The Troubled Asset Relief Program (TARP), or the $700 billion bailout, has been the subject of much academic interest. Here the rigorous studies on the programs of this massive intervention into the financial sector are reviewed. While considerable work has been done on the bank bailouts in the...

This paper analyzes the economics of the private equity fund compensation. We build a novel model to estimate the expected revenue to fund managers as a function of their investor contracts. In particular, we evaluate the present value of the fair-value test (FVT) carried interest scheme, which...

Behavioural economics is becoming a popular source for business change management strategy and understanding why businesses fail. Behavioural Economics allows business to focus on the human and relationship capital as well as the financials. In this paper we explore the relationship between...

The recent European economic crisis has dramatically exposed the failures of the various institutional mechanisms in place to maintain economic stability in Europe, and has unveiled the difficulty in achieving international coordination on fiscal and financial stability policies. Drawing on the...

The Global Financial Crisis had a severe impact on the commodity markets on top of the well-known effects on the worldwide economy. Not only the demand for commodities decreased severely thereby hurting the creditworthiness of participants in the wholesale commodity markets, but also the...

There are few things more constant in life than the rise and fall of financial markets. When markets crash, however, we are forced to restore them while learning from our mistakes. In the wake of the recent subprime mortgage crisis, Congress has drastically but deservedly overhauled the...

A crucial and outstanding issue for the European economy and democracy.In March 2009, the European Commission recognized the need to put "the interests of European investors, consumers and SMEs at the centre of the financial markets reform”. The Commission therefore announced it will "ensure...

This paper studies a model in which banks decide on the projects in which they invest, and the banks to which or from which they obtain loans. Thus, the links (network) created between banks is endogenous. Each bank is characterized by parameters which define the return on its projects, the...

Present paper shows that credit regarding job creation is ineffective in the 2000s, while it was effective in 1980s and 1990s. This paper attempts to support the view of (Bouis et al., 2013), that recently growth is sluggish, in spite of the massive monetary stimulus. Further, it will support...