The Eurozone is in the midst of a deep crisis. We argue that the attempts to control government deficits and debts using the Stability and Growth Pact have failed. Moreover, austerity policies are inducing downward spirals in terms of growth. Political leaders have promised deeper political,...

Stock returns of domestically listed Chinese firms are lower than that of externally listed firms and listed firms from large developed and emerging countries. The performance gap, measured by net cash flows, between domestically listed and externally listed and matched unlisted Chinese firms,...

This introduces the symposium on financial economics.

On 23rd February 2017, SUERF and EY organized a conference on "Brexit and the Implications for Financial Services" at EY's offices, Churchill Place, Canary Wharf, London. While the outcome of the Brexit negotiations remains highly uncertain, the conference discussed the burning questions for...

Financial contagion is modeled as an equilibrium phenomenon. Because liquidity preference shocks are imperfectly correlated across regions, banks hold interregional claims on other banks to provide insurance against liquidity preference shocks. When there is no aggregate uncertainty, the...

This paper analyzes the Asian crisis in the context of past and present financial crises to provide a model of asset price bubbles and ensuing crisis in developing and other economies. It is argued that financial structure matters for economic growth but is not that important for preventing...