The final stage of the unification process of European Union is monetary union. From July 1, 2002, The currency called the Euro has replaced the national currencies. This situation has caused concern from the very beginning. Unless achieving harmonization on application of monetary and fiscal...

Unlike the crisis years of 2007-2009 (when the insolvency of large banks was a major problem), the current round of the global financial crisis has fiscal origins. Almost all developed countries suffer from an excessive public debt burden that has been built up over the last two decades or more....

This paper analyzes the Euro crisis in light of the experience of center-periphery relations over the last 40 years of renewed financial globalization. The crisis shows the characteristic pattern evident in so many other crises in the developing world: i.e. “boom” and “bust” phases of...

In this paper, I use a two-country model to investigate the incentives which lead one country to take charge of another country's debt. I show that, when direct transfers to residents cannot be perfectly targeted, the first country can be better off honoring the second country's liabilities,...

We examine the short- and long-run effects of financial liberalization on capital markets. To do so, we construct a new comprehensive chronology of financial liberalization in 28 mature and emerging market economies since 1973. We also construct an algorithm to identify booms and busts in stock...

Российскую версию этой статьи можно найти в: http://ssrn.com/abstract=3941743 The EFSD Chief Economist Group continues the series of working papers on global financial safety net (GFSN) functioning. This working paper provides the analysis how the GFSN...

This working paper takes into account six sources of financing - international reserves, swap arrangements, EFSD, IMF, multilateral development banks and bilateral financial support for macrostabilization. The analysis is of particular importance in the context of the current crisis associated...

Transnational spillovers of systemic risks show that financial regulation is not simply sovereign power; it also shall be responsible to other states and individuals. Regulatory cooperation is necessary to ensure responsibility. However, dynamic regulatory interactions make financial regulation...

This paper will propose a plan to reform international finance – the World Financial Authority (WFA) Plan. Under such a plan, the IMF and other existing international financial institutions would be reformed and coordinated around a newly created WFA. The WFA would have two core functions....

This paper examines how structural policies can influence a country's risk of suffering financial turmoil. Using a panel of 184 developed and emerging economies from 1970 to 2009, the empirical analysis examines which structural policies can affect financial stability by either shaping the...