This paper analyzes whether the application of a “circuit breaker” to a financial market (i.e. a mechanism that interrupts trading for a predetermined period when the price moves beyond a predetermined level) reaches its intended goals of increased market stability and overall welfare. Our...

This paper critically examines the quantitative approach to financial crises from two perspectives. First, the assumption of comparability of financial crises is analyzed. The key question here is: how comparable are crises? An important consideration here is the context – social and...

Chapter Summary: We consider the recent financial crisis as an overlapping sequence of interdependent financial bubbles followed by their collapse. Governments and regulatory agencies have made it a prime goal to moderate future crises. Many attempts at financial, economic and social engineering...

A widespread concern about Basel II capital requirements is that it might amplify business cycle fluctuations, forcing banks to restrict their lending when the economy goes into recession. Under the IRB approach of Basel II, capital requirements are increasing functions of the probability of...

The paper shows a few conceptual assignations concerning the financial behavior of the population. Thus, there are defined attached predicates (the inclusion into the economic behavior category, the existence of a monetary factor, the action for goods and non-autonomous flows, as well as for...

Based on a review of international and regional responses to the global financial and economic crisis and its implications for finance in Asia, Douglas Arner and Lotte Schou-Zibell draw lessons for Asian financial systems with regard to the scope of regulation; financial standards; supervision,...

Money illusion in economic theory has been an assumption rejected by academic economists for quite some time. However, with the gradual diffusion of behavioural economics based on experimental research this has changed. Now, it has become a respected fact to accept money illusion as a stylized...

We examine the interaction between the legal protection of investors, corporate governance within firms, institutional development between countries, and investable premia in emerging markets. In a multi country setting and using a novel dataset we find that better-governed firms experience...

This paper deals with the monetary measures taken by the CBR to reduce the effects of 2008 economic crisis. The author speaks about the money market, iflation, and the state of the balance of payments.

Particularly for the past five years, the European Union has had to cross a period of institutional reconstruction to get a better understanding of the fact that economy, finance and the euro, in a logical order, cannot be approached only politically, in terms of good intentions, or contextual...