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Articles 1 - 7 of 7

Full-Text Articles in Economic Theory

Japan’S Act On Strengthening Financial Functions (Asff), Vaasavi Unnava, Junko Oguri Nov 2021

Japan’S Act On Strengthening Financial Functions (Asff), Vaasavi Unnava, Junko Oguri

Journal of Financial Crises

After the Japanese Financial Crisis in 1990s, the non-performing loan problem was mitigated in the large Japanese banks but persisted in the regional banking system. By 2004, regional banks accounted for half of all non-performing loans. In 2004, the government passed the Act on Strengthening Financial Functions (ASFF), legislation for capital injections to address the non-performing loan problem. Aimed at regional banks, the ASFF secured ¥2 trillion in capital, with various eligibility restrictions and requirements, such as a rigorous debt restructuring plan. As the Japanese economy and the financial system encountered multiple external shocks, the government amended the Act several …


Lessons Learned: Eric Dinallo, Maryann Haggerty Apr 2021

Lessons Learned: Eric Dinallo, Maryann Haggerty

Journal of Financial Crises

Eric Dinallo was New York State Superintendent of Insurance from January 2007 through July 2009. In New York, as throughout the United States, insurance companies are regulated at the state level. In his position as Superintendent, Dinallo oversaw the insurance operating companies of American International Group (AIG) within New York. AIG’s holding company, however, was supervised at the federal level. Much of AIG’s problems came from its non-insurance subsidiary AIG Financial Products (AIGFP), which was a major presence in the market for credit default swaps (CDS), a type of derivative that was a factor behind the 2007-09 financial crisis. This …


Stress Tests And Policy, Greg Feldberg, Andrew Metrick Apr 2021

Stress Tests And Policy, Greg Feldberg, Andrew Metrick

Journal of Financial Crises

Ten years after the Federal Reserve’s crisis-era bank stress test, it is time to recalibrate the stress tests for “peacetime.” Outside of a crisis, supervisors should tailor stress tests to focus on their comparative advantages by taking a macroprudential focus, with severe scenarios that enable them to learn about emerging risks in both traditional and shadow banking sectors. In peacetime, also, supervisors should emphasize risk- management practices and be wary of forcing rapid changes in capital levels for individual banks, while linking stress-test results with countercyclical capital buffers across the system.


Gambling With Debt: The English Premier League, Edward Robinson Jan 2021

Gambling With Debt: The English Premier League, Edward Robinson

Undergraduate Economic Review

This paper aims to investigate the impact of debt on financial performance in the English Premier League from the 2000/01 season to the 2017/18 season. Panel model estimations concluded debt has a significant inverse relationship with financial performance. This relationship may potentially be stronger in larger clubs and could be present through human capital investment’s significant direct relationship with financial performance. This further emphasised usages of intangible assets as a player human capital investment indicator, rather than using wage costs like previous studies. Furthermore, filling a gap regarding how capital structures may be used to impact financial performance within’ football.


The Nature Of Money And The Theory Of International Trade: Thornton And Ricardo, Isabella M. Weber Jan 2021

The Nature Of Money And The Theory Of International Trade: Thornton And Ricardo, Isabella M. Weber

Economics Department Working Paper Series

A rich recent literature reinvestigates the nature of money, but little attention has been paid to the ramifications of the ways in which we theorize money for the theory of international trade. This paper examines the logical relationship between the neutrality of money and self-balancing trade based on Henry Thornton and David Ricardo as two foundational contributions to credit and commodity money theories respectively. I show that both authors theorize trade as self-balancing whenever money is conceptualized as neutral. I distinguish two notions of the neutrality of money: ex ante and ex post neutrality. In Thornton’s Paper Credit money is …


Team Production Revisited, William W. Bratton Jan 2021

Team Production Revisited, William W. Bratton

All Faculty Scholarship

This Article reconsiders Margaret Blair and Lynn Stout’s team production model of corporate law, offering a favorable evaluation. The model explains both the legal corporate entity and corporate governance institutions in microeconomic terms as the means to the end of encouraging investment, situating corporations within markets and subject to market constraints but simultaneously insisting that productive success requires that corporations remain independent of markets. The model also integrates the inherited framework of corporate law into an economically derived model of production, constructing a microeconomic description of large enterprises firmly rooted in corporate doctrine but neither focused on nor limited by …


The Effects Of Imf's Lending And Conditionalities On Economic Growth: Case Of Sadc Countries, Lutete Celina Carlos Jan 2021

The Effects Of Imf's Lending And Conditionalities On Economic Growth: Case Of Sadc Countries, Lutete Celina Carlos

Masters Theses

I examine the impact of IMF credit use and its conditions on economic growth performance in 12 South African countries over a period of 1999-2019. The work adopts an empirical and quantitative approach to analyzing the relationship between the GDP per Capita, the use of IMF Credit, Government Final Consumption Expenditure, Net Domestic Credit and Current Account balance. These variables are the most recommended in the IMF conditionalities during the lending arrangements with SADC members. The study uses Fixed-effect approach to evaluate how the use of IMF program and the conditions imposed directly affects economic growth. A dummy variable is …