pNeoliberal thought assumes that a free market economy promotes the application of new techniques in the most efficient way. In the financial world it especially implied the introduction of sophisticated techniques of risk management. A more realistic view says without any other control...

The most striking feature of the current economic situation in Spain is the huge unemployment rate, above 25 percent. From an orthodox perspective, we suggest that this unemployment is the result of a highly inflexible labor market, which needs to be reformed by introducing flexibility measures....

One of the most important elements of financial crises is the credit restriction that follows and the immediate consequences it has on investment and employment. In the post-Keynesian vision, an exit from economic crises frequently requires increased demand, specifically through public...

This paper analyzes the failed IMF program in Turkey that was initiated in December 1999. The 1999 Turkish exchange rate-based stabilization program was presented as an improved version of earlier programs implemented in Latin American countries. The inclusion of an exit strategy was considered...

The effects of the 2008/2009 financial crisis went largely among the financial markets and hit the real economy, generating one of the greatest global economic shocks. The aim of this study is to investigate whether inflation targeting has made a difference during this crisis. We first present...

We analyze the effect of banking crises on terrorist activity for 146 countries between 1972 and 2006. We show that banking crises lead to a subsequent increase in terrorism. This effect is only relevant in less developed economies.

In this paper, we investigate the dynamic linkages between the BRIC countries (Brazil, Russia, India, and China) and the United States in the mean and variance of stock prices for the period August 2, 2004, to April 30, 2010. In particular, we focus on the impact of the US financial crisis in...

The introduction to the no. 1/13 of the journal FaÚ-CJEF, focused on the single topic „Financial Linkages and Financial Stability”.

This article empirically analyzes the phenomenon of financial integration, focusing primarily on assessing the impacts of the current financial crisis. We start our analysis with an overview of cost-benefit considerations associated with the process of financial integration. We go on to examine...

The 2008 financial crisis exemplifies significant uncertainties in corporate financing conditions. We develop a unified dynamic q-theoretic framework where firms have both a precautionary-savings motive and a market-timing motive for external financing and payout decisions, induced by stochastic...