This paper develops a two-country DSGE model for a monetary union in which each country is populated by two types of households - savers and borrowers - and two types of production sectors - a consumption goods sector and a housing sector. Households trade nominal private debt in equilibrium,...

In an economy in which debt obligations are fixed in nominal terms, a monetary policy focused narrowly on controlling inflation insulates lenders from aggregate output risk, leaving borrowers as residual claimants. This concentration of risk has the potential to exacerbate the financial distress...

The article examines the influence of the contributions of Modigliani on issues of finance. The preferred habitat theory, proposed to explain the term structure of interest rates, has been used by financial operators until the 80s. Then it was put aside as obsolete, but it seems that can again...

The objective of this paper is to test the efficiency of two stock markets in Bangladesh. The objective is accomplished by applying the even study methodology. The empirical analysis reveals that both DSE and CSE are not efficient in weak form. Shareholders confusion, price exploitation,...

This paper analyses the determinants of the changes in the non-performing loan (NPL) ratio in selected European emerging markets. The model was estimated on a panel dataset using a fixed effects estimator for seven Central and Eastern European (CEE) countries between Q3:2007 and Q3:2012. The...

The objective of this study is to empirically examine the status and sustainability ofAustralia, Hong Kong, Japan and Singapore as financial centers in theAsia-Pacific region. The sample period under investigation is from 1977 to 2002. This paper attempts to provide empirical evidence on...

The objective of this study is to empirically examine the status and sustainability ofAustralia, Hong Kong, Japan and Singapore as financial centers in theAsia-Pacific region. The sample period under investigation is from 1977 to 2002. This paper attempts to provide empirical evidence on...

We critically review the state of the art in macro stress testing, assessing its strengths and weaknesses. We argue that, given current technology, macro stress tests are ill-suited as early warning devices, i.e. as tools for identifying vulnerabilities during seemingly tranquil times and for...

The article starts with a brief description of Mises’ monetary theory, with emphasis on the Misesian differentiation of two kinds of credit: commodity and circulation credit, and with the description of the impact of circulation credit expansion on the business cycle. Further on it is...

We study the rise of finance across a set of now-industrial economies. The long-run pattern of the growth of the income share of finance from the nineteenth century to current times in the United States is similar to some economies, but not all economies reach the same size and instead reach a...