In this paper we deal with two questions, (i) what are the origins of the current financial crisis, and (ii) what did economists contribute, or why did economists fail to provide a convincing answer for the origins of the crisis, and possible solutions to overcome it? Apparently, the economics...

This paper estimates the trade potential for India using the augmented gravity model and then attempts to determine the importance of trade remedies. Based on panel data, this gravity model is the first-ever attempt to estimate India’s trade potential in the pre- and post- global economic and...

This paper conducts a comprehensive analysis of the fiscal costs of financial instability (defined as major asset price changes and including, as extreme cases, financial crises). The study identifies three channels to fiscal accounts: 1) revenue effects on capital gains, asset turnover and...

The idea that credit is important has gained importance in the contemporary macroeconomic theory. However, almost all the models that explicitly include financial variables in their explanation of economic behaviour continue to differentiate between the monetary and the real economy in the long...

Over the last two centuries in Latin America a Washington Consensus development strategy based on integration in the global trading system has dominated domestic demand management and industrialization "from within." This paper assesses the performance of each from the point of view of the...

We analyse the wide array of rescue programmes adopted in several countries, following Lehman Brothers� default in September 2008, in order to support banks and other financial institutions. We first provide an overview of the programmes, comparing their characteristics, magnitudes and...

The paper tests whether there were events of contagion, and portfolio shift, in the sovereign bond markets of eleven emerging countries' between January 1995 and November 2001. From existing definitions, we narrow down the concept of contagion by focusing on pricing errors, after general market...

This paper aims to conduct a study to determine how U.S. financial crisis will affect Mexican economy. From Minsky’s theory view, it begins with a background of the crisis today and a brief description of the current economic situation in Mexico. Finally, it will consider the economic impact...

The article focuses on the role of direct foreign investments in modernizing the economies in transition, the impact of these investments in changing the specialization type and increasing the exportation potential, all within the context of the current financial crisis experienced at world...

This paper aims to highlight the benefits and the importance of investments in economic growth of a country. Global crisis creates impediments in obtaining these investments, which structure was divided into financial investments and real investments. Among the many causes that have helped...