The financial crisis which manifested in the USA in 2008, revealed the extent to which the largest and most interconnected financial institutions in the USA had become 'too big to fail', i.e., so systematically and significantly interwoven with each other and the entire US and global financial...

This research studies why commercial banks in the USA failed in the recent financial crisis from the aspect of risk taking by the financial institutions. First, lending risks come from the choice of illiquid assets that affect the quality of loans. Second, risk of securitisation is rooted in the...

The state of the world economy is something of a moving feast. Each week, news from the USA, Europe and now China registers a new development, with a growing appreciation of the interconnectedness of the world economy. 'Understandings' are often confounded with 'happy talk' (what used to be...

Due to liberalisation policies, capital market integration has increased in the international arena. As a result, linkages between emerging markets and the USA have also increased. In this study, we examine the international financial market linkages between 11 big emerging stock markets (China,...

The US financial crisis has underlined the fact that markets tend to be more dependent during the crisis than they are during the pre-crisis periods. This situation is usually referred to as contagion, a notion which has recently attracted the attention of several researchers working on finance...

Most economists expected that the "Great Recession" produced by the financial meltdown of 2008 would usher in a resurgence of traditional Keynesian economics and a decline of what has come to be called "market fundamentalism". By contrast, also due to the inadequate size of the 2009 stimulus...

Has the financial crisis already changed US principles of economics textbooks? Rather little has changed in individual textbooks, but taken as a whole ten of the best-selling textbooks suggest rather encompassing changes of core curriculum. A critical analysis of these changes shows how...

The objective of this study is to test the presence of the contagion phenomenon during the US subprime crisis. We adopt the test of adjusted correlation coefficients between markets and propose a new procedure that involves testing the non-linearity of the propagation mechanism shocks, estimated...

The overarching aim of the present paper is to investigate the pattern of returns and volatility in the US and the UK stock markets prior and subsequent to the current financial crisis. For that reason, the family of GARCH models is utilised; specifically, GARCH, GARCH in Mean, threshold GARCH and...

This study offers a new perspective on crisis transmission through an examination of herding contagion during 2008-global financial crisis across Asian and European financial markets. Using a bivariate GARCH-BEKK model, results show that the volatility of US stock market during the subprime...