We investigate how corporate stock returns respond to geopolitical risk in the case of South Korea, which has experienced large and unpredictable geopolitical swings that originate from North Korea. To do so, a monthly index of geopolitical risk from North Korea (the GPRNK index) is constructed...

Uncertainty affects people in various ways. It is frequently found to hinder investment and production in the economic sphere. In this study, we examine the empirical relationship between uncertainty and tolerance toward Muslims and Jews. Does uncertainty make people more or less tolerant? This...

Starting from the perspective of heterodox Keynesian-Minskyian-Kindlebergian financial economics, this paper begins by highlighting a number of mechanisms that contributed to the current financial crisis. These include excess liquidity, income polarisation, conflicts between financial and...

We examine the interaction of economic and policy uncertainty in a dynamic, heterogeneous firms model. Uncertainty about foreign income, trade protection and their interaction dampens export investment. This can be mitigated by trade agreements, which are particularly valuable in periods of...

Governments and businesses worldwide are preparing for a carbon-constrained future and evaluating different policy instruments to combat climate change. Agricultural production is an important source of greenhouse gas (GHG) emissions and practices that reduce or offset these emissions can...

In the period following the global financial crisis high profile regulatory breaches and other instances of banks' misconduct triggered widespread concern that the culture and standards of conduct in banks had declined to a point of unacceptability. The crisis also brought into sharp focus the...

We identify the frontier between safe and unsafe assets and show how the growth rate of the economy and its fiscal capacity interact with differences of opinion amongst investors to determine the safe asset equilibrium. Multiple equilibria emerge in our set-up due to strategic complementarities...

Cross-border capital flows are expected to lead to increased international risk sharing by facilitating borrowing and lending in global financial markets. This paper examines risk-sharing outcomes of various types of capital flows (foreign direct investment, portfolio equity, debt, remittance,...

This study analyzes the consumption risk sharing in the Association of Southeast Asian Nations (ASEAN) from a comparative perspective. Estimation results show that unlike ASEAN+3 and East Asia, the degree of consumption risk sharing increases in ASEAN after 1999. The increase is due to the rise...