Recent episodes (October 2008, May 2010, August 2011) have witnessed huge spikes in equity price risk (implied volatility). Apart from their large size, several features characterize these risk panics. They are global phenomena, shared among a broad set of countries. There is substantial...

Using event studies we find statistically and economically significant, negative daily abnormal stock market returns prior to sovereign debt rating downgrade announcements. Instrumental variable techniques show that these findings are more pronounced in countries with lower institutional...

At the turn of the century, the role of culture in society is changing. One facet of this change is the relation between culture and finance. Globalisation has led to an increasing competition between financial centres worldwide and culture has become one determinant of competitiveness. But,...

The following sections are included:Edgeworth Production BoxIntegrated World Economy DiagramIS-LM-BP DiagramLerner DiagramOffer Curve DiagramSpecific-Factors ModelTariff in Partial EquilibriumTrade and Transformation Curve Diagram

The following sections are included:Arguments for ProtectionCentral BanksCountertradeCountry GroupsCrisesDevelopment BanksEffectsEmpirical FindingsExchange RegimesFragmentation: Terms and TypesGATT and WTO MinisterialsGATT ArticlesIndexesInternational Classification SystemsInternational...

The following sections are included:Balance of tradeBarter terms of tradeCES functionComparative advantageContinuum of goodsCurrency areaDiversification coneDUP activityDutch diseaseEdgeworth-Bowley boxFactoral terms of tradeFragmentationGrexitImmiserizing growthIncome terms of tradeLaw of...

The following sections are included:A–Z0–9

The aim of this paper is to evaluate the significance of the valuation effect in determining the dynamics of the net international investment position of CEE economies. For this purpose an analysis of BoP and IIP time series for the four largest CEE economies (Poland, the Czech Republic, Hungary...

This paper estimates a two-country model with a global bank, using U.S. and Euro area (EA) data, and Bayesian methods. The estimated model matches key U.S. and EA business cycle statistics. Empirically, a model version with a bank capital requirement outperforms a structure without such a...