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China’s concern about its U.S. Dollar reserves is being amplified by the low returns of some of China’ investments in … the U.S. which leads to a broader concern about how the current reserve system basically entails China lending to the U … initiatives put forward over the past year by China and others to begin a serious discussion of reforming the international …
Persistent link: https://www.econbiz.de/10008567957
The present paper reviews the causes that led to the financial crisis. Unlike other interpretations, this paper does not place main significance on a single source or on a set of causes. I consider all major standpoints highlighted by research and media prior, during and after the financial...
Persistent link: https://www.econbiz.de/10009294924
activity and the tendency to full employment. The last two chapters - on China and the Nazi-Recovery - are empirical …
Persistent link: https://www.econbiz.de/10009211219
The recent crises concerning food and finances highlight the extreme fragility of the MENA countries and question the sustainability of the development processes. The economic and social impacts of these crises on the economies of the MENA region signal the magnitude of the challenges facing the...
Persistent link: https://www.econbiz.de/10008536055
As well as a consideration of why the lender of last resort facility should be used for emergency situations and systemically relevant institutions in particular, an interesting point which will be considered in this paper is the comparison between the European Central Bank (ECB) Recommendation...
Persistent link: https://www.econbiz.de/10008490084
We present a model in which banks trade toxic assets to fund investments. Adverse selection in toxic assets reduces liquidity and investment. Investment is inefficiently low because banks must sell high-quality assets below their "fair" value. We consider whether equity injections and asset...
Persistent link: https://www.econbiz.de/10008615054
Economists may need to change their tools of analysis from analysing income and expenditure contributors (GDP) to asset value contributors -the net worth levels of individual households-. Assessment of the latter requires a balance sheet analysis. Why; because the level of individual...
Persistent link: https://www.econbiz.de/10011257702
The aim of this paper is to propose a methodology to stabilize the currency markets by adopting Game Theory. Our idea is to save the Euro from the speculative attacks (due the crisis of the Euro-area States), and this goal is reached by the introduction, by the normative authority, of a...
Persistent link: https://www.econbiz.de/10011258452
The aim of the present paper is to highlight the degree of European stock market integration. We structured our research on two sections obeying the following order: the first one presents some considerations of the academic literature studying the field and the second analyses the main...
Persistent link: https://www.econbiz.de/10009025309
This paper analyzes the Eurodollar market, investigating the reasons for its expansion after 1973, and the consequences for monetary policy. In the first part of the paper, the issue of credit and money creation by offshore banks is considered. The nature of the liquidity creation process is...
Persistent link: https://www.econbiz.de/10011189004