Recently, some have wondered whether a fiscal stimulus plan could reduce the government's budget deficit. Many also worry that fiscal austerity plans will only bring higher deficits. Issues of this kind involve endogenous changes in tax revenues that occur when output, real wages, and other...

We construct four market-specific Financial Stress Indices (FSIs) and overall FSIs for the ASEAN-5 economies from 1997 to 2009. Using the FSIs, we establish stylized features of financial stress and characterize the connectivity of financial markets. The results show that stress was most severe...

Currently, Europe and the entire world is hit by the most serious financial crisis of the past 80 years aroused from the United States sub-mortgage market falling.The countries’ governments together with main financial institutions, are required to take an exceptional series of decisions,...

Statistics from the China National Tourism Administration show that China's inbound tourism declined overall in January this year due to the global financial crisis. It is understood that affected by the global economic depression, China's inbound, outbound and domestic travel markets are all in...

The health of the financial sector is essential. The financial crisis of 2007-2009 stressed once more the importance of this situation. In response to the widespread nature of the crisis, the International Monetary Fund (IMF) overhauled its lending framework in order to support emerging...

This paper examines government policies aimed at rescuing banks from the effects of the financial crisis of 2007-2009. To delimit the scope of the analysis, we concentrate on the fiscal side of interventions and ignore, by design, the monetary policy reaction to the crisis. The policy response...

This article contrasts the orthodox approach with an alternative view on finance, saving, deficits, and liquidity, with the goal of shedding light on the current global financial crisis. It first briefy summarizes the orthodox view according to which global savings financed the U.S. speculative...

This article explores how the structural arrangements under the North American Free Trade Agreement (NAFTA) have contributed to the unfolding of the financial crisis and to its international transmission. It reviews the developments over the last two decades in Canada and Mexico based on the...

This paper is the second part of our study of the world financial crisis. Part I, "From Shadow Banking System to Shadow Bailout," appeared in the previous issue of this journal (Ferguson and Johnson 2009). The discussion centers on the "Paulson Put" that defined the "Shadow Bailout"âthe effort...

This paper analyzes how a world financial meltdown developed out of U.S. subprime mortgage markets. It outlines how deregulatory initiatives allowed Wall Street to build an entire line of new, risky financial products out of raw materials the mortgage markets supplied. We show how further...