This study is the first of its kind to focus on the effect of interest-rate tiers on aggregate measures of the monetary services flow. We address the role and impact of measurement errors in building monetary index numbers directly. Using a unique data set obtained from Barclays Bank plc, we...

Lack of access to an adequate, affordable and environmentally friendly energy supply is a severe constraint for development. Financial sustainability and demand-side focus of projects are the most relevant parameters to consider for long-term sustainability of electrification projects according...

This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for commodity-exporting countries. The introduction of hedging instruments such as futures and options enhances domestic welfare through two channels. First, by reducing export...

In the last twenty years, the financial risk management has gained an important role for the companies and financial institutions. Financial innovations have improved the efficiency of risk management process, but at the same time, they have imposed new challenges for market participants and...

Ills of the banking system that caused the crisis. An extensive analysis of the causes is given. A brief synopsis to provide a backdrop for the ‘boring banking’ discussion is given. [Speech at the International Finance and Banking Conference organized by the Indian Merchants’...

Financial innovation has increased opportunities for diversification and lowered investment costs, but has not reduced the relative cost of active (informed) investment strategies compared with passive (less informed) strategies. What are the consequences? I have studied an economy with linear...

We study whether and to what extent financial exchange innovations are in practice patentable in Europe. We find that exchange-related applications initially increased significantly after the State Street decision but subsequently decreased. The clear majority (65%) of applications come from the...

The study presents in a comprehensive way the effects that deregulation, internationalisation, integration, financial innovation and the development of the institutional investors have had on the Romanian stock market. Using dates provided by several relevant sources on the field, like the...

This paper addresses the question of whether and how easy monetary policy may lead to excesses in financial and real asset markets and ultimately result in financial dislocation. It presents evidence suggesting that periods when short-term interest rates were persistently and significantly below...

The current discussion about the future of the financial system draws heavily on a set of theories known as the ‘New Monetary Economics’. The New Monetary Economics predicts that deregulation and financial innovation will lead to a moneyless world. This paper uses a market microstructure...