as the orientation to a new banking model, or the gearing to the latest regulations and tighter conditions of supervision on the financial sector. There were pointed out a series of issues which captured the overwhelming implications of the global financial crisis on the “health” of the financial system in EU, noticing the need for further measures that have as a main goal the avoidance of a financial system collapse.

  16. The effects of the global financial crisis on the Australian building construction supply chain

    Directory of Open Access Journals (Sweden)

    Ram Karthikeyan Thangaraj

    2012-09-01

    Full Text Available This study involves a financial analysis of 43 publicly listed and large private companies in the building and construction supply chain from 2005 to 2010; straddling the period of the global financial crisis (GFC; and examines the impact of the GFC on the performance of these companies. The construction supply chain was divided into four sectors – material suppliers, construction companies, property developers and real estate investment trusts (REITs. The findings indicate that the impact was minimal for both material suppliers and construction companies, but especially severe for the more leveraged property developers and REITs. Building material suppliers and construction companies have benefitted substantially from the building economic stimulus package provided by the Australian government to mitigate the effects of the GFC. Decreases in the valuation of assets have, to a large extent, reduced the profitability of property developers and REITs during the GFC but these companies have recovered quickly from these adverse conditions to return to a sound financial position by the end of the 2010 financial year. The results will inform investors, managers and construction professionals in devising strategies for prudent financial management and for weathering future financial crises.

  17. Out of the Frying Pan: Into the Fire of Post-Global Financial Crisis (GFC) University Management

    Science.gov (United States)

    Galbraith, Peter

    2013-01-01

    A downturn in enrolments of international students following the Global Financial Crisis is causing publicised stress among Australian universities that have come to rely on associated income. How to survive the financial consequences is currently receiving urgent attention within the sector. This paper models the problem of developing responses…

  18. Impact of the global financial crisis on employed Australian baby boomers: a national survey.

    Science.gov (United States)

    O'Loughlin, Kate; Humpel, Nancy; Kendig, Hal

    2010-06-01

    This paper examines the impact of the global financial crisis (GFC) on employed Australian baby boomers. A nationally representative sample of 1009 boomers aged 50-64 years completed a survey by telephone interview mid 2009. Compared with 1 year ago, 38.9% of working boomers reported being financially worse off and this was more so for women (42.4%) than men (35.6%). Following the GFC, 41.4% of women and 31.9% of men had decided to postpone their retirement plans. The GFC is affecting the retirement preparations and plans of Australia's baby boomers. Policy implications include reduced resources for retirement needs, and uneven and differential impacts for those with interrupted employment histories, notably women.

  19. The World Financial Crisis

    OpenAIRE

    F. Gerard Adams

    2009-01-01

    The world financial crisis of 2008 is a consequence of new financial technologies, new accounting methods and new international linkages. These developments have come at a time when governments have returned to an old-fashioned freemarket philosophy. This paper links the systemic financial/economic crisis of 2008 to the new economy developments, globalisation and policy philosophy perspectives of recent decades. It raises the question of how to re-establish confidence once traditional thinkin...

  20. Financial Stabilisation of Global Economy Countries under Conditions of the Debt Crisis

    Directory of Open Access Journals (Sweden)

    Vovchenko Natalia G.

    2014-01-01

    Full Text Available European crisis hinders global restoration of economy, the growth of restoration slows down. All these require supranational solutions: creatio9n of regulation structures and new financial instruments in order to preserve stable world financial order. Methods of quantitative easing (QE, carried out by the American Federal Reserve System and Bank of England, aim at stimulation of private sector activity through reduction of loan cost, generation of positive effects of well-being and increase of investment income. Purchase of assets efficiently move dangerous financial assets from private sector to the balance of the central bank or special QE fund in exchange to risk free reserves of the central bank. Thus, both types of measures are performed by means of risks, accumulating on balances of central banks and indirectly on the balance of state administration. Exchange of information between relevant agencies, including debt administration office, state enterprises that administer assets and central bank, is important for efficient administration of all state assets and liabilities. Proper assessment of financial positions requires all-sided and transparent reporting of all state liabilities and assets. Besides, financial transparency facilitates consolidation.

  1. Pharmaceutical policies in European countries in response to the global financial crisis.

    Science.gov (United States)

    Vogler, Sabine; Zimmermann, Nina; Leopold, Christine; de Joncheere, Kees

    2011-12-01

    The objective of this paper is to analyze which pharmaceutical policies European countries applied during the global financial crisis. We undertook a survey with officials from public authorities for pharmaceutical pricing and reimbursement of 33 European countries represented in the PPRI (Pharmaceutical Pricing and Reimbursement Information) network based on a questionnaire. The survey was launched in September 2010 and repeated in February 2011 to obtain updated information. During the survey period from January 2010 to February 2011, 89 measures were identified in 23 of the 33 countries surveyed which were implemented to contain public medicines expenditure. Price reductions, changes in the co-payments, in the VAT rates on medicines and in the distribution margins were among the most common measures. More than a dozen countries reported measures under discussion or planned, for the remaining year 2011 and beyond. The largest number of measures were implemented in Iceland, the Baltic states (Estonia, Latvia, Lithuania), Greece, Spain and Portugal, which were hit by the crisis at different times. Cost-containment has been an issue for high-income countries in Europe - no matter if hit by the crisis or not. In recent months, changes in pharmaceutical policies were reported from 23 European countries. Measures which can be implemented rather swiftly (e.g. price cuts, changes in co-payments and VAT rates on medicines) were among the most frequent measures. While the "crisis countries" (e.g. Baltic states, Greece, Spain) reacted with a bundle of measures, reforms in other countries (e.g. Poland, Germany) were not directly linked to the crisis, but also aimed at containing public spending. Since further reforms are under way, we recommend that the monitoring exercise is continued.

  2. Uncovered Interest Parity in Central and Eastern Europe: Convergence and the Global Financial Crisis

    Directory of Open Access Journals (Sweden)

    Fabio Filipozzi

    2012-12-01

    Full Text Available This paper presents tests of uncovered interest parity in Croatia, the Czech Republic, Hungary, Poland and Romania; all countries in Central and Eastern Europe with floating exchange rates. Data are monthly and the trading horizon is three months. The estimations show that the UIP hypothesis is rejected for the full sample from 1999 to 2011 for all five countries. A number of reasons for the rejection were investigated. Rolling regressions show that standard versions of the UIP essentially lose all explanatory power in 2008-10, which was a period in which the global financial crisis led to instability in currency and interest markets in Central and Eastern Europe. Two indicators of global risk aversion were also found to enter significantly in the many UIP estimations. Finally, the size of the interest rates spread also seems to be of importance, at least for Poland and Romania

  3. Legal Pluralism, Private Power, and the Impact of the Financial Crisis on the Global Political Economy

    Directory of Open Access Journals (Sweden)

    Edward S. Cohen

    2013-10-01

    Full Text Available Private corporate actors have played a central role in the construction of the legal rules of globalized capitalism over the past four decades. In no sector has this been more true than in global finance, where private agents have reshaped the norms and practices of credit creation and allocation. The global financial crisis, however, has led many states to challenge aspects of this power and raised broader questions about the legitimacy and future of private power in the global legal order(s. In this paper, I argue that –while state actors have clawed back significant power in global finance– the specific powers of credit creation and allocation combined with the structural pull of transnational legal pluralism will enable major private financial institutions to retain substantial power in the face of these challenges and questions. In the process, I present some broad suggestion about how we can think about private power in the making of global commercial law. Durante las últimas cuatro décadas, actores corporativos privados han desempeñado un papel decisivo en la construcción de las normas legales del capitalismo globalizado. En ningún sector ha sido esto más cierto que en las finanzas globales, donde los agentes privados han reformado las normas y prácticas de la creación de crédito y asignación. La crisis financiera global, sin embargo, ha llevado a muchos estados a cuestionar aspectos de este poder y planteado cuestiones más amplias acerca de la legitimidad y el futuro del poder privado en el/los ordenamiento/s jurídico/s global/es. En este trabajo se sostiene que –mientras que los actores estatales han recuperado un poder significativo en las finanzas globales– los poderes específicos de la creación de crédito y asignación combinados con la fuerza estructural del pluralismo jurídico transnacional permitirán a las principales instituciones financieras privadas retener poder sustancial ante estos retos y preguntas

  4. THE EFFECTS OF STOCK OPTION COMPENSATION ONMANAGERIAL RISK TAKING BEHAVIOR AND FIRM FINANCIALPERFORMANCETHE GLOBAL FINANCIAL CRISIS FROM ADIFFERENT PERSPECTIVE

    Directory of Open Access Journals (Sweden)

    Guler Aras

    2012-07-01

    Full Text Available The aim of this study is to figure out whether managerial risk taking behaviourand firm financial performance is effected by stock option compensation.Inliterature stock optioncompensationismentionedasa meansto solve agencyproblems. It is analysed how stock option compensation aligns theshareholders’andmanagers’ interestsand its effects on firm financialperformance. Additionally, it isinvestigatedwhether this effecthas a link to theglobal financial crisis which hasobviously related to the managers’extreme riskseeking behaviourespecially in financial sector. Inthis study, 189 firms fromS P index are analysedutilizingthe panel dataanalysismethod between years1998-2009. Additionally, regression method is used to measureeach year. Thedata set is grouped as financial and non financial sector tobetterpresent theeffects of global financial crisis.According to the results of this study, stockoption compensation is positively related to investment magnitudes which aretaken as indicators of risk taking behavior.On the other hand, it is negativelyrelated to firm financial performance.According to the results of yearlycomparison, in financial sector the invesment magnitudes are bigger than the nonfinancial sector just two years before the financial crisis and net cash flow fromthe investing activities is significantly negative when compared with non financialsector.Therefore,it is aimed to findoutthe relation between the extreme riskseeking behaviorbefore the global financial crisisand the incentive compensationstructures.

  5. Unemployment in Greece: Econometric Evidence after the Athens 2004 Olympics and before the Global Financial Crisis of 2007–2009

    OpenAIRE

    Rodokanakis, Stavros

    2012-01-01

    This paper investigates the probability of employment in Greece and focuses on 2006, namely, well after the Athens 2004 Olympics and its fiscal stimulus and before the eruption of the global financial crisis of 2007–2009 that transformed into an economic and sovereign debt crisis with unprecedented consequences in the country's postwar economic history. Based on microdata from the Labour Force Survey, the analysis depicts the impact of gender, age, marital status, area of residence, level of ...

  6. Export Trade Performance of Indian Economy during and Following the Global Financial Crisis

    Directory of Open Access Journals (Sweden)

    Dr. Sumanjeet Singh

    2011-07-01

    Full Text Available Towards the end of 2008 the effects of global recession started getting reflectedin international trade. The fall in global demand and the slowing-down ineconomic growth translated into a substantial reduction in internationaltrade. It affected the cross-border trade of virtually all countries and economicsectors. Indian exports trade could not remain unaffected in a situation whereexternal demand was dwindling globally. The present paper reviews India’sexport performance during and following the global financial crisis. Indianexports started to decline in July 2008. It declined from US$ 17,095 millionin July 2008 to US$ 11,516 million in March 2009, which accounts for almost33 per cent decline. This growth contraction has come after a robust 25 percent-plus average export growth since 2003. But, as a result of governmentpolicy measures and recovery in global economy, India’s exports growthturned positive and exports grew by a whopping 54.1 per cent in March 2010and recorded the highest growth rate among the world’s top 70 economiesin merchandise exports. India’s merchandise exports during April 2010 at US$16.9 billion recorded a growth of 36.3 per cent as compared with a declineof 32.8 per cent registered in April 2009. Exports witnessed huge annualizedgrowth of 56.9 per cent to $25.9 billion in May 2011 in a bright spot for theIndian economy, which is battling high inflation amid signs of a slowdown.

  7. Efficiency and cross-correlation in equity market during global financial crisis: Evidence from China

    Science.gov (United States)

    Ma, Pengcheng; Li, Daye; Li, Shuo

    2016-02-01

    Using one minute high-frequency data of the Shanghai Composite Index (SHCI) and the Shenzhen Composite Index (SZCI) (2007-2008), we employ the detrended fluctuation analysis (DFA) and the detrended cross correlation analysis (DCCA) with rolling window approach to observe the evolution of market efficiency and cross-correlation in pre-crisis and crisis period. Considering the fat-tail distribution of return time series, statistical test based on shuffling method is conducted to verify the null hypothesis of no long-term dependence. Our empirical research displays three main findings. First Shanghai equity market efficiency deteriorated while Shenzhen equity market efficiency improved with the advent of financial crisis. Second the highly positive dependence between SHCI and SZCI varies with time scale. Third financial crisis saw a significant increase of dependence between SHCI and SZCI at shorter time scales but a lack of significant change at longer time scales, providing evidence of contagion and absence of interdependence during crisis.

  8. Motives of enterprises’ expansion abroad during the global financial and economic crisis

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    Joanna Bednarz

    2010-12-01

    Full Text Available The need for facing up the competitors and the wish to build the competitive advantage on the market contribute to enterprises’ expansion on foreign markets. Motives lying behind the enterprise management decision when starting expansion abroad vary and they depend on an individual market situation of the enterprise. They can also evolve in time. The decision about enterprise expansion may be dictated by the will to make advantage of chances which appear on the market. Nevertheless, it also happens that adverse conditions of the enterprise external environment force its internationalization. Motives of foreign expansion can be classified in many ways. This article describes four main groups of motives: market, costs-related, supplies and strategic ones. The second part of this paper analyses changes in enterprises’ motives of expansion during the global financial and economic crisis.

  9. Global financial crisis, banking crisis and first country risk in the viewpoint of domestic risk rating agencies

    Directory of Open Access Journals (Sweden)

    Dr.Sc. Ingrid Shuli

    2012-06-01

    Full Text Available In a period of dire financial crisis, with which all countries seem to cope, it seemed interesting to analyse the assessment of the risk for our country, viewed from the vantage point of our domestic rating agencies, but also compared to assessments made to our country by international rating agencies, such as Moody’s rating agency, Standard & Poor rating agency, Fitch ratings agency etc. The objective of this study is to recognize indicators and factors affecting the risk assessment and rating of a country, and evaluate whether there has been an impact of the financial crisis faced by other countries in the rating given to Albanian by domestic and foreign agencies. We stopped at the history of earlier financial crisis development to understand bewtter what is happening in this financial crisis. We shall develop upon a wide existing literature, and a range of credible resources such as the IMF, the World Bank, the International Institute of Finance, Economic Intelligence Unit, and local official data sources, eg. The Bank of Albania and INSTAT.

  10. IMPACT OF THE GLOBAL FINANCIAL CRISIS ON SOVEREIGN DEBT IN THE EUROPEAN UNION

    Directory of Open Access Journals (Sweden)

    Condea Bogdan Virgil

    2014-07-01

    Full Text Available At European Union level, the global financial crisis intensified the issue of sovereign debts and member states had to implement a series of fiscal measures in order to reduce the budgetary deficit and public debts, that have peaked in the last decades. These changes were also imposed in the Romanian fiscal system and the effects were felt in particular through increased tax rates or even the introduction of new taxes. 2008 was the year that marked a turning point in the fiscal policy of member states of the European Union from multiple perspectives. The impact of the economic crisis was felt mainly through the drastic decrease in tax revenues for all member states, which led to an accelerated growth of the budgetary deficit and implicitly of the indebtedness degree. In this context, EU member states were forced to adopt measures that would reduce the budgetary deficit (increases in some taxes and reduction of certain public expenditures. In 2010, the sovereign debt crisis in the euro area exposed the weaknesses of the EU economic governance. In response, the so-called "six pack" regulations were introduced in December 2011. Moreover, many countries have intensified their consolidation efforts in an attempt to regain the confidence of financial markets. The new architecture of fiscal policy in the European area has undergone many changes in recent years, market not only by the fiscal harmonization process, but mainly by the temptation of fiscal coordination that aims mainly to achieve fiscal stability and reduce medium and long-term public debt. The excessive growth of countries' indebtedness degree in recent years led to the need to study the sustainability of the indebtedness policy, considering that maintaining the budgetary deficit at a prudent level would also ensure the sustainability of fiscal policy. The study analyzes the effects in budgetary plan of economic recovery measures by highlighting the evolution of public debt in EU member

  11. The global financial crisis and the Great Recession of 2007-2009.

    Science.gov (United States)

    Dore, Mohammed H I; Singh, Rajiv G

    2010-07-01

    This paper is a re-examination of the global financial crisis that began in and was accompanied by the most severe recession since the Great Depression. It builds on our earlier paper (Dore and Singh, 2009) and expands its scope. It is divided into parts. The first part deals with the ideological backdrop in which this crisis occurred, namely the belief in the rationality and stability of all markets including the capital markets, called the 'efficient market hypothesis.' The second part is a survey of the role of income distribution and its relations to aggregate spending and the growing role played by credit in the circular flow of income. The third part examines some features of the business cycle expansion phase of to . The fourth part is a brief report on a nonlinear Vector Error Correction model spanning the period to and how this expansion came to an end. The fifth part is a brief comparison of the Great Recession with the Great Depression. Finally in the sixth part, the international impact of the Great Recession is considered briefly, followed by some conclusions.

  12. Down-Side Risk Metrics as Portfolio Diversification Strategies across the Global Financial Crisis

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    David E. Allen

    2016-06-01

    Full Text Available This paper features an analysis of the effectiveness of a range of portfolio diversification strategies, with a focus on down-side risk metrics, as a portfolio diversification strategy in a European market context. We apply these measures to a set of daily arithmetically-compounded returns, in U.S. dollar terms, on a set of ten market indices representing the major European markets for a nine-year period from the beginning of 2005 to the end of 2013. The sample period, which incorporates the periods of both the Global Financial Crisis (GFC and the subsequent European Debt Crisis (EDC, is a challenging one for the application of portfolio investment strategies. The analysis is undertaken via the examination of multiple investment strategies and a variety of hold-out periods and backtests. We commence by using four two-year estimation periods and a subsequent one-year investment hold out period, to analyse a naive 1/N diversification strategy and to contrast its effectiveness with Markowitz mean variance analysis with positive weights. Markowitz optimisation is then compared to various down-side investment optimisation strategies. We begin by comparing Markowitz with CVaR, and then proceed to evaluate the relative effectiveness of Markowitz with various draw-down strategies, utilising a series of backtests. Our results suggest that none of the more sophisticated optimisation strategies appear to dominate naive diversification.

  13. The Halcyon Days Are over. Or Are They? Implications of the Global Financial Crisis for Managers' Careers

    Science.gov (United States)

    Marchant, Teresa

    2009-01-01

    This paper discusses the implications for managers' careers of the global financial crisis. It draws on empirical research during the last period of major job cuts. Evidence comes from a mail survey of over 1000 career histories of Australian managers, with a response rate of 44%. Changes to career satisfaction, job satisfaction, job security,…

  14. Unemployment levels after the global financial crisis linked to increase in suicides.

    Science.gov (United States)

    2013-10-23

    The 2008 global economic crisis appears to have triggered an increase in suicides, particularly among men in Europe and America. To investigate the impact of the economic crisis on international trends in suicide, researchers conducted an analysis comparing the number of suicides in 2009 with the number that would have been expected based on trends before the crisis (2000-2007). The analysis included data from 54 countries.

  15. Geographies of the financial crisis

    NARCIS (Netherlands)

    Aalbers, M.

    2009-01-01

    Real estate is, by definition, local as it is spatially fixed. Mortgage lending, however, has developed from a local to a national market and is increasingly a global market today. An understanding of the financial crisis is ultimately a spatialised understanding of the linkages between local and

  16. Did Korean Monetary Policy Help Soften the Impact of the Global Financial Crisis of 2008-2009?

    OpenAIRE

    Subir Lall; Selim Elekdag; Harun Alp

    2012-01-01

    Korea was one of the Asian economies hardest hit by the global financial crisis. Anticipating the downturn that would follow the episode of extreme financial stress, the Bank of Korea (BOK) let the exchange rate depreciate as capital flowed out, and preemptively cut the policy rate by 325 basis points. But did it work? This paper seeks a quantitative answer to the following question: Were it not for an inflation targeting framework underpinned by a flexible exchange rate regime, how much deep...

  17. The Network of U.S. Mutual Fund Investments: Diversification, Similarity and Fragility throughout the Global Financial Crisis

    OpenAIRE

    Delpini, Danilo; Battiston, Stefano; Caldarelli, Guido; Riccaboni, Massimo

    2018-01-01

    Network theory proved recently to be useful in the quantification of many properties of financial systems. The analysis of the structure of investment portfolios is a major application since their eventual correlation and overlap impact the actual risk diversification by individual investors. We investigate the bipartite network of US mutual fund portfolios and their assets. We follow its evolution during the Global Financial Crisis and analyse the interplay between diversification, as unders...

  18. GLOBAL FINANCIAL CRISIS AND UNIT-LINKED INSURANCE MARKETS EFFICIENCY: EMPIRICAL EVIDENCE FROM CENTRAL AND EASTERN EUROPEAN COUNTRIES

    Directory of Open Access Journals (Sweden)

    Botoş Horia Mircea

    2012-12-01

    Full Text Available This paper empirically investigates the impact of the Global financial crisis on the efficiency of four Central and Eastern European emerging unit-linked insurance markets, applying the automatic variance ratio (AVR test of Kim (2009 and variance ratio tests using ranks and signs by Wright (2000 for entire, pre-crisis and crisis periods. This study contributes to the existing literature on efficient market hypothesis with several distinct features: it provides a systematic review of the weak-form market efficiency literature that examines return predictability of the daily ING unit-linked funds prices; also the article aims at monitoring any improvement in the degree of efficiency in time and also examines the relative efficiency of unit-linked insurance markets in pre-crisis and crisis periods. Unit linked insurance are life insurance policies with investment component. In the literature there are few studies investigating the effects of a financial crisis on the potential of predictability and implicitly on the degree of efficiency of financial markets. The occurrence of a market crash or financial crisis is a possible contributing factor of market inefficiency. Most of the studies are focused on the Asian crisis in 1997: Holden et al. (2005 examined the weak-form efficiency of eight emerging Asian stock markets using VR tests before, during and after the Asian crisis; Kim and Shamsuddin (2008 used three different types of multiple VR tests for nine Asian stock markets; the findings reported by Lim et al. (2008 are consistent with those reported by Cheong et al. (2007, in which the highest inefficiency occurs during the crisis period. Todea and Lazar (2010 investigated the effects of the Global crisis on the relative efficiency of ten CEE stock markets, using Generalized Spectral test of Escanciano and Velasco (2006. Wright (2000 proposes the alternative non-parametric variance ratio tests using ranks and signs of return and demonstrates that

  19. Selected spatial effects of the global financial and economic crisis in Ljubljana, Slovenia

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    Simon Kušar

    2012-01-01

    Full Text Available In 2007, the United States witnessed a financial crisis that gradually developed into one of the most serious global financial and economic recessions in the history of (postmodern society. Its effects are numerous. This article studies one of its spatial effects; that is, newly built (after 2005 residential and office buildings that are either unfinished or already built but not fully occupied. In Ljubljana in November 2011, there were ninety-seven locations with unoccupied or partly occupied residential houses and office buildings or groups of houses and office buildings together with abandoned or active construction sites. The majority of the structures studied were predominately represented by several blocks of flats and groups of dwellings. The others are office buildings or buildings and complexes with distinctively mixed residential-business functions. There are more than 1,500 empty flats and almost 75,000 m² of office area in the buildings surveyed. Spatial analysis showed that the structures surveyed are relatively scattered throughout Ljubljana. However, there were some clusters of buildings, especially in areas with the best accessibility. This article analyses the causes of this phenomenon, which is creating a new morphological element in Ljubljana. The article concludes by stating possible directions for future research.

  20. Inequality and Austerity after the Global Financial Crisis: Law, Gender and Sexuality

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    Nan Seuffert

    2016-03-01

    Full Text Available This special issue of the Onati Socio-legal Series analyses legal and economic inequality, and policies of austerity after the global financial crisis (GFC at the intersections of gender and sexuality. Each of the articles included in this issue speak to one or more of these themes. Collectively, the articles place questions of gender and sexuality at the centre of an analysis of reforms motivated by ‘economic rationalisation’ and austerity measures. They highlight the political economy of policies that differentially impact women, indigenous populations and socially or economically marginalised groups. Este número especial de la Oñati Socio-legal Series analiza la desigualdad legal y económica, y las políticas de austeridad después de la crisis financiera global (CFG en las intersecciones entre género y sexualidad. Cada uno de los artículos de este número tratan sobre uno o más de estos temas. De forma colectiva, los artículos plantean cuestiones sobre género y sexualidad en el centro de un análisis de las reformas motivadas por la “racionalización económica” y las medidas de austeridad. Destacan la política economía de las políticas que impactan de forma diferente en mujeres, población indígena y grupos marginados social o económicamente. DOWNLOAD THIS PAPER FROM SSRN: http://ssrn.com/abstract=2736309

  1. Comparison between global financial crisis and local stock disaster on top of Chinese stock network

    Science.gov (United States)

    Xia, Lisi; You, Daming; Jiang, Xin; Guo, Quantong

    2018-01-01

    The science of complex network theory can be usefully applied in many important fields, one of which is the finance. In these practical cases, a massive dataset can be represented as a very large network with certain attributes associated with its nodes and edges. As one of the most important components of financial market, stock market has been attracting more and more attention. In this paper, we propose a threshold model to build Chinese stock market networks and study the topological properties of these networks. To be specific, we compare the effects of different crises, namely the 2008 global crisis and the stock market disaster in 2015, on the threshold networks. Prices of the stocks belonging to the Shanghai and Shenzhen 300 index are considered for three periods: the global crisis, common period and the stock market disaster. We find the probability distribution of the cross-correlations of the stocks during the stock market disaster is fatter than that of others. Besides, the thresholds of cross-correlations are assigned to obtain the threshold networks and the power-law of degree distribution in these networks are observed in a certain range of threshold values. The networks during the stock market disaster also appear to have larger mean degree and modularity, which reveals the strong correlations among these stock prices. Our findings to some extent crosscheck the liquidity shortage reason which is believed to result in the outbreak of the stock market disaster. Moreover, we hope that this paper could give us a deeper understanding of the market's behavior and also lead to interesting future research about the problems of modern finance theory.

  2. The adaptation of monetary policy to the constraints of the global financial crisis by central banks of ASEAN-5 countries

    Directory of Open Access Journals (Sweden)

    Sorina BOTIŞ

    2015-12-01

    Full Text Available Global financial crisis represented an important test for central banks, generating multiple challenges that gave rise to both expanding their monetary policy tools and redefining its role in the financial system. The present work aims to identify the characteristics of the monetary policy by the central banks of the five countries belonging to ASEAN-5 Group(Indonesia, Malaysia, the Philippines, Singapore and Thailand, during and after the outbreak of the international financial crisis. For this purpose we carried out a comparative analysis between the five central bank s belonging to the Group, both in terms of the challenges of the monetary policy and the type of measures taken in response to the first. The analysis shows that central banks have different levels of responsibilities, corresponding to the internal economic and financial realities, and also different ways of adaptation and adjustment of their monetary policy.

  3. The global financial crisis and the behavior of short-term interest rates: International and Serbian aspects

    Directory of Open Access Journals (Sweden)

    Đukić Đorđe

    2009-01-01

    Full Text Available Throughout the current global financial crisis the market has continued to fall due to a lack of confidence of those banks that are not yet prepared to lend on the interbank money market. For instance, the negative repercussions of the crisis onto the Serbian financial sector have created a number of issues including a significant increase in lending rates, a difficulty, or impossibility, for the corporate sector to use cheap cross-border loans and a reduction in the supply of foreign exchange on that basis. The inability of the National Bank of Serbia to follow the aggressive reduction of the key interest rate that has been implemented by central banks in developed countries, partly explains the lack of a decline in short-term interest rates by the Serbian banking industry. The first section of the paper focuses on the effects of the financial crisis through the behavior of short-term interest rates in the US and Europe, while the second section gives an estimation of the effects of the global financial crisis on interest rates in the banking industry in Serbia.

  4. Regulating capital flows in emerging markets: The IMF and the global financial crisis

    Directory of Open Access Journals (Sweden)

    Kevin P. Gallagher

    2017-12-01

    Full Text Available In the wake of the financial crisis the International Monetary Fund (IMF began to publicly express support for what have traditionally been referred to as ‘capital controls’. This paper empirically examines the extent to which the change in IMF discourse on these matters has resulted in significant changes in actual IMF policy advice. By creating and analyzing a database of IMF Article IV reports, we examine whether the financial crisis had an independent impact on IMF support for capital controls. We find that the IMF’s level of support for capital controls has increased as a result of the crisis and as the vulnerabilities associated with capital flows accentuate.

  5. Trade Finance and Trade Collapse during the Global Financial Crisis: Evidence from the Republic of Korea

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    E. Young Song

    2014-12-01

    Full Text Available This study examines the role of trade finance in the trade collapse of 2008-09 from the perspective of the Korean economy. We use two approaches. Firstly, as background to a more formal analysis, we make a casual observation on the behavior of aggregate data on trade finance, on which Korea has relatively abundant data. Aggregate data do not convincingly support the view that trade finance played an active role in causing the trade collapse. The measures of trade finance and the value of trade both dropped sharply, but the ratio of trade finance over trade was stable and in some cases increased during the crisis period. Secondly, using quarterly data on listed firms in Korea, we conduct panel estimations to test whether firms that are more dependent on external finance experienced greater export contraction during the crisis. Our regression analysis suggests that the financial vulnerability of firms, measured by various financial ratios, did not contribute to export contraction during the financial crisis. This observation largely applies even to smaller firms, who are usually thought of as being more vulnerable financially. However, we find that small exporters that relied heavily on cross-border trade payables or receivables suffered larger drops in export growth during the crisis.

  6. Dutch mortgage arrears and the role of the global financial crisis

    NARCIS (Netherlands)

    Teye, A.L.; De Haan, J.; Elsinga, M.

    2015-01-01

    As in many countries, the Dutch housing market was severely hit by the recent financial crisis. Following the recession, the average house price in the Netherlands fell by almost 25% and the proportion of homeowners with mortgage payment arrears nearly doubled. In this paper, we study mortgage

  7. Fighting the Financial Crisis

    DEFF Research Database (Denmark)

    Hull Kristensen, Peer

    2015-01-01

    This paper is concerned to show how the Danish political elite interpreted and responded to the consequences of the 2008 financial crisis for the Danish economy. In particular, the paper describes how this interpretive construction focused primarily on three features of the Danish context to the ...

  8. The 2008 Global Financial Crisis: The Case of a Market with Consistent Losses Ever Since

    Directory of Open Access Journals (Sweden)

    Hadeel Yaseen

    2015-03-01

    Full Text Available Following the 2008 global financial crisis, and in common with many stock markets around the world, the Amman Securities Exchange (ASE experienced some heavy losses. However, what makes the Jordanian market probably different is its inability to recover. The weighted price index fell from 7519.3 points in 2007 to 5520.1 points in 2009, to 4593.9 points in 2012, and to 4336.7 points by the end of 2013 respectively. With a statutory minimum tick which is equal to one pence, this observation has some serious implications to the liquidity cost that prevails in the Jordanian capital market, and the cost of financing listed firms. The primary aim of this research paper is to examine the impact of the stock market crash in Jordan on liquidity cost. Based on a total number of 108 listed stocks and daily data during the years 2007 and 2009, the empirical results indicate that liquidity cost on the Jordanian capital market is high. In addition, the results show that the 2009 stock market crash has led to a substantial increase in liquidity cost. In other words, the market must consider a number of remedial measures to improve its’ operational efficiency.

  9. The effect of the global financial crisis on preventable hospitalizations among the homeless in New York State.

    Science.gov (United States)

    White, Brandi; Ellis, Charles; Jones, Walter; Moran, William; Simpson, Kit

    2018-04-01

    Objective Periods of economic instability may increase preventable hospitalizations because of increased barriers to accessing primary care. For underserved populations such as the homeless, these barriers may be more pronounced due to limited resources in the health care safety net. This study examined the impact of the global financial crisis of 2007-2008 on access to care for the homeless in New York State. Methods Hospitalizations for ambulatory care sensitive conditions (ACSCs) were used as a proxy measure for primary care access. Admissions for ACSCs were identified in the New York State Inpatient Database from 2006 to 2012. Hospitalization rates for ACSCs were calculated for the homeless and nonhomeless. Multivariable linear regression was used to investigate the impact of the financial crisis on hospitalization rates for ACSCs. Results The findings indicate that during the financial crisis, homeless adults had significantly higher preventable hospitalizations than nonhomeless adults, and the uninsured homeless had significantly higher preventable hospitalizations when compared to other homeless subgroups. After the financial crisis, preventable hospitalizations for the homeless stabilized but remained at higher rates than those for the nonhomeless. Conclusions These findings are important to developing health policies designed to provide effective care for underserved population such as the homeless.

  10. Post-crisis financial intermediation

    Directory of Open Access Journals (Sweden)

    Ilie MIHAI

    2015-09-01

    Full Text Available The recent financial crisis that begun in 2007 in the US, which then swept around the world, has left deep scars on the already wrinkled face of the global economy. Some national and regional economies, which had money for expensive makeup, or created money[1], managed to blur or hide the scars left by the crisis, others are still facing difficulties in overcoming the effects of this. The rapacity of banks, their greed and risk ignorance, were the origin of the outbreak of the last major economic and financial crisis but unfortunately those who were responsible or, rather, irresponsible, paid little or nothing at all for the burden of their bad loan portfolio. This cost has been supported by the population, either directly by paying high interest and fees [Mihai I., 2007], or indirectly, through the use of public budgets to cover the losses of banks, most of which had private capital. In this context, we intend to examine the state of financial intermediation in Romania in the post-crisis period, and to primarily follow: (i The structure and evolution of the banking system; (ii Non-government credit situation; (iii The level of savings; (iiii Loan-deposit ratio; (v The degree of financial intermediation and disintegration phenomenon etc., and to articulate some conclusions and suggestions on the matters that have been explored.

  11. Global financial crisis, ownership and bank profit efficiency in the Bangladesh's state owned and private commercial banks

    OpenAIRE

    Kamarudin, Fakarudin; Sufian, Fadzlan; Nassir, Annuar Md.

    2016-01-01

    Abstract: This paper studies the impact of global financial crisis focusing on State Owned Commercial Banks (SCBs) and Private Commercial Banks (PCBs) ownership and others bank specific and macroeconomics factors influencing profit efficiency level of the Bangladesh banking sector. The Slack-Based Data Envelopment Analysis (SBM-DEA) method employed to compute the profit efficiency of 31 commercial banks operating in the Bangladesh over the years 2004-2011. Furthermore, the multivariate panel ...

  12. Portugal and the Global Financial Crisis – short-sighted politics, deteriorating public finances and the bailout imperative

    OpenAIRE

    Paulo T. Pereira,; Lara Wemans,

    2012-01-01

    The aim of this paper is twofold. On the one hand to explain the institutional, economic and political foundations of the Portuguese bailout in April 2011. On the other hand, to clarify the impact of the global financial crisis (GFC) in Portuguese public finances, and the interaction between domestic fiscal policy and monitoring and recommendations from the European Commission (EC) and the European Council (ECo). A long run perspective (1974-2011) on management of public finances ...

  13. The Global Financial Crisis: Countercyclical Fiscal Policy Issues and Challenges in Malaysia, Indonesia, the Philippines, and Singapore

    OpenAIRE

    Doraisami, Anita

    2011-01-01

    Several countries have employed countercyclical fiscal policy to ameliorate the impact of the global financial crisis. This study identifies some of the issues and policy implications associated with this policy response in developing countries. Included are case studies of four developing countries in the Asian region—Malaysia, Indonesia, the Philippines, and Singapore. The findings point to a rich diversity in both the size and composition of fiscal stimulus and the challenges which ar...

  14. The U.S. Financial Crisis: The Global Dimension With Implications for U.S. Policy

    Science.gov (United States)

    2008-11-18

    crises from occurring. Much of this involves the technicalities of regulation and oversight of financial markets, derivatives, and hedging activity...buying CDSs that paid in case of default. As the risk of defaults rose, the cost of the CDS protection rose. Investors, therefore, could arbitrage ...was hedged rather than backed by sufficient capital to pay claims in case of default. Under a systemic crisis, hedges also may fail. However

  15. The US Financial Crisis

    DEFF Research Database (Denmark)

    Campbell, John L.

    2011-01-01

    Many comparative political economists hold that market performance depends on the presence of institutional complementarities. Some argue that when institutions reinforce similar incentives markets work best. Others disagree and argue that for markets to function well institutions must compensate...... for each other's shortcomings rather than reinforce each other's incentives. This paper uses evidence from the US financial crisis of 2008 to adjudicate this debate. It argues that different types of institutional complementarities are necessary in combination to ensure market stability and successful...

  16. Global financial crisis and weak-form efficiency of Islamic sectoral stock markets: An MF-DFA analysis

    Science.gov (United States)

    Mensi, Walid; Tiwari, Aviral Kumar; Yoon, Seong-Min

    2017-04-01

    This paper estimates the weak-form efficiency of Islamic stock markets using 10 sectoral stock indices (basic materials, consumer services, consumer goods, energy, financials, health care, industrials, technology, telecommunication, and utilities). The results based on the multifractal detrended fluctuation analysis (MF-DFA) approach show time-varying efficiency for the sectoral stock markets. Moreover, we find that they tend to show high efficiency in the long term but moderate efficiency in the short term, and that these markets become less efficient after the onset of the global financial crisis. These results have several significant implications in terms of asset allocation for investors dealing with Islamic markets.

  17. The present global financial and economic crisis poses an additional risk factor for mental health problems on the employees.

    Science.gov (United States)

    Avčin, Bojana Avguštin; Kučina, Andrea Užmah; Sarotar, Brigita Novak; Radovanović, Mirjana; Plesničar, Blanka Kores

    2011-09-01

    The global financial and economic crisis starting in 2007 led to a deterioration of several socio-economic determinants of mental health. The aim of this cross-sectional study was to examine the impact of the present economic crisis on the depression and anxiety levels of the employed in the private and public sector in Slovenia. Altogether 1592 employees completed an internet based self-reported questionnaire. Data about perceived impact of the economic crisis, several socio-demographic, socioeconomic, and health parameters were collected. Depression symptoms were assessed by the Center for Epidemiological Studies-Depression Scale and anxiety symptoms by the Spielberger State-Inventory. Regression models were used 1) to explore the associations of the economic crisis with the level of depression and anxiety symptoms while controlling for some sociodemographic and work characteristic variables, and 2) to understand the relationship between some potentially important socioeconomic variables and the perception of the economic crisis. Depressive and anxiety scores were significantly increased among 590 (46.6%) employees being affected by the economic crisis. The level of depressive symptoms was significantly associated with perceived impact by the crisis, recent sick leave, reported injuries sustained at work, benzodiazepine and analgesic use, the lack of emotional support, and trust in crisis telephone lines. The level of anxiety symptoms yielded the robust association with the level of depression symptoms, reported injuries sustained on the way to work and education. The economic crisis poses an additional risk factor for mental health problems which clinicians should internalize and become more aware of them. Symptoms of depression and anxiety can be masked in high-utilizers of medical care with physical complaints or psychoactive drug use.

  18. How many infants likely died in Africa as a result of the 2008-2009 global financial crisis?

    Science.gov (United States)

    Friedman, Jed; Schady, Norbert

    2013-05-01

    The human consequences of the recent global financial crisis for the developing world are presumed to be severe, but few studies have quantified them. This letter estimates the human cost of the 2008-2009 global financial crisis in one critical dimension-infant mortality-for countries in sub-Saharan Africa. The analysis pools birth-level data, as reported in female adult retrospective birth histories from all Demographic and Health Surveys collected in sub-Saharan Africa. This results in a data set of 639,000 births to 264,000 women in 30 countries. We use regression models with flexible controls for temporal trends to assess an infant's likelihood of death as a function of fluctuations in national income. We then calculate the expected number of excess deaths by combining these estimates with growth shortfalls as a result of the crisis. The results suggest 28,000-50,000 excess infant deaths in sub-Saharan Africa in the crisis-affected year of 2009. Notably, most of these additional deaths were concentrated among girls. Policies that protect the income of poor households and that maintain critical health services during times of economic contraction may reduce the expected increase in mortality. Interventions targeted at female infants and young girls can be particularly beneficial. Copyright © 2012 John Wiley & Sons, Ltd.

  19. A CRITICAL REVIEW ON THE EFFECT OF HOUSING INDUSTRY TO THE GLOBAL FINANCIAL CRISIS: THE CASE OF TURKEY

    Directory of Open Access Journals (Sweden)

    Cem BERK

    2010-01-01

    Full Text Available The overall aim of the research presented is to investigate the relationship between the macroeconomic factors linked with financial crises and housing industry in Turkey. The research includes empirical investigation in a regression based model using mostly the Turkish market data. The ability of public intervention, indicated by central bank reserves and corporate bankruptcies are statistically effective in the performance of housing market. There is weak statistical dependence of housing on financial crisis. The research is based on Turkish market data between the period 2002-2009. The research can be extended with global market data especially from the emerging market for a comparative study. Research in this field should focus more to industry dynamics rather than macroeceonomic variables explaining crisis to explore housing sector dynamics. The real estate managers should look to central bank reserves and corporate bankruptcies more closely as a macroeceonomic variable affecting housing industry. The effect of macroeceonomic variables in the period of financial volatility is limited in the housing market, whereas industry factors should be analized. Central bank reserves and corporate bankruptcies are important indicators of housing industry growth that can be used as an instrument. To to the author’s knowledge, the paper is the first study to investigate the link between financial crisis and housing market in Turkey.

  20. Trade Policies and the Changing Patterns of Protectionism during the Global Financial and Economic Crisis

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    Agnes Ghibuțiu

    2012-01-01

    Full Text Available The Great Recession of 2008–09 provided a fertile ground for protectionist pressures to increase. It caused a negative shock to the global economy that is comparable with the Great Depression of the 1930s. International trade suffered a historical collapse in 2009, but trade flows quickly rebounded thereafter. And unlike the Great Depression of the 1930s, the recent global economic contraction did not trigger a massive wave of protectionism as expected. Despite important adjustments in many countries’ trade policies during the crisis and, hence, a quite notable increase in the incidence of protectionist measures, there is a widely shared belief that crisis related protectionism has been kept under control, being rather modest and limited compared with both the negative effects of the crisis and the initial concerns. A large agreement emerged also among analysts on the important role of WTO’s multilateral rules and disciplines in preventing exacerbation of economic nationalism and protectionism. The views on intensity, dynamics and potential impact of current contemporary protectionism continue, however, to diverge as they reflect in part the significant differences between the results of the different monitoring exercises, carried out particularly by the WTO and Global Trade Alert. But beyond these differences, the latest monitoring reports contain alarming signs of escalating protectionism over the post-crisis years due to the growing difficulties in the world economy. This paper takes a look at the main trends in global protectionism during and after the crisis and some of its potential implications. In doing so, the paper starts by contrasting protectionism that accompanied the Great Depression of the 1930s with the present-day protectionist phenomenon in order to briefly outline the peculiarities of the latter. Then it addresses the main factors contributing to staving off trade protectionism during the recent crisis. Relying on the

  1. The impact of the financial crisis on the global seaborne hard coal market. Are there implications for the future?

    Energy Technology Data Exchange (ETDEWEB)

    Rademacher, Maggi; Braun, Raphael [E.ON Kraftwerke GmbH, Hannover (Germany)

    2011-06-15

    The global financial crisis in 2008 sent commodity markets spinning which caused demand to erode, price levels to quickly plummet and project financing costs to rise. In this paper, the authors examine the impacts the economic slowdown has had on the global seaborne hard coal market looking at the impacts for both coking (metallurgical) and thermal (steam) coals including pricing, supply availability, demand and aggregated mine level production costs. The hard coal market experienced a significant slow down; the commodity has bounced back strongly in 2010 driven by strong Asian demand at growth rates above historic levels and strong projections for the future. (orig.)

  2. Socioeconomic inequalities in smoking in The Netherlands before and during the Global Financial Crisis: a repeated cross-sectional study.

    Science.gov (United States)

    Benson, Fiona E; Kuipers, Mirte A G; Nierkens, Vera; Bruggink, Jan-Willem; Stronks, Karien; Kunst, Anton E

    2015-05-06

    The Global Financial Crisis (GFC) increased levels of financial strain, especially in those of low socioeconomic status (SES). Financial strain can affect smoking behaviour. This study examines socioeconomic inequalities in current smoking and smoking cessation in The Netherlands before and during the Global Financial Crisis (GFC). Participants were 66,960 Dutch adults (≥ 18 years) who took part in the annual national Health Survey (2004-2011). Period was dichotomised: 'pre-' and 'during-GFC'. SES measures used were income, education and neighbourhood deprivation. Outcomes were current smoking rates (smokers/total population) and smoking cessation ratios (former smokers/ever smokers). Multilevel logistic regression models controlled for individual characteristics and tested for interaction between period and SES. In both periods, high SES respondents (in all indicators) had lower current smoking levels and higher cessation ratios than those of middle or low SES. Inequalities in current smoking increased significantly in poorly educated adults of 45-64 years of age (Odds Ratio (OR) low educational level compared with high: 2.00[1.79-2.23] compared to pre-GFC 1.67[1.50-1.86], p for interaction = 0.02). Smoking cessation inequalities by income in 18-30 year olds increased with borderline significance during the GFC (OR low income compared to high income: 0.73[0.58-0.91]) compared to pre-GFC (OR: 0.98[0.80-1.20]), p for interaction = 0.051). Overall, socioeconomic inequalities in current smoking and smoking cessation were unchanged during the GFC. However, current smoking inequalities by education, and smoking cessation inequalities by income, increased in specific age groups. Increased financial strain caused by the crisis may disproportionately affect smoking behaviour in some disadvantaged groups.

  3. Analysis of the Banking Sector Performance in Bosnia and Herzegovina, Montenegro and Serbia Before and After the Global Financial Crisis

    Directory of Open Access Journals (Sweden)

    Bošnjak Antonija

    2017-12-01

    Full Text Available The focus of this study is the banking sector of the three neighbouring countries Bosnia and Herzegovina; Montenegro; and Serbia. These are former communist countries which have been going through the transition from centrally-planned economies to open market economies over the past 25 years. During the transition process, structural reforms were conducted to transform the banking sector into a sector suitable for open market economy. These reforms are considered to be the most successful ones in the region. Before the Global Financial Crisis of 2008-09, the economies of the three selected countries were experiencing credit booms. The aim of this research was to examine how the banking sector is performing on an aggregated level years after the crisis and whether the performance is better or worse compared to the pre-crisis period. The findings show that the banking sector was performing better before the crisis in all three countries. After the crisis, the three countries experienced prolonged slow credit growth and had higher nonperforming loans.

  4. The Impact of the 2008 Global Financial Crisis on the Structure of the Transmission of Price Innovations Across Financial Markets: The Case of Southwest Asian Equity Markets

    Directory of Open Access Journals (Sweden)

    Liao Qunfeng

    2016-06-01

    Full Text Available This study examines the reaction of Southeast Asian equity markets to the transmission of price innovations from major equity markets during the pre and post periods of the 2008 global financial crisis. In particular, we examine the reaction of returns indices in Malaysia, the Philippines, South Korea, Taiwan, and Thailand as endogenous variables, and compare them to the returns indices of the U.S., the Eurozone, Japan, and China as exogenous variables. The results of VAR models indicate the combined and individual impact of the price innovations from the major equity markets on the volatility of returns of selected countries is relatively trivial during either the pre- or post-financial crisis periods. However, the individual impact of the U.S. innovations is generally higher during the post-financial crisis. The ARCH and GARCH models indicate the stock markets of Southeast Asian countries are more responsive to their own price innovations during both the pre- and the post-crisis periods, although some response to U.S. and Eurozone shocks is also observed.

  5. Financial Crisis and the Central Bank System

    Directory of Open Access Journals (Sweden)

    RICHARD POSPISIL

    2015-05-01

    Full Text Available The financial crisis that began in 2008 gradually developed into a global economic crisis and continues to this day. There is a lot of causes standing behind the creation, depth and process of the crisis, which is the deepest since the thirties of last centrury. One of the reasons can be found in the risky behavior of commercial banks, especially in the excessive lending of credits and mortgages. Its share on the financial crisis have central banks and their failure as the financial supervisory authority. But there is a lot of another causes of failures in the commercial banking system. And some of the causes lies outside the banking system and monetary policy. Its share of the blame has also become from state and its expenditure on the social policy.This article analyzes the role of the commercial banking system and the central banks on the financial crisis including prevention options and measures.

  6. FINANCIAL CRISIS AND THE CENTRAL BANK SYSTEM

    Directory of Open Access Journals (Sweden)

    Richard POSPISIL

    2015-07-01

    Full Text Available The financial crisis that began in 2008 gradually developed into a global economic crisis and continues to this day. There is a lot of causes standing behind the creation, depth and process of the crisis, which is the deepest since the thirties of last centrury. One of the reasons can be found in the risky behavior of commercial banks, especially in the excessive lending of credits and mortgages. Its share on the financial crisis have central banks and their failure as the financial supervisory authority. But there is a lot of another causes of failures in the commercial banking system. And some of the causes lies outside the banking system and monetary policy. Its share of the blame has also become from state and its expenditure on the social policy.This article analyzes the role of the commercial banking system and the central banks on the financial crisis including prevention options and measures.

  7. THE EARNINGS PER SHARE AND INVENTORY TURNOVER RATIOS IN THE GLOBAL FINANCIAL CRISIS: A COMPARATIVE STUDY FOR FOOD AND TEXTILE SECTORS IN ISTANBUL STOCK EXCHANGE

    Directory of Open Access Journals (Sweden)

    Sudi APAK

    2009-01-01

    Full Text Available The ongoing financial crisis in the global markets, which originated in the US subprime mortgage segment (real estate and quickly spread into other market segments and countries, is already seen today as one of the biggest financial crises in history. Underlying the subprime crisis had essentially two interrelated factors; the boom in US real estate markets, and the high liquidity demand in the global financial markets. The later period was, in turn, fuelled by the significant easing of US monetary policy over an extended period of time and by the additional boost to global liquidity as many emerging markets had tied their exchange rates to the US dollar and therefore had to match the expansive US monetary policy. The occurrence of market crash or financial crisis is possible key factor of earning per share (EPS and inventory turnover ratios (ITR inefficiency. This paper empirically investigates that the effects of the current financial crisis on the efficiency -earning per share (EPS and inventory turnover ratios- listed food and textile companies in Istanbul Stock Exchange (ISE. The EPS and inventory turnover ratios, applying the multivariate test statistics for the two sub-periods of pre-crisis and the crisis time. The article proceeds in the following manner. Firstly, the study will explain main reasons of global financial crises. Secondly the study will analyze all EPS and inventory turnover ratios changing are of related companies. Finally, that will be argued for adjustment of related ratios of sectors.

  8. Effects of global financial crisis on funding for health development in nineteen countries of the WHO African Region.

    Science.gov (United States)

    Kirigia, Joses M; Nganda, Benjamin M; Mwikisa, Chris N; Cardoso, Bernardino

    2011-04-13

    There is ample evidence in Asia and Latin America showing that past economic crises resulted in cuts in expenditures on health, lower utilization of health services, and deterioration of child and maternal nutrition and health outcomes. Evidence on the impact of past economic crises on health sector in Africa is lacking. The objectives of this article are to present the findings of a quick survey conducted among countries of the WHO African Region to monitor the effects of global financial crisis on funding for health development; and to discuss the way forward. This is a descriptive study. A questionnaire was prepared and sent by email to all the 46 Member States in the WHO African Region through the WHO Country Office for facilitation and follow up. The questionnaires were completed by directors of policy and planning in ministries of health. The data were entered and analyzed in Excel spreadsheet. The main limitations of this study were that authors did not ask whether other relevant sectors were consulted in the process of completing the survey questionnaire; and that the overall response rate was low. The main findings were as follows: the response rate was 41.3% (19/46 countries); 36.8% (7/19) indicated they had been notified by the Ministry of Finance that the budget for health would be cut; 15.8% (3/19) had been notified by partners of their intention to cut health funding; 61.1% (11/18) indicated that the prices of medicines had increased recently; 83.3% (15/18) indicated that the prices of basic food stuffs had increased recently; 38.8% (7/18) indicated that their local currency had been devalued against the US dollar; 47.1% (8/17) affirmed that the levels of unemployment had increased since the onset of global financial crisis; and 64.7% (11/17) indicated that the ministry of health had taken some measures already, either in reaction to the global financing crisis, or in anticipation. A rapid assessment, like the one reported in this article, of the

  9. An examination of contemporary financing practices and the global financial crisis on nonprofit multi-hospital health systems.

    Science.gov (United States)

    Stewart, Louis J; Smith, Pamela C

    2011-01-01

    This study examines the impact of the 2008 global financial crisis on large US nonprofit health systems. We proceed from an analysis of the contemporary capital financing practices of 25 of the nation's largest nonprofit hospitals and health systems. We find that these institutions relied on operating cash flows, public issues of insured variable rate debt, and accumulated investment to meet their capital financing needs. The combined use of these three financial instruments provided these organizations with $22.4 billion of long-term capital at favorable terms and the lowest interest rates. Our analysis further indicates that the extensive utilization of bond insurance, auction rate debt, and interest rate derivatives created significant risk exposures for these health systems. These risks were realized by the broader global financial crisis of 2008. Findings indicate these health systems incurred large losses from the early retirement of their variable rate debt. In addition, many organizations were forced to post nearly $1 billion of liquid collateral due to the falling values of their interest rate derivatives. Finally, the investment portfolios of these large nonprofit health systems suffered millions of dollars of unrealized capital losses, which may minimize their ability to finance future capital investment requirements.

  10. Global payment for health services as a solution in the financial crisis in Europe.

    Science.gov (United States)

    Schrijvers, Guus

    2012-10-01

    In these financial difficult years many European governments used global ceilings to control costs of health services. Two scenarios are thinkable. The first is that all individual providers get a budget for their own costs: general practitioners, specialists, hospitals, nursing homes and mental health institutes. The second scenario is to work with global budgets for health care providers servicing a total population. Scientists and policy makers in Europe, North America and Asia need time to design new payment systems based on the idea of global budgeting, bundled payment and shared savings.

  11. The global financial crisis has led to a slowdown in growth of funding to improve health in many developing countries.

    Science.gov (United States)

    Leach-Kemon, Katherine; Chou, David P; Schneider, Matthew T; Tardif, Annette; Dieleman, Joseph L; Brooks, Benjamin P C; Hanlon, Michael; Murray, Christopher J L

    2012-01-01

    How has funding to developing countries for health improvement changed in the wake of the global financial crisis? The question is vital for policy making, planning, and advocacy purposes in donor and recipient countries alike. We measured the total amount of financial and in-kind assistance that flowed from both public and private channels to improve health in developing countries during the period 1990-2011. The data for the years 1990-2009 reflect disbursements, while the numbers for 2010 and 2011 are preliminary estimates. Development assistance for health continued to grow in 2011, but the rate of growth was low. We estimate that assistance for health grew by 4 percent each year from 2009 to 2011, reaching a total of $27.73 billion. This growth was largely driven by the World Bank's International Bank for Reconstruction and Development and appeared to be a deliberate strategy in response to the global economic crisis. Assistance for health from bilateral agencies grew by only 4 percent, or $444.08 million, largely because the United States slowed its development assistance for health. Health funding through UN agencies stagnated, and the Global Fund to Fight AIDS, Tuberculosis, and Malaria announced that it would make no new grants for the next two years because of declines in funding. Given the international community's focus on meeting the Millennium Development Goals by 2015 and persistent economic hardship in donor countries, continued measurement of development assistance for health is essential for policy making.

  12. Adopting the euro: Romanian perspectives in the context of the global financial crisis

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    Oros, A.

    2013-06-01

    Full Text Available The objective of this paper is to examine Romania’s capacity to fulfil the nominal convergence criteria in the current context, in order to follow the calendar proposed for euro adoption in 2015. The paper analyzed the evolution of all five criteria under the impact of the current financial crisis and also looked at the forecast provided by national and international authorities. The study was conducted considering the relative situation with the euro area. The main finding is that the actual target for euro adoption could be complied with, provided further progress is made. We have also fond that the target should be achieved as it would represent a strong stimulus for the local government to implement additional measures to reduce public indebtedness and inflationary pressure.

  13. Marketing in current financial crisis

    OpenAIRE

    Mariánek, Lukáš

    2009-01-01

    The paper is describing the effects of recessions and current financial crisis on companies and their marketing. The topic covers the history of marketing throughout the world biggest recessions and describes the current marketing efforts of Czech companies under the current financial crisis. A strategical analysis with the impacts of crisis on long-term strategy planning is provided at the end of the paper.

  14. Effects of Financial Crises on the Long Memory Volatility Dependency of Foreign Exchange Rates: the Asian Crisis vs. the Global Crisis

    Directory of Open Access Journals (Sweden)

    Young Wook Han

    2014-03-01

    Full Text Available This paper examines the effects of financial crises on the long memory volatility dependency of daily exchange returns focusing on the Asian crisis in 97-98 and the Global crisis in 08-09. By using the daily KRW-USD and JPY-USD exchange rates which have different trading regions and volumes, this paper first applies both the parametric FIGARCH model and the semi-parametric Local Whittle method to estimate the long memory volatility dependency of the daily returns and the temporally aggregated returns of the two exchange rates. Then it compares the effects of the two financial crises on the long memory volatility dependency of the daily returns. The estimation results reflect that the long memory volatility dependency of the KRW-USD is generally greater than that of the JPY-USD returns and the long memory dependency of the two returns appears to be invariant to temporal aggregation. And, the two financial crises appear to affect the volatility dynamics of all the returns by inducing greater long memory dependency in the volatility process of the exchange returns, but the degree of the effects of the two crises seems to be different on the exchange rates.

  15. Structural changes in the minimal spanning tree and the hierarchical network in the Korean stock market around the global financial crisis

    Science.gov (United States)

    Nobi, Ashadun; Maeng, Seong Eun; Ha, Gyeong Gyun; Lee, Jae Woo

    2015-04-01

    This paper considers stock prices in the Korean stock market during the 2008 global financial crisis by focusing on three time periods: before, during, and after the crisis. Complex networks are extracted from cross-correlation coefficients between the normalized logarithmic return of the stock price time series of firms. The minimal spanning trees (MSTs) and the hierarchical network (HN) are generated from cross-correlation coefficients. Before and after the crisis, securities firms are located at the center of the MST. During the crisis, however, the center of the MST changes to a firm in heavy industry and construction. During the crisis, the MST shrinks in comparison to that before and that after the crisis. This topological change in the MST during the crisis reflects a distinct effect of the global financial crisis. The cophenetic correlation coefficient increases during the crisis, indicating an increase in the hierarchical structure during in this period. When crisis hits the market, firms behave synchronously, and their correlations are higher than those during a normal period.

  16. Chapter 2: The Financial Crisis

    OpenAIRE

    Hans-Werner Sinn; John Hassler; Gilles Saint-Paul; Giancarlo Corsetti; Michael P. Devereux; Tim Jenkinson; Jan-Egbert Sturm; Xavier Vives

    2009-01-01

    The financial turmoil that originated in 2007 and developed into an unprecedented crisis battering financial and real markets is the latest manifestation, on a grand scale and with new attributes, of a welldefined pathology in the process of market liberalization and integration in the post-Bretton Woods era. At the root of the crisis lies a fundamental inconsistency between financial globalisation – the process of liberalization and deregulation driving the impressive growth of world finan...

  17. Impact of the global financial crisis on low birth weight in Portugal: a time-trend analysis.

    Science.gov (United States)

    Kana, Musa Abubakar; Correia, Sofia; Peleteiro, Barbara; Severo, Milton; Barros, Henrique

    2017-01-01

    The 2007-2008 global financial crisis had adverse consequences on population health of affected European countries. Few contemporary studies have studied its effect on perinatal indicators with long-lasting influence on adult health. Therefore, in this study, we investigated the impact of the 2007-2008 global financial crisis on low birth weight (LBW) in Portugal. Data on 2 045 155 singleton births of 1995-2014 were obtained from Statistics Portugal. Joinpoint regression analysis was performed to identify the years in which changes in LBW trends occurred, and to estimate the annual per cent changes (APC). LBW risk by time period expressed as prevalence ratios were computed using the Poisson regression. Contextual changes in sociodemographic and economic factors were provided by their trends. The joinpoint analysis identified 3 distinct periods (2 jointpoints) with different APC in LBW, corresponding to 1995-1999 (APC=4.4; 95% CI 3.2 to 5.6), 2000-2006 (APC=0.1; 95% CI -050 to 0.7) and 2007-2014 (APC=1.6; 95% CI 1.2 to 2.0). For non-Portuguese, it was, respectively, 1995-1999 (APC=1.4; 95% CI -3.9 to 7.0%), 2000-2007 (APC=-4.2; 95% CI -6.4 to -2.0) and 2008-2014 (APC=3.1; 95% CI 0.8 to 5.5). Compared with 1995-1999, all specific maternal characteristics had a 10-15% increase in LBW risk in 2000-2006 and a 20-25% increase in 2007-2014, except among migrants, for which LBW risk remained lower than in 1995-1999 but increased after the crisis. The increasing LBW risk coincides with a deceleration in gross domestic product growth rate, reduction in health expenditure, social protection allocation on family/children support and sickness. The 2007-2008 global financial crisis was associated with a significant increase in LBW, particularly among infants of non-Portuguese mothers. We recommend strengthening social policies aimed at maternity protection for vulnerable mothers and health system maintenance of social equity in perinatal healthcare.

  18. Leading the Way to the Third Industrial Revolution. Addressing the Triple Threat of the Global Financial Crisis, Energy Crisis, and Climate Change

    International Nuclear Information System (INIS)

    Rifkin, J.; Da Graca Carvalho, M.; Consoli, A.; Bonifacio, M.

    2008-01-01

    We are at a precarious point in history. We are facing the real prospect of an economic meltdown on the scale of the Great Depression. The credit crisis is compounded by the global energy crisis and the climate change crisis, creating a potential cataclysm for civilization. There is a way out: we need to radically overhaul the way we use energy in our society

  19. Leading the Way to the Third Industrial Revolution. Addressing the Triple Threat of the Global Financial Crisis, Energy Crisis, and Climate Change

    Energy Technology Data Exchange (ETDEWEB)

    Rifkin, J.; Da Graca Carvalho, M.; Consoli, A.; Bonifacio, M.

    2008-12-15

    We are at a precarious point in history. We are facing the real prospect of an economic meltdown on the scale of the Great Depression. The credit crisis is compounded by the global energy crisis and the climate change crisis, creating a potential cataclysm for civilization. There is a way out: we need to radically overhaul the way we use energy in our society.

  20. Global financial crisis making a V-shaped fluctuation in NO2 pollution over the Yangtze River Delta

    Science.gov (United States)

    Du, Yin; Xie, Zhiqing

    2017-04-01

    The Yangtze River Delta (YRD), China's main cultural and economic center, has become one of the most seriously polluted areas in the world with respect to nitrogen oxides (NOx), owing to its rapid industrialization and urbanization, as well as substantial coal consumption. On the basis of nitrogen dioxide (NO2) density data from ozone monitoring instrument (OMI) and ground-based observations, the effects of industrial fluctuations due to the financial crisis on local NO2 pollution were quantitatively assessed. The results were as follows. (1) A distinct V-shaped fluctuation of major industrial products, thermal generating capacity, electricity consumption, and tropospheric NO2 densities was associated with the global financial crisis from May 2007 to December 2009, with the largest anomalies 1.5 times more than standard deviations at the height of the crisis period from November 2008 to February 2009. (2) Among all industrial sectors, thermal power plants were mainly responsible for fluctuations in local NO2 pollution during the crisis period. Thermal generating capacity had its greatest decrease of 12.10% at the height of the crisis compared with that during November 2007-February 2008, leading to local tropospheric NO2 density decreasing by 16.97%. As the crisis appeased, thermal generating capacity increased by 29.63% from November 2009 to February 2010, and tropospheric NO2 densities correspondingly increased by 30.07%. (3) Among all industrial sectors in the YRD, the thermal power sector has the greatest coal consumption of about 65.96%. A decline in thermal power of about 10% can induce a decrease of about 30% in NOx emissions and NO2 densities, meaning that a relative small fluctuation in industrial production can lead to a large decrease in tropospheric NO2 densities over industrially developed areas like the YRD region. Since electricity is mainly obtained from local coal-burning thermal plants without NOx-processing equipment, installing NOx

  1. Global health and national borders: the ethics of foreign aid in a time of financial crisis.

    Science.gov (United States)

    Johri, Mira; Chung, Ryoa; Dawson, Angus; Schrecker, Ted

    2012-06-28

    The governments and citizens of the developed nations are increasingly called upon to contribute financially to health initiatives outside their borders. Although international development assistance for health has grown rapidly over the last two decades, austerity measures related to the 2008 and 2011 global financial crises may impact negatively on aid expenditures. The competition between national priorities and foreign aid commitments raises important ethical questions for donor nations. This paper aims to foster individual reflection and public debate on donor responsibilities for global health. We undertook a critical review of contemporary accounts of justice. We selected theories that: (i) articulate important and widely held moral intuitions; (ii) have had extensive impact on debates about global justice; (iii) represent diverse approaches to moral reasoning; and (iv) present distinct stances on the normative importance of national borders. Due to space limitations we limit the discussion to four frameworks. Consequentialist, relational, human rights, and social contract approaches were considered. Responsibilities to provide international assistance were seen as significant by all four theories and place limits on the scope of acceptable national autonomy. Among the range of potential aid foci, interventions for health enjoyed consistent prominence. The four theories concur that there are important ethical responsibilities to support initiatives to improve the health of the worst off worldwide, but offer different rationales for intervention and suggest different implicit limits on responsibilities. Despite significant theoretical disagreements, four influential accounts of justice offer important reasons to support many current initiatives to promote global health. Ethical argumentation can complement pragmatic reasons to support global health interventions and provide an important foundation to strengthen collective action.

  2. Global health and national borders: the ethics of foreign aid in a time of financial crisis

    Directory of Open Access Journals (Sweden)

    Johri Mira

    2012-06-01

    Full Text Available Abstract Background The governments and citizens of the developed nations are increasingly called upon to contribute financially to health initiatives outside their borders. Although international development assistance for health has grown rapidly over the last two decades, austerity measures related to the 2008 and 2011 global financial crises may impact negatively on aid expenditures. The competition between national priorities and foreign aid commitments raises important ethical questions for donor nations. This paper aims to foster individual reflection and public debate on donor responsibilities for global health. Methods We undertook a critical review of contemporary accounts of justice. We selected theories that: (i articulate important and widely held moral intuitions; (ii have had extensive impact on debates about global justice; (iii represent diverse approaches to moral reasoning; and (iv present distinct stances on the normative importance of national borders. Due to space limitations we limit the discussion to four frameworks. Results Consequentialist, relational, human rights, and social contract approaches were considered. Responsibilities to provide international assistance were seen as significant by all four theories and place limits on the scope of acceptable national autonomy. Among the range of potential aid foci, interventions for health enjoyed consistent prominence. The four theories concur that there are important ethical responsibilities to support initiatives to improve the health of the worst off worldwide, but offer different rationales for intervention and suggest different implicit limits on responsibilities. Conclusions Despite significant theoretical disagreements, four influential accounts of justice offer important reasons to support many current initiatives to promote global health. Ethical argumentation can complement pragmatic reasons to support global health interventions and provide an important

  3. The Ideology of New Public Management, Associational Representation and the Global Financial Crisis

    Directory of Open Access Journals (Sweden)

    Carlo Ruzza

    2014-11-01

    Full Text Available This paper argues that the 2008 financial crisis accelerated a set of long-term dynamics which in turn have undermined two dominant models of state-society relations. On the one hand, the paper examines how the concept of social citizenship is based on a vision of state-society relations, which in recent years has been oriented by a philosophy of marketization of the state and of the relation between citizens and the state. On the other hand, it discusses an emerging emphasis on the role of organised civil society as a different and competing approach to state-society relations. Discussion will centre on how the interactions between these two ideologies and the related practices have impacted on conceptions of the modern state. Among the factors that affect this interaction are the impact of migration, the erosion of welfare states, and the redefined character of social vulnerability which now affect new groups of individuals. The paper considers all these changes as background phenomena which impact on relations between state and society in several ways, but particularly in terms of the meaning of social citizenship

  4. The International Monetary Fund's effects on global health: before and after the 2008 financial crisis.

    Science.gov (United States)

    Stuckler, David; Basu, Sanjay

    2009-01-01

    In April 2009, the G20 countries committed US $750 billion to the International Monetary Fund (IMF), which has assumed a central role in global economic management. The IMF provides loans to financially ailing countries, but with strict conditions, typically involving a mix of privatization, liberalization, and fiscal austerity programs. These loan conditions have been extremely controversial. In principle, they are designed to help countries balance their books. In practice, they often translate into reductions in social spending, including spending on public health and health care delivery. As more countries are being exposed to IMF policies, there is a need to establish what we know and do not know about the IMF's effects on global health. This article introduces a series in which contributors review the evidence on the relationship between the IMF and public health and discuss potential ways to improve the Fund's effects on health. While more evidence is needed for some regions, there is sufficient evidence to indicate that IMF programs have been significantly associated with weakened health care systems, reduced effectiveness of health-focused development aid, and impeded efforts to control tobacco, infectious diseases, and child and maternal mortality. Reforms are urgently needed to prevent the current wave of IMF programs from further undermining public health in financially ailing countries and limiting progress toward the health Millennium Development Goals.

  5. Occupational class differences in suicide: evidence of changes over time and during the global financial crisis in Australia.

    Science.gov (United States)

    Milner, Alison J; Niven, Heather; LaMontagne, Anthony D

    2015-09-21

    Previous research showed an increase in Australian suicide rates during the Global Financial Crisis (GFC). There has been no research investigating whether suicide rates by occupational class changed during the GFC. The aim of this study was to investigate whether the GFC-associated increase in suicide rates in employed Australians may have masked changes by occupational class. Negative binomial regression models were used to investigate Rate Ratios (RRs) in suicide by occupational class. Years of the GFC (2007, 2008, 2009) were compared to the baseline years 2001-2006. There were widening disparities between a number of the lower class occupations and the highest class occupations during the years 2007, 2008, and 2009 for males, but less evidence of differences for females. Occupational disparities in suicide rates widened over the GFC period. There is a need for programs to be responsive to economic downturns, and to prioritise the occupational groups most affected.

  6. THE 2000-2001 FINANCIAL CRISIS IN TURKEY AND THE GLOBAL ECONOMIC CRISIS OF 2008-2009: REASONS AND COMPARISONS

    Directory of Open Access Journals (Sweden)

    Dilek TEMİZ

    2009-01-01

    Full Text Available The economic crisis of 2000-2001 was proved to be demolishing for Turkey after the abundance of currency peg in the same year. The crisis in question stemmed from insufficient implementation of regulations, inadequate depth of the capital markets, lack of assessment of risk, excessive lending to incorporated institutions by national banks, restricted interest rates, monitored foreign exchange operations, limited foreign asset holding, lack of competition, barriers to foreign entry high liquidity, chronic inflation and a deficit in balance of payments. However, the crisis that Turkey was subject to in 2008-2009 was quite different than the previous ones as to be a result of world matters. The sparking effect begun in the USA at the mortgage market, the fail of the mortgage market negatively influenced the capital, stock and derivative markets and spread the world. Thus, this study aims to analyze and reveal the reflections of the 2000-2001 and 2008-2009 crises and their comparison with regards to Turkey on theoretical basis resting on numerous comprehensive and credible national and international publications.

  7. Analysing correlations after the financial crisis of 2008 and ...

    Indian Academy of Sciences (India)

    2015-02-06

    Feb 6, 2015 ... It deals with the statistics of eigen- values and ... 2008 is the worst financial crisis since the great depression of 1930s. The global financial .... The positive components (Egypt, India, Indonesia, Malaysia, South Korea,. Taiwan ...

  8. The financial crisis and securitization

    Directory of Open Access Journals (Sweden)

    Ewa Szabłowska

    2010-06-01

    Full Text Available Securitization means the change of non-liquid assets into securities. This topic has become more popular, mainly due to the U.S. subprime mortgage crisis. In this article, an analysis is given of the current situation in financial markets and the changes, which were implemented from the first days of subprime crisis. Also mentioned is the impact the crisis has had on securitization development. Part of the article is devoted to the situation on the Polish financial market. It is quite a new market and it is susceptible to such crises. The Article presents the part played by securitization in the Polish financial market and the circumstances for its growth in the near future. It also covers the latest information related to financial market regulations, which could have direct or indirect impact on the quantity and value of securitization transactions.

  9. The use of a surveillance system to measure changes in mental health in Australian adults during the global financial crisis.

    Science.gov (United States)

    Shi, Zumin; Taylor, Anne W; Goldney, Robert; Winefield, Helen; Gill, Tiffany K; Tuckerman, Jane; Wittert, Gary

    2011-08-01

    This study aimed to describe trends in a range of mental health indicators in South Australia where a surveillance system has been in operation since July 2002 and assess the impact of the global financial crisis (GFC). Data were collected using a risk factor surveillance system. Participants, aged 16 years and above, were asked about doctor-diagnosed anxiety, stress or depression, suicidal ideation, psychological distress (PD), demographic and socioeconomic factors using Computer-Assisted Telephone Interviewing (CATI). Overall, there was a decreasing trend in the prevalence of PD between 2002 and 2009. Stress has decreased since 2004 although anxiety has increased. Comparing 2008 or 2009 (the economic crisis period) with 2005 or 2007, there was significant increase in anxiety for part-time workers but a decrease for full-time workers. There were significant differences for stress by various demographic variables. The overall prevalence of mental health conditions has not increased during the GFC. Some subgroups in the population have been disproportionately impacted by changes in mental health status. The use of a surveillance system enables rapid and specifically targeted public health and policy responses to socioeconomic and environmental stressors, and the evaluation of outcomes.

  10. The global financial crisis and psychological health in a sample of Australian older adults: a longitudinal study.

    Science.gov (United States)

    Sargent-Cox, Kerry; Butterworth, Peter; Anstey, Kaarin J

    2011-10-01

    Economic stress and uncertainty is argued to increase older adults' vulnerability to physical health decline and mental distress. Nevertheless, there is a paucity of research that examines the relationship between a large historical economic event, such as the recent global financial crisis (GFC), and health outcomes for older adults. This study provides a unique opportunity to compare self-reported health status and psychological functioning (number of depression and anxiety symptoms) in 1973 older Australian adults (mean age of 66.58 years (SD = 1.5)) prior to the GFC (2005-2006), with their status four years later during the GFC period (2009-2010). Latent difference score models revealed a significant difference in depression and anxiety symptoms over the two measurement occasions, indicating poorer psychological functioning for those who reported an impact as a result of the economic slowdown. These effects were not explained by demographic or socio-economic factors. Interaction effects showed that those participants who were surveyed within the acute salience period of the GFC (April to September 2009) were significantly less likely to report poorer psychological health over time compared to those who were surveyed after September 2009. This interesting timing effect is discussed in terms of potential time-lags in the negative effects of economic stress on health outcomes, as well as the possible protective effects of social norms that may be created by a large scale economic crisis. Copyright © 2011 Elsevier Ltd. All rights reserved.

  11. Derivative Securities and Financial Crisis in Romania

    OpenAIRE

    Gogoncea Ramona

    2012-01-01

    This paper aims to investigate the impact of the global financial crisis on the young Romanian market of derivative securities. It also describes the recent developments within Romanian capital market, in general, with focus on innovation in the field of derivative products.

  12. FINANCIAL DERIVATIVES - MEANINGS BEYOND SUBPRIME CRISIS STIGMA

    Directory of Open Access Journals (Sweden)

    FELICIA RAMONA BIRĂU

    2012-12-01

    Full Text Available Derivatives are designed as complex financial instruments and their main aim is to manage the risk associated with the underlying asset, in order to ensure against fluctuations in value, or to profit from periods of inactivity, instability or decline. In recent years financial derivatives have experienced a fulminant development and also they have been perceived as an effective lever of the modern economy. The subprime crisis was triggered by a quite significant financial infrastructure glitch, which coalesced around certain factors influence, such as : highly permissive regulation of financial markets, speculative bubbles, underperforming risk management, liquidity injections and structural imbalances. Despite the fact that is a innovative segment and quite difficult affordable as understanding level of the operation mechanisms, financial derivatives were only the tool triggering this global dimension crisis.

  13. Restructuring of manufacture under global financial and economic crisis: The case of Estonia

    Directory of Open Access Journals (Sweden)

    Kilvits Kaarel

    2014-01-01

    Full Text Available It was not possible for Estonia only by raising the technological level of enterprises and increasing so-called technical productivity to catch up in terms of productivity with the developed industrial countries. The structure of Estonian manufacture was out-of-date and required cardinal and fast changes toward greater value added. Every time a crisis hits, it brings about new breakthroughs in science and technology; promotes fundamental changes that take place in a relatively short period of time; gives birth to new industries; forms new growth points in the economy. The crisis has had a far-reaching impact on the world economy and has brought challenges and opportunities to all countries and all fields. In addition to big difficulties, the crisis provided for Estonian manufacture also an exceptionally good chance for change and development. The crisis had a purifying and disciplining effect, enabled to eliminate from the manufacture wrong investments and inefficient enterprises. Assets were redistributed from passive economic agents to active ones and in favour of those who had capital for growth financing. After the crisis the structure of Estonian manufacturing is more effective than before: 1 technological level higher; 2 organization of work more perfect; 3 value added and productivity higher; 4 position of value chain better; 5 maybe also the value chain itself new and better. But there are fewer jobs in the new structure of manufacturing than before the crisis. Economic, social, regional etc. stratification has increased. The influence of crisis is not over yet and there is still a risk of some setback in future. There may also arise new problems and old problems may grow sharper.

  14. Performance of Socially Responsible Stocks Portfolios – The Impact of Global Financial Crisis

    Directory of Open Access Journals (Sweden)

    Vanita Tripathi

    2016-01-01

    Full Text Available For the effective and better implementation of CSR law, development of SRI market in the investment world is essential. Unless the investors turn socially responsible, CSR principles cannot be enforced in practice. This paper examines whether the companies that are socially responsible are performing better than general companies in terms of risk, return and various risk-adjusted measures during pre-crisis, crisis and post-crisis periods. We find that despite having higher risk, socially responsible stocks portfolios generated significantly higher returns and hence outperformed other portfolios on the basis of all risk-adjusted measures, as well as net selectivity returns during crisis period. The results uphold even with the use of Fama-French three factor model for estimating excess returns. Besides augmenting existing literature, our results clearly corroborate the fact that investors can derive benefits by investing in socially responsible companies (especially in crisis period. The study supports the view that socially responsible products can be used as a safe investment vehicle by investors during adversity. Therefore, regulators, policy makers and mutual funds should construct and make available various socially responsible investment products to initiate the movement of socially responsible investing in India.

  15. PERFORMANCE OF ISLAMIC UNIT TRUSTS DURING THE 2007 GLOBAL FINANCIAL CRISIS: EVIDENCE FROM MALAYSIA

    Directory of Open Access Journals (Sweden)

    Salina H. Kassim

    2012-01-01

    Full Text Available By focusing on the Malaysian Islamic unit trusts over the period of January 2000 to December 2009, this study attempts to analyse the performance of the Islamic unit trusts in various economic conditions; during a crisis period and non-crisis period. The adjusted Sharpe index, adjusted Jensen Alpha index, and Treynor index are adopted to compare the performance of the Islamic unit trusts against the market benchmark and risk-free return. In measuring risk and diversification, the study relies on the standard deviation and R2 coefficient of determination, respectively. The findings reveal that during the non-crisis period, the performance of the Islamic unit trusts is comparable to that of the market benchmark, while during the crisis period, the Islamic unit trusts perform better compared to the non-crisis period. These findings suggests that the Islamic unit trust funds can be an ideal hedging instrument during a down market and provide potential portfolio diversification benefits for the investors. Based on these findings, the investors could strategize and diversify their portfolio accordingly during different market conditions.

  16. Global economic and financial crisis: Exploring the transmission channels and impacts on sub-saharan african economies

    Directory of Open Access Journals (Sweden)

    Sin-Yu Ho

    2016-12-01

    Full Text Available Over the past decade sub-Saharan African countries have made remarkable gains in promoting growth alongside economic stability. However, with the outbreak of the financial and economic crisis in advanced economies, will these hard-won economic gains in the region be threatened? In this paper, we seek to provide an overview of how sub-Saharan African countries are exposed to the crisis through both financial and real transmission channels, and to critically assess the impact of the crisis on different economies. To accomplish this task, we first provide an overview of the recent economic development of sub-Saharan African countries, and a brief discussion of the sources and the development of the crisis. We then proceed to explore the direct financial transmission channels of the crisis and their impacts on sub-Saharan African countries. In addition, we explore the indirect real transmission channels of the crisis and how the sub-Saharan African economies are impacted by them. Thereafter, we identify a couple of policy implications

  17. African Exporting Firms in the Turmoil of the Global Financial Crisis

    African Journals Online (AJOL)

    verena

    on trade, foreign investment, and remittances to meet economic growth and social needs. Most studies have focused on the collapse in primary commodity exports as the main effect of the crisis on African countries. ... production towards Africa, mainly at the expense of Latin ... weak economic structure, close integration into.

  18. Implications of the global financial crisis for the response to diseases of poverty within overall health sector development: the case of tuberculosis.

    Science.gov (United States)

    Maher, Dermot

    2010-01-01

    The global financial crisis poses a threat to global health, and may exacerbate diseases of poverty, e.g. HIV, malaria and tuberculosis. Exploring the implications of the global financial crisis for the health sector response to tuberculosis is useful to illustrate the practical problems and propose possible solutions. The response to tuberculosis is considered in the context of health sector development. Problems and solutions are considered in five key areas: financing, prioritization, government regulation, integration and decentralization. Securing health gains in global tuberculosis control depends on protecting expenditure by governments of countries badly affected by tuberculosis and by donors, taking measures to increase efficiencies, prioritizing health expenditures and strengthening government regulation. Lessons learned will be valuable for stakeholders involved in the health sector response to tuberculosis and other diseases of poverty.

  19. An empirical study of the role of the corporate HR function in global talent management in professional and financial service firms in the global financial crisis

    NARCIS (Netherlands)

    Sparrow, P.; Farndale, E.; Scullion, H.

    2013-01-01

    This study presents an empirical exploration of a theory-driven framework of corporate human resource (CHR) roles in global talent management (GTM). Specifically, it expands our knowledge of the process of GTM in two sectors: financial and professional services. Based on in-depth interview data from

  20. Financial crisis and crisis management in Sweden: Lessons for today

    OpenAIRE

    Jonung, Lars

    2009-01-01

    This paper gives an account of the Swedish financial crisis covering the period 1985-2000, dealing with financial deregulation and the boom in the late 1980s, the bust and the financial crisis in the early 1990s, the recovery from the crisis and the bank resolution policy adopted during the crisis. The paper focuses on three issues: the causes and consequences of the financial crisis, the policy response concerning bank resolution, and the applicability of the Swedish model of bank crisis man...

  1. Iceland's Financial Crisis

    National Research Council Canada - National Science Library

    Jackson, James K

    2008-01-01

    .... The collapse of the banks also raises questions for U.S. leaders and others about supervising banks that operate across national borders, especially as it becomes increasingly difficult to distinguish the limits of domestic financial markets...

  2. Miraculous financial engineering or toxic finance? The genesis of the U.S. subprime mortgage loans crisis and its consequences on the global financial markets and real economy

    Directory of Open Access Journals (Sweden)

    Ivo Pezzuto

    2012-09-01

    around the world, transferring to these investors the rights to the mortgage payments and the related credit risk. With the collapse of the first banks and hedge funds in 2007 the rising number of foreclosures helped speed the fall of housing prices, and the number of prime mortgages in default began to increase. As many CDO products were held on a “mark to market” basis, the paralysis in the credit markets and the collapse of liquidity in these products let to the dramatic write-downs in 2007. When stock markets in the United States, Europe and Asia continued to plunge, leading central banks took the drastic step of a coordinated cut in interest rates and Governments coordinated actions that included taking equity stakes in major banks. This paper written by the Author (on October 7th, 2008 at the rise of these dramatic events, aims to demonstrate, through solid and fact-based assumptions, that this dramatic global financial crisis could have been addressed and managed earlier and better by many of the stakeholders involved in the subprime mortgage lending process such as, banks’ and investment funds management, rating agencies, banking and financial markets supervisory authorities. It also unfortunately demonstrates the corporate social responsibility failure and the moral hazard of many key players involved in this crisis, since a lot of them probably knew quite well what was happening but have preferred not to do anything or to do little and late in order to change the dramatic course of the events.

  3. VAR—ANALYSIS OF GLOBAL FINANCIAL ECONOMIC CRISIS IMPACT ON PUBLIC BUDGET AND UNEMPLOYMENT: EVIDENCE FROM THE ECONOMY OF THE KYRGYZ REPUBLIC

    Directory of Open Access Journals (Sweden)

    Nargiza Bakytovna Alymkulova

    2016-12-01

    Full Text Available The Global financial crisis hit the economy of the Kyrgyz Republic by the third wave of its transmission in the early of 2009. The article examines the impact of the Global financial economic crisis on the public budget and unemployment of the Kyrgyz Republic. We analyzed the transmission of the crisis on the public budget firstly and its effect on unemployment level by using the vector autoregression approach (VAR and quarterly data for 2005–2013 within the framework of IS-LM model for small open economies with floating exchange rate. There is an inverse relationship between the public budget and remittances inflow, liquidity level, volume of deposits, and exchange rate. As a result of the study, the fall in remittances inflows, liquidity level of the banking system, depreciation of the national currency lead to an increase in public revenue. Therefore, the increase in public spending during the crisis period, with the aim of unemployment reduction, may be considered as a crucial policy. The study result allows to policy-makers to exactly know what channels of transmission mechanism transfer the Global crisis on the public budget and its effect on unemployment level of the republic in order to undertake anticrisis macroeconomic policy. The final result of the study indicates that the increase of unemployment level by 1 % requires the increase of public spending by 0.63 %.

  4. Global financial crisis and its impact in the countries in transition – with special emphasis in Kosovo

    Directory of Open Access Journals (Sweden)

    Halil Kukaj

    2017-07-01

    Full Text Available Financial crises are characterized as phenomena that have been recorded for a long time. These phenomena are considered as bad events because they are associated with a deep decline in economic activity, and many of them are considered to happen due to the lack of central banks, lack of a strong currency or the lack of a steady banking system (reduction of money supply and narrowing of loans. The first financial crisis of the modern world related to the real existence of the market and its own capitalism as the system emerged in 1636 in the Netherlands, known as the tulip crisis, a flower symbolizing the Netherlands. Later, during the period of the first industrial revolution in England and France, dozens of crises emerged. While in the US, the first industrial crisis emerged in 1819, followed by many to the Great Depression crises of 1929-1933. According to the researchers, all these crises have occurred for the same cause: financial speculation is neglected in order to benefit as much as possible. From such a fact, one can think that crises and monetary illusions are an inevitable fatality. They have been co-drivers of development and capitalism, so it does not seem strange that most of the books and studies determined to financial crises end with the question: What is the next crisis???

  5. Is Greed Still Good? Was It Ever? Exploring the Emoscapes of the Global Financial Crisis

    Science.gov (United States)

    Kenway, Jane; Fahey, Johannah

    2010-01-01

    We seek to contribute to political and policy analyses of globalisation by attending to global flows of emotions and by developing the concept global emoscapes. In so doing we build on Arjun Appadurai's theorisation of the disjunctive scapes of the global cultural economy. As a way of illustrating the benefits of our approach, we deploy it to…

  6. Unpacking the Global Crisis

    DEFF Research Database (Denmark)

    Juego, Bonn; Schmidt, Johannes Dragsbæk

    The paper hopes to contribute to a reading of the political economy of the current global crisis with a focus on four interrelated themes. First, we discuss the constitutive role and functional character of crises in the evolution of neo-liberalism in particular and in capitalist reproduction...... opposing crisis responses—from multilaterals to regional organisations to global civil society—and realise that responses from either pro-neoliberal or anti-neoliberal forces are fundamentally the same through the years, simply re-articulating analyses and programmes that they have respectively...... pursued and advocated long before the global crisis. And fourth, in the context of East and Southeast Asia, we examine the tendencies of the global crisis vis-à-vis the strengthening and even acceleration of emergent authoritarian liberalism in the region despite and because of the global crisis....

  7. Financial crisis and global imbalances: its labour market origins and the aftermath

    OpenAIRE

    Pasquale Tridico

    2012-01-01

    The objective of this paper is to articulate how the 2007--09 economic crisis is rooted in the uneven income distribution and inequality caused by the current finance-led model of growth. The process of financialisation that took place in the 1980s in the USA and then in the European Union was coupled with labour flexibility, wage moderation and soaring profits. The flexibility agenda of the labour market and the end of wage increases, along with the contraction of indirect wages (i.e. public...

  8. Factors Influencing the Profitability of Listed Indonesian Commercial Banks Before and During Financial Global Crisis

    Directory of Open Access Journals (Sweden)

    Menur Agustini

    2012-01-01

    Full Text Available  As a country with bank-based economy, stability and soundness of its banking industry are cru-cial matters for Indonesia especially in dealing with the crisis period, such as financial global crisis which occurred in 2008. Considering the crucial impact of the crisis, this study aims to examine de-terminants of bank profitability (as the measurement of stability and soundness of banking industry before and during the crisis period. Using the Generalized Method of Moment (GMM, this study analyzes the profitability of listed commercial banks using unbalanced panel data over the period of 2002-2009. To investigate the impact of recent financial global crisis, this study uses time dummy variable to separate the pre-crisis period (2002-2006 and during the crisis period (2007-2009. Findings of this study show that in the pre-crisis period, bank-specific factors i.e. lagged profitability, bank size, bank capitalization, and diversification and external factors which are inflation and stock market-based financial development statistically and significantly affect bank's profitability. Further-more, the crisis is proven to have significant impact on the effect of inflation and stock market-based financial development toward bank profitability. Whereas, through the general model which is not separate the pre and during crisis periods, this study shows that bank-specific factors such as lagged profitability, bank size, and bank capitalization are proven to have significant effects on bank profit-ability while external factors that also have effects are bank-based financial development and bank concentration. ";} // -->activate javascript

  9. After the Fall: Educational Contracting in the USA and the Global Financial Crisis

    Science.gov (United States)

    Burch, Patricia

    2010-01-01

    Key legislative objectives for the US Federal educational policy over the past several decades relied heavily on quasi-market strategies (such as school rating, school closure, the contracting out of schools) as central levers in "reforming" public schools. Using financial data on 11 national for-profit firms contracting with schools and…

  10. Export Trade Performance of Indian Economy during and Following the Global Financial Crisis

    OpenAIRE

    Dr. Sumanjeet Singh

    2011-01-01

    Towards the end of 2008 the effects of global recession started getting reflectedin international trade. The fall in global demand and the slowing-down ineconomic growth translated into a substantial reduction in internationaltrade. It affected the cross-border trade of virtually all countries and economicsectors. Indian exports trade could not remain unaffected in a situation whereexternal demand was dwindling globally. The present paper reviews India’sexport performance during and following...

  11. Brazilian exchange rate complexity: Financial crisis effects

    Science.gov (United States)

    Piqueira, José Roberto C.; Mortoza, Letícia Pelluci D.

    2012-04-01

    With the financial market globalization, foreign investments became vital for the economies, mainly in emerging countries. In the last decades, Brazilian exchange rates appeared as a good indicator to measure either investors' confidence or risk aversion. Here, some events of global or national financial crisis are analyzed, trying to understand how they influenced the "dollar-real" rate evolution. The theoretical tool to be used is the López-Mancini-Calbet (LMC) complexity measure that, applied to real exchange rate data, has shown good fitness between critical events and measured patterns.

  12. A Quantitative Approach Regarding the Evolution of the Romanian Tourism Firms, During and After the Global Financial Crisis

    Directory of Open Access Journals (Sweden)

    Vasile Alecsandru Strat

    2016-11-01

    Full Text Available The main goal of this research paper is to provide a quantitative assessment of the Romanian tourism industry (hotels and restaurants from a county level perspective, in the specific context of the global financial recession and in the post -recession one. The evolution of the field is analyzed for the period 2008-2014 using county level data sourced from the National Institute of Statistics and from the Office of the Trade Register. The evolution of the main characteristics of the field: number of companies, number of employees, total turnover of the companies from the field and number of newly established companies, suggest the existence of significant disparities at the county level. The research reveals the fact that the total number of employees from the field (companies which have sent the final year documentation to the MPF has decreased during the analyzed period with over 20%, fact that is a clear indicator of the magnitude of the effects of the crisis. The analysis of the disparities has revealed that Bucharest which is the most important concentration pole in this field, accounting for almost 11% from the total number of companies in 2008, has diminished its importance to little under 8.7%, in 2014. Using panel data regression we have identified some of the main characteristics of the Romanian counties that can be considered as indicators of the development perspectives of the tourism (hotels and restaurants at county level (NUTS 3.

  13. Effective Comparison of Global Financial Crisis (2007 on Inflation of OPEC Countries and Selected Countries of G8

    Directory of Open Access Journals (Sweden)

    Yazdan Naghdi

    2013-09-01

    Full Text Available This study has attempted to examine and compare the effects of 2007 financial crisis on inflation in OPEC countries and selected countries of G8, based on a panel data regression model during 2000-2010. It should be noted that the selected countries of G8 group are 5 industrial countries member of this group, including: America, Italy, Britain, France and Japan, that crisis has been seen faster in them than other countries. Growth economic variables (real sector of the economy, oil price and stock price index (i.e. financial market have been considered as affected shared variables of the financial crisis in both countries group. According to the obtained results, the only affected variable by the crisis in OPEC countries, is oil price which has positive and significant effect on inflation in the above mentioned countries so that one percent increase in oil price lead to about 0.08 percent increase on inflation, on the other hand, according to survey results there is no relationship between output and inflation in OPEC countries, so it reflects weak manufacturing structure sector (real sector of the economy in these countries

  14. The Global Financial Crisis: Increasing IMF Resources and the Role of Congress

    Science.gov (United States)

    2009-06-05

    may borrow on concessional repayment terms from the Poverty Reduction and Growth Facility ( PRGF ) and the Exogenous Shocks Facility (ESF). To qualify...Association (IDA). Most borrowers have per capita income levels of about $865 a year. PRGF loans are intended to help low-income countries surmount BOP...or financial crises. Unlike SBA and other loans, however, conditionality for PRGF loans is based more on the economic strategies outlined in Poverty

  15. Policing the Global Crisis

    Directory of Open Access Journals (Sweden)

    William I. Robinson

    2015-08-01

    Full Text Available As part of my research for a book manuscript on the crisis of global capitalism I recently finished writing (Robinson forthcoming, I decided to re-read the classic 1978 study conducted by the noted socialist and cultural theorist Stuart Hall and several of his colleagues, Policing the Crisis. The authors show in that book how the restructuring of capitalism as a response to the crisis of the 1970s - which was the last major crisis of world capitalism until the current one hit in 2008 -led in the United Kingdom and elsewhere to an "exceptional state," by which they meant a situation in which there was an ongoing breakdown of consensual mechanisms of social control and a growing authoritarianism.

  16. NEW INTERNATIONAL FINANCIAL REGULATION: NECESSITY OR REQUIRED BY CRISIS

    Directory of Open Access Journals (Sweden)

    Cojocari Anatol

    2010-07-01

    Full Text Available The global economic and financial crisis showed the limits faced by the international financial system. International financial regulations in general, and especially the banking sector regulations, should be refined and adapted to build a stronger and stable international financial system. We analyze the main trends in international regulations: the proposed amendments on capital requirements, the introduction of a global standard for liquidity and indebtedness, the winding-up directive, as well as their impact on the Romanian financial system.

  17. THE NEED TO IMPLEMENT BASED III IN THE AFTERMATH OF THE GLOBAL FINANCIAL CRISIS

    Directory of Open Access Journals (Sweden)

    Mădălina Antoaneta RĂDOI

    2016-06-01

    Full Text Available Prudential regulation has as ultimate objective securing protection of a bank's clients, shareholders and creditors by defining a sufficient level of bank capitalization. Given the particular importance of the banking sector's vital functions for any economy, the prudential regulations of the key components of the banking system become an essential condition for securing the economic and financial health of a country. Having become aware of the particular importance of a sound legal framework for the banking system, the international authorities have come up with proposals of improvement to the Basel II Agreement

  18. The global financial crisis: response of social workers to the financial capability of vulnerable households in South Africa

    Directory of Open Access Journals (Sweden)

    Lambert Karel Engelbrecht

    2011-05-01

    De huidige mondiale financiële crisis wordt gezien als een van de meest ernstige sinds de Tweede Wereldoorlog. Traditioneel houden sociaal werkers zich bezig met sociale risico’s, en de vraag rijst of zij voldoende zijn toegerust om de financiële zelfredzaamheid van kwetsbare huishoudens te vergroten of te ondersteunen. Deze vraag ligt ten grondslag aan dit artikel en wordt beantwoord door gebruik te maken van een actuele secundaire analyse van de Zuid-Afrikaanse situatie. De Zuid-Afrikaanse sociale ontwikkelingsfilosofie, het macrokader van het maatschappelijk welzijnsbeleid, heeft ten doel om de kwaliteiten van burgers, die bij kunnen dragen aan hun sociale en economische participatie, te versterken. De vertaling van dit doel in de praktijk van het sociaal werk is nochtans controversieel, aangezien onderzoek laat zien dat slechts een klein deel van de huishoudens erin slaagt onafhankelijk te worden van bijstand, en dat de financiële kwetsbaarheid en ontwikkelingsindex van het land een neergaande beweging maakt. Het artikel sluit af met de constatering dat zowel het stimuleren van financiële inclusie, als het faciliteren van sociale interventies op microniveau essentieel zijn om een zinvolle bijdrage te leveren aan de financiële kwaliteiten en zelfredzaamheid van kwetsbare huishoudens – een reactie die goed van een Zuid-Afrikaans scenario naar een moniale context kan worden vertaald.

  19. Hypermarket's adapting at the financial crisis conditions

    OpenAIRE

    Ion Gr. IONESCU

    2013-01-01

    The financial crisis is a global phenomenon that has marked the evolution of all economic sectors. The drastic change of the consumer behavior has led the trade companies to choose between two survival strategies: the product development strategy and the exit strategy.Carrefour company bases its strategy on five values deeply rooted in the consumer`s conscience: an aggressive pricing policy, based on discount; a range of 50000 items sold under the concept “everything under one roof”, quality,...

  20. The 2008 Financial Crisis and Taxation Policy

    OpenAIRE

    Thomas Hemmelgarn; Gaetan Nicodeme

    2010-01-01

    The 2008 financial crisis is the worst economic crisis since the Great Depression of 1929. It has been characterised by a housing bubble in a context of rapid credit expansion, high risk-taking and exacerbated financial leverage, ending into deleveraging and credit crunch when the bubble burst. This paper discusses the interactions between tax policy and the financial crisis. In particular, it reviews the existing evidence on the links between taxes and many characteristics of the crisis. Fin...

  1. Global financial crisis and its impact in the countries in transition – with special emphasis in Kosovo

    OpenAIRE

    Halil Kukaj; Anera Alishani

    2017-01-01

    Financial crises are characterized as phenomena that have been recorded for a long time. These phenomena are considered as bad events because they are associated with a deep decline in economic activity, and many of them are considered to happen due to the lack of central banks, lack of a strong currency or the lack of a steady banking system (reduction of money supply and narrowing of loans). The first financial crisis of the modern world related to the real existence of the market and its o...

  2. Global integration in times of crisis

    DEFF Research Database (Denmark)

    Jensen, Camilla

    shock) from other subsidiaries downstream in the value chain. While in a comparative perspective multinational subsidiaries are found to perform relatively better than local firms that are integrated differently (arms' length) in global production networks (e.g. offshoring outsourcing). This paper tries...... to reconcile these findings by testing a number of hypothesis about global integration strategies in the context of the global financial crisis and how it affected exporting among multinational subsidiaries operating out of Turkey. Controlling for the impact that depreciations and exchange rate volatility has...... integration strategies throughout the course of the global financial crisis....

  3. African Financial Sectors and the European Debt Crisis : Will Trouble Blow across the Sahara?

    OpenAIRE

    World Bank

    2012-01-01

    The exposure of African financial sectors to global risks, including the likely fall-out of the on-going European debt crisis, continues to be limited. African financial sectors have received much recognition for their steady growth performance and resilience during and after the 2008 global financial crisis. Many of the transmission channels for global risks and financial contagion to fin...

  4. IMPLICATIONS OF CROSS-BORDER MERGERS AND ACQUISITIONS IN THE POLISH BANKING SECTOR IN THE CONTEXT OF THE GLOBAL FINANCIAL CRISIS

    Directory of Open Access Journals (Sweden)

    ZBIGNIEW KORZEB

    2010-01-01

    Full Text Available The article presents the implications of the global financial crisis upon the Polish banking sector, formed under the influence of cross-border mergers and acquisitions. It illustrates the consequences of financial problems of foreign strategic shareholders in banks operating in Poland upon the stability of the entire banking system. It presents the proposed future directions of action to protect the stability of the banking system. It seems that in the case of a banking system as special as the Polish one, the key role will belong to the quality of the three main pillars of control over the work of banks: supervisory institutions, market discipline an corporate governance.

  5. High food prices and the global financial crisis have reduced access to nutritious food and worsened nutritional status and health.

    Science.gov (United States)

    Brinkman, Henk-Jan; de Pee, Saskia; Sanogo, Issa; Subran, Ludovic; Bloem, Martin W

    2010-01-01

    A global economic and financial crisis is engulfing the developing world, coming on top of high food and fuel prices. This paper assesses the impact of the crises on food consumption, nutrition, and health. Several methods were applied, including risk analysis using the cost of the food basket, assessment surveys, simulations, regression analysis using a food consumption score (FCS), reflecting diet frequency and diversity, and a review of the impact of such dietary changes on nutritional status and health. The cost of the food basket increased in several countries, forcing households to reduce quality and quantity of food consumed. The FCS, which is a measure of diet diversity, is negatively correlated with food prices. Simulations show that energy consumption declined during 2006-2010 in nearly all developing regions, resulting potentially in an additional 457 million people (of 4.5 billion) at risk of being hungry and many more unable to afford the dietary quality required to perform, develop, and grow well. As a result of the crises, large numbers of vulnerable households have reduced the quality and quantity of foods they consume and are at risk of increased malnutrition. Population groups most affected are those with the highest requirements, including young children, pregnant and lactating women, and the chronically ill (particularly people with HIV/AIDS and tuberculosis). Because undernutrition during the first 2 y of life has life-long consequences, even short-term price rises will have long-term effects. Thus, measures to mitigate the impact of the crises are urgently required.

  6. East Asian Financial Cycles: Asian vs. Global Financial Crises

    OpenAIRE

    Akira Kohsaka; Jun-ichi Shinkai

    2014-01-01

    We examine the role of financial shocks in business cycles in general and in financial crises in particular in East Asia (Indonesia, Korea, Malaysia and Thailand) since the 1990s. Estimating a Financial Conditions Index, we found that financial shocks explain most of business downturns in all the economies in the Asian Financial Crisis (AFC) in 1997-98, but that the effects of financial shocks are diverse across economies in the Global Financial Crisis (GFC) in 2008-09. In the GFC, the financ...

  7. Effects of the Global Financial Crisis on Health in High-Income Oecd Countries: A Narrative Review.

    Science.gov (United States)

    Karanikolos, Marina; Heino, Pia; McKee, Martin; Stuckler, David; Legido-Quigley, Helena

    2016-01-01

    A growing body of evidence documents how economic crises impact aspects of health across countries and over time. We performed a systematic narrative review of the health effects of the latest economic crisis based on studies of high-income countries. Papers published between January 2009 and July 2015 were selected based on review of titles and abstracts, followed by a full text review conducted by two independent reviewers. Ultimately, 122 studies were selected and their findings summarized. The review finds that the 2008 financial crisis had negative effects on mental health, including suicide, and to a varying extent on some non-communicable and communicable diseases and access to care. Although unhealthy behaviors such as hazardous drinking and tobacco use appeared to decline during the crisis, there have been increases in some groups, typically those already at greatest risk. The health impact was greatest in countries that suffered the largest economic impact of the crisis or prolonged austerity. The Great Recessions in high-income countries have had mixed impacts on health. They tend to be worse when economic impacts are more severe, prolonged austerity measures are implemented, and there are pre-existing problems of substance use among vulnerable groups. © The Author(s) 2016.

  8. Dalla crisi finanziaria alla crisi reale. ( Financial and real crisis

    Directory of Open Access Journals (Sweden)

    Carlo D'Adda

    2010-03-01

    Full Text Available  The financial crisis of 2008 is put in relation with two bubbles, financial and housing. Easy credit is at the origin of both bubbles. Risky bonds were issued to mobilize mortgages originated in the housing market, and bad bonds entered a fantastic number of institutional and private portfolios all over the world without any perception of the their risk. Unfortunately, bank credit to speculators was abundant and fed the final growth of the bubbles. When fears started to spread, the fall was immediate and expectations impaired very rapidly. The main aggregate demand components were severely curtailed and production fell as well. This is the crisis of the real economy. Fortunately, as opposed to what happened in 1929, the interventions of central banks and governments have been of an unprecedented size. The bail out of insolvent banks in particular has been providential. The exit from the current crisis, however, will surely be slow.  JEL: E44, G01, G10

  9. CONTAGION EFFECTS OF US FINANCIAL CRISIS ON INDONESIA

    Directory of Open Access Journals (Sweden)

    Anika Sedyaning Wikanti

    2011-09-01

    Full Text Available This research analyzes the contagion effects of the US financial markets on Indonesian fi-nancial markets during the 2008 global financial crisis. It specifically investigates whether the slump in the US stock prices directly produced a slump in Indonesian stock prices, or indirectly through the slump in regional stock prices. It also examines whether the slump spilled over into rupiah exchange rate. Using Vector Autoregression and Vector Error Correction Model, the paper finds direct contagion effect of the US financial crisis into Indonesian stock markets. It also finds both direct and indirect contagion effect of the US financial crisis into foreign exchange market.Keywords: Contagion, stock price, exchange rate, financial crisisJEL classification numbers: G12, G15

  10. The impact of the financial crisis under the effects of increasing global economic interdependence. The case of Eastern and Central Europe Economies

    Directory of Open Access Journals (Sweden)

    Bușega Ionuț

    2015-03-01

    Full Text Available The technological progress that arose in areas such as transportation, communication and information exchange has led to a series of consequences that forced national economies to converge into a global, market based economy. In addition to the aforementioned causes, increased liberalisation amidst financial markets has supplemented the initiation of this metamorphosis that had several benefits in terms of general commercial exchange (trade, capital flows, and investment opportunities for business organisations. Simultaneously with the financial leverage resulted from the expansion of these interconnections, a series of channels that are detrimental to the financial welfare of entities has emerged, which, in consequence elevated the vulnerability and susceptibility to external economic shocks. The major debate elicited by this trade-off mainly concerns the costs and benefits of the international liberalisation of capital flows and trade. The purpose of this article is to examine the methods through which globalisation has affected the expansion of the international financial crisis back in 2008, by identifying and assessing the subsequent transfer routes, to and from the United States, where it was initially triggered. This article also aims to evaluate the repercussions experienced by Central and Eastern Europe and how they re-established economic growth following the financial crisis.

  11. GLOBALIZATION AND ECONOMIC CRISIS IN EUROPEAN COUNTRIES

    Directory of Open Access Journals (Sweden)

    Silvia Marginean

    2011-01-01

    Full Text Available The paper analyzes the relation between degree of economic globalization and the impact of economic crisis for developed and emerging European countries. We measure economic globalization through indexes based on share of external trade in GDP and FDI intensity (% of FDI inflows and outflows divided by GDP. The complexity of current economic and financial crisis could be evaluated through GDP growth rate, inflation rate, unemployment, public debt, budget deficit, balance of payments, exchange rate, etc. For the purpose of this paper we used GDP growth rate as a measure of economic crisis impact on national economies.

  12. Analyzing the financial crisis using the entropy density function

    Science.gov (United States)

    Oh, Gabjin; Kim, Ho-yong; Ahn, Seok-Won; Kwak, Wooseop

    2015-02-01

    The risk that is created by nonlinear interactions among subjects in economic systems is assumed to increase during an abnormal state of a financial market. Nevertheless, investigating the systemic risk in financial markets following the global financial crisis is not sufficient. In this paper, we analyze the entropy density function in the return time series for several financial markets, such as the S&P500, KOSPI, and DAX indices, from October 2002 to December 2011 and analyze the variability in the entropy value over time. We find that the entropy density function of the S&P500 index during the subprime crisis exhibits a significant decrease compared to that in other periods, whereas the other markets, such as those in Germany and Korea, exhibit no significant decrease during the market crisis. These findings demonstrate that the S&P500 index generated a regular pattern in the return time series during the financial crisis.

  13. Financial Globalization and Inequality

    OpenAIRE

    Kunieda, Takuma

    2008-01-01

    This paper investigates how financial globalization and financial development affect income inequality within a country. We demonstrate that when a country is financially closed to the world market, the Gini coefficient is monotonically decreasing with respect to the degree of financial development, whereas when a country becomes so small due to financial globalization that financial development in the country does not affect the world interest rate, the Gini coefficient is monotonically incr...

  14. THE REAL ESTATE INVESTMENTS AND THE FINANCIAL CRISIS IN ROMANIA

    OpenAIRE

    Ana POPA; Laura GIURCA VASILESCU

    2009-01-01

    This paper is based on a wide range of researches and statistics data, regarding the enormous stock real estate boom that started around 1982 and picked up incredible speed after 1995. First of all, many economists argue that this boom represents a speculative bubble, because it is not grounded in sensible economic fundamentals. Secondly, this boom must be placed it in the context of financial crisis starting in 2007. In fact, the global financial crisis has begun with the north-American subp...

  15. The Effects Of Global Economic Crisis of 2008 to Financial Statements and Liquidity Ratios Which Companies are Settled In BIST Energy Sector (2005-2013 Term Review

    Directory of Open Access Journals (Sweden)

    Selcuk Kendirli

    2017-03-01

    Full Text Available Abstract. Aim of this study is to compare and analyze whether the 2008 global economic crisis affected the balance of the energy companies which are listed in the İstanbul Stock Exchange and have shown continuity in 2005-2013 period by using a variety of analyzing methods. Companies that demonstrate continuity between the years 2005-2013 were not assessed in this study. Horizontal and vertical analyses were made on the financial statements of the companies which are evaluated and liquidity ratios were assessed. As a result of the analysis the companies have been found to be affected to different degrees by the crisis.

  16. Firm Leverage and the Financial Crisis

    OpenAIRE

    Fatih Altunok; Arif Oduncu

    2014-01-01

    The firm growth dynamics is an important topic since the growth performance of firms is the main source of the economic growth in countries. Generally, crises produce a sharp decline in firms’ growth and this leads to a decline in both the level of employment and the income of households. This paper focuses on the role of firm leverage on the growth performance of the firm during the global financial crisis. We investigate whether the firms that experienced a large leverage increase before th...

  17. Global financial crisis, ownership and bank profit efficiency in the Bangladesh’s state owned and private commercial banks

    OpenAIRE

    Fakarudin Kamarudin; Fadzlan Sufian; Annuar Md. Nassir

    2016-01-01

    Este estudio investiga el impacto de la crisis financiera global enfocándose en la propiedad de los bancos comerciales del Estado (SCB) y privados (PCB) y otros factores específicos de la banca y macroeconómi- cos que influyen en el nivel de eficiencia de las ganancias del sector bancario de Bangladesh. Se empleó el método de análisis envolvente de datos basado en el déficit ( Slack-Based Data Envelopment Analysis [SBM-DEA]) para calcular la eficiencia en las ganancias de los 31 bancos comerc...

  18. The Impact of 2008 Global Financial Crisis on the Performance of Selected Indonesian Stocks: A Preliminary Study

    Directory of Open Access Journals (Sweden)

    Edwin Suparman

    2014-08-01

    Full Text Available This research is a preliminary study that analyzes the impact of the US financial markets on Indonesian financial markets during the 2008 global financial crisis. It specifically investigates the occurrence of contagion effect in the Indonesian IHSG index and selected LQ45 stocks with the US S&P500 index by the measurement of correlation using simple correlation, EWMA, OGARCH, and DCC GARCH. It also attempts to discuss on the decoupling of Indonesian market and provide recommendations on dealing with future similar events.

  19. THE CURRENCY CRISIS TRIGGER OF THE ROMANIAN FINANCIAL CRISIS OF 2008

    Directory of Open Access Journals (Sweden)

    Radu SOVIANI

    2014-07-01

    Full Text Available This paper analyses the ways the financial crisis started to manifest into the Romanian Financial System, through the exchange rate channel. The focus of this Paper is on how the Romanian decision makers contributed in triggering the financial crisis (that would have been triggered anyway. The paper will determine the trigger (the first obvious event for the Romanian Financial Crisis (the debut and it will prove that the consequences of this trigger could have been anticipated - it is in line with similar triggers for the debut in other currency crises. Therefore, one of the main conclusions of this paper is that while a global crisis starts to manifest the local economy should limit the exuberance of the decision makers in order to smooth the effects of the crisis.

  20. European Union Financial Crisis: A Marxist Analysis

    NARCIS (Netherlands)

    Petrus Kanisius Farneubun, P.

    European financial crisis poses a serious challenge to the fundamental structure of the European Union, political and financial institutions, as well as the values that bind European together. Different factors have been suggested as the causes of the crisis notably the failure of national

  1. Global financial crisis, ownership and bank profit efficiency in the Bangladesh’s state owned and private commercial banks

    Directory of Open Access Journals (Sweden)

    Fakarudin Kamarudin

    2016-01-01

    Full Text Available Este estudio investiga el impacto de la crisis financiera global enfocándose en la propiedad de los bancos comerciales del Estado (SCB y privados (PCB y otros factores específicos de la banca y macroeconómi- cos que influyen en el nivel de eficiencia de las ganancias del sector bancario de Bangladesh. Se empleó el método de análisis envolvente de datos basado en el déficit ( Slack-Based Data Envelopment Analysis [SBM-DEA] para calcular la eficiencia en las ganancias de los 31 bancos comerciales que operaron en Bangladesh en los a ̃ nos 2004 a 2011. Por otra parte, el marco de análisis de regresión multivariante del panel basado en los métodos de mínimos cuadrados ordinarios (MCO y de mínimos cuadrados generalizados (MCG que comprenden los modelos de efecto fijo (EF y de efecto aleatorio (EA se adoptó para examinar los determinantes de la eficiencia de las ganancias de los bancos. Los resultados indican que los niveles de eficiencia de las ganancias en los SCB y los PCB son crecientes en un 3.7 y un 5.8% durante los a ̃ nos de crisis financiera. Sin embargo, durante el período de a ̃ nos posteriores a la crisis financiera exhibida, los niveles de eficiencia en beneficios en los SCB y los PCB son decrecientes en un 38.7 y un 9.9%. Aunque los niveles de eficiencia en las ganancias de los bancos de ambos tipos de propiedad muestran disminución a lo largo de los a ̃ nos posteriores a la crisis financiera, en los PCB son más altos que en los SCB (67,8% > 60,1%, pero no significativamente distintos. Además, los resultados revelan que las relaciones del tama ̃ no del banco, la liquidez, el crecimiento económico y la concentración del mercado son significativamente negativas con la eficiencia en las ganancias de los SCB pero positivas para los PCB. Mientras tanto, los factores de capi- talización, el riesgo de crédito y la inflación son significativos con el signo positivo y negativo solo para la eficiencia de las ganancias de

  2. DO YOU CAPTURE FINANCIAL CRISIS?

    Directory of Open Access Journals (Sweden)

    Murniati Mukimni Mukhlisin

    2018-03-01

    Full Text Available This article summarizes the multitude of empirical studies in the area of Islamic banking and finance with purpose to analyze impact of Islamic banking and finance studies to practice by mapping research direction and the depth of the study. The studies are categorized based on research paradigm, countries being researched, methods employed, and results that lead to policy direction in the particular period. The research found that the research direction of the papers under study mostly employ positivist paradigm with countries being researched are generally Malaysia, Pakistan, Indonesia and UAE. It documents that the papers did not link directly to the future policy directions ie. to predict and prepare for financial crisis, rather they merely responded to the undergoing policies or themes of the journals. This review provides insights for understanding the importance of guiding future policy direction in the area of Islamic banking and finance by publishing more research policy papers authored by both academics and professionals.

  3. Financial Crisis and the Ethics of Moral Hazard

    NARCIS (Netherlands)

    Claassen, R.J.G.

    2015-01-01

    The 2008 global financial crisis raises ethical as much as financial questions. Moral outrage centered on the imbalance between banks (too big to fail) profiting from excessive risk-taking in good times and taxpayers suffering the costs in bad times. The paper analyzes this imbalance in terms of

  4. The risk level of Vietnam non-banking investment and financial services industry under financial leverage during and after the global crisis 2007-2011

    Directory of Open Access Journals (Sweden)

    Dinh Tran Ngoc Huy

    2013-09-01

    Full Text Available This paper estimates the impacts of external financing on market risk for the listed firms in the Viet nam non-banking financial services industry, esp. after the financial crisis 2007-2009. First, by using quantitative and analytical methods to estimate asset and equity beta of total 10 listed companies in Vietnam non-banking financial services industry with a proper traditional model, we found out that the beta values, in general, for many institutions are acceptable. Second, under 3 different scenarios of changing leverage (in 2011 financial reports, 30% up and 20% down, we recognized that the risk level, measured by equity and asset beta mean, decreases when leverage increases to 30% and vice versa. Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level increases (measured by equity beta var if the leverage decreases down to 20%. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

  5. Nigeria; Publication of Financial Sector Assessment Program Documentation––Technical Note on Crisis Management and Crisis Preparedness Frameworks

    OpenAIRE

    International Monetary Fund

    2013-01-01

    The Nigerian financial system underwent a banking crisis in 2008–09, owing to the global financial crisis and domestic events. The decisive crisis response effectively stabilized the banking system, but the challenge now is to devise a credible exit strategy. The Central Bank of Nigeria (CBN) has a broad resolution toolkit, which was put to use during the crisis to resolve the intervened banks. The Nigerian authorities set up the Asset Management Corporation of Nigeria (AMCON) to purchase non...

  6. Has the First Global Financial Crisis Changed the Entrepreneurial Values in Digitalized Marketing-based Societies? The Case of GEM Latin American Countries

    Directory of Open Access Journals (Sweden)

    José Manuel Saiz Álvarez

    2017-07-01

    Full Text Available As the world economy is globalized, crises are rapidly spread due to the massive use of ICTs (Information and Communication Technologies, also affecting the entrepreneurial values involved in business creation processes. In this sense, digital marketing has a key role to play, as it can serve as a tool based on technology applied to foster nascent entrepreneurship. Using data for GEM Latin American countries, and applying clustering analysis based on the K-means method, the objective of this work is to test if the actual First Global Financial Crisis (FGFC has altered the entrepreneurial values in Latin American firms. The main result of this work is that the traits of entrepreneurial activity in GEM Latin American countries have progressively shifted from quantity to quality, so digital marketing is having an increasing importance.

  7. The Asian financial crisis and women.

    Science.gov (United States)

    1998-05-01

    This paper reports on the "Women's Roundtable Discussion on the Economic, Social, and Political Impacts of the Southeast Asian Financial Crisis" by the Gender Development Programme and Development Alternatives with Women for a New Era (DAWN), which was held in Manila, Philippines, on April 12-14, 1998. The purpose of the Women's Roundtable was to provide a forum for regional analysis of women workers, labor migration and trade policies, women's livelihoods, food security and social development, globalization, and adverse impacts of economic recession and inflation. Among the recommendations of the forum were that the impact of globalization on women should be monitored and that the analyses and concerns raised during the roundtable discussions should be disseminated through other regional and international platforms.

  8. THE IMPACT OF THE FINANCIAL CRISIS ON THE THEORY AND PRACTICE OF FINANCIAL SYSTEM SUPERVISION

    Directory of Open Access Journals (Sweden)

    Roxana Heteș

    2013-04-01

    Full Text Available The recent global financial crisis has reopened the debate about macroeconomic policies’ objectives, but also the need and extent of state involvement in the functioning of the economy, either directly or indirectly. This has exposed some weaknesses in the system of regulation and supervision of the financial system and the its architecture, especially in the treatment of systemic risks and vulnerabilities, but also the financial implications of the globalization process. The global nature of financial crisis highlighted the fact that, although integrated financial markets offer a number of significant benefits, risks involved are not negligible. Therefore, to ensure the financial stability of an increasingly integrated landscape there was felt the need for reform of the financial system architecture, both nationally and internationally.

  9. Brazil: improved environmental policy in spite of the financial crisis

    International Nuclear Information System (INIS)

    Kasa, Sjur; Naess, Lars Otto

    2002-01-01

    Globalization is often thought of as being associated with increasing environmental problems. In particular this is true in connection with dramatic financial crises. Experience from the financial crisis in Brazil in 1998 to 1999, however, shows a more varied picture in which parts of the environmental policy were indeed improved. The article also discusses how representative the example of Brazil might be for generalization and points out that the reaction of Brazil on the financial crisis was mitigated by that country being a strong democracy with robust institutions

  10. Making Sense of Financial Crisis and Scandal

    DEFF Research Database (Denmark)

    Hansen, Per H.

    2012-01-01

    fall from the top of society of these icons and of their role in the collapse of their banks. I view the sense-making process as centered on the construction of narratives that explain the crisis and enable or constrain institutional response to the crisis. To conclude, I argue that the process...... of sense-making in the case of Landmandsbanken can be generalized as the way in which society enforces norms and values in cases of dramatic financial crisis and scandal....

  11. Impact of the 2008 global financial crisis on the health of Canadians: repeated cross-sectional analysis of the Canadian Community Health Survey, 2007-2013.

    Science.gov (United States)

    Nour, Sabrina; Labonté, Ronald; Bancej, Christina

    2017-04-01

    Despite a clear impact on the Canadian economy, little is known about the subsequent health impacts of the 2008 global financial crisis (GFC) in this country. This study fills this gap in knowledge by conducting a repeated cross-sectional analysis of the Canadian Community Health Survey (CCHS). Data from 7 cycles (2007-2013) of the CCHS were combined to form a large data set representative of the Canadian working-age population (15-64 years) residing in 1 of 10 provinces. A logistic regression model was used to determine whether exposure to various periods of the GFC resulted in increased odds of reporting poor mental health. Exposure was categorised into 4 periods based on political and economic indicators, as follows: precrisis period (baseline), initial crisis period, stimulus period and austerity period. Other outcomes investigated included: anxiety disorders (AD), mood disorders (MD), poor physical health and health-related behaviours (heavy alcohol drinking (HAD) and decreased fruit/vegetable consumption (FVC)). A significant increased odds of reporting poor mental health was observed during the austerity period compared with the precrisis period (OR=1.26 (1.16 to 1.32)); findings remain significant when adjusted for sex, marital status and education. Exposure to the austerity period was also significantly associated with increased odds of reporting AD, MD, HAD and decreased odds of FVC. No significant associations were observed for the poor self-perceived physical health variable. Statistically significant associations were observed between several negative health outcomes and the austerity period when compared with the precrisis period. Austerity has been linked to worsening health in other studies and represents an example of how the policy response can have greater detrimental impact on health than the financial crisis itself. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to

  12. An Asian perspective on global financial reforms

    OpenAIRE

    Morgan, Peter J.; Pontines, Victor

    2013-01-01

    The purpose of this study is to better understand the likely impact on Asian economies and financial institutions of various recent global financial reforms, including Basel III capital adequacy and liquidity rules. Part one reviews the lessons of the global financial crisis (GFC) of 2007–09 and their relevance for Asian economies. Part two describes the major regulatory reforms that have been announced and possible concerns about their impacts on emerging economies. Part three reviews the ...

  13. GLOBAL ECONOMIC CRISIS: EXPERIENCE OF TURKEY AS THE MODEL OF RECOVERY

    OpenAIRE

    NEVZAT TETIK

    2012-01-01

    Between the years 1820-2008, there have been many economic crises in the World. Each of the crises had different intensity, scope and dimension. 2008 global crisis also had distinctive features. Starting with U.S. financial crisis, with a domino effect of financial instruments, the crisis deepened and shifted to global dimension without any discontinuity. Effects of the 2008 global crisis, as countries could not reach financial balance and could not implement policies that would restart econo...

  14. Impact of the subprime crisis on commercial banks’ financial performance

    Directory of Open Access Journals (Sweden)

    Fang Hao

    2013-01-01

    Full Text Available We investigated changes in the financial performance of representatives of the world’s top 200 commercial banks after the global subprime financial crisis. Our empirical results show that following the subprime-crisis disclosure, all commercial banks exhibited worse performance in asset quality, profitability, liquidity, and growth index, accompanied by risk increases in asset adequacy, managerial ability, profitability, and growth index. Developed markets have suffered a greater negative influence than emerging markets, causing downward pressure on asset adequacy, asset quality, and profitability since the subprime crisis. Commercial banks within developed nations suffered more direct pronounced effects from the subprime crisis than did those in emerging markets. Our results prove that larger commercial banks, particularly those with larger capitalization, have the economies-of-scale advantage to resist the negative effects of economic downturns.

  15. The Asian Financial Crisis, Globalisation and Popular Education.

    Science.gov (United States)

    Brown, Tony

    1998-01-01

    Globalization is a confused and confusing term being used to explain a wide range of phenomena. It is presented as being outside anyone's control, neutral, and free of class interests. The Asian financial crisis illustrates that human agency still plays a role. Popular educators can help reinforce the idea that collective action does make a…

  16. Sweden; Financial Sector Assessment Program Update: Technical Note on Contingency Planning, Crisis Management and Bank Resolution

    OpenAIRE

    International Monetary Fund

    2011-01-01

    This abstract reviews the recommendations made in the FSAP Update for Sweden in the areas of contingency planning, crisis management, and bank resolution. Although Sweden crisis management fared well during the global financial crisis, its authorities are reviewing the framework for managing financial crises to incorporate crisis lessons. They recommend a domestic institutional framework, an effective cross-border cooperation, an emergency liquidity assistance (ELA), a deposit guarantee schem...

  17. The Ethics of the Financial Crisis and Financial Reform

    NARCIS (Netherlands)

    I.P. van Staveren (Irene)

    2012-01-01

    textabstractThe paper analyses the financial crisis and financial reform from two alternative ethical perspectives as compared to the mainstream one in economics, utilitarianism. It contrasts deontology with the ethics of care and argues that the rule-based deontological approach is not able to

  18. The Adoption of Digital Marketing in Financial Services under Crisis

    Directory of Open Access Journals (Sweden)

    Daj A.

    2009-12-01

    Full Text Available Led by social media, online search, consumer generated content, virtual communities, and considering the increased focus on digital technologies, the longer-term prospects for digital marketing and the global online medium continue to be bright. Given the recent decline of the financial markets and the economic fallout, financial institutions have to implement new digital marketing techniques both for cost optimization and for dealing with the crisis of confidence.

  19. THE COMPETITIVENESS OF EMU MEMBER STATES IN THE FINANCIAL CRISIS

    Directory of Open Access Journals (Sweden)

    Vasilescu Felician

    2010-07-01

    Full Text Available In the context of the financial crisis the imbalances in the euro area have been underlined. The issue had been previously debated during the years preceding the financial crisis, but the strong global economic expansion and the ongoing economic integration within the euro area partly masked the problems arising from these differential developments. This paper analyses the advantages and disavantages of the monetary union before and during the financial crisis and focuses on identifying solutions to correct the structural problems that are at the root of the economic divergencies within the euro area. Another issue that we discuss is how did price competitiveness diverged from one euro-area member state to another since the introduction of the euro, causing gains in price competitiveness for a small group of countries and significant losses for a larger group. The issue of competitiveness is essential for Romania as we are heading towards joining the euro zone.

  20. An Export Promotion Policy after Financial Crisis

    Directory of Open Access Journals (Sweden)

    Ingyo Cheong

    1998-09-01

    Full Text Available Although the Korean government puts in place various export support policies after the financial crisis, Korean export is still in stagnation because the foreign-oriented economic conditions, such as the continual ripple effect of the Eastern Asia financial crisis and the American economy which is slowing down, are deteriorating. After the financial crisis, Korean trading circle considered the difficulties in financing and the buying of raw material to be the most important factors which blocked the export. This thesis first analyzed the change of the actual export results, then analyzed the policy the government brought forward as the solution of the difficulties in financing and raw material buying. Meanwhile, this thesis brought forward alternative policies like taking auto-rediscount and signing Free Trade Agreement with major trade states.

  1. The Financial Crisis: Origins, Causes And Conclusions

    Directory of Open Access Journals (Sweden)

    Eneida Permeti

    2015-03-01

    Full Text Available The crisis in recent years took start in response to a crisis of the real estate market in the United States in 2007. The year 2009 has seen an economic crisis and between 2010 and 2011 it was known the spreading of the crisis sovereign debt and public finances of many countries. The financial markets failed in their main task: the allocation of risk. The products and services traded in the financial market are characterized by the immateriality and legal complexity. It means a high uncertainty degree and a high risk. Therefore is very important to protect the investors and this means: give them the right information, right legislation, market confidence and a product that respond to their needs. The crisis causes are: weaknesses in the regulatory, malfunction of the rating agencies, political errors and conflicts of interest. This means that we need: more rules, more capital, less debt, more transparency. The financial markets and the economy have always moved in harmony and savers have undertaken a countercyclical behavior, against trend or against the cycle and for investing in financial markets with the probability in favor we need a map that comes from the statistics.

  2. Financial risks after the subprime crisis

    Directory of Open Access Journals (Sweden)

    Rodrigo Leiva Büchi

    2009-12-01

    Full Text Available The subprime financial crisis revealed some of risks that were not considered as a priority. Among others, a liquidityrisk is now considered as one of the main risks to work with by all institutions. Apart from that, it became obviousthat traditional risk management focused only on what was known and expected, ignoring analysis and testing eventswith low probability but high impact. Lastly, the subprime crisis left a number of lessons in relation to the regulationfor financial markets that must be considered when creating a new regulatory system.

  3. Frame Complexity and the Financial Crisis

    DEFF Research Database (Denmark)

    Kleinnijenhuis, Jan; Schultz, Friederike; Oegema, Dirk

    2015-01-01

    . The financial crisis in the United States, the United Kingdom, and Germany (2007–2012) offers an example. An automated content analysis was applied to over 160,000 newspaper articles. Frame complexity decreased until the spotlight fell on the demise of Bear Stearns and Lehman Brothers (2008). The subsequent...... gradual recovery was only partly interrupted by the euro crisis. A Vector AutoRegression time series analysis shows that increasing frame complexity may indeed have fostered the recovery of financial markets and consumer confidence....

  4. THE EVOLUTION OF ECONOMIC GLOBALIZATION DURING THE CURRENT GLOBAL CRISIS

    OpenAIRE

    Sabina Tuca

    2013-01-01

    The current economic crisis constitutes a serious test for the process of globalization. The purpose of this study is to analyze the influence of the current global crisis on economic globalization. To assess the impact of the current crisis on economic globalization, this paper examines the KOF Index of Globalization, before and during the crisis. The findings generally support the idea that economic globalization has been, in fact, weakened, after the onset of the current crisis. However, t...

  5. The current economic and financial crisis: a gender perspective

    OpenAIRE

    Antonopoulos, Rania

    2009-01-01

    Widespread economic recessions and protracted financial crises have been documented as setting back gender equality and other development goals in the past. In the midst of the current global crisis--often referred to as "the Great Recession"--there is grave concern that progress made in poverty reduction and women's equality will be reversed. Indeed, for many developing countries it is particularly worrisome that, through no fault of their own, the global economic downturn has exacerbated ef...

  6. The Global Economic Crisis and the Global Accumulation of Capital

    Directory of Open Access Journals (Sweden)

    Wojciech Błasiak

    2010-06-01

    Full Text Available The article presents a thesis that the current global economic crisis is the Second Great Depression, after the First Great Depression of the 30s. This is a global crisis of capital accumulation, which is caused by insufficient global demand. The author analy - ses the theoretical output of John Maynard Keynes, Michał Kalecki, Paul Baran and Paul Sweezy. The post-war „Golden Age” of the capitalist economy ended in 1973 with a de - ep stag flation of the 70s and 80s. Capitals searching for profitable investment, started to be invested in financial speculation, growing since the 80s. This speculation was enabled on a global scale by the Washington Consensus in the 90s. The explosion of financializa - tion of the global economy began. The author presents the analyses of Paul Sweezy and Harry Magdoff, who argued that this was financialization of global accumulation of ca - pital in a form of world financial speculation. This process was completed by the finan - cial crash in 2008, which was the implosion of global speculative balloons. Economics and global economic policy faced challenges of creating new world economic order.

  7. Performance of Automotive Industry under Financial Crisis

    OpenAIRE

    Cheng, Xiaomeng

    2012-01-01

    Since the financial crisis, automobile industry faces severe problems such as sale decline and cash shortage. Some corporations such as General Motors also went to bankrupt. The whole industry was under financial distress and this also affected other related industries such as part manufacturers and suppliers. Most literatures investigated the industry performance by measures such as sale and production volume, export record or GDP contribution. Few of them examine the industrial performance ...

  8. The current international financial crisis: how much is new?

    OpenAIRE

    Steven B. Kamin

    1999-01-01

    The paper surveys a broad array of data to compare the scope and impact of three emerging-market financial crises: the debt crisis of the 1980s, the Mexican financial crisis of 1994-95, and the current international financial crisis. While certain conventional views regarding the three episodes are supported by the data examined in this paper, we find that in several respects, the current crisis is more similar to prior emerging-market crisis episodes than is commonly believed.

  9. Financial Crisis and Economic Restructuring in Southeast Asia

    OpenAIRE

    Yul Kwon

    1998-01-01

    The hidden inner structural problem with the rapid growth of economy was exposed after the financial crisis and South-East Asia is facing serious economic crisis. Currently, the core of the financial crisis is the low function of financial system, so to make the financial department normal by rebuilding the untrue financial system is the problem we are facing. If our financial sector delay the structural adjustment and continue to be competitive in credit, the insolvent debenture will soar. E...

  10. Wrong assumptions in the financial crisis

    NARCIS (Netherlands)

    Aalbers, M.B.

    2009-01-01

    Purpose - The purpose of this paper is to show how some of the assumptions about the current financial crisis are wrong because they misunderstand what takes place in the mortgage market. Design/methodology/approach - The paper discusses four wrong assumptions: one related to regulation, one to

  11. The Need to Adapt to New Financial Accounting Technologies Information in the Context of Global Economic Crisis

    Directory of Open Access Journals (Sweden)

    Enrique BONSON-PONTE

    2010-12-01

    Full Text Available Today, accounting is a necessity and not a desire. Concerns for the improvement of accounting practices are necessary, especially in Romania, where these activities are strengthened with the progress of the Romanian economy integration into the structures of the European Union. This paper carried an objective analysis of how the web report is now being made by financial and accounting information, presents the disadvantages of this approach to reporting introduced, but the potential benefits that could be created by the rapid adoption of international standards for reporting financial information website, too. At the same time, the paper tries to create new opportunities as soon as possible regarding the adoption of intelligent technologies, which, coupled with language Web reporting financial information.

  12. Crisis?: What crisis?: currency vs. banking in the financial crisis of 1931

    OpenAIRE

    Albrecht Ritschl; Samad Salferaz

    2010-01-01

    This paper examines the role of currency and banking in the German financial crisis of 1931 for both Germany and the U.S. We specify a structural dynamic factor model to identify financial and monetary factors separately for each of the two economies. We find that monetary transmission through the Gold Standard played only a minor role in causing and propagating the crisis, while financial distress was important. We also find evidence of crisis propagation from Germany to the U.S. via the ban...

  13. Accommodating Global Markets: Malaysia's Response to Economic Crisis

    OpenAIRE

    Helen Nesadurai

    1998-01-01

    The East Asian financial crisis has shown how governments in affected countries have had to contend both with the external constraint imposed by global capital mobility and domestic political dynamics when instituting adjustment to the crisis. Some commentators see the reform process in the East Asian states as an outcome of the disciplining behaviour of financial markets that will lead to the complete dismantling of those structures that supported the state- directed developmentalist mode of...

  14. Integration of Financial Markets in Post Global Financial Crises and Implications for British Financial Sector: Analysis Based on A Panel VAR Model

    OpenAIRE

    Nasir, M; Du, M

    2017-01-01

    This study analyses the dynamics of integration among global financial markets in the context of Global Financial Crisis (2008) by employing a Panel Vector Autoregressive (VAR) model on the monthly data of nine countries and three markets from Jan 2003 to Oct 2015. It was found that there has been a shift in the association among the global financial markets since Global Financial Crisis (GFC).Moreover, the British financial sectors in Post-GFC world clearly showed a change in the association...

  15. A CRITICAL REVIEW ON THE EFFECT OF HOUSING INDUSTRY TO THE GLOBAL FINANCIAL CRISIS: THE CASE OF TURKEY

    OpenAIRE

    BERK, Cem

    2010-01-01

    The overall aim of the research presented is to investigate the relationship between the macroeconomic factors linked with financial crises and housing industry in Turkey. The research includes empirical investigation in a regression based model using mostly the Turkish market data. The ability of public intervention, indicated by central bank reserves and corporate bankruptcies are statistically effective in the performance of housing market. There is weak statistical dependence of housing o...

  16. Images of Financial Crisis. Interventions documentary films

    Directory of Open Access Journals (Sweden)

    Jens Eder

    2016-04-01

    Full Text Available Around the world millions of people suffer the consequences of financial and economic crisis; as well as the sovereign debt crisis: under impoverishment, unemployment and homelessness, by cuts in the social, sanitary and educational system. The problems that led to the crisis still persist. In this sense it is important the question about how the media attract their audiences, and how they can contribute to the understanding of the crisis, its causes, consequences and possible  resolutions.  This  article  shows  which  documentary  films  made  an  important  contribution  on  the  cinema, television and internet in the mentioned context. This is related to the question, if specific aesthetic forms are particularly suitable for such politic comprehension objectives. The paper examines, on the first place, four of the most successful films in Europe in the range of documentary films on the financial crisis, starting from discourse as rethoric, aesthetic and affective strategies. Let’s make Money (Erwin Wagenhofer, Austria 2008, Capitalism (Michael Moore, United States 2009, Inside Job (Charles H. Ferguson, United States 2010 and Debtocracy (Xpeokpatia, Katerina Kiitidi; Chatzistefanou Aris, Greece 2011.

  17. Hypermarket's adapting at the financial crisis conditions

    Directory of Open Access Journals (Sweden)

    Ion Gr. IONESCU

    2013-11-01

    Full Text Available The financial crisis is a global phenomenon that has marked the evolution of all economic sectors. The drastic change of the consumer behavior has led the trade companies to choose between two survival strategies: the product development strategy and the exit strategy. Carrefour company bases its strategy on five values deeply rooted in the consumer`s conscience: an aggressive pricing policy, based on discount; a range of 50000 items sold under the concept “everything under one roof”, quality, modernity and innovation. The strategy rests on three pillars: customer orientation, transformation and innovation. The product policy is focused on exploiting the products which belong to Carrefour trademarks and the pricing strategy allows the customer to purchase a variety of quality products, at low prices. The promotions acquire an aggressive tint in the company`s marketing strategy, the success being guaranteed by their ability to allow consumers to maintain a regular and economical consumption. For this company, the knowledge of the customer`s psychology is an advantage which allows the implementation of some psychological trics for sales growth. The strategies implemented by Carrefour enable the company`s survival in a changing competitive environment and generate profit. This result proves that Carrefour deserves the market leading place.

  18. HYPERMARKET'S ADAPTING AT THE FINANCIAL CRISIS CONDITIONS

    Directory of Open Access Journals (Sweden)

    Ion Gr. IONESCU

    2013-10-01

    Full Text Available The financial crisis is a global phenomenon that has marked the evolution of all economic sectors. The drastic change of the consumer behavior has led the trade companies to choose between two survival strategies: the product development strategy and the exit strategy.Carrefour company bases its strategy on five values deeply rooted in the consumer`s conscience: an aggressive pricing policy, based on discount; a range of 50000 items sold under the concept “everything under one roof”, quality, modernity and innovation. The strategy rests on three pillars: customer orientation, transformation and innovation. The product policy is focused on exploiting the products which belong to Carrefour trademarks and the pricing strategy allows the customer to purchase a variety of quality products, at low prices. The promotions acquire an aggressive tint in the company`s marketing strategy, the success being guaranteed by their ability to allow consumers to maintain a regular and economical consumption. For this company, the knowledge of the customer`s psychology is an advantage which allows the implementation of some psychological trics for sales growth. The strategies implemented by Carrefour enable the company`s survival in a changing competitive environment and generate profit. This result proves that Carrefour deserves the market leading place.

  19. Was the 2007 crisis really a global banking crisis?

    NARCIS (Netherlands)

    Shehzad, Choudhry Tanveer; De Haan, Jakob

    We argue that the 2007 crisis was not a global banking crisis. Stock prices of banks in emerging countries faced a temporary shock but quickly recovered, while stock prices of banks located in industrial countries remained much lower than before the 2007 crisis. Our results also suggest that stock

  20. DEBUNKING THE RELATIONSHIP BETWEEN LAW AND CAPITALISM: HOW CORPORATE GOVERNANCE FAILURES CONTRIBUTE TO THE FINANCIAL CRISIS IN INDONESIA?

    Directory of Open Access Journals (Sweden)

    Muhammad Yahdi Salampessy

    2016-12-01

    Full Text Available The recent global financial catastrophe has raised questions about the relationship between corporate governance and the crisis. Many scholars attribute the crisis to the corporate failure and the Anglo-Saxon model of capitalism. Much of the literatures, however, tend to focus on examining the issue of financial crisis in the developed economy. Following up this line of literatures, this paper will extend the discussion of the role of corporate governance in financial crisis in the developing world. Using Indonesia as a case study, this paper will look at evidence that has emerged from the recent financial crisis regarding the failures of corporate governance in addressing and preventing the crisis.

  1. Financial Leverage and Corporate Performance: Does Financial Crisis Owe an Explanation?

    Directory of Open Access Journals (Sweden)

    Syed Jawad Hussain Shahzad

    2015-04-01

    Full Text Available The objective of this study is to investigate the impact of financial leverage on corporate financial performance of Pakistan’s textile sector from 1999-2012 using panel data. The leverage-performance relationship is examined with a special focus on the Global Financial Crisis of 2007-2008. Both accounting-based (Return on Assets - ROA and market-based (Tobin’s Q measures of corporate financial performance are used. Regression analysis is performed with and without inclusion of financial crisis dummy. Total Debt to Total Assets (TDTA, Long Term Debt to Total Assets (LDTA, Short Term Debt to Total Assets (SDTA and Debt to Equity (DE ratios are used as proxies for financial leverage whereas firm’s size and firm’s efficiency are used as control variables. The results indicate that financial leverage has a negative impact on corporate performance when measured with ROA. Whereas in case of Tobin’s Q, SDTA coefficient is positive. It can be concluded that since cost of borrowing is high in Pakistan and debt capital markets are less developed, firms are forced to resort to banks as their source of debt finance and thus have to repay huge amount of principal and interest which has a heavy toll on their financial health. In addition to this, financial crisis was found to have a negative impact on corporate performance and also affect the leverage-performance relationship.

  2. Sensitivity, Persistence and Asymmetric Effects in International Stock Market Volatility during the Global Financial Crisis || Efectos de sensibilidad, persistencia y asimetría en la volatilidad de los mercados bursátiles internacionales
en el entorno de la crisis financiera global

    Directory of Open Access Journals (Sweden)

    Gabriel, Vítor

    2015-06-01

    Full Text Available Financial market volatility is an important element when setting up port- folio management strategies, option pricing and market regulation. The Subprime crisis affected all markets around the world. Daily data of twelve stock indexes for the period of October 1999 to June 2011 are studied using basic GARCH type models. The data were then divided into three different sub-periods to allow the behaviour of stock market in different sub-periods to be investigated. The following sub-periods are identified: Dot-Com crisis, Quiet and Subprime crisis. This paper revealed that the Subprime crisis turned out to have bigger impact on stock market volatility, namely at sensitivity, persistence and asymmetric effects. || La volatilidad de los mercados financieros es un importante elemento para la estrategia de carteras de inversión y para la regulación de los mercados. La crisis subprime afectó a los mercados bursátiles mundiales. Para realizar este estudio, fueron tomados datos diarios relativos a doce mercados bursátiles, desde el 4 de octubre de 1999 hasta el 30 de junio de 2011. El período de la muestra considerado ha sido subdividido en tres subperiodos distintos: crisis de las empresas tecnológicas, tranquilo y crisis financiera global. Para estudiar la volatilidad de los mercados bursátiles, se ha recurrido a modelos de tipo GARCH. Los resultados demuestran la influencia de la crisis financiera global en el comportamiento de la volatilidad del mercado bursátil, sobre todo en cuanto a la sensibilidad, la persistencia y la asimetría.

  3. From War to Financial Crisis

    DEFF Research Database (Denmark)

    Harste, Gorm

    2014-01-01

    The present article analyzes the transformation of the long-term risks of protracted wars from the battlefield to the economic system. Major wars, supplied with strong capacities due to extended manpower resources, advanced logistic capabilities and permanency of campaign, expose their states...... to extremely costly engagements. This includes heavy long-term costs for war veterans. Accordingly, the center of gravity on the battlefield (Clausewitz) is transformed to the financial systems of taxes and credit systems. This is a classical historical lesson; but this story is indeed central to understanding...

  4. Miraculous financial engineering or toxic finance? The genesis of the U.S. subprime mortgage loans crisis and its consequences on the global financial markets and real economy

    OpenAIRE

    Ivo Pezzuto

    2012-01-01

    In the fall of 2008, the U.S. subprime mortgage loans defaults have turned into Wall Street’s biggest crisis since the Great Depression. As hundreds of billions in mortgage-related investments went bad, banks became suspicious of one another’s potential undisclosed credit losses and preferred to reduce their exposure in the interbank markets, thus causing interbank interest rates and credit default swaps increases, a liquidity shortage problem and a worsened credit crunch condition to consume...

  5. The present global financial and economic crisis and the oil crises of the 1970s. Opposite turning points in the development of economic growth, energy supply, and the role of nuclear power?

    International Nuclear Information System (INIS)

    Herrmann, Dieter

    2012-01-01

    After decades of extensive economic growth, the oil crises in the 1970s enforced the transition to intensive growth in a manner conserving resources, combined with a fundamental turnaround in the development of global energy supply and the role of nuclear power. Meanwhile, the world has changed considerably as a result of population growth, technical progress, and globalization - and it is in the throes of another crisis. The contribution shows, on the basis of empirical indicators, that higher commodity prices halted the period of intense growth already in late 2007. The following global financial and economic crisis can be interpreted plausibly as a return to extensive economic growth worldwide. This is likely to have far-reaching consequences for the future development of global energy supply and the role of nuclear power. (orig.)

  6. Financial Crisis in Russia: Cuases and Prospects

    Directory of Open Access Journals (Sweden)

    Seungweon Suh

    1998-06-01

    Full Text Available Although we cannot exclude the reason for financial crisis in Russia's foreign exchange is the depreciation of Rupees and a loss for foreign investment caused the currency crisis in Asia, but most people predicted that by the support of the Russian government and the deflation efforts it will soon go back to stable. And other people said that there is no possibility of causing the world economic chaos but also no possibility for this situation to evolve into a situation where old policy replaced by new one and where there is Country moratorium. At the time when the prediction was made, since the Korea-Russia relationship is still weak, this Russian Crisis caused small influence on Korean Economy. But some section like exporting electronic products and food which rely Russia quite a lot, should analyze the situation carefully in order to face the shrinkage of market demand of Russia.

  7. The Accounting Network: How Financial Institutions React to Systemic Crisis.

    Science.gov (United States)

    Puliga, Michelangelo; Flori, Andrea; Pappalardo, Giuseppe; Chessa, Alessandro; Pammolli, Fabio

    2016-01-01

    The role of Network Theory in the study of the financial crisis has been widely spotted in the latest years. It has been shown how the network topology and the dynamics running on top of it can trigger the outbreak of large systemic crisis. Following this methodological perspective we introduce here the Accounting Network, i.e. the network we can extract through vector similarities techniques from companies' financial statements. We build the Accounting Network on a large database of worldwide banks in the period 2001-2013, covering the onset of the global financial crisis of mid-2007. After a careful data cleaning, we apply a quality check in the construction of the network, introducing a parameter (the Quality Ratio) capable of trading off the size of the sample (coverage) and the representativeness of the financial statements (accuracy). We compute several basic network statistics and check, with the Louvain community detection algorithm, for emerging communities of banks. Remarkably enough sensible regional aggregations show up with the Japanese and the US clusters dominating the community structure, although the presence of a geographically mixed community points to a gradual convergence of banks into similar supranational practices. Finally, a Principal Component Analysis procedure reveals the main economic components that influence communities' heterogeneity. Even using the most basic vector similarity hypotheses on the composition of the financial statements, the signature of the financial crisis clearly arises across the years around 2008. We finally discuss how the Accounting Networks can be improved to reflect the best practices in the financial statement analysis.

  8. The Accounting Network: How Financial Institutions React to Systemic Crisis

    Science.gov (United States)

    Puliga, Michelangelo; Flori, Andrea; Pappalardo, Giuseppe; Chessa, Alessandro; Pammolli, Fabio

    2016-01-01

    The role of Network Theory in the study of the financial crisis has been widely spotted in the latest years. It has been shown how the network topology and the dynamics running on top of it can trigger the outbreak of large systemic crisis. Following this methodological perspective we introduce here the Accounting Network, i.e. the network we can extract through vector similarities techniques from companies’ financial statements. We build the Accounting Network on a large database of worldwide banks in the period 2001–2013, covering the onset of the global financial crisis of mid-2007. After a careful data cleaning, we apply a quality check in the construction of the network, introducing a parameter (the Quality Ratio) capable of trading off the size of the sample (coverage) and the representativeness of the financial statements (accuracy). We compute several basic network statistics and check, with the Louvain community detection algorithm, for emerging communities of banks. Remarkably enough sensible regional aggregations show up with the Japanese and the US clusters dominating the community structure, although the presence of a geographically mixed community points to a gradual convergence of banks into similar supranational practices. Finally, a Principal Component Analysis procedure reveals the main economic components that influence communities’ heterogeneity. Even using the most basic vector similarity hypotheses on the composition of the financial statements, the signature of the financial crisis clearly arises across the years around 2008. We finally discuss how the Accounting Networks can be improved to reflect the best practices in the financial statement analysis. PMID:27736865

  9. The Accounting Network: How Financial Institutions React to Systemic Crisis.

    Directory of Open Access Journals (Sweden)

    Michelangelo Puliga

    Full Text Available The role of Network Theory in the study of the financial crisis has been widely spotted in the latest years. It has been shown how the network topology and the dynamics running on top of it can trigger the outbreak of large systemic crisis. Following this methodological perspective we introduce here the Accounting Network, i.e. the network we can extract through vector similarities techniques from companies' financial statements. We build the Accounting Network on a large database of worldwide banks in the period 2001-2013, covering the onset of the global financial crisis of mid-2007. After a careful data cleaning, we apply a quality check in the construction of the network, introducing a parameter (the Quality Ratio capable of trading off the size of the sample (coverage and the representativeness of the financial statements (accuracy. We compute several basic network statistics and check, with the Louvain community detection algorithm, for emerging communities of banks. Remarkably enough sensible regional aggregations show up with the Japanese and the US clusters dominating the community structure, although the presence of a geographically mixed community points to a gradual convergence of banks into similar supranational practices. Finally, a Principal Component Analysis procedure reveals the main economic components that influence communities' heterogeneity. Even using the most basic vector similarity hypotheses on the composition of the financial statements, the signature of the financial crisis clearly arises across the years around 2008. We finally discuss how the Accounting Networks can be improved to reflect the best practices in the financial statement analysis.

  10. Dubai financial crisis: causes, bailout and after - a case study

    OpenAIRE

    Hasan, Zubair

    2010-01-01

    This paper explains the circumstances that led Dubai to the current financial crisis that still lingers. It analyses the steps taken at various stages by the city state to ameliorate the situation including the bailout help the UAE Government eventually granted. It spotlights the role international rating agencies played in aggravating the situation and demands that their activities be brought under regulatory nets now being strengthened across the world in the context of ongoing global meltd...

  11. Lithuanian Investors' Behaviour During Financial Crisis

    OpenAIRE

    Bikas, Egidijus; Kavaliauskas, Andrius

    2010-01-01

    Based on research of academic literature, this article analyses Lithuanian investors' behaviour during financial crisis. The article summarizes the newest finance science subjects, theories of behavioural finance, and works of various scientists, in order to find cognitive and emotional investors' deviations from rational behaviour, and also to better understand and explain how emotions and environment valuation mistakes influence investors and their decision-making. Emotional nature of inves...

  12. The Economic Crisis and Several Effects on Global Economy

    Directory of Open Access Journals (Sweden)

    Florina BRAN

    2011-01-01

    Full Text Available The main mechanism of profit making is not production according to the outcomes of several analyses of the current economic crisis. This mechanism is circulation and exchange. Starting with this observation the paper goes through a number of aspects regarding the relation between crisis and economy at global level. These aspects consist in the recent financial turmoil; who pays for the crisis; stabilizing the financial sector; recession and the financial crisis; the internationalization of the crisis; commodities and the ecological crisis; an end to neo-liberalism; what should socialists demand. We notice and comment on how important current development in the wake of the banking crisis is for the transmission of that crisis to the rest of the economy and its interaction with the more general economic crisis now emerging. It was concluded that there are good chances that the current economic order to be broken. The future shape of the order will depend more on vision of managers than on the influence of the so called objective factors.

  13. [Attempted suicide during the financial crisis in Athens].

    Science.gov (United States)

    Stavrianakos, K; Kontaxakis, V; Moussas, G; Paplos, K; Papaslanis, T; Havaki-Kontaxaki, B; Papadimitriou, Gn

    2014-01-01

    Suicidal behavior is considered as the result of complex cognitive and emotional processes and it is a timeless, global and multifactorial phenomenon. Periods of financial crises in the past, such as the Great Depression in the USA in 1929 and the economic crises of Asia, Russia and Argentina in the late 1990s, have been associated with impairment of mental health of the economically affected. Unemployment, job insecurity, debts, poverty and social exclusion seems to lead to higher incidence of anxiety and depressive symptoms and increased suicidality. Alcohol and substance use and the reduction of the state budget for health services reinforce the negative effects of the economic recession on mental health. The financial crisis which currently affects many European countries began in 2008 and its impact on the mental health of European citizens is in progress. Greece is probably the most affected country by the European financial crisis. The aim of this study is to investigate the potential impact of the crisis' consequences on the attempted suicide rates in the Athens population and the differentiation of suicide attempters on social, demographic and clinical-psychopathological parameters during the crisis. A retrospective study was conducted. The semi-structured records of 165 attempters who were hospitalized in the Internal Medicine Clinics of the "Sotiria" General Hospital in Athens, after attempted suicide in the years 2007 and 2011, before and during the financial crisis respectively, were studied. Among suicide attempters 95(57.6%) were suffering from mental disorders. Most often diagnoses were these of mood disorders (n=60, 63.2%). Demographic data, current psychiatric disorder, previous suicide attempt and severity of psychopathology at the time of suicide attempt were recorded for each patient. Furthermore, the severity of each suicide attempt was estimated. Suicide attempts were 70 in 2007, before the financial crisis (mean age 36.9 years, 71% women

  14. Financial globalization and crises: overview

    NARCIS (Netherlands)

    Beck, T.; Claessens, S.; Schmukler, S.L.; Caprio, G.; Beck, T.; Claessens, S.; Schmukler, S.L.

    2013-01-01

    Financial globalization, the integration of countries with the global financial system, has increased substantially since the 1970s and particularly with more force since the 1990s. Financial globalization has shown to pose both benefits and risks to developed countries and developing countries

  15. The Greek Financial Crisis – Theoretical Implications

    Directory of Open Access Journals (Sweden)

    Garry Jacobs

    2015-10-01

    Full Text Available The world we live in is a product of the way we think. Our conception of reality determines what we see and what we achieve. The Greek crisis is not simply a case of high public debt, economic mismanagement or weak political will in Greece or the Eurozone. It is underpinned by economic premises, constructs and resulting practices that promote exactly the type of dilemma Greece faces today. Without addressing these conceptual issues, no lasting solution is possible. Rather it can be expected to repeat and spread to other countries and regions. This article is based on views presented by participants in a WAAS webinar examining the Greek financial crisis in the light of economic theory and practice. Wherever there are unmet social needs and underutilized social resources, such as high levels of unemployment, the potential exists to stimulate economic activity, enhance human welfare and promote resilience and sustainable entrepreneurship. Both conditions prevail in Greece today, but neither current nor anticipated policies are likely to result in near term benefits to the Greek people and the local economy nor for Europe and the world economy. It supports the view that a permanent and effective win-win solution can be found to the Greek crisis, compatible with the financial stability of the country and the welfare of its citizens within the framework of the Eurozone, but that such a solution will require a rethinking of fundamental theoretical issues and adoption of innovative policy instruments beyond those presently being contemplated.

  16. BANKING INTERMEDIATION AND CONSEQUENCES OF FINANCIAL CRISIS

    Directory of Open Access Journals (Sweden)

    Medar Lucian-Ion

    2012-12-01

    Full Text Available The financial intermediation of bank institutions, has an essential role in mobilising of the available funds and their distribution in various products and services, for economic growth. The extent that banking system is in distress or passing through a period of crisis, then, everything turns into a general crisis, especially that, in some states, natural and legal persons have been learned ,,to live’’ on the credits.The effectiveness of banking intermediation activity in Romania depends on how fast the market is enabled under the influence of the new European regulations. The Romanian market in all its forms is the second largest in the EU, and the banking system is almost entirely made up of banks with foreign capital. The romanian banking market has not suffered so much because of the financial crisis. To the extent that banking institutions provide the necessary funds, Romania has important resources for the transition to a new economic cycle based on sustainable development.

  17. O Brasil e a crise financeira global: avaliando os canais de transmissão nas contas externas Brasil and the global financial crisis: assessing the trasmission channels in the external accounts

    Directory of Open Access Journals (Sweden)

    Daniela Magalhães Prates

    2011-04-01

    Full Text Available Este trabalho analisa alguns dos impactos da crise financeira global em curso sobre as contas externas do Brasil. Seus mecanismos de transmissão, comerciais e financeiros, são examinados de forma detalhada, de modo a avaliar a potencial emergência de novas vulnerabilidades. Argumenta-se que o desempenho das contas externas depende da interação entre fatores exógenos, que têm sido predominantes, e a características estruturais da economia. Conclui-se com recomendações de política econômica.In this paper we analyze some impacts of the current global financial crisis on Brazilian external accounts. Financial and trade transmission mechanisms are examined in detail in order to access new potential external vulnerabilities. We argue that external accounts performance depends on the interaction between external factors, which have been more relevant, and structural characteristics of the economy. We conclude with policy recommendations.

  18. The 2007 Financial Crisis: Did Banks Learn Their Lesson?

    NARCIS (Netherlands)

    Kurz, Michael

    2017-01-01

    The excessive risk-taking culture of banks is often blamed for the 2007-2008 financial crisis. Since it is widely believed that this risk culture that led to the financial crisis has not altered, calls for change in the financial industry are widely heard. Could tighter regulation of bank’s business

  19. FINANCIAL CRISIS FROM THE MACROECONOMIC LEVEL TO THE MICROECONOMIC LEVEL

    Directory of Open Access Journals (Sweden)

    SANDA GHEORGHE GABRIEL

    2014-08-01

    Full Text Available The current economic and financial crisis, beyond the problems it generates both at micro and macro level, should determine an adaptation of the mechanisms, institutions and monetary / financial policies to the real economy we are facing. The issue of financial crises is extremely complex, including a series of quantitative and qualitative factors, financial, economic, social, ethical, technological and human, which can intervene and influence the financial operations in a country or several countries simultaneously. We believe that it is difficult to appreciate that a traditional model might explain a financial crisis, given that every context of occurrence, conditions of development and crisis settlement programs are unique and unrepeatable. Every crisis has in its structure certain issues that may be capitalized and can lead to success. Perhaps more obvious are the ways that can lead to total failure of the organization. Finding and capitalizing the potential success is the essence of the crisis management. The essence of the mismanagement of the crisis is to worse situation. The successful management of a crisis involves admitting that you are facing a crisis, taking reasonable measures to remedy the situation, to be seen taking them and heard saying the right words. The issue at this stage of crisis management is that perception becomes true reality. Crisis management is a set of factors designed to combat the crisis and reduce the damage caused by the crisis. In other words, crisis management attempts to prevent or reduce the negative effects of the crisis and protect the organization, the public involved and the specific field by the possible damages. The effective management of the crisis includes crisis communication. This is an essential component through which the organization faced with the difficult situation can rehabilitate it’s publicly image or even to improve it. The crisis communication occurs between the organization and

  20. PENSION FUNDS AND THE FINANCIAL CRISIS IN THE CEE COUNTRIES

    OpenAIRE

    Milos Marius Cristian; Milos Laura Raisa

    2012-01-01

    In this paper, the authors analyze the influence of the international financial crisis on the current architecture of the CEE pension systems and their further reforms. As a consequence of the financial crisis, the very fragile pension reform has been subject of debate in the new member states of European Union, given their deep recession and registered fiscal deficits. In many of the CEE countries, which have adopted/developed later the second pillar, the financial crisis has raised question...

  1. Financial Crisis and Energy Efficiency. Information paper

    Energy Technology Data Exchange (ETDEWEB)

    de T' Serclaes, Philippine; Gasc, Emilien; Saussay, Aurelien

    2009-10-15

    Governments have understood the importance of financing energy efficiency now. This realisation is exemplified through the central role occupied by energy efficiency in most stimulus packages. The purpose of this memo is to identify the impact of the financial and economic crisis on the evolution of public sector investments, energy efficiency policy development, and private sector investments. The paper will first identify trends which have emerged from the implementation of IEA government stimulus packages. Most relevant case studies are then provided along with lessons and challenges.

  2. Prospect for the oil market as a consequence of the financial crisis

    International Nuclear Information System (INIS)

    Koppelaar, R.

    2008-11-01

    The Peak Oil Netherlands Foundation shines its light on the consequences of the financial crisis for the global oil market and the relation between oil prices and the credit crisis; short term supply and demand on the oil market; supply and demand of petroleum up to 2015; the volatility of the oil price and the meaning of volatility for the energy transition [mk] [nl

  3. The Financial and Economic Crisis and Developing Countries

    Directory of Open Access Journals (Sweden)

    Bruno Gurtner

    2010-03-01

    Full Text Available Developing countries were hit hard by the financial and economic crisis, although the impact was somewhat delayed. Every country had different challenges to master. The closer the developing countries are interconnected with the world economy, the crasser the effects. And the incipient recovery that is becoming noticeable is, for the time being, restricted to only a few countries and regions.The crisis was transmitted primarily by trade and financial flows forcing millions back into poverty. Attainment of the Millennium Development Goals is seriously jeopardised in many countries. Many developing countries did not and do not have the resources to stimulate the economy and protect their socially disadvantaged populations to the same extent as the industrialised countries. However, many countries have made considerable efforts to mitigate the effects. Developing countries have also increased their cooperation with one another and are urgently demanding a greater voice in global economic affairs.The industrialised countries are for the most part more concerned with their own problems. Their readiness to provide more extensive aid is limited. They are under pressure from the international institutions to relax their previous dominance in favour of the increasingly strong emerging countries. A shift in power and influence that was already noticeable before the financial crisis is deepening.

  4. THE IMPACT OF THE FINANCIAL CRISIS ON THE EUROPEAN BANKS

    Directory of Open Access Journals (Sweden)

    DAVID DELIA

    2012-07-01

    Full Text Available The fast innovations existent on financial markets and the internationalization of cash-flows in the last decade led to changes within the banking industry making it unrecognized. The financial innovation within the banking industry, especially the one regarding the off-balance-sheet instruments has effects as the risk focus and the increase of volatility within the entire banking industry. As it is proved by the economic crisis, the financial stability plays an important role within the financial system as well as within the economy as a whole. At the moment, as the number of active financial institutions is getting higher and higher in one or more countries or on one or more continents, the financial stability at a worldwide level became even more important. The objective of this work is to emphasize the way in which the European banks were affected once with the global financial crisis. The economic crisis was triggered by the bankruptcy of the Lehman Brothers ‘ Investment Bank, in the autumn of 2008 and its effects were felt at the level of the European financial markets, a series of cross-border groups claiming interventions of the state in order for them to be saved. The intensity of the crisis was felt and it affected many states, the impact of these ones being influenced by a series of specific factors which outlined the situation of their financial system, at the moment of the crisis release. At the level of the European Union, a series of measures have been established in order to extinguish the identified dysfunctions at a financial field level, among which we mention: the improvement of the surveillance framework of those financial institutions having cross-border activity, the expansion of the communication and cooperation among the EU surveillance authorities and the ones outside the Union, etc. The conclusions of the study of this paper work in regards to the activity of the main European banks, especially to the ones from

  5. The role of financial groups in Russia's banking crisis

    NARCIS (Netherlands)

    Perotti, E.C.

    1999-01-01

    This article reviews the role of financial groups in financial crises, and then applies the lessons learnt to Russia though a detailed analysis of the ruble collapse, the GKO default and the banking crisis.

  6. Financial Crisis and Economic Restructuring in Southeast Asia

    Directory of Open Access Journals (Sweden)

    Yul Kwon

    1998-06-01

    Full Text Available The hidden inner structural problem with the rapid growth of economy was exposed after the financial crisis and South-East Asia is facing serious economic crisis. Currently, the core of the financial crisis is the low function of financial system, so to make the financial department normal by rebuilding the untrue financial system is the problem we are facing. If our financial sector delay the structural adjustment and continue to be competitive in credit, the insolvent debenture will soar. Enterprise and financial institute closed one after another, causing economic collapse and the vicious circle. Accordingly, in order to overcome the current South-East Asia financial crisis, countries there put their focus on the rebuilding of financial system and under the financial system of IMF (International Monetary Foundation, they are doing economic adjustment in large-scale. This thesis studied the nature and features of the Asian financial crisis, and analyzed the main direction and feature of financial policy under IMF. Especially it analyzed the current situation in different countries for this adjustment, and researched the result of the economical reform after this financial crisis.

  7. HISTORICAL COST AND FAIR VALUE WITHIN THE CONTEXT OF FINANCIAL CRISIS

    Directory of Open Access Journals (Sweden)

    DIANA ELENA BRINZA

    2011-04-01

    Full Text Available Financial crisis determined the fast extension of global financial bankruptcy upon the world, representing at the same time the first crisis of the accounting term of "fair value", under the shade of which subsists a number of standards which request to the institutions to estimate at the market value much of the assets they possess. The Council for International Standards in Accountancy (IASB revised the rules regarding the accountancy at the fair value, as a reaction before the critics which sustains that the accountancy rules at the fair value were the basis of volatility of financial market. The alternative for "fair value" – the historical cost of assets – has little admirers within the financial crisis. In the pages of the present article, we will try to achieve an incursion through specialized literature while analysing the two methods of valuation within the context of financial crisis.

  8. Global Crisis: A Local Perspective on the Impacts on Developing ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    Marjorie Alain

    At the onset of the global financial crisis, there was considerable debate as to ... investment, remittances and aid) of the country and the policies put in place to ... four in Asia (Cambodia, Indonesia, Lao People's Democratic Republic, and the ...

  9. Fair Value Considerations during the Current Financial Crisis

    Directory of Open Access Journals (Sweden)

    Banu Esra Aslanertik

    2010-03-01

    Full Text Available In the current economic conditions, accounting applications seem to face new and complex challenges. Especially, these challenges are on the basis of fair value. Recent crisis has highlighted the complexity and difficulty of valuing financial instruments when market information is not available or not sufficient to give better economic decisions. FASB 157 “Fair Value Accounting” became effective by January 1, 2008 for most U.S. companies and some believe that this caused the problem. Oppositely, a wider group of interested parties and investors believe that fair value increases transparency and give relevant information for decision making. Depending on the financial reporting framework and the going concern assumption, this paper investigates the process for determining fair value measurements and its in-depth effects in financial reports. Also, the paper will try to highlight the question: “Can fair value be really the main reason of the global financial crisis?” from the aspect of an accounting academician.

  10. How Should the Financial Crisis Change How We Teach Economics?

    Science.gov (United States)

    Shiller, Robert J.

    2010-01-01

    Student dissatisfaction with teaching of economics--particularly with macroeconomics--during the current financial crisis mirrors dissatisfaction that was expressed during the last big crisis, the Great Depression. Then and now, a good number of students have felt that their lectures bear little relation to the economic crisis raging outside the…

  11. Household debt and consumption during the financial crisis

    DEFF Research Database (Denmark)

    Andersen, Asger Lau; Duus, Charlotte; Jensen, Thais Lærkholm

    2014-01-01

    We use data for nearly 800,000 Danish families to examine whether high household leverage prior to the financial crisis may have amplified the reduction in household spending over the course of the crisis. We find a strong negative correlation between pre-crisis leverage and the change in non...

  12. The customers borrowing behavior during the financial crisis

    Directory of Open Access Journals (Sweden)

    Alina LUCA (BRĂTUCU

    2013-05-01

    Full Text Available The global financial crisis determined the transition of the Romanian banking system from excess of liquidity to deficit, namely from an aggressive lending activity to a significant reduction of credit growth rate. In our country, the high indebtedness rate, especially in foreign currencies, is the main vulnerable spot of the population sector. The main objective of this paperwork is to analyze factors that influence the customers in their decision to borrow in foreign currencies or in Ron. In this matter, it was used a regional econometric model for panel data in order to see Romania’s customers borrowing preferences and to analyze if the crises have changed their behavior.

  13. SUBPRIME CRISIS AND FINANCIAL CONTAGION: EVIDENCE FROM TUNISIA

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    Mongi GHARSELLAOUI

    2013-01-01

    Full Text Available The purpose of this paper is to study the subprime crisis while focusing on the phenomenon of financial contagion. Subprime crisis is a crisis that has hit the U.S. mortgage sector and helped to trigger the financial crisis of 2007-2009. In the context of this study, we are interested in exposing the subprime crisis and the contagion first point. The second point will be reserved for the transmission channels of contagion and the third point; we will try to assess the impact of liquidity on the capital market returns. This study shows that the Tunisian financial market does not seem to be very influenced by the subprime crisis. This can be explained by the intrinsic characteristics of the Tunisian market, an underdeveloped market and elemental thing that can make him more or less immune to that crisis.

  14. Insolvency in the Corporate Sector and Financial Crisis in Korea

    OpenAIRE

    Kim, Joon-Kyung; Lee, Chung H.

    2001-01-01

    The paper shows that between the late 1980s and 1997, the year when Korea was engulfed in a financial crisis, its corporate-sector profitability was on a decreasing trend, albeit short-term ups and downs. The evidence presented in the paper suggests that Korea’s corporate and financial sectors had been highly vulnerable to a crisis for some years before 1997 and the actual timing of the crisis was triggered by the financial crisis in Thailand in July 1997 and its contagion effect.

  15. Does a financial crisis make consumers increasingly prudent?

    NARCIS (Netherlands)

    L.H.J. Noordegraaf-Eelens (Liesbeth); Ph.H.B.F. Franses (Philip Hans)

    2014-01-01

    markdownabstract__Abstract__ Given the enormous impact of the 2007-2010 worldwide financial crisis on societies, one may wonder what the impact was on individual consumer behavior concerning financial products and services. A natural expectation would be that the crisis made people aware of the

  16. Diagnosis of Financial Crisis in Asia : From Miracle to Debacle

    NARCIS (Netherlands)

    van de Gevel, A.J.W.

    1998-01-01

    This paper discusses the causes, cures and consequences of the Asian financial crisis.Since mid-1997 a number of Southeast Asian economies have been in the grip of a severe financial crisis that has thrown the region into a deep recession.On the basis of expected diminishing returns this has raised

  17. Credit policies before and during the financial crisis

    DEFF Research Database (Denmark)

    Sørensen, Palle

    for credit. The analysis also reveals that the credit supply was weaker in banks that were struggling during the crisis and indirectly that firms could not off-set this effect by changing banks. Furthermore, the evidence suggests that the financial crisis also affected the liquidity of non-financial firms...

  18. The financial crisis in Italy: implications for the healthcare sector.

    Science.gov (United States)

    de Belvis, Antonio Giulio; Ferrè, Francesca; Specchia, Maria Lucia; Valerio, Luca; Fattore, Giovanni; Ricciardi, Walter

    2012-06-01

    The global economic and financial crisis is having and impact on the Italian healthcare system which is undergoing a devolution process from the central government to regions and where about one third of the regional governments (mainly in the central and southern part of the country) are facing large financial deficits. The paper briefly describes the current macro scenario and the main responses taken to face the crisis and highlights the downside risks of introducing "linear" cuts in the allocation of resources. While justified by the risk of a national debt default, present fiscal policies might increase inequalities in access to care, deteriorate overall health indicators and population wellbeing, and sharpen existing difference in the quality of care between regions. Preliminary evidence shows that the crisis is affecting the quality of nutrition and the incidence of psychiatric disorders. During this difficult financial situation Italy is also facing the risk of a major reduction in investments for preventive medicine, Evidence Based Medicine infrastructures, health information systems and physical capital renewal. This cost-cutting strategy may have negative long term consequences Also, important achievement in terms of limiting waiting lists, improving continuity of care and patients' centeredness, and promoting integration between social and health care may be negatively affected by unprecedented resources' cuts. It is essential that in such a period of public funding constraints health authorities monitor incidence of diseases and access to care of the most vulnerable groups and specifically target interventions to those who may be disproportionally hit by the crisis. Copyright © 2012 Elsevier Ireland Ltd. All rights reserved.

  19. IMPACT OF THE FINANCIAL CRISIS UPON EASTERN EUROPE COUNTRIES: STILL A PROBLEM FOR THE ECONOMY OF THE REGION?

    Directory of Open Access Journals (Sweden)

    MIHAELA-ANDREEA STROE

    2011-04-01

    Full Text Available The paper looks at the impact of the global economic and financial crisis on a number of central, eastern and south-eastern European countries. The global crisis can be viewed as three interdependent and mutually reinforcing crises: a financial crisis, a liquidity crisis, and a crisis in the real economy. The financial crises that have emerged and developed in the recent decades have been characterized, mostly of an international dimension, with shocks quickly propagating through capital markets, through the international banking activities and, through the money markets.East Europe was hit first by the global liquidity crisis, then by declines in capital inflows and plunging demand for their exports.Before the crisis, the Eastern region was experiencing an economic boom with rapid GDP and credit growth, but in the future East European countries will have to rely relatively more on internally-generated sources of productivity growth.

  20. The Effects of 2008 Global Financial Crisis to the USA Real Estate Sector and Comparison of Similarity-Difference with the Situation of the Turkish Real Estate Sector in Recent Period

    Directory of Open Access Journals (Sweden)

    Fatih ŞENTÜRK

    2016-07-01

    Full Text Available The liquidity crisis which stemmed from the low-income families’ inability to pay back the high-risk housing credits which were given by relying on the low interest rates in 2008 not only caused damage in the US but also in several other countries’ real estate sectors, thus making finance institutions and investors suffer significant losses. In this study, it is endeavored to compare similarities and differences between the global financial crisis’ reflections on the US economy with the Turkish real estate sector in the recent period. Real estate, which is the leading sector in Turkey, has experienced economic losses during the crisis period due to the contraction in GDP. In this context, it is aimed to examine controversies regarding the forming of a housing bubble as well as the possibility of a similar crisis to the liquidity crisis in the US happening in Turkey due to an atmosphere of panic caused by the private sector’s and households’ increasing burden of debt.

  1. EU trade in the time of financial crisis

    Directory of Open Access Journals (Sweden)

    Fojtíková, L.

    2010-12-01

    Full Text Available The paper is focused on the European Union (EU trade and trade policy in the time of global financial and economic crisis. The analysis of the EU exports and imports points out that the financial crisis has had a negative impact on the intra as well as on the extra-EU trade in the period 2007-2009, but differences among the EU member states have existed. Although the EU tries to support trade development in the world and remove barriers to trade, some protectionist tendencies were recorded in the time of the economic crisis. The last part of the paper gives emphasis to the EU trade policy and some trade measures which have been taken in the EU and its member states to support trade development or vice versa, to protect domestic industries. The results of the analysis show that, although some protectionist tendencies have been recorded both in extra and intra-EU trade, trade relations which are provided among member states are of significant importance all the time.

  2. Occupy the Financial Niche: Saturation and Crisis

    Science.gov (United States)

    Purica, Ionut

    The model presented is one theoretical approach within a broader research program that could verify the nonlinear conjectures made, such that to quantify and predict potential discontinuous behaviour. In this case, the crisis behaviour associated with financial funds reallocation among various credit instruments, described as memes with the sense of Dawkins, is shown to be of discontinuous nature stemming from a logistic penetration in the behaviour niche. Actually the logistic penetration is typical in creating cyclic behaviour of economic structures as shown by Marchetti and others from IIASA. A Fokker-Planck equation description results in a stationary solution having a bifurcation like solution with evolution trajectories on a `cusp' type catastrophe that may describe discontinuous decision behaviour.

  3. Risk Management of the English Universities after the 2008 Financial Crisis

    Science.gov (United States)

    Yokoyama, Keiko

    2018-01-01

    The objective of the paper is to identify whether the global financial crisis in 2008 re-shaped risk management in the English universities in order to avoid future financial turbulence and manage risk in uncertain and insecure environments. The paper examined changes in the risk management mechanism of the English university system between 2008…

  4. Energy crisis? The likelihood of a global energy crisis

    International Nuclear Information System (INIS)

    Franssen, H.

    2001-01-01

    This paper assess global energy problems and compares the energy crises of the 1970s with current US energy problems. The reaction of the OECD countries to the oil crises of 1973/4 and 1979/80, the perception of future oil supplies, and the difficulties faced by ordinary consumers in accepting that there is an energy crisis are discussed along with the Californian electricity crisis, the falling US natural gas supplies, and the low return on investment in the US refining industry. The prospect of another oil crisis, and the need for consumers to learn to live with price volatility are considered

  5. HOW AFFECTED WAS WORLD INSURANCE MARKET BY GLOBAL CRISIS?

    Directory of Open Access Journals (Sweden)

    ANA PREDA

    2013-12-01

    Full Text Available Global economic and financial crisis triggered in 2008 had a significant impact with effects in economical life worldwide. Insurance industry wasn't spared but was less affected than other sectors of the world economy. The aim of the present paper is to underline the main crisis effects on global insurance market through a comparative study between different regions from the world, taking into consideration the main indicators which give us an insurance market dimension, such as: gross premium volume, insurance density and insurance penetration.

  6. THEORETICAL CONSIDERATIONS ON THE EFFECTS OF THE FINANCIAL CRISIS ON BUDGETARY REVENUES IN ROMANIA

    OpenAIRE

    CIURLAU LOREDANA; BUSAN GABRIELA

    2012-01-01

    The global economy entered into the greatest economic crisis after the great recession, which affected both developed countries and emerging countries, demonstrating the degree of interdependence of world economies. The financial crisis has put in front of the Governments of a number of challenges, the most important of which are: a new approach to budgetary fiscal policies by Governments, a global coordinated response of the authorities in the affected countries, the need to improve recognit...

  7. The Issue of the Financial Regulations and the Crisis – Romanian Case

    Directory of Open Access Journals (Sweden)

    Isac BORS

    2011-11-01

    Full Text Available The harmful effects, on medium and long term, the financial crisis manifests on the economy, requires a deep analysis on the specific phenomena, aiming to the diminishing or even the eliminating of the unwanted effects. This way, an effective operation, asks for a correct diagnosis over the phenomena which implies the precise identification of the generating factors. In the end, action has to be taken on the identified factors generating financial crisis. The present work, makes an analysis of the real causes that lead to the financial crisis in Romania, considering the global context. It is this global context in which there have been identified some answers to the crisis problem.

  8. THE ANALYSIS OF FINANCIAL CRISIS EFFECTS AT THE ROMANIAN BANK

    Directory of Open Access Journals (Sweden)

    Izabella KRÁJNIK

    2010-06-01

    Full Text Available The banking incomes and costs represent an important source of information regarding the profitability of a bank. The paper aims to analyse the current financial world crisis. After describing its causes and effects, the study focuses on the crisis’ impact on the global economy; Romania is the core of this analysis, as it is a country which feels very strongly the effects of the international financial turmoil. In a banking environment such as Romania's, constantly changing and subject to the pressure of a fierce competition, all the attention of the banks management teams is oriented towards the costs and their possible reduction in regard to maximizing the profit. In this context we considered as particularly important the analysis of the bank costs within the framework of the Romanian banking system, analysis which targets their structure on one side and their evolution and efficiency on the other side.

  9. A review of operational risk in banks and its role in the financial crisis

    Directory of Open Access Journals (Sweden)

    Erika de Jongh

    2013-11-01

    Full Text Available The role of operational risk in the 2007/2008 financial crisis is explored. The factors that gave rise to the crisis are examined and it is found that although the event is largely regarded as a credit crisis, operational risk factors played a significant role in fuelling its duration and severity. It is concluded that, from an operational risk perspective, 2008 was the worst on record. Considering the extensive role of operational risk in global financial calamities, suggestions are made to improve the management of this risk type.

  10. The impacts of the global financial crisis on hospitalizations due to depressive illnesses in Taiwan: A prospective nationwide population-based study.

    Science.gov (United States)

    Bonnie Lee, Chiachi; Liao, Chen-Mao; Lin, Chih-Ming

    2017-10-15

    In the third quarter of 2008, a major financial crisis hit many developed countries. Taiwan suffered its own share: a rise in unemployment and a severe decline in gross domestic product. This study is to address the health consequences of this crisis on different socioeconomic populations in Taiwan. A sample of 6,225,766 men and 5,417,651 women, was obtained and their admissions data over 2007-2012 were retrieved. Stratified into three income levels, the sample was examined on the 147,921 episodes of hospitalization due to depressive illnesses (DIs) over that period by an interrupted time series analysis for monthly incidence rates of DI hospitalizations RESULTS: The adjusted incidence rates of hospitalization (AIRH) for DIs among the low income were 10 times that of the high income group. The AIRHs were generally higher in all of three female income groups than they were in the three male income groups. The low income men and women showed increases (of 18.0% and 14.2%, respectively) beginning in April 2008 that sustained for two years. The high income women exhibited a 5.0% monthly rise in the rate of DI hospitalizations. Our time series models can control some confounding factors, but the ecological fallacy remained. This study provides evidence that the economic recession resulted in increased rates of DI hospitalization in Taiwan, especially among the low income population. Women of higher incomes may have suffered a more enduring impact. Copyright © 2017 Elsevier B.V. All rights reserved.

  11. FINANCIAL CRISIS FROM THE MACROECONOMIC LEVEL TO THE MICROECONOMIC LEVEL

    OpenAIRE

    SANDA GHEORGHE GABRIEL; ENEA CONSTANTA

    2014-01-01

    The current economic and financial crisis, beyond the problems it generates both at micro and macro level, should determine an adaptation of the mechanisms, institutions and monetary / financial policies to the real economy we are facing. The issue of financial crises is extremely complex, including a series of quantitative and qualitative factors, financial, economic, social, ethical, technological and human, which can intervene and influence the financial operations in a...

  12. Financial Bubbles, Real Estate Bubbles, Derivative Bubbles, and the Financial and Economic Crisis

    Science.gov (United States)

    Sornette, Didier; Woodard, Ryan

    The financial crisis of 2008, which started with an initially well-defined epicenter focused on mortgage backed securities (MBS), has been cascading into a global economic recession, whose increasing severity and uncertain duration has led and is continuing to lead to massive losses and damage for billions of people. Heavy central bank interventions and government spending programs have been launched worldwide and especially in the USA and Europe, with the hope to unfreeze credit and bolster consumption. Here, we present evidence and articulate a general framework that allows one to diagnose the fundamental cause of the unfolding financial and economic crisis: the accumulation of several bubbles and their interplay and mutual reinforcement have led to an illusion of a "perpetual money machine" allowing financial institutions to extract wealth from an unsustainable artificial process. Taking stock of this diagnostic, we conclude that many of the interventions to address the so-called liquidity crisis and to encourage more consumption are ill-advised and even dangerous, given that precautionary reserves were not accumulated in the "good times" but that huge liabilities were. The most "interesting" present times constitute unique opportunities but also great challenges, for which we offer a few recommendations.

  13. Bank Restructuring in Asia: Crisis management in the aftermath of the Asian financial crisis and prospects for crisis prevention -Malaysia-

    OpenAIRE

    ITO Takatoshi; HASHIMOTO Yuko

    2007-01-01

    This paper analyzes the bank restructuring process in Malaysia from the currency crisis of 1997 to present. Even though the banking sector in Malaysia had relatively lower NPLs compared to other Asian countries, financial sector suffered financial crisis and various problems emerged. This paper covers topics such as setting up financial restructuring agencies, a scheme of capital injection to weak banks, and a corporate restructuring process conducted by the Malaysian government. Plans of Mer...

  14. The synergy of the refugee crisis and the financial crisis in Greece: Impact on mental health.

    Science.gov (United States)

    Anagnostopoulos, Dimitris C; Giannakopoulos, George; Christodoulou, Nikos G

    2017-06-01

    The current global financial crisis that started in 2008 resulted in a significant decline in global trade, slowing/reversing economic growth worldwide, and a dramatic increase in public sector debt. At the same time, the global migrant/refugee crisis has reached extreme rates, with millions of people being forced to abandon their homes and communities because of war, political violence or related threats. There is a broad consensus about the deleterious consequences of these crises on psychological well-being, depression, anxiety disorders, insomnia, alcohol abuse and suicidal behavior. Although the separate consequences of economic recession and immigration are extensively discussed in previous research, we know very little about the processes through which the intersection of economic crisis and migrant crisis contributes to the vulnerabilities of natives and migrants during these crises. Of particular concern is the status of children, adolescents and their families, who constitute one of the most vulnerable groups in society. To discuss the contexts that economic and migrant crises shape and suggest possible effects of this intersection on mental health risks, especially among children, adolescents and their families, through reflecting on the recent experience in Greece. Review of the literature and critical analysis of the effects of the confluent crises. The interactive effects of these two crises need further exploration. Novel and diverse models of psychological understanding need to be developed in order to manage the effects of the confluent crises. The role of mental health professionals is crucial in this respect, offering culturally flexible, accommodating and empathetic approaches, allowing healing and acceptance in the face of adversity.

  15. Causes and effects of Romania deepening financial crisis. Short term means

    OpenAIRE

    Tudor Florin

    2011-01-01

    Deepening and expanding financial crisis triggered in October 2008 in the U.S. and other countries is the event that has caused the utmost concern of the policy makers in the economy and society. Forecasts for Romania show a slowdown in economy. As the current global status indicates the likelihood of a major global economic crisis, we attempt through this study to identify the real causes of this deepening crisis in Romania. As well as public policy priorities to counteract the effects of th...

  16. Personal Finances during the Economic and Financial Crisis

    OpenAIRE

    Ioana LUPASC; Adrian LUPASC

    2012-01-01

    The crisis is unfortunately a negative feature specific to recent years which has affected most areas of activity in many countries, including the powerful economical ones. As a direct consequence, the crisis has had a significant and direct impact on people's personal finances. In this paper we propose different solutions which lead to a better administration of personal finances, so that the involved actors to be able to manage difficult situations made by the economic and financial crisis....

  17. The new international financial crisis: causes, consequences and perspectives

    Directory of Open Access Journals (Sweden)

    Flavio Vilela Vieira

    2011-06-01

    Full Text Available The paper investigates the recent financial crisis within a historical and comparative perspective having in mind that it is ultimately a confidence crisis, initially associated to a chain of high risk loans and financial innovations that spread thorough the international system culminating with impressive wealth losses. The financial market will eventually recover from the crisis but the outcome should be followed by a different and more disciplined set of international institutions. There will be a change on how we perceive the widespread liberal argument that the market is always efficient, or at least, more efficient than any State intervention, overcoming the false perception that the State is in opposition to the market. A deep financial crisis brings out a period of wealth losses and an adjustment process characterized by price corrections (commodities and equity price deflation and real effects (recession and lower employment, and a period of turbulences and end of illusions is in place.

  18. The Asian financial crisis : identification, interdependence, and transmission

    NARCIS (Netherlands)

    Lestano, M.

    2006-01-01

    The 1980s and 1990s witnessed several episodes of financial turmoil, including the sovereign debt crisis of Latin America in the 1980s, the near-breakdown of the European Exchange Rate Mechanism (ERM) in 1992-1993 and the severe crisis that swept through Asian economies in 1997-1998. Three

  19. Investing against the wind : contagion during the recent financial crisis

    NARCIS (Netherlands)

    Lu, Liping; Wang, Chunyang

    2016-01-01

    This article examines the effect of Warren Buffett’s investment in Goldman Sachs on 24 September 2008, during the subprime mortgage crisis. Although this event is arguably perceived to be the biggest expression of confidence in the financial market during the crisis, by conducting event studies, we

  20. Individual Investor Perceptions and Behavior During the Financial Crisis

    NARCIS (Netherlands)

    Hoffmann, A.O.I.; Post, T.; Pennings, J.M.E.

    2013-01-01

    Combining monthly survey data with matching trading records, we examine how individual investor perceptions change and drive trading and risk-taking behavior during the 2008–2009 financial crisis. We find that investor perceptions fluctuate significantly during the crisis, with risk tolerance and

  1. THE ECONOMIC – FINANCIAL CRISIS 2007 – 2009

    Directory of Open Access Journals (Sweden)

    Andreea Nicoleta Donici

    2010-09-01

    Full Text Available This article takes a look at the well known economical and financial crisis, which affected all the countries in the world. When comes to Europe, the most affected countries were the Baltic countries: Estonia, Latvia and Lithuania. The economy of these countries shrank enough, so that they cope with another wave of crisis.

  2. Financial Crisis and Corporate Social Responsible Mutual Fund Flows

    Directory of Open Access Journals (Sweden)

    Sitikantha Parida

    2018-01-01

    Full Text Available In this paper, we investigate investment flows into mutual funds that hold more high corporate social responsible stocks (top CSR funds vs. mutual funds that hold more low corporate social responsible stocks (bottom CSR funds. Using a large sample of equity mutual funds spanning 2003–2012, we find that top CSR funds on average receive about 5% less investment per annum compared to the other funds; whereas bottom CSR funds receive about 5.6% more investments. These relative negative and positive flows into the top and bottom CSR funds respectively were larger during the pre-financial crisis period (2003–2007. This trend, however, reversed during the financial crisis (2008–2009. Top CSR funds attracted about 8.7% more investments during the financial crisis compared to the pre-crisis period; whereas bottom CSR funds received about 9.8% less investment. This higher investment into the top CSR funds during the crisis seems to have disappeared during the post-crisis period (2009–2012. Additional analysis shows that the corporate social ratings of top CSR funds improved through the crisis, whereas it deteriorated for the bottom CSR funds. Our findings are consistent with the “flight to quality” phenomenon observed in financial markets during market crises, indicating that investors perceive top CSR fund investments as relatively safe or of higher quality and hence, invest more in them during financial crises.

  3. International Stock Market Comovements: What Happened during the Financial Crisis?

    Czech Academy of Sciences Publication Activity Database

    Horváth, Roman; Poldauf, P.

    2012-01-01

    Roč. 12, č. 1 (2012), s. 1-21 ISSN 1524-5861 R&D Projects: GA ČR GA402/09/0965 Institutional research plan: CEZ:AV0Z10750506 Institutional support: RVO:67985556 Keywords : stock market comovements * financial crisis * GARCH Subject RIV: AH - Economics http://library.utia.cas.cz/separaty/2012/E/horvath-international stock market comovements what happened during the financial crisis .pdf

  4. Financial and Economic Crisis and Corporate Finance Development

    Institute of Scientific and Technical Information of China (English)

    LI Xinhe

    2015-01-01

    Financial and economic crisis has challenged the ideological and methodological basis,the basic assumptions and the universal applicability of the research conclusions of the mainstream corporate finance.In order to construct corporate finance appropriate to the state of financial crisis,it is necessary to adjust the objective function of corporate finance,modify the corporate financing theory,extend corporate investment theory,enrich corporate working capital management theory,and adjust corporate dividend policy theory.

  5. Global Financial Governance: a Perspective from the International Monetary Fund

    Directory of Open Access Journals (Sweden)

    Ryszard Wilczyński

    2011-03-01

    Full Text Available An environment for the activities of the International Monetary Fund (the IMF has fundamentally changed over the two recent decades. The strong development of financial innovations as well as of financial globalisation was among major forces driving the change and shaping the economic growth worldwide. As some economies were able - with the support from financial markets – to accelerate their growth, other countries suffered from turbulences, which were reinforced and transferred internationally through the volatile financial markets. The process of international financial contagion makes the case for global financial governance, which so far has been left behind the development of markets. The IMF is mandated to play a central role in the global governance designed to ensure financial stability. The article reconsiders the Fund’s role and includes an overview and assessment of its activities, particularly in the context of the global financial crisis in 2007-2010. In the aftermath of this crisis, the international financial stability may, however, again be at risk as several external imbalances in the global economy may be hardly sustainable. It is argued in the paper that, in addition to a gradually improving surveillance and lending as well as to adjusting resources by the Fund, an enhanced credibility of the institution is needed so that its role in the process of the stabilising global financial system is strong and effective.

  6. The present global financial and economic crisis and the oil crises of the 1970s. Opposite turning points in the development of economic growth, energy supply, and the role of nuclear power?; Die gegenwaertige globale Finanz- und Wirtschaftskrise und die Oelkrisen der 1970er-Jahre. Gegensaetzliche Trendwenden in der Entwicklung von Wirtschaftswachstum, Energieversorgung und Rolle der Kernenergie?

    Energy Technology Data Exchange (ETDEWEB)

    Herrmann, Dieter

    2012-08-15

    After decades of extensive economic growth, the oil crises in the 1970s enforced the transition to intensive growth in a manner conserving resources, combined with a fundamental turnaround in the development of global energy supply and the role of nuclear power. Meanwhile, the world has changed considerably as a result of population growth, technical progress, and globalization - and it is in the throes of another crisis. The contribution shows, on the basis of empirical indicators, that higher commodity prices halted the period of intense growth already in late 2007. The following global financial and economic crisis can be interpreted plausibly as a return to extensive economic growth worldwide. This is likely to have far-reaching consequences for the future development of global energy supply and the role of nuclear power. (orig.)

  7. Global financial reform since 2008: Achievements and shortcomings

    Directory of Open Access Journals (Sweden)

    Šoškić Dejan

    2015-01-01

    Full Text Available The global financial crisis that started in the U.S. had an immediate spillover to the rest of the world financial markets. Next, a decrease in real economic output throughout the developed world occurred simultaneously with high bailout costs for the salvaging of banks and other financial institutions. This vicious combination was at the core of the bank-sovereign interdependence and the sovereign debt crisis of the eurozone. As early as 2008, the G20 announced a thorough global reform agenda with an aim to tackle the root causes of the crises and to transform the system of global financial regulation. Some important reform steps have been made; still, more than six years on, the job is not finished. Where are we in terms of global financial reform, and are we close to creating a more secure global financial system significantly less prone to crisis and bailouts with taxpayers’ money? [Projekat Ministarstva nauke Republike Srbije, br. 179005: Risks of Financial Institutions and Markets in Serbia - A Microeconomic and Macroeconomic Approach

  8. Global Crisis and Country's Competitiveness: Lessons from Indonesia and Malaysia

    OpenAIRE

    Anton Setyawan

    2011-01-01

    This study examines the impact of 2009 global financial crisis to Indonesia and Malaysia. The framework of this study is Porter Diamond Model of Competitiveness. By using fixed effect panel data regression analysis this study analyze the four dimension of Porter model. In this study, they are four model regressions as a proxy of factor condition, demand condition, related and supporting industries model and Firm strategy, structure, and rivalry model. This study uses data from Asian Developme...

  9. GLOBAL CRISIS: SEARCHING THE ORIGINS BY BUSINESS ECONOMICS

    OpenAIRE

    POLLIFRONI Massimo

    2012-01-01

    Aim and topic of the paper is to research the causes of the current global crisis, which manifests itself in financial terms, but whose origin is due to the ethical model of reference: the question is evident both in macroeconomics and in Business Economics. Just from this last point of view, the article will attempt to highlight what should be the correct drivers of ethical management for companies oriented towards an internationalization of their business.

  10. Financial Crisis Management in Higher Education: Responses by 20 Private Colleges and Universities to the 2007-2009 Financial Crisis

    Science.gov (United States)

    Dorantes, Andrew R.; Low, Justin R.

    2016-01-01

    As a result of the Great Recession, higher education in the United States suffered from the most significant financial crisis since the Great Depression (Breneman 2008; Zumeta 2010). This crisis affected all institutions of higher education since it challenged three major revenue sources: net tuition income, endowment income, and gift income…

  11. The Asian financial crisis: identification, interdependence, and transmission

    OpenAIRE

    Lestano, M.

    2006-01-01

    The 1980s and 1990s witnessed several episodes of financial turmoil, including the sovereign debt crisis of Latin America in the 1980s, the near-breakdown of the European Exchange Rate Mechanism (ERM) in 1992-1993 and the severe crisis that swept through Asian economies in 1997-1998. Three generations of theoretical models have been proposed to describe and explain such financial crises. The so-called first-generation models ars focussed on the Latin America debt crisis, which is characterise...

  12. Theoretical Grounds of Enterprise Anti-crisis Financial Management

    Directory of Open Access Journals (Sweden)

    Berest Maryna M.

    2014-03-01

    Full Text Available The goal of the article lies in specification and deepening of the essence and theoretical grounds of the enterprise anti-crisis financial management (EAFM. The article analyses and generalises literature, devoted to anti-crisis management problems, marks out and characterises main structural elements of the enterprise anti-crisis financial management: goal, task, object and subject. It shows that tasks of the enterprise anti-crisis financial management should show its essence in the context of preventive, stabilising and anti-crisis components. The article groups and clarifies the concept of functions and principles of the enterprise anti-crisis financial management. It marks basic, specific and integration functions and provides their description. It also marks out and characterises individual principles, which identify the EAFM process, justify development and realisation of anti-crisis solutions and measures and also characterise EAFM organisation at an enterprise. Prospects of further developments in this direction are overview, analysis and improvement of methodical instruments of realisation of the specified EAFM tasks on the basis of the considered theoretical aspects.

  13. The global governance of crisis migration

    Directory of Open Access Journals (Sweden)

    Alexander Betts

    2014-02-01

    Full Text Available There is no coherent or unified global governance framework for the different areas that have been subsumed under the umbrella of ‘crisis migration’. This is not to say that when new challenges or labels arise new institution-building is necessarily required. Addressing emerging protection gaps such as those related to crisis migration requires creativity in making existing institutions work better across implementation, institutionalisation and international agreements.

  14. How Teacher Educators Can Address Our Nation's Financial Crisis

    Science.gov (United States)

    Dowdell, John; McElfresh, Dwight; Sikula, John

    2009-01-01

    This article from Ashland University reports on what one university, well known for its Teacher Education programs, is doing in an economically depressed state to address our country's financial crisis. Ohio has mandated that financial literacy be taught in high schools by 2010. Reported herein is what is being done to prepare teachers for this…

  15. Correlation of financial markets in times of crisis

    Science.gov (United States)

    Sandoval, Leonidas; Franca, Italo De Paula

    2012-01-01

    Using the eigenvalues and eigenvectors of correlations matrices of some of the main financial market indices in the world, we show that high volatility of markets is directly linked with strong correlations between them. This means that markets tend to behave as one during great crashes. In order to do so, we investigate financial market crises that occurred in the years 1987 (Black Monday), 1998 (Russian crisis), 2001 (Burst of the dot-com bubble and September 11), and 2008 (Subprime Mortgage Crisis), which mark some of the largest downturns of financial markets in the last three decades.

  16. THE FINANCIAL CRISIS IN EUROPE AND IN ROMANIA. FEATURES AND COMBATING MEASURES

    Directory of Open Access Journals (Sweden)

    Magdalena RĂDULESCU

    2016-11-01

    Full Text Available The crisis triggered in 2007-2008 in the USA and then globally manifested strongly and affected many areas and categories of people. Through its specific features, it proved that the current regulatory system is no longer viable and it has to be reformed so that in the future to alleviate some of the negative effects felt in the context of the last international financial and economic crisis. The measures adopted were aimed at the fiscal, monetary and the income policy. Only used in combination, these policies proved effective under crisis conditions and determined the economic recovery.

  17. Financial Integration and Financial Crisis: Croatia Approaching the EMU

    Directory of Open Access Journals (Sweden)

    Dražen Derado

    2009-09-01

    Full Text Available The breakdown of command economies has significantly increased growth potentials all over Europe and opened up prospects for economic development. Encouraged by that, the EU embarked on the process of deeper economic integration. Its main aspects – economic liberalization and monetary integration – coincided with the worldwide globalization of trade and capital flows. As a laggard country in the process of economic integration, Croatia is in a particularly difficult position – besides soaring trade deficit, it is highly indebted and strongly dependant upon foreign capital. Appreciating theoretical inferences and empirical evidence on monetary integration, while taking reference to the realized level of international financial integration and external vulnerability, the aim of the paper is to find out if Croatia fulfils the criteria for successful monetary integration.

  18. Financial globalisation and crisis, institutional transformation and equity

    OpenAIRE

    Arestis, Philip; Singh, Ajit

    2010-01-01

    This paper comprises the long introduction to the symposium of five papers on financial globalisation published in the Cambridge Journal of Economics, volume 34, no 2. The paper discusses the impact of financial globalisation in a variety of spheres and shows how the five papers link together to provide a coherent view of the current economic and financial crisis. In this paper we also examine the globalisation of finance more broadly both in historical terms as well as in relation to the cur...

  19. The financial crisis in Europe: Impact on satisfaction with life.

    Science.gov (United States)

    Clench-Aas, Jocelyne; Holte, Arne

    2017-08-01

    The 2008 financial crisis in Europe came abruptly and surprisingly. Many countries also suffered a second recession during the period 2010-2012. We examined the impact of the crisis on life satisfaction (LS) by country and individual socioeconomic level. We used a representative sample from the European Social Survey (2002-2014) with data from 26 countries ( N = 294,407). LS was measured with a single question with 11 response alternatives. Time from start of crisis (either 2008 or 2010-2012) was determined separately for each interview. Data were analyzed by multilevel analysis Results: There was a sharp decrease in LS in the beginning of the crisis in 2008, and another, but not so severe, decline in 2011, each of them of short duration. However, there was also a slight and progressive yearly decrease in LS that continued one to at least 3 years after either financial crisis that was independent of the effect of being unemployed. Associations varied considerably between countries. A negative decline after the financial crisis was especially evident among those in the most educated groups, and in those in the higher occupational levels. The 2008 financial crisis had a double effect on LS: (1) a sharp short-term decrease consistent with the Easterlin paradox; (2) a slighter long-term progressive decrease that was over and above the strong negative relationship with unemployment that lasted several years. The long-term decline in LS after the start of the financial crisis tended to occur especially in the higher socioeconomic groups.

  20. The Macroeconomic Outlook and the Impact of the Global Crisis in the Euro Area

    Directory of Open Access Journals (Sweden)

    Mioara CHIRITA

    2010-08-01

    Full Text Available This paper provides general analysis and evolution of macroeconomic and financial indicators in the euro area, during the recent crisis 2008-2009. The financial market turmoil that began in 2007 led to a severe global economic downturn. The causes of the crisis, the effects on global financial markets, and the spillover to the economy are permanently examined by the analysts, but the final conclusions are not clear yet. The conclusion of this paper is that the global activity is recovering at varying speeds in some countries, tepidly in many of the advanced economies but solidly in most emerging and developing economies.

  1. AUDITORS ETHICS IN THE CONTEXT OF GLOBAL CRISIS

    Directory of Open Access Journals (Sweden)

    Dana Simona Dragos

    2010-12-01

    Full Text Available In the context of current global crisis, a series of questions regarding the professional accountants position need to be clarified in order to may understand the way in which the auditors, considered objective and independent due to their ethical and professional conduct, contribute to the confidence increase of those who found their decisions on an accounted financial situations basis. We also ask ourselves to what extent our society can sustain the development of a regulation based ethical behaviour and specific institutions, taking into account the existing pressures in crisis conditions. The increased number of financial scandals lead to a regression of confidence of the accounting information users, regarding the respect of ethical standards by the auditors, and there are real reasons of concern because of the increase of the non-ethical behaviours number of cases.

  2. Financial Crisis, openness of the economy and the financial performance of Jordanian listed banks: analytical study

    Directory of Open Access Journals (Sweden)

    Ali Mustafa Abdullah Al Qudah, Dr.

    2014-06-01

    Full Text Available This study examined the impact of the world financial crisis and openness of the economy on the financial performance of Jordanian listed banks through the period 2005-2008. Panel data analysis is employed to examine study hypotheses. The results showed that the world financial crisis has a negative and significant impact on the financial performance measured by return on assets, return on equity, earning per share, market share prices, and market value while it has a positive but not significant impact on dividend yields. The study also found that openness of the economy has a positive and significant impact on the financial performance of Jordanian listed banks.

  3. Renewable Energy Project Financing: Impacts of the Financial Crisis and Federal Legislation

    Energy Technology Data Exchange (ETDEWEB)

    Schwabe, P.; Cory, K.; Newcomb, J.

    2009-07-01

    Extraordinary financial market conditions have disrupted the flows of equity and debt investment into U.S. renewable energy (RE) projects since the fourth quarter of 2008. The pace and structure of renewable energy project finance has been reshaped by a combination of forces, including the financial crisis, global economic recession, and major changes in federal legislation affecting renewable energy finance. This report explores the impacts of these key market events on renewable energy project financing and development.

  4. Explaining Policy Responses to Danish and Irish Banking Failures during the Financial Crisis

    DEFF Research Database (Denmark)

    Kluth, Michael Friederich; Lynggaard, Kennet

    2013-01-01

    ) variations in domestic exposure to the financial industry, notably its relative size, dominant business models and exposure to real estate markets and 2) variations in institutional features, notably banking sector preferences and legacies of collective action. While limited explanatory power can......The 2008 global financial crisis produced very different responses in Ireland and Denmark. While both countries embraced depositor guarantee schemes and recapitalization programmes, these were designed and adopted in significantly different ways. Crucially, the Irish state initially assumed full...

  5. Socio economic crisis and mortality. Epidemiological testimony of the financial collapse of Argentina.

    Science.gov (United States)

    Gurfinkel, Enrique P; Bozovich, Gerardo E; Dabbous, Omar; Mautner, Branco; Anderson, Frederick

    2005-12-13

    Natural disasters, war, and terrorist attacks, have been linked to cardiac mortality. We sought to investigate whether a major financial crisis may impact on the medical management and outcomes of acute coronary syndromes. We analyzed the Argentine cohort of the international multicenter Global Registry of Acute Coronary Events (GRACE). The primary objective was to estimate if there was an association between the financial crisis period (April 1999 to December 2002) and in- hospital cardiovascular mortality, with the post-crisis period (January 2003 to September 2004) as the referent. Each period was defined according to the evolution of the Gross Domestic Product. We investigated the demographic characteristics, diagnostic and therapeutic procedures, morbidity and mortality. We analyzed data from 3220 patients, 2246 (69.8%) patients in the crisis period and 974 (30.2%) in the post-crisis frame. The distribution of demographic and clinical baseline characteristics were not significantly different between both periods. During the crisis period the incidence of in-hospital myocardial infarction was higher (6.9% Vs 2.9%; p value crisis, especially among public sites (median 190 min Vs 27 min). The incidence proportion of mortality during hospitalization was 6.2% Vs 5.1% after crisis. The crude OR for mortality was 1.2 (95% C.I. 0.87, 1.7). The odds for mortality were higher among private institutions {1.9 (95% C.I. 0.9, 3.8)} than for public centers {1.2 (95% C.I. 0.83, 1.79)}. We did not observe a significant interaction between type of hospital and crisis. Our findings suggest that the financial crisis may have had a negative impact on cardiovascular mortality during hospitalization, and higher incidence of medical complications.

  6. ECB’S MONETARY MEASURES DURING THE FINANCIAL CRISIS

    Directory of Open Access Journals (Sweden)

    Magdalena RADULESCU

    2015-06-01

    Full Text Available This paper presents the main developments of the eurozone during the crisis period and the measures adopted by ECB in this context. The paper especially aims the countries that were the most affected by the crisis, namely: Greece, Cyprus, Ireland, Portugal, Spain and Italy. The public debt of those countries increased greatly and they faced many pressures on the international financial markets.

  7. THE SHADOW BANKING SYSTEM AND ITS ROLE IN TRIGGERING THE GLOBAL CRISIS

    Directory of Open Access Journals (Sweden)

    Carmen BOGHEAN

    2015-04-01

    Full Text Available Financial innovation, the deficiencies of corporate governance, moral hazard, easy money policies, government inefficiency, and mainly the activity of the shadow banking system have all played a critical role in setting off the global financial crisis. Due to the imbalances it has triggered, the shadow banking system has been at the core of the most widespread and profound world crisis of all time, as the attempt to use financial capital as efficiently as possible by resorting to “innovative” products has significantly contributed to the advent of the financial crisis. The present crisis has already proved that the banking and financial activity can have a deeply disturbing impact on our economy, but the flexibility of lending mechanisms and the various reactions of the players on the market that are otherwise inherent in a dynamic economic system, cannot exist in the absence of banking mechanisms.

  8. How Does the Financial Crisis Affect Volatility Behavior and Transmission Among European Stock Markets?

    Directory of Open Access Journals (Sweden)

    Faten Ben Slimane

    2013-08-01

    Full Text Available The spread of the global financial crisis of 2008/2009 was rapid, and impacted the functioning and the performance of financial markets. Due to the importance of this phenomenon, this study aims to explain the impact of the crisis on stock market behavior and interdependence through the study of the intraday volatility transmission. This paper investigates the patterns of linkage dynamics among three European stock markets—France, Germany, and the UK—during the global financial crisis, by analyzing the intraday dynamics of linkages among these markets during both calm and turmoil phases. We apply a VAR-EGARCH (Vector Autoregressive Exponential General Autoregressive Conditional Heteroscedasticity framework to high frequency five-minute intraday returns on selected representative stock indices. We find evidence that interrelationship among European markets increased substantially during the period of crisis, pointing to an amplification of spillovers. In addition, during this period, French and UK markets herded around German market, possibly explained by behavior factors influencing the stock markets on or near dates of extreme events. Germany was identified as the hub of financial and economic activity in Europe during the period of study. These findings have important implications for both policymakers and investors by contributing to better understanding the transmission of financial shocks in Europe.

  9. THEORETICAL CONSIDERATIONS ON THE EFFECTS OF THE FINANCIAL CRISIS ON BUDGETARY REVENUES IN ROMANIA

    Directory of Open Access Journals (Sweden)

    CIURLĂU LOREDANA

    2012-12-01

    Full Text Available The global economy entered into the greatest economic crisis after the great recession, which affected both developed countries and emerging countries, demonstrating the degree of interdependence of world economies. The financial crisis has put in front of the Governments of a number of challenges, the most important of which are: a new approach to budgetary fiscal policies by Governments, a global coordinated response of the authorities in the affected countries, the need to improve recognition of public services and their reform, the need to do more with fewer resources. The crisis represents an opportunity to redefine the economy and to reform public finances. The recession is proving slow because the fiscal space for stimulating the economy is small. Budgetary correction involves painful measures, austere fiscal measures to be applied, however, because internal financial equilibrium and ensure the financing of the deficit by maintaining international agreements, legislative projects difficult, and treating the root causes of the structural deficit.

  10. Financial Worldwide Crisis: The Anti-Counter Cycle of Australia

    Directory of Open Access Journals (Sweden)

    Joao NEGREIROS

    2013-12-01

    Full Text Available If Australia has been subject to major influences by the United States and European countries, why is its economy healthier than their counter partners? What are the economic foundations that underline this anti-counter cycle of financial worldwide crisis from Australia? What are some of the lessons that countries from Europe that have not fared during the current financial worldwide crisis should learn from Australia? The purpose of this paper is to review the present Australian management system. Four changes are identified including embracement of corporate governance, a shift to adopt more R&D activities, a shift to adopt environmental sustainability practices and emerging corporate social responsibility. On the conclusions settings, a recap and recommendation on how Portugal, a member of the PIGS (Portugal, Italy, Greece and Spain Southern European Countries club forgot to embrace directives that have been applied in Australia, to avoid the actual financial and identity crisis.

  11. Structure and dynamics of the global financial network

    International Nuclear Information System (INIS)

    Silva, Thiago Christiano; Rubens Stancato de Souza, Sergio; Tabak, Benjamin Miranda

    2016-01-01

    In this paper, we study the evolution of the network topology for the global financial market. We evaluate the level of diversification and participation of developed and emerging economies in cross-border exposures and find that the gross exposure network is dense, the vulnerability matrix is sparse, and the network’s fragility changes over time. Prior to the financial crisis in 2008, the network was relatively fragile, whereas it became more resilient afterwards, showing a reduction in financial institutions’ risk appetite. Our results suggest that financial regulators should track down the network evolution in their systemic risk assessment.

  12. Can Basel III Prevent Future Financial Crisis?

    OpenAIRE

    Madzova, Violeta

    2012-01-01

    The financial sector is crucial for the smooth functioning of the economy. For this reason, the authorities use financial regulation as a means to ensure the stability of the banking system and to correct those ‘market failures’ that would otherwise threaten the solidity of financial institutions. Recently introduced Basel III on the new bank capital and liquidity standards, (that is going to be implemented gradually starting from 2013 till 2019) is changing the way that banks address the...

  13. PENSION FUNDS AND THE FINANCIAL CRISIS IN THE CEE COUNTRIES

    Directory of Open Access Journals (Sweden)

    Milos Laura Raisa

    2012-12-01

    Full Text Available In this paper, the authors analyze the influence of the international financial crisis on the current architecture of the CEE pension systems and their further reforms. As a consequence of the financial crisis, the very fragile pension reform has been subject of debate in the new member states of European Union, given their deep recession and registered fiscal deficits. In many of the CEE countries, which have adopted/developed later the second pillar, the financial crisis has raised questions in what concerns the benefit of moving to a mixed pension system, in comparison with the former one, which relied exclusively on public pay-as-you-go schemes. The current literature analyses the situation in each of the CEE countries, but does not make an overall analysis of the situation of the CEE countries, member of the European Union. The authors show the short-term negative effects of the financial crisis on the pension reform in these countries, but also the longer run effects, on the continuing deteriorating finances of these pension systems, in the context of the aging of population and unsustainable pension schemes. Alongside reviewing and commenting the national authorities’ responses to the financial crisis, we are proposing also some measures meant to enhance the further pension system reform and to improve the performance of the private pension funds. Pensions have a long-time horizon and it would be very wrong to produce a reversal of the past reforms since the main problems of adequacy and sustainability remain vivid (demographic challenge and population aging. It is also true though that, while shifting from an exclusively public pay-as-you-go system towards a mixed pension system, especially in times of financial crisis, authorities must pay increased attention to the management and supervision of the DC pension plans, to the risk management standards and regulations of the private pension funds, alongside other measures meant to

  14. Correlating stock exchange indices under both normal and financial crisis conditions

    Directory of Open Access Journals (Sweden)

    Gabriela-Victoria ANGHELACHE

    2012-11-01

    Full Text Available Until the years 1980 the financial crisis were considered as being limited to the level of the capital market (individually, without bearing a systemic character. If considering the intensification of the globalization process, we attended at the increase of the degree of commercial and financial integration of the states all over the world. Thus, gradually, the local financial crisis have propagated at the level of the world financial system. The consequences of these financial crisis did not limited to the markets of the countries where they launched, but spread rapidly on the world markets – an effect known in the literature as contagion. In this article we have tried to evaluate the importance of the contagion effects on the capital markets, by utilizing certain econometric methods, from the correlation tests, to the co-integration tests. Meantime, we have tried to show that during the period of the most severe financial crisis from the Second World War up to date, the degree of correlation of the markets amplifies.

  15. Coping with the Global Economic Crisis: A Challenge to Technical ...

    African Journals Online (AJOL)

    gold

    2012-07-26

    Jul 26, 2012 ... Global Economic Crisis may as well be referred to as. Global ... utilization, household incomes and business profits all fall during recessions. Governments ..... In Nigeria today, education is in crisis, teachers' salaries are.

  16. The Consumption Effects of the 2007-2008 Financial Crisis

    DEFF Research Database (Denmark)

    Jensen, Thais Lærkholm; Johannesen, Niels

    2017-01-01

    Did the financial crisis in 2007–2008 spread from distressed banks to households through a contraction of the credit supply? We study this question with a dataset that contains observations on all accounts in Danish banks as well as comprehensive information about individual account holders...... and banks. We document that banks exposed to the financial crisis reduced their lending relative to nonexposed banks, which in turn caused a significant decrease in the borrowing and spending of their customers. The effects were persistent: borrowing remained lower through the postcrisis years and spending...

  17. Understanding financial crisis through accounting models

    NARCIS (Netherlands)

    Bezemer, D.J.

    2010-01-01

    This paper presents evidence that accounting (or flow-of-funds) macroeconomic models helped anticipate the credit crisis and economic recession Equilibrium models ubiquitous in mainstream policy and research did not This study traces the Intellectual pedigrees of the accounting approach as an

  18. CHINA – USA RELATION WITHIN THE CONTEXT F WORLD FINANCIAL CRISIS

    Directory of Open Access Journals (Sweden)

    Dorel Dumitru CHIRIŢESCU

    2010-09-01

    Full Text Available We ask ourselves whether behind economic and financial globalization there is a crisis of international political relations. The answer is YES! This crisis confirms the existence of two main actors in the global geopolitical: America and China. America came in office after its complete affirmation at the end of the Cold War as the only world leader and China, although a country of opposites, knock at the gates of the world, trying to access the area of important countries, secretly proposing to get the number one power position of the world in the next 50 years.

  19. Asian Financial Crisis: Overview of Asian Crisis and Recovery Progress

    Directory of Open Access Journals (Sweden)

    Noerlina Noerlina

    2003-03-01

    Full Text Available The rapid recovery in Asia economies in some ways of a surprise because many countries in Asia had tried a lot of ways to stabilize the economy from the crisis’ pressure in 1997. As a result, most of these countries in Asia slowly recover by the step of restructuring in the financial sector, such as fiscal adjustment and the continuation of a floating exchange rate system.

  20. Women's roundtable discussion on the economic, social and political impacts of the Southeast Asian financial crisis.

    Science.gov (United States)

    Kelkar, G

    1998-01-01

    This article summarizes the main issues revealed at a women's roundtable discussion on the Economic, Social, and Political Impacts of the Southeast Asian Financial Crisis. The discussion was organized by the Development Alternatives of Women for the New Era (DAWN) and was held during April 12-14, 1998, in Manila, the Philippines. The aim was to explore the effects of the financial crisis and its management by states and multilateral agencies on women's political, economic, cultural, and social status; and to reach regional understanding of new issues for the women's movement in Asia and to identify areas of advocacy. Participants included women scholars and activists from Southeast, East, and South Asia; Africa; the Caribbean; Latin America; and the Pacific. Participants came from a wide variety of backgrounds. Nine issues were emphasized. For example, some predicted the currency devaluation before July 1997. The financial crisis is linked with globalization. The International Monetary Fund (IMF) is the primary institution for addressing the financial crisis. IMF conditions on inflation rates and budget surpluses are recessionary and government budget oriented. The crisis has exposed cronyism and corruption within capitalism. Patriarchal values have reemerged as Asian values. Women have lost jobs and income, while the cost of living continues to increase. Prostitution has become more acceptable as legitimate work. Women's human rights are not legally protected. State ideology assumes domestic and sex roles. Issues in each region are identified. 14 key issues pertain to all regions.

  1. The Great Financial Crisis: How Effective is Macroeconomic Policy Response in the United Kingdom?

    Directory of Open Access Journals (Sweden)

    Clements Akinsoyinu

    2015-06-01

    Full Text Available The Great Financial Crisis has been touted to be the worst crisis since the Great Depression of 1930; its effect has profound ramifications on the global economy. The nature and the severity of the crisis provoked an unprecedented policy response from policy makers at both global and domestic levels. To address the rampaging crisis, the Bank of England implemented a number of conventional and unconventional policy measures to curtail the economic rot and to stimulate economic growth. There is a broad consensus in the empirical literature and other evidence found in this paper that a number of the policies implemented in the United Kingdom played a significant role in re-directing and stimulating the economy. This paper reviews the various policy measures adopted by the Bank of England from the inception of the financial crisis in 2008 and assesses their effectiveness in bringing back the economy from the brink of collapse. Our review shows that quantitative easing (QE policy and the expansionary fiscal policy adopted by the Bank of England were effective policy tools used in stimulating economic growth, stemming the effect and shortening the duration of the crisis in the United Kingdom

  2. Globalization and Trust: Non-financial Information

    Directory of Open Access Journals (Sweden)

    Oscar Banda Lefaure

    2015-09-01

    Full Text Available Changes in the way of doing business that have resulted from globalization of markets have enabled countless benefits, but also a significant number of risks, that have been evident as since 2001 revelations about financial scandals around the world have occurred one after another. These unfortunate events showed the vulnerability to which investors (and other stakeholders are exposed for not having timely, clear and accurate information of the business progress in which they invest, and therefore not being able to take precautions. In addition, these business disasters have shown how the most unscrupulous executives do not hesitate to act illegally to hide their shady financial and accounting manoeuvres, in order to promote their personal benefit. Then the executive compensations policy lies behind. At this juncture, the importance of migrating to a new model of disclosure where the global financial community can take shelter of these malpractices and trust the board controls and the management stablishes has been increasing. This new model of disclosure has one of its pillars in non-financial information reports. This is not an alchemist solution, but is one of many efforts to be undertaken by companies to recover damaged trust. The international financial crisis affecting the world economy at the moment is another example of the need to give greater trust to the stakeholders –through transparency in the information they provide–. Only then, their participation in the capital market will be maintained and increased, and the costs that brings widespread lack of trust in which we live will be reduced.

  3. The Romanian Municipal Bond Market and the International Financial Crisis

    Directory of Open Access Journals (Sweden)

    VALENTINA VASILE

    2010-06-01

    Full Text Available In Romania, the bond market was set up later, comparatively to the equity market. This market is in a development process, but the international financial crisis has affected even the interest of investors in bonds. The secondary municipal bond market is not a very liquid market because these securities are bought from the primary market and held in portfolios by investors because these bonds have a low risk. The issue of these bonds is correlated with the financial independence and the level of decentralization of the local public authorities. The issuance of these bonds is correlated with financial independence and decentralization level specific to local public authorities. Under crisis conditions, the volatility of this market is more significant, the increasing deficits of local budgets decreasing the interest of the middle-class in investing in such financial instruments.

  4. From Subprime and Eurozone Crisis with Full Speed into the Next Financial Crisis

    Directory of Open Access Journals (Sweden)

    Strašek Sebastjan

    2017-09-01

    Full Text Available This paper offers an analysis of the road from subprime and eurozone crisis to the elements of a new systemic crisis. Our aim is to research common issues that accompany each of these crises and to explore elements that hint that the financial systems are moving toward a new crisis. By holding short-term interest rates near zero, the central banks have encouraged malinvestment and speculation. Fuelling the bubble is the fear of missing out on trade. We find that actual events and movements on security markets follow a typical pattern, which indicates a serious threat for the next financial crisis. We also find enough signs that old crises lessons haven’t been learned.

  5. Forensic Accounting And Financial Crisis In Nigeria

    African Journals Online (AJOL)

    Prof. Osuagwwu

    findings of the study show that forensic accounting is significant in the face of the increasing ... and the more sophisticated Information. Communication. Technology. (ICT), .... (9) studied the impact ... financial reporting and internal control.

  6. MODELLING OF SCENARIOS OF THE CRISIS PHENOMENA TRANSFER AMONG FINANCIAL MARKETS

    Directory of Open Access Journals (Sweden)

    Inna Strelchenko

    2017-11-01

    Full Text Available The phenomenon of crisis transference among financial markets in different countries is especially evident during the global financial crisis of 2007-2009. Abnormal imbalances emerged in the market of secondary financial instruments in the United States in the second half of 2006 and quickly spread to the financial markets of most countries of the world. However, the rate of fall of the main macroeconomic indicators, the duration of the latent period (the time between the date of the beginning of the financial crisis in the source country and date of the recorded fall in GDP of the country that is subjected to “contagion” (Strelchenko, 2016, and recovery period are substantially different. To generate an effective economic policy actually, there is a task of determining the possible scenarios of transferring crisis. The research subject is a process of transfer of the crisis phenomena among the financial markets of countries with different levels of economic development. Methodology. The paper presents the results of a study on the differentiation of the financial markets reactions to the crisis transfer. To build the corresponding classification model, self-organization Kohonen neural networks are used. The purpose of this work is to build a neural network model for clustering economies according to the response to external financial shocks. This model allows predicting the scenarios of transferring crisis among financial markets. Conclusion. As a result of the study, there is built a neural network with the architecture of the Kohonen map. The neural network has one hidden layer consisting of six neurons and has a hexagonal structure. Six clusters describe six possible scenarios of the economy dynamics under the impact of the transfer of crises. Cluster number one and two unite countries characterized by a short period of economic recovery and return of the main macroeconomic indicators to the precrisis levels. A longer recovery period and

  7. Aspects of Development Financing After the Financial and Economic Crisis

    Directory of Open Access Journals (Sweden)

    Bruno Gurtner

    2011-05-01

    Full Text Available Published by Palgrave MacmillanThe financial and economic crisis saw developing and emerging countries experience more severe setbacks in their growth rates than industrialised countries and they did not all have sufficient funds to finance robust stimulus measures. The major emerging economies have nevertheless recovered quickly and are currently the most important growth engines in the world economy.Private capital flows collapsed, leaving the global South with an overall deficit in financing. Greater official financing flows have not yet been able to compensate for the shortfalls and the slow increase in private capital flows since the end of 2009 has not been able to do so either. Overall, according to the UN, more capital flows from the South to the North than vice versa. The South thus continues to finance the North.Discussions regarding a reform of the global financial and economic order are ongoing but to date have had little impact on developing countries. The international financing institutions do have more funds at their disposal, but developing countries are still under-represented. The IMF and the World Bank have begun to question some of their previous dogmas. Opinions are divided on whether one can already speak of a new policy.The debate on the role of taxation in the mobilisation of local resources for development financing has intensified. Insight favouring comprehensive reforms of the taxation systems in developing countries has sharpened, but technical aid provided by industrialised countries to realise these reforms is still insufficient. Taxation is acquiring growing recognition as an instrument of State-building, democratisation and governance. The campaign to deal with international tax evasion and illicit capital flows is gaining momentum and the exchange of information on tax issues has improved. However, it is difficult to establish newer and more trenchant instruments for improved transparency, given the predominant

  8. Are Family Firms Better Performers during Financial Crisis?

    DEFF Research Database (Denmark)

    Zhou, Haoyong

    (Italy) during the period 2006-2010, I give empirical evidences examining the performance of family firms vis-à-vis non-family firms during the current financial crisis. I find that broadly defined family firms, comprising 35 percent of the sample, do not outperform non-family firms during the crisis...... that in the financial crisis, founder firms bear the least agency cost and Tobin’s Q is not a good measure of corporate performance.......Despite extensive researches on efficiency of family firms in normal or good economic times, we know rather little about whether family firms are superior performers in recession times. Using a dataset covering firms from S&P 500 (US), FTE100 (UK), DAX 30 (Germany), CAC 40 (France) and FTSE MIB 40...

  9. The Financial Crisis as an American Wakeup Call

    DEFF Research Database (Denmark)

    Kjærsgård, Andreas Pihl

    Because of their strong commitment to the “American dream” emphasizing that rewards are and should be proportional to effort, Americans are often argued to be exceptionally tolerant of economic inequality per se. In the wake of the financial crisis, revelations of the excessive inequalities...... in American society and the emergence of the “Occupy-Wall-Street” movement indicate discontent with the situation and question these assumptions. Using data from the International Social Survey Program’s Social Inequality modules I-IV (1987, 1992, 1999 and 2009), the article shows that the financial crisis...... redistributive policies and the government to help solve the problem. Using earlier research and empirical results, we predict that the hostility spawned by the crisis will have little long-term effect on American attitudes towards wage-inequality, the role of government in addressing the issues...

  10. Liquidity management and corporate investment during a financial crisis

    NARCIS (Netherlands)

    Campello, M.; Giambona, E.; Graham, J.R.; Harvey, C.R.

    2011-01-01

    This article uses a unique dataset to study how firms managed liquidity during the 2008- 2009 financial crisis. Our analysis provides new insights on interactions between internal liquidity, external funds, and real corporate decisions, such as investment and employment. We first describe how

  11. Financial centers and firm performance during the crisis period

    DEFF Research Database (Denmark)

    Farooq, Omar; El Ouadrhiri, Khadija

    2014-01-01

    How does location of a firm’s headquarter impact its performance during the crisis period? This paper answers this question by using the data from India. Our results show that firms headquartered in Mumbai, the main financial center of the country, significantly outperform other firms during...

  12. Individual Investor Perceptions, Behavior, and Performance During the Financial Crisis

    NARCIS (Netherlands)

    Hoffmann, A.O.I.; Post, T.; Pennings, J.M.E.

    2011-01-01

    Abstract: We study how during the financial crisis individual investor perceptions change, impact trading and risk-taking behavior, and explain performance. Based on monthly survey data and matching brokerage records from April 2008 to March 2009, we find that successful investors had higher return

  13. Individual Investor Perceptions, Behavior, and Performance During the Financial Crisis

    NARCIS (Netherlands)

    Hoffmann, A.O.I.; Pennings, J.M.E.; Post, T.

    2011-01-01

    We study how during the financial crisis individual investor perceptions change, impact trading and risk-taking behavior, and explain performance. Based on monthly survey data and matching brokerage records from April 2008 to March 2009, we find that successful investors had higher return

  14. Reconstructing Economics in Light of the 2007-? Financial Crisis

    Science.gov (United States)

    Friedman, Benjamin M.

    2010-01-01

    The lessons learned from the recent financial crisis should significantly reshape the economics profession's thinking, including, importantly, what we teach our students. Five such lessons are that we live in a monetary economy and therefore aggregate demand and policies that affect aggregate demand are determinants of real economic outcomes; that…

  15. International Policy Responses to the Financial Crisis: A Canadian Perspective

    OpenAIRE

    Alexandre Laurin; Finn Poschmann; Robin Banerjee

    2008-01-01

    The relative soundness of the Canadian domestic financial system throughout the crisis suggests that Canada’s regulatory framework does not require a major overhaul. But Canada could benefit if other countries introduced reforms to improve their macroeconomic stability. Other reforms are needed.

  16. The Financial Crisis and Principles of Economics Textbooks

    DEFF Research Database (Denmark)

    Madsen, Poul Thøis

    2013-01-01

    How have authors of widely used U.S. introductory economics textbooks responded to the traumatizing financial crisis? The answer interests textbook authors as well as the users. An encompassing quantitative and qualitative text analysis that applies new methods demonstrates that in general, the f...

  17. SOCIAL COSTS OF THE EUROPEAN UNION IN THE CONTEXT OF THE ECONOMIC-FINANCIAL CRISIS

    Directory of Open Access Journals (Sweden)

    Andreea Gradinaru

    2013-12-01

    Full Text Available The start of the financial crisis in mid-2007 at a global scale had a major impact on the European Union’s economy. All member states have been economically affected, but the social effects were mainly of large amplitude. This paper focuses precisely on analysing the social costs which the economic-financial crisis has generated in the European Union. After finishing the study we have noticed that numerous social consequences of the recession have manifested intensely since the beginning of the crisis and continue to do so even today. These consist in the increase of poverty and social exclusion, rise in unemployment, decrease in birth rate, changes regarding the migration process, reduction in income, excessive indebtedness, the disparities between countries contributing to the augmentation of all these.

  18. THE FINANCIAL CRISIS AND THE EMERGING MARKETS

    Directory of Open Access Journals (Sweden)

    LORENA POPESCU DUDUIALĂ

    2014-06-01

    Full Text Available The emerging markets emerge and develop in the larger context of the international financial market development "is a consequence of the needs expressed by investors and those who wish to place their financial capital." Thus, to achieve a certain level of saturation economic zones and the lack of attractiveness of gains obtainable in certain markets determine the migration of capital to areas that are or may become interesting in terms of the gains that are achieved by investing in these areas in conjunction minimizing market risk assumed.

  19. Reel ve Finansal Göstergeler Açısından 1929 Ekonomik Buhranı ve 2008 Küresel Krizi: Karşılaştırmalı Bir Analiz(1929 Economic Depression and 2008 Global Crisis in Terms of Real and Financial Indicators: A Comparative Analysis

    Directory of Open Access Journals (Sweden)

    Nihat IŞIK

    2012-01-01

    Full Text Available There have been lots of debates about differences and similarities between 1929 depression that had deep impacts on the world economy; and 2008 global crisis known as the deepest crisis since 1929; in terms of their occurrence reasons and progress trends. One of those similarities is about the crises global dimension. For instance, both of the crises formed in the United States (US economy first and spread fast and afterwards affected the European and other economies. Other similarity is, both of the crisis started at finance sector firstly and expanded to real sector because of interdependence among countries. Normally effects of both crisis caused huge shrinkages in growth rates and huge increases in unemployment rates. Some of the differences are; nowadays there is much more knowledge and experience compared to past years to overcome economic crises, differences among external trade policies following the crisis and common behaviors of countries etc. This study aims to present the effects of 1929 Depression and 2008 Global Crisis on real and financial sector comparatively.

  20. FINANCIAL STABILITY OF BANKS IN TIMES OF CRISIS

    Directory of Open Access Journals (Sweden)

    Svetlana Lanets

    2015-11-01

    Full Text Available This paper is aimed at drawing attention to the current situation and further development of the banking sector in Russia. In particular, it seeks to discuss ways to improve the financial stability of banks. The article looks at the banking system, describes the important role of banks in the economy of the country and establishes correlation between stability of banks and socioeconomic development of the country. It is underlined that the stability of banks is one of the key factors in economic growth. The article analyzes how the banking system has settled after the financial crisis. The focus of the article is on the characteristics of the current financial crisis, compares it to the previous ones and describes the impact of the crisis to the banks. In particular, in the frame of this publication we present the analysis of the features of crisis impact on regional banks and the possibility of losing them in near future. This paper emphasizes the impact of the banking system on the country's economy and demonstrates the importance of financial stability of the banks. Moreover the article underlines a set of financial – economic/bank – government approaches to the issue of improving financial stability in the contemporary financial crisis. The paper summarizes the government role in the time of modern financial crisis and describes the existing strategies of the state. At the same time article shows the dual role of the government activities in preventing to put the finance sector under such stress as on the one hand it helps banks to increase the capitalization of banks while on the other hand it introduces Basel 3 principles, which reduce capital. The study is based on the methods of analysis, comparison, statistical data and theoretical generalization. The scientific and theoretical part of the survey is based on the official statistics and data from the Central Bank. We believe that the issue of bank’s stability, especially in this

  1. Russian Cosmism, Global Crisis, Sustainable Development

    OpenAIRE

    Kuznetsov Oleg; Bolshakov Boris

    2013-01-01

    The article is based on the scientific report by O.L.Kuznetsov and B.E.Bolshakov at the General Meeting of Russian Academy of Natural Sciences (December 6, 2012). The scientific report caused a great interest, and many scientists suggested to open discussion in the press on this subject. The article reveals the natural-scientific and humanitarian mechanisms of global crisis and a transition way to sustainable development on the basis of world scientific heritage and, first of all, fundamental...

  2. Competitiveness in the global economic crisis

    Directory of Open Access Journals (Sweden)

    Gheorghe Popescu

    2009-05-01

    Full Text Available The first challenge is to analyze the concept of "competitiveness" given the fact that in the centre of the great economic analystes' concerns lays from some time the phenomenon of competitiveness, along with the generation of competitive advantage at the organization level and, moreover, at country level. The economic science will have to be rethought, meaning that competitiveness will have to adapt to the new prospects launched today by the global economic crisis.

  3. [Financial crisis and mental health in Greece].

    Science.gov (United States)

    Giotakos, O; Karabelas, D; Kafkas, A

    2011-01-01

    Several studies indicate an association between economic crises and psychological burden. To investigate the possible impact of the current economic crisis on mental health in Greece, the association between two economic indicators (unemployment and average income) and mental health variables (psychiatric clinic admittance, visits to outpatients' departments and emergency units, suicides, homicides, mortality rates and divorces) was studied. The data were gathered by the Greek Statistical Service and some others were provided by the following hospitals: Eginition Hospital, Psychiatric Hospital of Attica, Athens General Hospital and Evaggelismos Hospital. Simple and multiple regression analyses were performed on the data. There was no significant correlation between the level of unemployment, as well as the average income, and admittance to the psychiatric clinics. A significant correlation was isolated between unemployment and visits to outpatients' department (R2 = 0.40, p = 0.001) and emergency unit (R2 = 0.49, p = 0.0002) of Eginition Hospital. The unemployment rate during the period 1981-2008 was positively associated with the number of homicides (R2 = 0.16, beta = 0.000049, p = 0.03), as well as the number of divorces (R2 = 0.20, beta = 0.005, p = 0.02) during the same period. The average income showed positive association with the visits to both outpatients' department (R2 = 0.55, p positive correlation between the average income and divorce rates (R2 = 0.73, p impact of economic crisis on citizens' mental health.

  4. The Club Rules in Global Financial Governance

    DEFF Research Database (Denmark)

    Tsingou, Eleni

    2014-01-01

    Though the list of reforms following the onset of the financial crisis is long, we should resist the temptation to view the emerging regulatory framework in terms of a paradigm shift. Many key features of the system, including the privileged position of financial institutions, remain unchanged...

  5. The Financial Crisis: Lessons from History

    Directory of Open Access Journals (Sweden)

    Brian Grinder

    2016-01-01

    Full Text Available Financial crises have regularly afflicted economies throughout history and the United States has been no exception.  This paper examines the Panic of 1907, the Crash of 1929 and the Great Depression and the Great Recession of 2007-08 and discusses the responses of the government and regulators.  The short version of the story is that the while the government response has varied in terms of monetary and fiscal policy, the regulatory response has remained essentially the same.  The typical reactive regulation sounds good and gives the appearance of accomplishing something but, in fact, only serves to sow the seeds of future crises. The ineffective implementation of existing regulation has had a similar result. Indeed, several authors note that most financial innovation in recent years has its origins in circumventing new regulations. Likewise, government monetary and fiscal responses may or may not help the economy and often give the appearance of great arbitrariness.  Our conclusion is that there will be unforeseen financial crises in the future, sweeping regulation and promises of recent politicians notwithstanding.  Serious study of the unanticipated consequences of this regulation and the development of more robust risk management systems will help us mitigate the effects of future crises but will be of little assistance when it comes to avoiding them. Developing the analyses and risk management systems requires a detailed study of financial history keep both successes and failures fresh in our collective memory.

  6. The Financial Crisis: Lessons from History

    Directory of Open Access Journals (Sweden)

    Brian Grinder

    2015-02-01

    Full Text Available Financial crises have regularly afflicted economies throughout history and the United States has been no exception.  This paper examines the Panic of 1907, the Crash of 1929 and the Great Depression and the Great Recession of 2007-08 and discusses the responses of the government and regulators.  The short version of the story is that the while the government response has varied in terms of monetary and fiscal policy, the regulatory response has remained essentially the same.  The typical reactive regulation sounds good and gives the appearance of accomplishing something but, in fact, only serves to sow the seeds of future crises. The ineffective implementation of existing regulation has had a similar result. Indeed, several authors note that most financial innovation in recent years has its origins in circumventing new regulations. Likewise, government monetary and fiscal responses may or may not help the economy and often give the appearance of great arbitrariness.  Our conclusion is that there will be unforeseen financial crises in the future, sweeping regulation and promises of recent politicians notwithstanding.  Serious study of the unanticipated consequences of this regulation and the development of more robust risk management systems will help us mitigate the effects of future crises but will be of little assistance when it comes to avoiding them. Developing the analyses and risk management systems requires a detailed study of financial history keep both successes and failures fresh in our collective memory.

  7. Breaking Bad Habits: Navigating the Financial Crisis

    Science.gov (United States)

    Jones, Dennis; Wellman, Jane

    2010-01-01

    The "Great Recession" of 2009 has brought an unprecedented level of financial chaos to public higher education in America. Programs are being reduced, furloughs and layoffs are widespread, class sizes are increasing, sections are being cut, and students can't get into classes needed for graduation. Reports of budget cuts in public…

  8. Hyman Minsky's financial instability hypothesis and the Greek debt crisis

    Directory of Open Access Journals (Sweden)

    Sergey Beshenov

    2015-12-01

    Full Text Available This article attempts to analyze the current debt crisis in Greece based on the financial instability hypothesis developed by Hyman Minsky. This article shows that the hypothesis provides an understanding of how an economy endogenously becomes “financially fragile” and thus prone to crises. The authors analyze how public and private sector behavior in the Greek economy led to the country's debt crisis. In particular, based on a sample of 36 Greek companies, the authors show that between 2001 and 2014, the majority of those companies had switched to fragile financial structures. Special attention is devoted to the negative consequences of applying the neoclassical doctrine of “austerity measures” in Greece as the principal “anti-crisis” concept of mainstream economic science.

  9. Modern Finance, Methodology and the Global Crisis

    OpenAIRE

    Esteban Pérez Caldentey; Matías Vernengo

    2010-01-01

    Modern finance has a conceptually unified theoretical core that includes the efficient market hypothesis (EMH), the relationship between risk and return based on the Capital Asset Pricing Model (CAPM), the Modigliani-Miller theorems (M&M) and the Black-Scholes-Merton approach to option pricing. The core has been instrumental to the growth of the financial services industry, financial innovation, globalization, and deregulation. The significant impact of the core is explained by their success ...

  10. Financial crisis 2007-2009. How real estate bubble and transparency and accountability issues generated and worsen the crisis

    Directory of Open Access Journals (Sweden)

    Bilal Aziz

    2012-07-01

    Full Text Available This paper seeks to explain some main factors behind the Financial Crisis 2007–2009 with a special focus on the Real Estate Bubble and Transparency and Accountability Issues in US Financial System and how these two factors generated and worsen the crisis. Financial Crisis 2007–2009, which starts from the United States sub–prime mortgage market and spread to US financial sector and later on spread to the rest of world, is said to be an even bigger crisis than the Great Depression of 1929. This crisis is unique in this way and we haven’t seen such a bigger impact world wide from any other crisis. This paper would empirically prove the main causes which are right in the heart of the crisis and least discussed

  11. A Trust-driven Financial Crisis.Implications for the Future of Financial Markets.

    OpenAIRE

    Luigi Guiso

    2010-01-01

    The financial crisis has brought to light diffuse opportunistic behaviour and some serious frauds. Because of this trust towards banks, bankers, brokers and the stock market has collapsed to unprecedented levels and there are so far no signs of recovery. This paper uses survey-based information to document the collapse of trust, show its link to the emergence of frauds in the financial industry and discuss its consequences for the demand of financial instruments, investors portfolios and more...

  12. The Reasons for UK Large Financial Institutions' Failure during the Recent Financial Crisis in 2007

    OpenAIRE

    LI, ZHAOYI

    2012-01-01

    Most UK financial institutions have failed during the recent financial crisis. Although this depression is triggered by the failure of US housing market, the business model for the UK is still different with US financial institutions. Most failed companies are not hold large amount of sub-prime loans in their asset portfolio in the UK, the most important reason is the wholesale funding strategies became the central business model for the most failed firms, therefore the retail deposits are no...

  13. Financial Liberalisation and the South Korean Financial Crisis: Some Qualitative Evidence

    OpenAIRE

    Kevin Amess; Panicos Demetriades

    2001-01-01

    This paper provides a novel analysis of the South Korean financial crisis drawing on the findings of a unique survey of IMF/World Bank officials and South Korean economists. The survey reveals that over-optimism and inadequate recognition of financial risks inadvertently led to excessive risk taking by Korean financial intermediaries. It also indicates that the sources of over-optimistic assessments of East Asian economies, including Korea, were mainly to be found outside East Asia, including...

  14. Political economy of the US financial crisis 2007-2009

    Directory of Open Access Journals (Sweden)

    Vuk Vuković

    2011-03-01

    Full Text Available The emphasis of this paper is on the political economy of the subprime mortgage crisis in the United States and how the policy makers contributed to it through their legislation and regulations, made under the rising influence of interest groups and the lobbying activities of the finance industry. The “Great Recession” of 2007-2009 began as a bubble-burst in the mortgage market in the United States that spilled over to the entire financial market of the US, and afterwards to the integrated world financial market. The crisis sprang up over the US real sector and, due to the decline in US aggregate demand, spread consequently to the real economy of the rest of the World. No sound evidence has been given for the publicly proclaimed idea that the causes of the crisis lie within the self-regulating free market. The causes of the crisis lie primarily in the activities of political power, i.e. in the extensive government regulation which has, under the strong influence of interest groups and the lobbying power of financial corporations, led to favouritism in macroeconomic policies and inefficient resource allocation. Regulation was enforced by stimulating affordable housing through government sponsored enterprises, oligopoly of the rating agencies, banking regulation and an increasing connection between government and the finance industry.

  15. Financialization, Crisis and Commodity Correlation Dynamics

    OpenAIRE

    Annastiina Silvennoinen; Susan Thorp

    2010-01-01

    We study bi-variate conditional volatility and correlation dynamics for individual commodity futures and financial assets from May 1990-July 2009 using DSTCC-GARCH (Silvennoinen and Terasvirta 2009). These models allow correlation to vary smoothly between extreme states via transition functions driven by indicators of market conditions. Expected stock volatility and money manager open interest in futures markets are relevant transition variables. Results point to increasing integration betwee...

  16. Financial performance of Spanish hotels during the crisis

    Directory of Open Access Journals (Sweden)

    Narine Babayan

    2014-07-01

    Full Text Available This paper studies the relationship between category, size and chain affiliation of hotels and their financial performance using ANOVA analysis of financial data collected from the SABI database. The target population was Spanish hotels, and the sample used for the study was the hotels of the Alicante region. The results of the study show that in times of the crisis financial figures of hotel companies are generally very low, with the negative average profits in most cases. Category, size and chain affiliation do not completely explain the differences between hotels’ financial performance. Only revenue has a significant relationship with all of these three variables. Among other financial indicators, also revenue per room is influenced by category, while gross profits per room and net profits per room are influenced both by category and chain affiliation.

  17. Diversification through Catastrophe Bonds: Lessons from the Subprime Financial Crisis

    OpenAIRE

    Peter Carayannopoulos; M Fabricio Perez

    2015-01-01

    Are catastrophe bonds (CAT bonds) zero-beta investments? Are they a valuable new source of diversification for investors? We study these questions by analysing the dynamic relations of CAT bond returns and the returns of the stock, corporate bond and government bond markets. Our multivariate GARCH model results provide evidence that CAT bonds are zero-beta assets only in non-crisis periods. We document that CAT bonds were not immune to the effects of the recent financial crisis. With the coll...

  18. The World Financial and Economic Crisis and Its Impact on China-US-Russia Triangle

    Directory of Open Access Journals (Sweden)

    Alexei Dmitrievich Voskressenski

    2011-01-01

    Full Text Available The article analyzes the current state of relations in the triangle of Russia-US-China after the late-2000s global financial crisis from the point of view of their national interests, East Asian policy of the USA, China's growth and the strengthening of Russia in Asia. The author critically examines the existing approaches, foreign policy concepts and the latest initiatives which could shift the balance of power in the post-crisis period. According to the author, Russia still has all the chances to reshape its relations with China and the United States.

  19. Multilateral Development Banks and Their Role in Supporting European SMEs during the Current Financial Crisis

    Directory of Open Access Journals (Sweden)

    Sorin Gabriel Anton

    2013-12-01

    Full Text Available The impact of the ongoing financial crisis on the availability of finance to small and medium-sized enterprises (SMEs represents an important topic nowadays. The access to finance for SMEs is a major barrier for their growth, especially during severe conditions such as the global financial crisis. Financing the SMEs represents a priority for the most of the multilateral development banks. The aim of the paper is to analyze the activity of European multilateral development banks - European Investment Bank Group and European Bank for Reconstruction and Development - in the support of SMEs. We found that SMEs financing increased during the period 2008-2011 and the international financial institutions took several measures in order to improve the SMEs access to finance.

  20. Financial Crisis from the Trust and Loss Aversion Perspective in Emerging Romanian Capital Market

    Directory of Open Access Journals (Sweden)

    Antoniade-Ciprian ALEXANDRU

    2011-07-01

    Full Text Available In this paper we synthesized a study of financial crisis from the trust and loss aversion perspective on a particular case, Romanian emerging capital market. In a relative recent study we stopped with our data series at the level of 2008, November, but in this paper we continue our research until 2009, December. In a world-wide financial crisis and a global financial depreciation of stocks the emergent markets are much more affected that the lack of money and investors aversion. We study, based on efficient market theory, the evolution of portfolio structure in balanced funds. We are interesting to make an evaluation of present sentiment of investing money in capital markets and especially in stocks. Also, is necessary to determine which are the most important problems in this situation and seek an adequate stimulus for future development of direct investment.

  1. The health effects of the global financial crisis: can we reconcile the differing views? A network analysis of literature across disciplines.

    Science.gov (United States)

    Stuckler, David; Reeves, Aaron; Karanikolos, Marina; McKee, Martin

    2015-01-01

    Why are researchers studying the health effects of economic change reaching markedly varying conclusions? To understand these differences, we first systematically searched Web of Science for the literature on recessions and health yielding 461 articles and 14,401 cited documents. We then undertook a network analysis of co-citation pattern by disciplines, journals and backgrounds of the authors, followed by a chronological review of the literature, to trace the evolution of ideas. We then examined the extent to which earlier literature predicted what has happened in the 2007-2012 crisis. Our analysis finds the literature is dominated by disciplinary silos, with economics studies predominantly citing each other and relative isolation of psychiatry and substance abuse journals. Different philosophical approaches to assessing causality appear to contribute to varying interpretations, a tendency that is unlikely to be resolved without a shift in research norms. We conclude by calling for more inter-disciplinary research that combines empirical findings with a search for plausible mechanisms. This approach would evaluate not only the effects of economic shocks but also the mechanisms that offer protection against them.

  2. Nursing workforce policy and the economic crisis: a global overview.

    Science.gov (United States)

    Buchan, James; O'May, Fiona; Dussault, Gilles

    2013-09-01

    To assess the impact of the global financial crisis on the nursing workforce and identify appropriate policy responses. This article draws from international data sources (Organisation for Economic Co-operation and Development [OECD] and World Health Organization), from national data sources (nursing regulatory authorities), and the literature to provide a context in which to examine trends in labor market and health spending indicators, nurse employment, and nurse migration patterns. A variable impact of the crisis at the country level was shown by different changes in unemployment rates and funding of the health sector. Some evidence was obtained of reductions in nurse staffing in a small number of countries. A significant and variable change in the patterns of nurse migration also was observed. The crisis has had a variable impact; nursing shortages are likely to reappear in some OECD countries. Policy responses will have to take account of the changed economic reality in many countries. This article highlights key trends and issues for the global nursing workforce; it then identifies policy interventions appropriate to the new economic realities in many OECD countries. © 2013 Sigma Theta Tau International.

  3. Financial Crisis and Changes in Management Controls in Banks

    DEFF Research Database (Denmark)

    Rikhardsson, Pall; Rohde, Carsten; Christensen, Leif

    requirements. Risk management, compliance and internal auditing were relatively mature processes in the Danish banks before the crisis, and the adjustments required to adapt to changed compliance requirements were less extensive. Management controls in general seem to play a critical role in responding......The financial crisis of 2008 hit banks in Iceland and Denmark with different intensity. There was a difference in how management controls changed in response to the crisis. Icelandic banks redefined cultural controls, introducing new values as a “clean break” with the banks’ pre-2008 practices....... They formalised their risk management, compliance and internal auditing practices, and hired more employees to perform these functions. Further, they strengthened and formalised their policies and procedures to ensure consistent practices. The Danish banks adapted their administrative controls to new regulatory...

  4. Global Warming and Financial Umbrellas

    International Nuclear Information System (INIS)

    Dosi, C.; Moretto, M.

    2001-10-01

    A new instrument for hedging weather risks has made its appearance in the financial arena. Trade in 'weather derivatives' has taken off in the US, and interest is growing elsewhere. Whilst such contracts may be simply interpreted as a new tool for solving a historical problem, the question addressed in this paper is if, besides other factors, the appearance of weather derivatives is somehow related to anthropogenic climate change. Our tentative answer is positive. Since 'global warming' does not simply mean an increase in averaged temperatures, but increased climate variability, and increased frequency and magnitude of weather extremes, derivative contracts may potentially become a useful tool for hedging some weather risks, insofar as they may provide coverage at a lower cost than standard insurance schemes. Keywords: Global warming, climate variability, insurance coverage, weather derivatives

  5. The future of international banking regulations in response to the financial crisis of 2007/2009: After Basel iii then what next?

    Directory of Open Access Journals (Sweden)

    Joseph E. Isebor

    2014-06-01

    Full Text Available The financial crisis 2007-2009 will not be forgotten in a hurry because of its impact on the global financial system almost replicating the Great Depression. Major and causal factors contributed to the financial crisis, and this prompted the establishment of Basel III to contain the crisis. Basel III introduced improved capital and liquidity rules, but still could not contain the crisis. This leaves regulators with questions of how to prevent another financial crisis in the future. Evidences suggest that the financial market is evolving because of its complex and changing nature, and so are the international banking regulations (Basel I, Basel II and Basel III that support the system in terms of maintaining economic and financial stability. It is clear that Basel III will not stop the next financial crisis even though the Basel accords continue to evolve in response to maintaining economic and financial stability, with the core purpose of preventing another financial crisis. Uncertainties lies ahead, and regulators cannot be sure of what will likely cause the next crisis, but indications suggest that the financial markets and international banking regulations in the form of Basel accords will continue to evolve

  6. Has the First Global Financial Crisis Changed the Entrepreneurial Values in Digitalized Marketing-based Societies? The Case of GEM Latin American Countries

    OpenAIRE

    José Manuel Saiz Álvarez; Alicia Coduras Martínez; Carlos Cuervo Arango

    2017-01-01

    As the world economy is globalized, crises are rapidly spread due to the massive use of ICTs (Information and Communication Technologies), also affecting the entrepreneurial values involved in business creation processes. In this sense, digital marketing has a key role to play, as it can serve as a tool based on technology applied to foster nascent entrepreneurship. Using data for GEM Latin American countries, and applying clustering analysis based on the K-means method, the objective of this...

  7. Delaying Payments after the Financial Crisis: Evidence from EU Companies

    Directory of Open Access Journals (Sweden)

    Isaac Kwame Essien Obeng

    2017-01-01

    Full Text Available The paper investigates economic impact of delayed payments caused by liquidity crisis in the European Union. Using micro data sets on financial statements of 54,277 firms for the period of 2005 to 2014 inclusive, we perform panel data analysis by estimating fixed effects regression models with selected macroeconomic shocks. The results show high variability of late payments during financial crisis compare to period of relative stable economic situations and late payments is significantly evident across countries under different economic conditions. Additionally, we identify positive relationship between the response variable, late payments, and firm profitability measured with returns on assets, but negative relationship with firm total assets as it depends on the speed of collections from receivables. The results suggest delays in payment of invoices beyond the given credit period across the different European Union member countries.

  8. Occupy the Financial Niche – Saturation and Crisis (discontinuous decisions

    Directory of Open Access Journals (Sweden)

    Ionut PURICA

    2014-09-01

    Full Text Available The model presented is proposing an approach that could verify the nonlinear behaviour during a crisis, such that to quantify and predict potential discontinuous behaviour. In this case, the crisis behaviour associated with financial funds reallocation among various credit instruments, described as memes with the sense of Dawkins, is shown to be of discontinuous nature stemming from a logistic penetration in the financial behaviour niche. Actually the logistic penetration is typical in creating cyclic behaviour of economic structures as shown by Marchetti and others from IIASA. A Fokker-Planck equation description results in a stationary solution having a bifurcation like solution with evolution trajectories on a ‘cusp’ type catastrophe that may describe discontinuous decision behaviour

  9. Value-at-Risk Performances during the 2007-2008 Global Financial Crisis: a comparison of three Value-at-Risk models in the emerging markets of China, India and Philippines.

    OpenAIRE

    Li, Mi

    2012-01-01

    Ever since the world economic outlook was fundamentally changed by the 2007-2008 financial crisis, risk management and reliable risk measurements have been drew much attentions. This thesis selects three Asian emerging markets, that is, China, India, Philippine, as the research targets and evaluates the performances of three different Value-at-Risk (VaR) models (the Historical Simulation, the Monte Carlo Simulation, and the Extreme Value Theory) in these three emerging markets’ stock markets ...

  10. Financial Health of electricity producers. What strategies to the crisis?

    International Nuclear Information System (INIS)

    Aristide, Adrien; Gobert, Yann; Bailey, Christopher

    2017-02-01

    This publication reports an analysis of the financial situation of 15 European electric power producing companies which represent 55 per cent of the electricity production. In a crisis context (decrease of turnover and of EBITDA between 2013 and 2015), three strategies seem to emerge: a model based on renewable production, orientation towards renewable production, and focus on an operational efficiency of the energy mix. As the installed production capacity has increased, electric power consumption has decreased. Thus, the financial situation of power utilities is strongly affected by the economic context, and companies are trying to maintain their financial ratios (control of financial debt and preservation of asset profitability) while they are facing a loss of confidence from investors as revealed by their performance on the stock exchange market. In response, they diversify their activities and redefine their strategy as mentioned here above. These elements are first presented with commented graphs, and then more precisely discussed

  11. Recent financial crisis in Malaysia: response, results, challenges

    OpenAIRE

    Hasan, Zubair

    1999-01-01

    This paper was one of the first writings that appeared on the subject and presented at a local conference while pending publication with the Indian Economic Journal.After a brief Introduction, Section 2 discusses broadly the process used for generating the data used for analysis as also the position of Malaysian economy during the crisis. Section 3 deals with controls as a tool for managing the financial turmoil. Section 4 argues, on the basis of results, that for Malaysia the imposition of ...

  12. Determinants of capital structure and financial crisis impact: evidence

    OpenAIRE

    Proença, Pedro Miguel Correia

    2012-01-01

    Mestrado em contabilidade The objectives of this empirical work are to investigate the determinants of Portuguese SMEs capital structure, evaluate whether and how the impacts of those determinants affect the debt ratios and examine the effects of financial crisis and industry on Portuguese SMEs capital structure. The sample used considers the period 2007-2010, resulting in 12.857 Portugues e SMEs per year observations. R...

  13. Evidence of market manipulation in the financial crisis

    OpenAIRE

    Vedant Misra; Marco Lagi; Yaneer Bar-Yam

    2011-01-01

    We provide direct evidence of market manipulation at the beginning of the financial crisis in November 2007. The type of manipulation, a "bear raid," would have been prevented by a regulation that was repealed by the Securities and Exchange Commission in July 2007. The regulation, the uptick rule, was designed to prevent manipulation and promote stability and was in force from 1938 as a key part of the government response to the 1929 market crash and its aftermath. On November 1, 2007, Citigr...

  14. Fair Value Considerations during the Current Financial Crisis

    OpenAIRE

    Banu Esra Aslanertik

    2010-01-01

    In the current economic conditions, accounting applications seem to face new and complex challenges. Especially, these challenges are on the basis of fair value. Recent crisis has highlighted the complexity and difficulty of valuing financial instruments when market information is not available or not sufficient to give better economic decisions. FASB 157 “Fair Value Accounting” became effective by January 1, 2008 for most U.S. companies and some believe that this caused the problem. Opposite...

  15. The Role of Trust in Financial Customer-seller Relationships Before and After the Financial Crisis

    DEFF Research Database (Denmark)

    Hansen, Torben

    2014-01-01

    provider. Hence, as a direct managerial implication, financial service managers should consider investing additional resources in satisfying their customers in the after crisis era. In addition, it is suggested that managers should seek to rebuild the positive relationship between trust and loyalty......This study examines the role of trust in customer-seller relationships before and after the 2008 financial crisis. On the basis of two surveys comprising 1155 and 757 bank customers, respectively, it is shown that trust is less likely to mediate the relationship between satisfaction and loyalty...

  16. Smoking Habits among Greek University Students after the Financial Crisis

    Science.gov (United States)

    Saridi, Maria; Nanou, Anastasia; Vasilopoulos, Christos; Kourakos, Michael; Skliros, Efstathios; Toska, Aikaterini; Souliotis, Kyriakos

    2017-05-01

    Background: University students worldwide seem to have increased rates of smoking, alcohol abuse, binge drinking episodes and harmful consumption trends, raising a serious public health issue. The aim of the present study was to investigate university students’ smoking habits and exposure to secondary smoke amid a financial crisis. Methods: The present descriptive, correlational analysis was conducted at the University of Peloponnese. Results: The average age of the sample (n=203) was 24.9 years (±7.6 years) with 36.0% of the participants (n=73) being postgraduate students. Some 51.2% (n=104) of the participants said they didn’t smoke and 46.3% (n=94, p=0.003) reported no secondary smoke exposure during the past week at home. The majority of the remainder initiated smoking at age 16-17 (48.5%, n=48), and 64.6% (n=42) said the financial crisis did not lead them to change their smoking habits. Conclusions: The majority of students support smoking ban laws in enclosed public spaces, but also their replies highlighted poor implementation on behalf of the state and the authorities. The financial crisis did not appear to have affected student smoking habits. Creative Commons Attribution License

  17. The Determinants of Investor Preferences during the Financial Crisis Periods: A Study on 2001 Crisis

    Directory of Open Access Journals (Sweden)

    Gülfen TUNA

    2013-06-01

    Full Text Available The study is targeting to examine the effects of 2001 financial crisis on the shares included in the lowest-risk portfolios of Istanbul Stock Exchange. To this end; monthly returns data of all shares traded in Istanbul Stock Exchange between 2000:11-2002:09 term, are evaluated. While portfolio selection is carried out via Markowitz Model, the effects of 2001 financal crisis are examined whereby ratio analysis. The findings display that the firms examined have benefited from the positive impact of exporting, furthermore, the amounts of short term debts are increased. Besides, both stock retention and receivable collection periods of the mentioned firms are decreased.

  18. The Impact of International Financial Crisis on Bank Performance in Eastern and Central European Countries

    Directory of Open Access Journals (Sweden)

    Alin-Marius Andrieș

    2016-05-01

    Full Text Available In this paper we investigate the determinants of bank profitability in 10 countries from Central and Eastern Europe, in the period between 2004 and 2013. We proxy the profitability of banks with more commonly used ratio: the return on assets (ROA, computed as a ratio of the net profit to the total bank assets. We used multiple regression with bank specific variables, banking industry variables and macroeconomic variables. Moreover, we added a global financial crisis dummy to highlight the crisis impact on asset return. OLS is the main estimation method, but we also used difference-in-difference in order to test if the crisis impact was amplified or diminished by the bank specific characteristics. The evidence shows significant differences between the profit levels of the CEEC banks. Our results are in line with the empirical literature. The impact of the international financial crisis on ROA was negative and statistically significant, as expected. The second part of the analysis we separate the banks sample in three categories: banks with high capital adequacy, large banks by total assets and foreign-owned banks. Our findings show that the three selected variables both amplified and decreased the crisis effect.

  19. Norms, legitimacy, and global financial governance

    NARCIS (Netherlands)

    Underhill, G.R.D.; Zhang, X.

    2006-01-01

    Despite regular and serious systemic volatility, reform of international financial architecture remains limited, retaining market-oriented characteristics and adjustment mechanisms. A failure of the architecture to focus on the political underpinnings of global financial and monetary governance

  20. New Member States of the EU and EMU – Convergence and the Financial Crisis

    Directory of Open Access Journals (Sweden)

    Ines Kersan-Škabić

    2010-07-01

    Full Text Available The theory of the Optimum Currency Area (OCA clearly accentuates the need for common economic characteristics among states if it is to work well. This paper analyses the extent to which the New Member States of the European Union (NMS satisfy the criteria of nominal and real convergence. Four of these Member States have introduced the Euro, whereas the rest are at different stages of becoming part of the Economic and Monetary Union (EMU. A financial crisis of global proportions implies a number of economic problems in all of the Member States of the EU, especially in the NMS where the new issues have added up to the already grave consequences of the transition period. What is needed is more unity and co-operation within the EU as well as significant financial aid from the IMF and the EU to the New Member States in order to sustain stability in the crisis period. The crisis has again raised the issue of introducing the Euro since membership of the EMU would buffer the effects of the financial crisis provided that the business cycles of the Member States were synchronized. Otherwise an independent monetary policy represents a key instrument in the liquidity regulation of the economy.

  1. A Study of the BRICS Bank from the Perspective of Global Financial Governance

    DEFF Research Database (Denmark)

    Bo, Peng

    2014-01-01

    The transition of the global financial governance system is a history of the rise and fall of the Western advanced countries in the post-war international political and economic system. Since the end of the Second World War, the International Monetary Foundation and the World Bank have always taken...... the dominant role in the field of global financial governance. However, after the beginning of the global financial crisis in 2008, many drawbacks have become apparent concerning these two significant institutions, such as the lack of representatives, the slow and ineffective response to the crisis, etc...

  2. Contagion Effect of Natural Disaster and Financial Crisis Events on International Stock Markets

    Directory of Open Access Journals (Sweden)

    Kuo-Jung Lee

    2018-03-01

    Full Text Available In the contemporary world bustling with global trade, a natural disaster or financial crisis in one country (or region can cause substantial economic losses and turbulence in the local financial markets, which may then affect the economic activities and financial assets of other countries (or regions. This study focuses on the major natural disasters that occurred worldwide during the last decade, especially those in the Asia–Pacific region, and the economic effects of global financial crises. The heteroscedasticity bias correlation coefficient method and exponential general autoregressive conditional heteroscedasticity model are employed to compare the contagion effect in the stock markets of the initiating country on other countries, determining whether economically devastating factors have contagion or spillover effects on other countries. The empirical results indicate that among all the natural disasters considered, the 2008 Sichuan Earthquake in China caused the most substantial contagion effect in the stock markets of neighboring Asian countries. Regarding financial crises, the financial tsunami triggered by the secondary mortgage fallout in the United States generated the strongest contagion effect on the stock markets of developing and emerging economies. When building a diversified global investment portfolio, investors should be aware of the risks of major natural disasters and financial incidents.

  3. FINANCIAL CRISIS, SUBSIDIES AND CLIMATE CHANGE IN THE EQUATION OF SUSTAINABLE DEVELOPMENT

    Directory of Open Access Journals (Sweden)

    FLORINA BRAN

    2011-03-01

    Full Text Available Financial crisis, subsidies and climate change in the equation ofsustainable development. An irreducible situation such as the contemporary financialcrisis creates the premises of major overthrow in decision criteria. Meanwhile,significant progresses in overcoming the ecological crisis, fueled mainly by the climatechange are also in relation with such changes. This convergence is easy to be observeddue to logical connections. If its existence was noticed at decisional levels is theoverarching question that structure the paper. Since the answer is positive, there areexplored the visions and plans of measures developed within this confrontation. Thereis applied a global approach and that is why each discussion considers also theimplications of economic globalization and of global environmental action as influencefactors on the path and direction of change.

  4. Cervical cancer: A global health crisis.

    Science.gov (United States)

    Small, William; Bacon, Monica A; Bajaj, Amishi; Chuang, Linus T; Fisher, Brandon J; Harkenrider, Matthew M; Jhingran, Anuja; Kitchener, Henry C; Mileshkin, Linda R; Viswanathan, Akila N; Gaffney, David K

    2017-07-01

    Cervical cancer is the fourth most common malignancy diagnosed in women worldwide. Nearly all cases of cervical cancer result from infection with the human papillomavirus, and the prevention of cervical cancer includes screening and vaccination. Primary treatment options for patients with cervical cancer may include surgery or a concurrent chemoradiotherapy regimen consisting of cisplatin-based chemotherapy with external beam radiotherapy and brachytherapy. Cervical cancer causes more than one quarter of a million deaths per year as a result of grossly deficient treatments in many developing countries. This warrants a concerted global effort to counter the shocking loss of life and suffering that largely goes unreported. This article provides a review of the biology, prevention, and treatment of cervical cancer, and discusses the global cervical cancer crisis and efforts to improve the prevention and treatment of the disease in underdeveloped countries. Cancer 2017;123:2404-12. © 2017 American Cancer Society. © 2017 American Cancer Society.

  5. CRISIS ALIMENTARIA: NUEVO MEGA-NEGOCIO GLOBAL

    Directory of Open Access Journals (Sweden)

    Mario Godinez López

    2008-12-01

    Full Text Available Resumen El presente artículo desenmascara la forma en que falazmente las instituciones financieras multilaterales pretenden hacer ver las causas de lo que han dado en llamar “la crisis alimentaria mundial” a partir del incremento de los precios de los alimentos alrededor del mundo. Agrocombustibles, incremento del precio del petróleo, cambio climático en zonas productoras son algunas de las causas que el Banco Mundial pone como justificación al incremento del precio de la mayoría de cereales y granos básicos. La milagrosa solución al hambre en los países pobres: la minería, es lanzada desde este todopoderoso agente financiero, como panacea para la producción de regalías que permitan a muchos países de África y algunos de América Latina y Asia,  para resolver la problemática alimentaria.  ¡Nada más falso! En los siguientes párrafos se describen las verdaderas razones de la crisis del actual modelo económico mundial, y se proponen desde un país en concreto,  propuestas de política pública para su solución.   Abstract The present article unmasks the way in which multilateral financial institutions pretend fallaciously to show the causes of which they have given to call “the world food crisis” since the increasing prices of food around the world. Agrofuels, increase the price of oil, produces climate chance in zones used for production, these are some of the causes that the World Bank uses to justify the increasing prices of the majority of cereals and grains. The miraculous solution for hunger in poor countries: mining, is launched from this all mighty financial agent, as a panacea to produce royalties that will permit many countries in Africa, and in some in Latin American and Asia, to solve their food problematic. Nothing more false than that! In the next paragraphs the true reasons of this crisis of the actual economic world model are described, and from a particular country, proposals of public politics for

  6. MONETARY POLICY SHOCKS AND ISLAMIC BANKS DEPOSITS IN INDONESIAN DUAL BANKING SYSTEM AFTER THE FINANCIAL CRISIS

    Directory of Open Access Journals (Sweden)

    Ahmad Affandi

    2017-03-01

    Full Text Available Use of riba (usury in the economic system remained a key factor that led to financial crisis since theinception of modern economy in the late of 17th century. Implementation of interest based monetary policystipulated rampant speculation as common practices in the global financial sector. Although Islamic bankingwas governed by syariah (Divine Law, which was assumed to be resilient from distress, the volatility ofinterest movement would generally affect Islamic banks operations in a dual banking system. This paperwould look at this issue and would empirically explore the dynamic inter-relationships between deposits ofIslamic banks with monetary policy variables in Indonesia. In terms of market share, as of 2009, Islamicbanking asset in Indonesia was a meager 2%. The industry had been affected by few monetary policy shockson its deposits and financing. The study would employ vector auto regression model (VAR to explore thedynamics between the variables. The study would focus on data from 2004 to 2008 or performance after theAsian financial crisis. The results from these tests determined that shariah based deposits played significantrole in transmitting monetary policy effects to the economy. This study found that Islamic banking depositsin Indonesia were not sensitive to monetary policy changes. This study also concluded that IndonesianIslamic banks were resilient to financial crisis.

  7. An ARIMA-Intervention Analysis Model for the Financial Crisis in China's Manufacturing Industry

    Directory of Open Access Journals (Sweden)

    W.H. Ip

    2009-10-01

    Full Text Available Triggered by the subprime mortgage crisis in the United States (U.S., a financial tsunami has spread rapidly around the globe, from the U.S. to Europe and the rest of the world, causing the world economy to enter a recession. China is no exception, and has suffered a sharp reduction in the growth of its export and manufacturing sectors. In this paper, we attempt to model and analyze the impact of financial crisis on the manufacturing industry in China using data collected from March 2005 to November 2008 by the China Statistical Databases of the National Bureau of Statistics of China. The results indicate that China's manufacturing industry may have to tolerate a significant negative effect caused by the global financial crisis over a period of time, with its gross industrial output value declining continually throughout 2008 and 2009 before reaching a state of equilibrium. The intervention effect is described in this study as temporary but immediate and abrupt. It is found that the ARIMA-Intervention model is more precise at explaining and analyzing the intervention effects of the financial tsunami.

  8. CSR in the Aftermath of the Financial Crisis

    DEFF Research Database (Denmark)

    Lauesen, Linne Marie

    2013-01-01

    with the consequences of the financial crisis, and to suggest new research as well as policy-­‐making possibilities to highlight the importance and necessary survival of CSR as an instrument for sustainable and financial progress. Design/methodology/approach – The paper uses a literature review of CSR prior...... governments can engage not only multinational companies but also smaller companies and other kinds of organizations acting on the market to make them engage more in CSR. Originality/value – The paper proposes a new Four-­‘E’-­Principle to guide the development of new CSR-­‐models based upon the core...... of Schwartz and Carroll’s ‘Three-­domain CSR-­model’, which the Principle extends and revises to: Economy, L/Egal, Environment, and Ethics. This Principle disentangles the dialectic relationship between economic and social responsibility; takes financial products into a consideration; refines the definitions...

  9. CSR in the Aftermath of the Financial Crisis

    DEFF Research Database (Denmark)

    Lauesen, Linne Marie

    2013-01-01

    with the consequences of the financial crisis, and to suggest new research as well as policy-making possibilities to highlight the importance and necessary survival of CSR as an instrument for sustainable and financial progress. Design/methodology/approach – This paper uses a literature review of CSR prior to and after......, not only multinational companies, but also smaller companies, and other kinds of organizations acting on the market, to make them engage more in CSR. Originality/value – The paper proposes a new Four-“E”-Principle to guide the development of new CSR-models based upon the core of Schwartz and Carroll......'s “Three-domain CSR-model”, which the Principle extends and revises to: Economy, L/Egal, Environment, and Ethics. This Principle disentangles the dialectic relationship between economic and social responsibility; takes financial products into consideration; refines the definitions of good stakeholder...

  10. Impact of financial crisis on selected health outcomes in Europe.

    Science.gov (United States)

    Baumbach, Anja; Gulis, Gabriel

    2014-06-01

    A number of health outcomes were affected by previous financial crises, e.g. suicides, homicides and transport accident mortality. Aim of this study was to analyse the effects of the current financial crisis on selected health outcomes at population level in Europe. A mixed approach of ecologic and time trend design was applied, including correlation analysis. For eight countries, data on the economic situation (unemployment rate and economic growth) and health indicators (overall mortality, suicide and transport accident mortality) was drawn from EUROSTAT database for 2000-10. Spearman's rank correlation was applied to analyse the influence of social protection on the association between exposure and outcome variables. The financial crisis had no visible effect on overall mortality in any of the eight countries until 2010. Transport accident mortality decreased in all eight countries, in the range of 18% in Portugal to 52% in Slovenia. In contrast, suicide mortality increased in Germany (+5.3%), Portugal (+5.2%), Czech Republic (+7.6%), Slovakia (+22.7%) and Poland (+19.3%). The effect of unemployment on suicide is higher in countries with lower social spending (Spearman's r = -0.83). Clear cause-effect relations could not be established owing to the ecological study design and issues concerning data availability. However, there are clear changes in suicide and transport accident mortality after onset of the crisis, and findings are consistent with previous work. As part of this work, a comprehensive framework was developed, which can be applied to analyse health effects of financial crises in more detail. © The Author 2014. Published by Oxford University Press on behalf of the European Public Health Association. All rights reserved.

  11. The Impact of the Asian Crisis on International Financial Markets

    Directory of Open Access Journals (Sweden)

    Sang-Uck Loh

    1998-12-01

    Full Text Available Among the influences of the Asian financial crisis on the international market and its monetary policy and situation, the sharp backwash of the international private capital which has been continually related to the emerging market since the early 1990s is considered as the most important one. Though this trend is partly the result of the internal causes of the emerging countries, such as the inflexible policy of the exchange rate, the accumulation of the frequent income and expenses deficit and the stagnation of the economy in the countries hit by the Asian economic crisis, the unstable internal structure of the application system of the international monetary market probably also brought a tremendous influence. This thesis takes a look at the situation and is directed towards the direction and scale of the future international capital based on the studies of the unsteady factors of the structure of the economic market, which appeared in the period of the Asian economic crisis. After the moratorium of Russia, the liquidity of the international private capital in the international monetary market became various with the implement of the policy which lowered the exchange rate under the cooperation of the developed countries. Meanwhile, the Asian countries strived to establish the structure of enterprises and financial department in a full speed and with a high intensity after the economic crisis. So it is believed that they were fully qualified to enter the emerging market, and would be again in case of need. As the international investors experienced the Asian economic crisis, they faced and estimated the risk of investing into the emerging markets again. As the case stands, the strengthened joint of finance and trade among countries lead to a higher risk of the possibility that the crisis of one country expands to a worldwide crisis. So it is predicted that the inflow of the capital to the emerging market will be in a gradual way. The selection

  12. Decomposing US Money Supply Changes since the Financial Crisis

    Directory of Open Access Journals (Sweden)

    Richard Robinson

    2013-06-01

    Full Text Available In response to the financial crisis of 2008, the Federal Reserve radically increased the monetary base. Banks responded by increasing excess reserves rather than increasing bank loans, and the public responded with a substantial flight to liquidity in the form of currency and demand deposits. As a result, the money-supply multipliers substantially decreased, so that the actual money supply measures grew more moderately than the base. The sustained multiplier-collapse spawned reexamination of monetary versus fiscal theories of price-level determination. This paper, however, presents decompositions of the money-multiplier collapse into changes in the currency-to-deposit ratios, and changes in the reserve-to-deposit ratio. By doing so, possible near-term increases in the multipliers are simulated so that the possibility of either full or partial restoration to their pre-crisis levels is assessed. Policy possibilities for controlling the money supply over various horizons follow. This analysis illustrates the Federal Reserve’s exit dilemma that results from its financial-crisis policy.

  13. Beyond Keynesianism : global infrastructure investments in times of crisis

    OpenAIRE

    Lin, Justin Yifu; Doemeland, Doerte

    2012-01-01

    As the world recovers only slowly from the 2008 financial crisis and Europe is facing a looming debt crisis, concerns have increased that the "new normal" -- a period of high unemployment, low returns on investment, high risks, and low growth -- may become protracted in advanced economies. If growth remains weak, unemployment rates and debt levels will be slow to recede. Consequently, the ...

  14. Las nuevas violencias en la crisis global

    Directory of Open Access Journals (Sweden)

    José María Tortosa

    2010-01-01

    Full Text Available El artículo parte de la constatación de la complejidad que aqueja al fenómeno de las violencias, sea por sus muy diversos actores como por la heterogeneidad de los factores que inciden en ella, para pasar a describir someramente el conjunto de crisis (económica, medioambiental, alimentaria y energética que atraviesan al sistema mundial en la actualidad. A esto se añade la crisis de hegemonía de parte de Estados Unidos en dicho sistema. A partir de ello, se especula sobre el impacto que la combinación de ambos fenómenos puede tener en las violencias. El artículo termina con algunas observaciones sobre la fascinación con la violencia directa, sospechosa si tiene como función manifiesta o latente el ocultar la violencia estructural y la criminalidad de “guante blanco”.This article begins by confirming the complex nature of the various forms of violence that exist, due to the diversity of actors as well as the heterogeneous factors involved, and then goes on to describe the set of crises (economic, environmental, food and energy experienced by the current global system. To this must be added the crisis of hegemony on the part of the United States in said system. Based on this analysis, we speculate about the impact that the combination of these phenomena might have on forms of violence. The article ends with observations on the fascination with direct violence, a suspicious occurrence if its manifest or latent purpose is to conceal structural violence and white collar crime.

  15. Toward a global norm against manipulating the integrity of financial data

    OpenAIRE

    Maurer, Tim; Levite, Ariel; Perkovich, George

    2017-01-01

    The financial crisis that erupted in 2007 highlighted how important trust is for the global system and how fragile it can be. The 2016 Bangladesh central bank cyber incident exposed a new threat to financial stability and the unprecedented scale of the risk that malicious cyber actors pose to financial institutions. Beyond theft, using cyber operations to manipulate the integrity of data, in particular, poses a distinct and greater set of systemic risks than other forms of financial coercion....

  16. How business reporting changed during the financial crisis

    DEFF Research Database (Denmark)

    K. Muheki, Mark; Lueg, Klarissa; Lueg, Rainer

    2014-01-01

    have substantially changed their business reporting due to new regulations, the unfavorable economic situation, as well as strategic challenges like a loss in customer satisfaction. We thus conclude that business reporting can be seen—at least temporarily—as a tool for crisis communication. We document......Challenging times, such as the recent financial crisis, appear to cause organizations to change their business reporting. Yet, there is not much evidence how changes in business reporting were enacted by banks and there is only little discussion about to what extent this can be seen and assessed...... our findings along the four perspectives the banks use for their business reporting and that reflect the banks’ main stakeholders: shareholders, customers, employees, and the community....

  17. Back to oil: Indonesia economic growth after Asian financial crisis

    Directory of Open Access Journals (Sweden)

    Heru Iswahyudi

    2016-04-01

    Full Text Available This paper examines the growth experience of Indonesia in the years before and after the Asian financial crisis. Particular attention is paid to the relationship between economic growth and petroleum sector’s total factor productivity (TFP. It finds the possibility that post-crisis Indonesian economic growth has ‘recoupled’ with petroleum sector’s TFP – fluctuations in petroleum TFP is directly correlated with fluctuations in economic growth. Further, although keeping Indonesia’s petroleum sector open to fair competition should be the prime policy, the fact regarding resource nationalism might need to be taken into account in designing the policy to develop the productivity of Indonesia’s petroleum sector.

  18. Predicting Wellbeing in Europe? The Effect of the Financial Crisis

    DEFF Research Database (Denmark)

    Hussain, M. Azhar

    2015-01-01

    Has the worst financial and economic crisis since the 1930s reduced the subjective wellbeing function's predictive power? Regression models for happiness are estimated for the three first rounds of the European Social Survey (ESS): 2002, 2004 and 2006. Many explanatory variables are significant...... happiness. Nevertheless, 73 % of the predictions in 2008 and 57 % of predictions in 2010 were within the margin of error. These correct prediction percentages are not unusually low - rather they are slightly higher than before the crisis. It is surprising that happiness predictions are not adversely...... with expected signs and an average determination coefficient around 0.25. Based on these estimated parameters happiness is predicted for the latest three rounds of the ESS: 2008, 2010 and 2012. Happiness is slightly underestimated in both 2008 and 2010, e.g. actual happiness generally is above predicted...

  19. CHARACTERISTICS OF THE ECONOMIC - FINANCIAL CRISIS IN EUROPE

    Directory of Open Access Journals (Sweden)

    Georgeta-Mădălina MEGHIŞAN

    2012-04-01

    Full Text Available The current economic and financial crisis represents the most sever episode of this type during the last generations – as it results from the reports of the European Commission. The impact upon the European Union member states’ economies materialised under the form of the credit restructuration, reduction of the trust at the economic level, and also, a serious contraction of the demand and the commercial exchanges. These are elements which determined the decrease of the investment and production activity, and also the usage of the production capacities, especially in the constructions field. On a medium and long term, we can appreciate that the true problem of the nature and profoundness of the crisis represents the pressure upon the business competitiveness, with consequences at the level of the working force or degradation of the human and technologic capital.

  20. The global financial crisis and neighborhood decline

    NARCIS (Netherlands)

    Zwiers, Merle; Bolt, Gideon; Van Ham, Maarten; Van Kempen, Ronald

    2016-01-01

    Neighborhood decline is a complex and multidimensional process. National and regional variations in economic and political structures (including varieties in national welfare state arrangements), combined with differences in neighborhood history, development, and population composition, make it

  1. Business Ethics in Globalized Financial Markets

    OpenAIRE

    Peter Koslowski

    2006-01-01

    Globalization extends the space of the things that are simultaneous for the human. This applies particularly to the decision-making in financial markets. The global market for capital is one of the main causes for globalization. How is this process of globalization to be judged from the point of view of business ethics? The paper investigates the ethical foundations of capital markets and of financial consulting. It analyzes the foundational theories of corporate governance in the Anglo-Ameri...

  2. The models for financial crisis detection in Indonesia based on import, export, and foreign exchange reserves

    Science.gov (United States)

    Sugiyanto; Wibowo, Supriyadi; Rizky Aristina Suwardi, Vivi

    2017-12-01

    The severity of the financial crisis that occurred in Indonesia required an early warning system of financial crisis. The financial crisis in Indonesia can be detected based on imports, exports, and foreign exchange reserves. The purpose of the research is to determine an appropriate model to detect the financial crisis in Indonesia based on imports, exports, and foreign exchange reserves. Markov switching is an alternative framework for the approach often used in financial crisis detection. Combined volatility and Markov switching model with three states assumptions can be established if an AR and volatility models have been obtained. Imports, exports, and foreign exchange reserves data from January 1990 to December 2016 have the heteroscedasticity effect so that an ARCH model is used as a volatility model. Research shows that SWARCH(3.1) model is an appropriate model for detecting financial crisis in Indonesia based on imports, exports, and foreign exchange reserves.

  3. The ebola crisis : challenges for global health law

    NARCIS (Netherlands)

    Toebes, Brigit

    2015-01-01

    he recent Ebola crisis has caused approximately 20.000 deaths so far. Compared to other global health crises, including the deaths caused by armed conflicts and chronic diseases, this is still a small amount. Yet, from a global and domestic health law and governance perspective, this crisis raises a

  4. Globalization Crisis and National Security: A Reflection on Nigeria ...

    African Journals Online (AJOL)

    Globalization Crisis and National Security: A Reflection on Nigeria Textile Industry. ... PROMOTING ACCESS TO AFRICAN RESEARCH ... Thus, while globalization has several palpable positive effects on the countrys industrial growth, it also ...

  5. A Mean-Variance Diagnosis of the Financial Crisis: International Diversification and Safe Havens

    Directory of Open Access Journals (Sweden)

    Alexander Eptas

    2010-12-01

    Full Text Available We use mean-variance analysis with short selling constraints to diagnose the effects of the recent global financial crisis by evaluating the potential benefits of international diversification in the search for ‘safe havens’. We use stock index data for a sample of developed, advanced-emerging and emerging countries. ‘Text-book’ results are obtained for the pre-crisis analysis with the optimal portfolio for any risk-averse investor being obtained as the tangency portfolio of the All-Country portfolio frontier. During the crisis there is a disjunction between bank lending and stock markets revealed by negative average returns and an absence of any empirical Capital Market Line. Israel and Colombia emerge as the safest havens for any investor during the crisis. For Israel this may reflect the protection afforded by special trade links and diaspora support, while for Colombia we speculate that this reveals the impact on world financial markets of the demand for cocaine.

  6. Global financial centers: shifting power balance

    NARCIS (Netherlands)

    Aalbers, M.B.

    2009-01-01

    London and New York are the most important global financial centers in the world. Tokyo used to be considered the third global financial center, but has lost its position in the last 20 years, partly as a result of a sustained recession and partly because both Japanese society and Japanese economy

  7. THE RELATIONSHIP BETWEEN FINANCIAL CRISIS, CORRUPTION, AND CORPORATE SOCIAL RESPONSIBILITY IN ROMANIA

    Directory of Open Access Journals (Sweden)

    Costel IONASCU

    2010-01-01

    Full Text Available The aim of the paper is to evaluate the influence of the financial crisis and corruption on the corporate social behaviour of Romanian organisations. Starting from the reference literature on financial crisis, corruption and corporate social responsibility, this article is an investigation of the impact that financial crisis and corruption characteristics have on the corporate social responsibility of the organisations. Our research underpins quantitative and qualitative methodology based on the outcomes of the HeRmeS international project.

  8. THE RELATIONSHIP BETWEEN FINANCIAL CRISIS, CORRUPTION, AND CORPORATE SOCIAL RESPONSIBILITY IN ROMANIA

    OpenAIRE

    Adriana SCHIOPOIU BURLEA; Carmen RADU; Liviu CRACIUN; Costel IONASCU; Marius MITRACHE; Radu LOLESCU

    2010-01-01

    The aim of the paper is to evaluate the influence of the financial crisis and corruption on the corporate social behaviour of Romanian organisations. Starting from the reference literature on financial crisis, corruption and corporate social responsibility, this article is an investigation of the impact that financial crisis and corruption characteristics have on the corporate social responsibility of the organisations. Our research underpins quantitative and qualitative methodology based on ...

  9. After the Financial Crisis: The Ethics and Economics Debate Revisited

    Directory of Open Access Journals (Sweden)

    Jacob Dahl Rendtorff

    2010-03-01

    Full Text Available The recent international events, with a major financial crisis all over the world, involve important questions about the relation between ethics and economics and the responsibilities of the economic market in relation to broader social and political concerns. This paper addresses this issue in five parts 1 Ethics in economic history 2 The neoliberal concept of economics 3 Welfare economics and the criticism of neo-classical concepts of rationality 4 Ethics within economics 5 Economic anthropology and the foundations of rationality.

  10. Behavioral finance during financial crisis in a banking company

    OpenAIRE

    Niraula, Saroj

    2012-01-01

    Panchashil Multi-Purpose Co-Operative Limited, a banking company of Nepal, commissioned this study. After the end of civil war in Nepal, which lasted for ten years, there was a situation of financial crisis. This situation was not brought by any economic changes in the country but be-cause of the bias behaviour of people. The main purpose of this thesis is to use behavioral finance as a tool and suggest the commissioning company a way to overcome the situation caused by an irrational deci...

  11. The Financial Crisis and the Systemic Failure of Academic Economics

    DEFF Research Database (Denmark)

    Colander, David; Föllmer, Hans; Haas, Armin

    The economics profession appears to have been unaware of the long build-up to the current worldwide financial crisis and to have significantly underestimated its dimensions once it started to unfold. In our view, this lack of understanding is due to a misallocation of research efforts in economics....... We trace the deeper roots of this failure to the profession's focus on models that, by design, disregard key elements driving outcomes in real-world markets. The economics profession has failed in communicating the limitations, weaknesses, and even dangers of its preferred models to the public...

  12. A Comparison of the Performances of Type A Mutual Funds Before And After 2008 Global Economic Crisis in Turkey

    OpenAIRE

    Esref Savas BASCI; Fatih MEMIS

    2014-01-01

    Looking from a historical perspective, financial activities contain many crises in itself. This situation seems to be a feature inherent in the existing economic system and as long as this system continues, it becomes inevitable being faced with the crisis. Especially in recent years, with the increasing globalization, the risk of being faced with a crisis has also increased. In the financial markets, savers who wish to evaluate the accumulation by investing in different investment tools may ...

  13. A Comparion of the Performances of Type A Mutual Funds Before and After 2008 Global Economic Crisis in Turkey

    OpenAIRE

    Başçi, Eşref Savaş; Memiş, Fatih

    2014-01-01

    Looking from a historical perspective, financial activities contain many crises in itself. This situation seems to be a feature inherent in the existing economic system and as long as this system continues, it becomes inevitable being faced with the crisis. Especially in recent years, with the increasing globalization, the risk of being faced with a crisis has also increased. In the financial markets, savers who wish to evaluate the accumulation by investing in different investment tools may ...

  14. The Emphasis of Negative Journalism in the Economic Communication, one of the Consequences of the Global Economic Crisis

    OpenAIRE

    Stefan VLADUTESCU

    2012-01-01

    (a) Purpose. Triggered around year 2005, the current economic and financial crisis has gained a global character. The purpose of this study is to investigate the impact of the crisis upon journalistic communication of financial and economic profile. b) The collection of basic information. As the main premise,it has been noted that in a natural way, there is a "negative journalism", a journalism based on persuasion. In addition it has been noted as a second premise, the existence of the financ...

  15. The Prudential Regulation of Financial Institutions: Why Regulatory Responses to the Crisis Might Not Prove Sufficient

    Directory of Open Access Journals (Sweden)

    William R. White

    2013-10-01

    Full Text Available It is now six years since a devastating financial and economic crisis rocked the global economy. Supported strongly by the G20 process, international regulators led by the Financial Stability Board have been working hard ever since to develop new regulatory standards designed to prevent a recurrence of these events. These international standards are intended to provide guidance for the drawing up of national legislation and regulation, and have already had a pervasive influence around the world. This paper surveys recent international developments concerning the prudential regulation of financial institutions: banks, the shadow banking system and insurance companies. It concludes that, while substantial progress has been made, the global economy nevertheless remains vulnerable to possible future financial instability. This possibility reflects three sets of concerns. First, measures taken to manage the crisis to date have actually made the prevention of future crises more difficult. Second, the continuing active debate over virtually every aspect of the new regulatory guidelines indicates that the analytical foundations of what is being proposed remain highly contestable. Third, implementation of the new proposals could suffer from different practices across regions. Looking forward, the financial sector will undoubtedly continue to innovate in response to competitive pressures and in an attempt to circumvent whatever regulations do come into effect. If we view the financial sector as a complex adaptive system, continuous innovation would only be expected. This perspective also provides a number of insights as to how regulators should respond in turn. Not least, it suggests that attempts to reduce complexity would not be misguided and that complex behaviour need not necessarily be accompanied by still more complex regulation. Removing impediments to more effective self discipline and market discipline in the financial sector would also seem

  16. GLOBAL ECONOMIC CRISIS: A VIEW FROM SOUTH AFRICA

    Directory of Open Access Journals (Sweden)

    Patrick Bond

    2015-08-01

    Full Text Available Any analysis of the erratic unfolding of global economic crisis is bound to be hotly contested. This is particularly so in mid-1999, amid claims from Washington that the past two years' dangers of financial meltdown and deflation were averted and finally extinguished through a combination of policy measures and good fortune: slightly looser Federal Reserve monetary policy adopted in September 1998, in the immediate wake of the successful public-private bailout of the Long Term Capital Management hedge fund; a new $90 billion International Monetary Fund (IMF insurance scheme announced the following month; the convening of key countries in a Forum on Financial Stability; the lack of financial contagion (contrary to expectations in the wake of Brazil's January 1999 currency meltdown; the long-awaited revival (however infirm of the Japanese economy; new plans for somewhat more transparent budgetary and exchange rate systems in emerging markets; and a decision at the G-8 Cologne meeting in June 1999 to sell 10% of the IMF's gold to fund partial debt relief for the poorest Third World countries. Indeed many observers were surprised at IMF Managing Director Michel Camdessus's success at turning the debt relief strategy into a vehicle for tougher "Enhanced Structural Adjustment Facility" conditions, just months after the IMF was criticised to the point of ridicule for its East Asian, Russian and Brazilian mishaps (effectively, granting $200 billion in bad loans over 15 months, in exchange for the application of inappropriate austerity measures.

  17. Reforms in the Greek pharmaceutical market during the financial crisis.

    Science.gov (United States)

    Vandoros, Sotiris; Stargardt, Tom

    2013-01-01

    Following the financial crisis of 2008, Greece has been facing severe fiscal problems associated with high public debt and deficit. Given their significant contribution to public sector expenditure, part of the effort to reduce public expenditure has involved a focus on pharmaceutical markets. Our aim is to provide an overview of recent policy changes in the Greek pharmaceutical market as a response to the crisis. We also discuss other potential measures that can be implemented. The recommendations are relevant to European countries facing debt crises, but also to any other country, as improving efficiency makes funds available to be used on other interventions. In 2010 and 2011, following the debt crisis and the agreement with the IMF, EU and ECB, the Greek government introduced several policy measures aimed at cost-containment. These changes included (a) price cuts, (b) the re-introduction of a positive list, (c) changes in the profit margins of pharmacies and wholesalers, and (d) tenders for hospital drugs. As a result, public drug expenditure decreased from €5.09 billion in 2009 to €4.25 billion in 2010 and €4.10 billion in 2011. As the need to cut expenditure becomes more urgent, seeking efficiency is possibly the only option for countries that do not wish to compromise quality of healthcare and public health. However, efficiency and cost containment are not only about introducing new policies, but also about the enforcement of existing laws and fighting corruption. Copyright © 2012 Elsevier Ireland Ltd. All rights reserved.

  18. Community Analysis of Global Financial Markets

    Directory of Open Access Journals (Sweden)

    Irena Vodenska

    2016-05-01

    Full Text Available We analyze the daily returns of stock market indices and currencies of 56 countries over the period of 2002–2012. We build a network model consisting of two layers, one being the stock market indices and the other the foreign exchange markets. Synchronous and lagged correlations are used as measures of connectivity and causality among different parts of the global economic system for two different time intervals: non-crisis (2002–2006 and crisis (2007–2012 periods. We study community formations within the network to understand the influences and vulnerabilities of specific countries or groups of countries. We observe different behavior of the cross correlations and communities for crisis vs. non-crisis periods. For example, the overall correlation of stock markets increases during crisis while the overall correlation in the foreign exchange market and the correlation between stock and foreign exchange markets decrease, which leads to different community structures. We observe that the euro, while being central during the relatively calm period, loses its dominant role during crisis. Furthermore we discover that the troubled Eurozone countries, Portugal, Italy, Greece and Spain, form their own cluster during the crisis period.

  19. Does High-Quality Financial Reporting Mitigate the Negative Impact of Global Financial Crises on Firm Performance? Evidence from the United Kingdom

    Directory of Open Access Journals (Sweden)

    Zhiwei Lin

    2014-12-01

    Full Text Available Prior literature has claimed that accounting plays a negative role in a financial crisis. The current study sought to determine whether this effect is dependent on the quality of financial reporting. Specifically, this study examined the impact of the quality of financial reporting (as measured via earnings quality on liquidity (measured by the bid-ask spread in the equity market during the 2008–2009 global financial crisis in the United Kingdom. We found, as expected, that market liquidity was much lower during the crisis than prior to the crisis; however, firms with high-quality financial reporting suffered fewer negative effects as a result of the financial crisis. The results were robust after controlling for other influences, such as return volatility, loss making, market value of equity, and other potential endogeneity problems. In addition, adopting alternative models for earnings quality did not alter our inferences. Our results support the notion that high-quality accounting information can reduce information asymmetry and hence enhance investor confidence during a financial crisis. The results suggest that a stable financial reporting system is an important part of that overall economic fabric. Our findings will help build a framework on which an overall financial crisis risk-management strategy can be developed to avoid future crises.

  20. The financial crisis in an operational risk management context—A review of causes and influencing factors

    International Nuclear Information System (INIS)

    Andersen, L.B.; Häger, D.; Maberg, S.; Næss, M.B.; Tungland, M.

    2012-01-01

    Global macroeconomic imbalance combined with deregulation of US banks and increasing US real estate prices formed the basis for aggressive growth in worldwide trading of so called Collateralized Debt Obligations (CDO), i.e. similar loans pooled to create a financial derivative that can be bought or sold. The CDOs consisted mainly of prime and subprime housing loans, where the latter type is characterized by a high probability for default. Due to the growing market demand for this derivative and the subsequent shortage of prime loans, the subprime share in the CDOs increased from 43% to 71% from 2003 to 2007. Surprisingly the credit rating agencies did not change the top level (AAA) credit rating of the CDOs in the same period of time. How was this possible? And how could the tremendously resourceful firms that insured the derivatives by selling so called Credit Default Swaps to CDO owners avoid understanding the enormous risk they took on? What later was to be called the financial crisis emerges in the spring of 2008 in line with the fall in US real estate prices and subsequent evaporation of the CDO market. The chain of events that led to numerous bankruptcies and threw the world into a recession not seen since the early 1930s has been labeled a system crisis, liquidity crisis, and a crisis of confidence (in the financial markets) among others. In this paper we survey how, and to what extent, operational risk exposure in the organizations of mortgage brokers and banks, insurance companies, credit rating agencies, and investment banks contributed to the financial crisis. Bayesian Network analysis of causes and influencing factors in these four types of organizations indicates that operational risk exposure played a crucial role in triggering the financial crisis. Our findings suggest that the financial crisis for a large part was the result of an industry wide failure to manage risk in general, and operational risk in particular.

  1. Access to Credit of SMEs in the Czech Republic During the Financial Crisis and in the Post-crisis Period

    Directory of Open Access Journals (Sweden)

    Petr Koráb

    2015-01-01

    Full Text Available We investigate the impact of the financial crisis on the access of small and medium-sized enterprises in the Czech Republic to external financing. We apply the non-parametric kernel density estimation on a firm-level measure of financing constraints and evaluate its distribution on a balanced panel of SMEs. We focus on financing constraints related to financial health of companies since they determine the commercial banks’ lending behaviour. Our results reveal that firms were more constrained during the crisis and their financing constraints did not largely improve after the end of financial crisis. We argue that enterprises were financially constrained during the crisis because of reduced cash-flow and cash holdings.

  2. The effects of the global economic crisis in Latin America

    Directory of Open Access Journals (Sweden)

    Arturo Guillén R.

    2011-06-01

    Full Text Available The aim of this article is to analyze the current phase of the global crisis and the way it has manifested itself in Latin America. The global crisis is the most important capitalist crisis since World War II. It is a new type of debt-deflation crisis, highlighting the limits of the finance-dominated regime of accumulation and characterized by securitization. Latin American countries have not been immune to the global crisis. Since it sets limits on globalization, the impossibility of maintaining export-driven accumulation sustained by restrictive monetary and fiscal policies becomes clear. This time, there will be no way out in external markets for any country. That fact will force them to restructure productive systems and search for a way out in domestic markets and in regional spaces for integration.

  3. IMPACT OF ECONOMIC AND FINANCIAL CRISIS IN THE CONSTRUCTION INDUSTRY

    Directory of Open Access Journals (Sweden)

    Cristina PLOSCARU

    2010-01-01

    Full Text Available The current financial and economic crisis has affected many sectors, and also the construction sector. The construction market has been and will be an important source of income for the entire Europe, totaling about 1.650 thousand billion euro, which is more than the GDP of Italy. Building no doubt brings significant percentage in the GDP of any European country, which of course is different from country to country. In Western European countries, the residential market is almost 50% from the construction market, while in Eastern European countries the majority is held by the civil and non-residential constructions. In addition, in the West the medium budget per capita spent on construction is 3-4 times higher than that spent in Eastern countries. But, according to previsions in the coming years the countries that will witness a growth, albeit small, will be the Eastern ones. The paper highlights the impact of the economic and financial crisis in the construction industry on a European and national level, as the sustainable constructions that may represent the sector’s future.

  4. THE IMPORTANCE OF THE SCENARIOS METHODOLOGY FOR FINANCIAL INSTITUTIONS DURING TIMES OF CRISIS

    Directory of Open Access Journals (Sweden)

    Paulo Roberto Correa Leão

    2010-11-01

    Full Text Available Recently, the need to apply strategic planning methodologies in business has risen, since corporations are part of a globalized world in which technological change and economic dynamism are evolving at a faster pace. Thus, firms must perform not only efficiently but also effectively in adapting to changes as they occur in the political, economic, technological, legal and environmental dimensions. This dictates the need for new strategic organizational positioning. The potential usefulness of the scenarios methodology was investigated for a sample of financial institutions with assets in the Brazilian market, based on management reports and in accordance with strategic dimensions needed to cope with crises. Therefore, we propose a new methodology for the qualitative analysis of official management reports, which indicates a perception of scenario building within organizations. The results suggest a positive relationship between the quality of the process of generating scenarios and the financial results of the banking institution. Key-words: Scenarios. Financial institutions. Crisis

  5. Financial fragility and global dynamics

    International Nuclear Information System (INIS)

    Dieci, Roberto; Sordi, Serena; Vercelli, Alessandro

    2006-01-01

    This paper deals with a simple model of financial fluctuations, where a crucial role is played by the dynamic interaction between aggregate current and intertemporal financial ratios. The model results in a 4D discrete-time dynamical system-capable of generating complex dynamics-which is analyzed by means of both analytical tools, such as local stability analysis and bifurcation theory, and numerical simulations. The behavior of the model is studied for different parameter regimes. We show that its dynamic behavior is very sensitive to the parameters that represent (1) the speed of adjustment of the desired current financial ratio towards a safe level of the intertemporal one and (2) the intensity with which aggregate current financial decisions affect future financial constraints. In particular, different parameter regimes are identified, giving rise to two different 'routes' to complexity, one leading to chaotic dynamics, the other to a coexistence of attractors and path-dependence

  6. The Financial Crisis, A Problem Of Economic Ethics And Of Morality?

    Directory of Open Access Journals (Sweden)

    Napoleon POP

    2012-09-01

    Full Text Available Many experts interested in explaining and understanding the deepness of latest financial crisis, far away yet to be solved, have gone beyond the appearances capture only by the economic science. It is more than sure that bubble on US prime rate real estate market was a only the detonator of much more complex mechanism built in time behind the scene of the financial system. Two things are more perceivable, the lack of comprehensive, but not overburdened, regulations and the sophisticated financial products less understood even by the managers of the financial institutions using them. A question still remains. Who was actually in charge with the explosion and the changing nature of the derivatives products, as innovation in every field of human activity is not always to be blamed? When the crisis burst, we were talking about toxic financial products with a huge capability to contaminate the entire globe. When the things became a little calmer, we started to call them exotic financial products and now it is a vague feeling of forgetting about the bad impact they produced, focusing ourselves on the new and more needed regulation of the global financial system, leaving aside the human behavior. What we see is that financial world became huge as compared with the real economy and, as a long time and well experienced former banker said, huge money are looking for more huge yields, producing more money out of nothing. That simple thought brings us to the ethic in economics and morality in the financial system, completely reversed from the normality, if just have a look to the anti cycle movement between the bonus policy and the losses or failures of some banks in the latest years. The connection is to be found in the risky management of the risks in very exposed markets to the information asymmetry, moral hazard and herd behavior. We let you know that this article is an inspiring root for an extensive study dedicated to the global money, in search of

  7. Financial Investment Management: Testing the Market Model on the Romanian Capital Market during the Post Financial Crisis

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    Radu CIOBANU

    2011-06-01

    Full Text Available This article presents an analysis of the decision of investing in the capital market in Romania during 2009-2010, in the context of overcoming the global financial crisis. In the first part of the paper, we have made a brief presentation of the simplified model of market analysis introduced in the specialized literature by William Sharpe, the respective model representing the starting point in our study. The purpose of the present study is to emphasize how the evolutions of the financial securities rates listed on the Bucharest Stock Exchange could be explained based on the evolution of BET Romanian capital market index. Although the study over this phenomenon has begun in the middle of the last century, every day new studies appear that are either coming in addition to the already existing ones or are bringing a new approach regarding the financial theory. The novelty of the present study conducted by us resides in the highlighting of the evolutions of the financial securities rates during July 2009 – December 2010 periods. The second part of the paper presents the results of a study conducted on the Romanian capital market, emphasizing the correlations between the most important securities on the Romanian capital market, as parts of BET index and market index. The aim is to check whether during this period the evolution of the financial securities’ return can be explained more or less by the return of the capital market.

  8. Lithuanian financial system transformation in the context of globalization

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    Arturas Balkevicius

    2013-10-01

    Full Text Available Purpose: The purpose of the article is to discuss the transformation of the Lithuania finance system in the context of globalization. Exploring the interdependence between the financial system and the economy, in different periods. Analyze the country’s financial system transformation after the crisis period. Methods: Contribution use general scientific methods, especially analysis, synthesis, comparison, induction and deduction. Essential sources of information were professional publications , statistic data of state Statistics Department, Bank of Lithuania, Euro stat. Scientific aim: Main aim of this article is to analyze the transformation of the Lithuania financial system and fined out the country’s economic growth and the financial system correlation, the main factors having a both positive and negative impact on economic growth. Findings: Findings of this article are new information in this area, which can be useful for another research. The correlation between the banks ‚ loans and GDP. However, this does not apply at the time of the economy fall. Conclusions: Economic growth in the financial sector and economic development is best visible analyzing in the correlation between the banks ‚ loans and GDP. However, this does not apply at the time of the economy fall. Banks ‚ relative indicators better reflects the weight of the financial sector and the impact on the national economy. We can see that 2011 banks relative indicators dropped to 2006 level. This shows how much the financial sector’s contribution decreased to economic development. Banks’ loans demand fall down. Lithuania has taken strict fiscal discipline and austerity measures. This have produced results quite quickly, in 2010 GDP grew by 3.4 percent, and in 2011 even 11.5 percent. Lithuania’s economy is recovering, but the financial sector and in particular banks still not recovering. The economic crisis has intervened in the banking system and has been surviving

  9. THE CURRENT INTERNATIONAL FINANCIAL CRISIS AND THE FINANCIAL SUPERVISION INSTITUTIONAL ARRANGEMENTS EFFECTIVENESS IN THE EUROPEAN UNION COUNTRIES

    OpenAIRE

    STOICA Ovidiu; CAPRARU Bogdan

    2012-01-01

    The international financial turmoil rise challenges in evaluating and choosing the optimal financial supervision institutional arrangements in many countries. Our study focuses on the financial supervision institutional architecture and its effectiveness in the European Union during the international financial crisis.We evaluated the effectiveness of the financial supervisory framework by groups of countries, categorised according to the supervisory model. Our analysis demonstrates that the p...

  10. The Spreading of Financial Crisis: Effect of Investor Behavior or of Economic Channels

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    Ruxandra Vilag

    2011-05-01

    Full Text Available Objectives It’s very important to quantify the influence of various factors in the development offinancial crisis. Once these factors can be determined we can attempt to stop this phenomenon or at leastminimize its effects. Prior Work Previous studies have shown that the phenomenon of globalization makesextremely disturbing phenomena quickly transmitted from one market to another, provided that these marketswill be connected. But what is the explanation when countries not linked in any way react in same way at theappearance of disturbances in one of the country? Approach We study the phenomenon of contagion bycomparing the economy and financial market evolution, in Romania, during the last global financial crisis.Results We can conclude that the Romanian market actually reacts to the behavior of investors while the inthe real economy effects are felt much later and/or have a weaker intensity. Implications For investors it’simportant to follow their expectations of the market evolution much more than the current economicconditions. Value Knowing the influence of various factors in the evolution of financial markets we willknow what steps must be taken so that these crises will not be felt in the real economy or their impact will bereduced.

  11. Determining the Real Causes of Financial Crisis in Islamic Economic Perspective: ANP Approach

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    . Ascarya

    2016-04-01

    Full Text Available Objective – The purpose of this study is to determine the real causes of financial crisis from Islamic economic perspective.Methods - This study applies Analytic Network Process (ANP to determine the real causes of financial crisis from Islamic economic perspective to be able to formulate the real solutions to end financial crisis.Results - The ANP results show that the real causes of financial crisis from Islamic economic perspective are Social Instability (EXTERNAL FACTOR, Speculation (MISBEHAVIOR, Ineffective Fiscal System (UNSUSTAINABLE FISCAL SYSTEM, Hedonism (MISBEHAVIOR, Fractional Reserve Banking System (UNSTABLE MONETARY SYSTEM, Political Instability (EXTERNAL FACTOR, Corruption (POOR GOVERNANCE, Interest Rate (UNSTABLE MONETARY SYSTEM, Fiat Money (UNSTABLE MONETARY SYSTEM, and the Wrong Man in the Wrong Place (POOR GOVERNANCE. These main real causes should be removed gradually in order to systematically and gradually improve the stability of financial system so that financial crisis will not reappear again and again in the future.Conclusions - Financial crisis would not happen under Islamic economic system if all Allah’s laws in financial dealings were followed. Financial crisis in conventional economic system could be prevented or lessened by gradually adopting Islamic economic and finance laws and regulations, partly or fully, especially the main pillars of Islamic financial system, namely the prohibition of ribā (usury or interest, prohibition of maysir (gambling and game of chance or speculation and prohibition of gharar (excessive uncertainty, in their many forms.

  12. A Governança econômica global e os desafios do G-20 pós-crise financeira: análise das posições de Estados Unidos, China, Alemanha e Brasil The global economic Governance and the challenges of the G-20 after the financial crisis: an analysis of the positions of the United States, China, Germany and Brazil

    Directory of Open Access Journals (Sweden)

    Leonardo Ramos

    2012-12-01

    Full Text Available A crise financeira de 2008 teve impactos significativos no capitalismo global, sendo um de seus reflexos na estrutura da governança global a constituição e evolução do G-20. Neste contexto, o objetivo do artigo é analisar tais mudanças e, em especial, as posições de quatro dos principais atores nas cúpulas do G-20, a saber: Estados Unidos, China, Alemanha e Brasil.The 2008 financial crisis catalyzed transformations in the global capitalism that predicted the débâcle of the Anglo-American financial power bloc. One of the repercussions of such transformations is the evolution of the G-20. In this context, this article aims to analyze such transformations and, particularly, the role of four of the most important actors on G-20 summits: United States, China, Germany and Brazil.

  13. The World Economy in the Times of Financial Crisis and its Impact on European Energy Policy

    OpenAIRE

    Peter Baláž; Juraj Bayer

    2015-01-01

    Since 2007, globalization of the world economy has led to the expansion of the financial crisis. It affects the long-term international negative positions of EU members. They reacted to the new situation by carrying out structural reforms and by support of new adaptation programs. An important element of this process was the preparing of the convergence of the national energy policies in the framework of the Europe 20-20-20 program, which should remain one of the determining elements of their...

  14. The World Economy in the Times of Financial Crisis and its Impact on European Energy Policy

    Directory of Open Access Journals (Sweden)

    Peter Baláž

    2015-03-01

    Full Text Available Since 2007, globalization of the world economy has led to the expansion of the financial crisis. It affects the long-term international negative positions of EU members. They reacted to the new situation by carrying out structural reforms and by support of new adaptation programs. An important element of this process was the preparing of the convergence of the national energy policies in the framework of the Europe 20-20-20 program, which should remain one of the determining elements of their success in support of the international competitiveness of the EU.

  15. Impact and Limitations Deriving from Basel II within the Context of the Current Financial Crisis

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    Oana Miruna DĂNILĂ

    2012-06-01

    Full Text Available The Banking sector risk management framework, geared towards maintaining a solid capital adequacy level, has witnessed a permanent evolution, determined by the global economic and financial reality.Basel II has brought an improvement of the risk management framework by adding minimum capital levels corresponding to market and operational risk and by the introduction of internal rating models. However the current crisis has brought forward some adverse effects as well as limitations.This paper analyses the evolution of prudential rules and regulations introduced by Basel II and their impact on the banking system together with outlining certain limitations.

  16. The Financial Crisis through the Lens of Foreign Exchange Swap Markets

    OpenAIRE

    Crystal Ossolinski; Andrew Zurawski

    2010-01-01

    During the financial crisis, non-US banks relied increasingly on foreign exchange swap markets to fund their US dollar asset holdings. This caused the cost of borrowing US dollars via the swap market to rise above the measured cost of borrowing US dollars directly in money markets – an apparent deviation from the covered interest parity condition. Pricing in the Australian dollar foreign exchange swap market, and to a lesser degree the cross-currency swap market, also reflected the global s...

  17. TRANSATLANTIC COMMERCIAL RELATIONSHIP IN THE CONTEXT OF THE CURRENT FINANCIAL CRISIS

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    Irina Elena Gentimir

    2012-12-01

    Full Text Available This paper makes an analysis of the commercial and financial relationship between EU27 and United States of America. Traditionally, USA and EU27 are the most powerful forces in the world. Today, the relationship between these two partners continues to dominate and to influence globally. The transatlantic relation consists, mainly, of the commercial exchanges and the investment flows. The objective of this paper is to highlight the evolution and the changes occurred in the commercial exchanges and the investment flows between this two powers in the context of the economic crisis constraints.

  18. Financial Globalization and the New Capitalism

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    Ion Bucur

    2009-10-01

    Full Text Available Financial globalization, a complex phenomenon that has multiple facets, is directly influenced by some aspects characterizing the current stage of capitalism. In order to decrypt the set of such interferences, the consequences have been emphasized of the excessive trust in the market mechanisms, the role of deregulation and liberalization in promoting a new economic direction, as well as other theses representing the essence of neo-liberal revolution. The realities specific to the last three decays of the 20th century generated enhanced criticism regarding the myth of pure and perfect transparency, the market inability of self-regulation and the illusion of perfect information.The excesses of neo-liberalism imposed the need for a new paradigm, concretized in the mutations in the nature and mechanisms of capitalism, the domination of finances and knowledge, a paradigm in which market globalization and financial profitability logic are becoming priorities.In the second part of the article the conditions are analyzed that favored the occurrence and expansion of financial globalization, as well as the multiple implications of such over the micro and macro-economical mechanisms. A particular focus is on describing the characteristics of financial globalization in the current phase: the occurrence of new financial players (institutional investors and tools, markets de-localization and un-intermediated financial operations. As a conclusion, the tendencies are noticed of the financial world economy to become fragile, of fading connections between the financial and the real economy, of enhanced risk for financial accidents to propagate. Based on these observations, the extent is emphasized to which financial globalization provides the possibility of the financial crises to occur and expand.

  19. GLOBALIZATION OF FINANCIAL MARKETS AND ISLAMIC FINANCIAL INSTITUTIONS

    OpenAIRE

    KHAN, M. ALI

    2000-01-01

    In this paper, I reflect on the implications of financial globalization for Islamic financial institutions in terms of coordinates selected from both history and theory. I present in outline the 18th century case for and against commerce, the 19th century case for and against a central institution acting as a lender of last resort, and modern theoretical developments in finance and insurance based on the law of large numbers and centered around the notions of arbitrage, naive and efficient di...

  20. The concept of financial value during the crisis

    Science.gov (United States)

    Chournazidis, Anastasia J.

    2015-02-01

    The scope of this article regards economy as a scientific theory and its challenged credibility today. The aim of this notice is to determine whether financial science can utilize endogenous and exogenous balances in order to verify its credibility, directing the society under crisis to the road to rationality and perception. According to André Orléan's theory and his scientific thought, as expressed in his book "The Empire of Value. A New Foundation for Economics" analysis of the neoclassic theory suggesting usability as a trade's value and the seeking of useful goods as the core of production and exchanges. Contrary to this financial model dominating the modern financial science, it is advocated that trading value is an independent figure, an imperial authority achieved via money. Transactions are subject to an independent rationale according to Georg Simmel, since economy is a sui genesis sociological form, leading to usability. Reversing the cause and effect relation, it is proven that the independence of trading value is the basic principle to investigate economy. In this prism, we can redefine economy as part of the social system and social powers.