Open Access. Powered by Scholars. Published by Universities.®

Macroeconomics Commons

Open Access. Powered by Scholars. Published by Universities.®

1,833 Full-Text Articles 1,162 Authors 713,957 Downloads 122 Institutions

All Articles in Macroeconomics

Faceted Search

1,833 full-text articles. Page 6 of 49.

Restructuring And Forgiveness In Financial Crises B: The Asian Crisis Of 1997, June Rhee, Andrew Metrick 2020 Yale University

Restructuring And Forgiveness In Financial Crises B: The Asian Crisis Of 1997, June Rhee, Andrew Metrick

Journal of Financial Crises

Asia’s economy, Thailand in particular, was booming when the financial crises hit in the 1990s. However, troubles were brewing underneath the seemingly buoyant economy. With a fragile financial system and ineffective domestic government responses to these troubles, an exchange rate crisis took over Thailand, and this crisis started a financial contagion in the neighboring countries. This case reviews the background and domestic government responses to contain the crisis, and the international intervention provided by the International Monetary Fund including the assistance and the required reforms accompanying the support.


Guarantees And Capital Infusions In Response To Financial Crises C: U.S. 2009 Stress Test, Chase P. Ross, June Rhee, Andrew Metrick 2020 Yale University

Guarantees And Capital Infusions In Response To Financial Crises C: U.S. 2009 Stress Test, Chase P. Ross, June Rhee, Andrew Metrick

Journal of Financial Crises

When President Obama took office in 2009, the Treasury focused on restarting bank lending and repairing the ability of the banking system as a whole to perform the role of credit intermediation. In order to do so, the Treasury needed to raise public confidence that banks had sufficient buffers to withstand even a very adverse economic scenario, especially given heightened uncertainty surrounding the outlook of the U.S. economy and potential losses in the banking system. The Supervisory Capital Assessment Program (SCAP)—the so-called “stress tests”—sought to rigorously measure the resilience of the largest bank holding companies. Those found ...


Guarantees And Capital Infusions In Response To Financial Crises B: U.S. Guarantees During The Global Financial Crisis, June Rhee, Andrew Metrick 2020 Yale University

Guarantees And Capital Infusions In Response To Financial Crises B: U.S. Guarantees During The Global Financial Crisis, June Rhee, Andrew Metrick

Journal of Financial Crises

During 2008-09, the federal government extended multiple guarantee programs in an effort to restore the financial market and contain the panic and crisis in the market. For example, the Treasury provided a temporary guarantee program for the money market funds, the FDIC decided to stand behind certain debts and non-interest-bearing transaction accounts, and the Treasury, the FDIC, and the Federal Reserve agreed to share losses in certain assets belonging to Citigroup. This case reviews these guarantee programs implemented during the global financial crisis by the government and explores the different rationale that shaped certain design features of each program.


Reference-Dependent Preferences, Time Inconsistency, And Unfunded Pensions, Torben M. Andersen, Joydeep Bhattacharya, Qing Liu 2020 University of Aarhus

Reference-Dependent Preferences, Time Inconsistency, And Unfunded Pensions, Torben M. Andersen, Joydeep Bhattacharya, Qing Liu

Economics Working Papers

In the real world, public pay-as-you-go pension (PAYG) schemes are popular and co-exist with private, retirement-saving schemes. This is true even in dynamically efficient economies where such pensions offer a lower return. The classic Aaron- Samuelson result argues that, in theory, this is impossible. Later work has shown that it may be possible if agents, left on their own, undersave due to myopia or time-inconsistency. In that case, if the government is paternalistic, a welfare rationale for PAYG pensions arises but only if voluntary retirement saving is fully crowded out because of a binding borrowing constraint. This paper generalizes the ...


Interdependence Across Foreign Exchange Rate Markets- A Mixed Copula Approach, Richard Adjei-Boateng 2020 Western Kentucky University

Interdependence Across Foreign Exchange Rate Markets- A Mixed Copula Approach, Richard Adjei-Boateng

Masters Theses & Specialist Projects

The purpose of this thesis is to study the dependence structure of exchange rate pairs using a mixture of copula as opposed to a single copula approach. Mixed copula models have the ability to generate dependence structures that do not belong to existing copula families. The flexibility in choosing component copulas in this mixture model aids the construction of a system that is simultaneously parsimonious and flexible enough to generate most dependence patterns in exchange rate data. Furthermore, the method of mixture copulas facilitates the separation of both the structure and degree of dependence, concepts that are respectively embodied in ...


Trade Financing In Emerging Markets, Jamie L. Morris 2020 University of South Carolina - Columbia

Trade Financing In Emerging Markets, Jamie L. Morris

Senior Theses

Businesses need capital to initiate trades, drive growth, and produce profit, but unfortunately, not all companies can access to capital easily. Small and medium-sized enterprises (SMEs), although critical to the global economy, typically have trouble funding trades because of a lack of creditworthiness. This problem worsens for SMEs in emerging markets in volatile economies with political instability (“Trade finance and SMEs” 2016, p.11-21). In this study, we analyze how third-party trade finance companies can help finance trades more easily for SMEs in eight (8) emerging markets: Kenya, Rwanda, Ethiopia, Chile, Peru, Thailand, Cambodia, and Indonesia. We use a unique ...


The Sustainability Of Child Protection Services In The Republic Of Kosovo, Shpetim Bylykbashi 2020 SIT Graduate Institute/SIT Study Abroad

The Sustainability Of Child Protection Services In The Republic Of Kosovo, Shpetim Bylykbashi

Capstone Collection

Today, in Kosovo, are services provided for the children most in need sustainable? Do these services have stable and long-term funding? Did the decentralization of the Kosovo government strengthen or weaken the existing child protective environment? In an attempt to answer these questions, a review of available literature was completed, as well as direct interviews conducted with relevant stakeholders engaged in Kosovo’s child protection services at both the governmental and civil society levels. The main finding of my research is that vulnerable children in Kosovo, such as children without parental care, children with special needs, and child victims of ...


Integration Of And Deliveries Among The World Zionist Organization, Israel, And Diaspora Countries: System Articulation With The Social Fabric Matrix, F. Gregory Hayden 2020 University of Nebraska - Lincoln

Integration Of And Deliveries Among The World Zionist Organization, Israel, And Diaspora Countries: System Articulation With The Social Fabric Matrix, F. Gregory Hayden

Economics Department Faculty Publications

The religious economics (not economics of religion) concern here is the relationship between the World Zionist Organization (WZO) and Israel, which is known as a geopolitical power in its region and which is also known as an economic success story. Joseph Schumpeter and Karl Polanyi explained how the political economy of medieval Europe was influenced and guided by Christian morality. This paper extends the analysis of religious economics by using the social fabric matrix of original institutional economics to define and structure the integration of the WZO, Israel, and the Diaspora countries. This allows us to observe how to conduct ...


Basel Iii D: Swiss Finish To Basel Iii, Christian M. McNamara, Natalia Tente, Andrew Metrick 2020 Yale University

Basel Iii D: Swiss Finish To Basel Iii, Christian M. Mcnamara, Natalia Tente, Andrew Metrick

Journal of Financial Crises

After the Basel Committee on Banking Supervision (BCBS) introduced the Basel III framework in 2010, individual countries confronted the question of how best to implement the framework given their unique circumstances. Switzerland, with a banking industry that is both heavily concentrated and very large relative to the size of its overall economy, faced a special challenge. It ultimately adopted what is sometimes referred to as the “Swiss Finish” to Basel III—enhanced requirements applicable to Switzerland’s “too-big-to-fail” banks Credit Suisse and UBS that go beyond the base requirements established by the BCBS. Yet the prominent role played by relatively ...


Basel Iii A: Regulatory History, Christian M. McNamara, Thomas Piontek, Andrew Metrick 2020 Yale University

Basel Iii A: Regulatory History, Christian M. Mcnamara, Thomas Piontek, Andrew Metrick

Journal of Financial Crises

From the earliest efforts to mandate the amount of capital banks must maintain, regulators have grappled with how best to accomplish this task. Until the 1980s, regulation had been based largely on discretion and judgment. In the wake of two bank failures, the central bank governors of the G10 countries established the Basel Committee on Banking Supervision (BCBS) and in 1988, the BCBS introduced a capital measurement system, Basel I. The system represented a triumph of the fixed numerical approach, however, critics worried that it was too blunt an instrument. In 1999, the BCBS issued Basel II, a proposal to ...


Jpmorgan Chase London Whale Z: Background & Overview, Arwin G. Zeissler, Rosalind Bennett, Andrew Metrick 2020 Yale University

Jpmorgan Chase London Whale Z: Background & Overview, Arwin G. Zeissler, Rosalind Bennett, Andrew Metrick

Journal of Financial Crises

In December 2011, the Chief Executive Officer and Chief Financial Officer of JPMorgan Chase (JPM) instructed the bank’s Chief Investment Office to reduce the size of its Synthetic Credit Portfolio (SCP) during 2012, so that JPM could decrease its Risk-Weighted Assets as the bank prepared to adopt the impending Basel III bank capital regulations. However, the SCP traders were also told to minimize the trading costs incurred to reduce Risk-Weighted Assets, while still maintaining the opportunity to profit from unexpected corporate bankruptcies. In an attempt to balance these competing objectives, head SCP derivatives trader Bruno Iksil suggested in January ...


Incorporating Macroprudential Financial Regulation Into Monetary Policy, Aaron Klein 2020 The Brookings Institution

Incorporating Macroprudential Financial Regulation Into Monetary Policy, Aaron Klein

Journal of Financial Crises

This paper proposes two insights into financial regulation and monetary policy. The first enhances understanding the relationship between them, building on the automobile metaphor that describes monetary policy: when to accelerate or brake for curves miles ahead. Enhancing the metaphor, financial markets are the transmission. In a financial crisis, markets cease to function, equivalent to a transmission shifting into neutral. This explains both monetary policy’s diminished effectiveness in stimulating the economy and why the financial crisis shock to real economic output greatly exceeded central bank forecasts.

The second insight is that both excess leverage and fundamental mispricing of asset ...


The Macroeconomic Implications Of Replacing The U.S. Federal Tax System With A Value-Added Tax, Lance L. Lunceford 2020 University of Pennsylvania

The Macroeconomic Implications Of Replacing The U.S. Federal Tax System With A Value-Added Tax, Lance L. Lunceford

Summer Program for Undergraduate Research (SPUR)

This paper analyzes the potential implications of instituting a value-added tax (VAT) as the sole source of revenue for the United States Federal Government. A credit-invoice, broad-based VAT would fundamentally tax consumption, whereas the current system employed by the U.S. taxes production. A VAT system would allow firms to make decisions based on the most efficient allocation of capital and labor inputs, leading to a greater level of efficiency and productivity for U.S. firms in the long run. While the VAT would initially reduce the amount of consumption spending within the United States due to it raising the ...


Intragovernmental Autonomous Stabilizers, Alex Williams 2020 Bard College

Intragovernmental Autonomous Stabilizers, Alex Williams

Theses - Graduate Programs in Economic Theory and Policy

We present a novel framework for understanding the relationship between the federal and state governments of the United States of America. Drawing on the experience of state government finances during and after the Great Recession in 2008, we propose the establishment of novel intragovernmental budgetary stabilization mechanisms. We draw out the flawed arguments of the existing fiscal federalism literature and demonstrate how the work of Michael Pettis and Modern Monetary Theory provide more usable insights when crafting public policy. We propose several potential policy responses and produce a counterfactual model of state finances after the Great Recession using the new ...


The Role Of Interlocking Directorates In Historic Bank Crises In France, Fabio Tessiore 2020 University of Pennsylvania

The Role Of Interlocking Directorates In Historic Bank Crises In France, Fabio Tessiore

Summer Program for Undergraduate Research (SPUR)

Banking crises have never failed to mark the history of countries around the globe as they are key components of any economy. Relative to the other countries of continental Europe, France experienced an early development of its financial institutions which is attributed to its early industrialization. A shift in the nature of banking crises was observed in France around 1895, and the project seeks to study the change in banking networks and its role in the stabilization of the French banking system.

France experienced a major credit crisis in 1930-1931. However, the extent and implications of this crisis were never ...


The Effect Of Transparency, Independence And Accountability Of Central Banks On Disinflation Costs, Golnaz B. Motie, Joshua C. Hall 2020 Western Kentucky University

The Effect Of Transparency, Independence And Accountability Of Central Banks On Disinflation Costs, Golnaz B. Motie, Joshua C. Hall

Economics Faculty Working Papers Series

Policymakers often want to achieve low inflation to avoid the low economic growth associated with high inflation. Reducing inflation through monetary policy (disinflation) is not costless as it can coincide with higher unemployment rates and reduced output. In this paper we use sacrifice ratios to calculate the cost of disinflation during the 1990s for 40 countries. We then study whether transparency and democratic accountability of monetary institutions reduces disinflation costs. Our empirical results suggest that more transparent central banks seem to face higher disinflation costs. This result could be because more transparent central banks have lower initial inflation rates during ...


Disruption In The Repo Market - A Sign Of Systemic Issues, TInatin Bezhanidze 2020 Bard College

Disruption In The Repo Market - A Sign Of Systemic Issues, Tinatin Bezhanidze

Senior Projects Spring 2020

The Repurchase Agreement (repo) market is an essential part of the financial system. Thus, a disruption in the repo market in September of 2019, leading to the first Federal Reserve intervention since the Global Financial Crisis, sowed panic. This paper discusses some of the possible explanations of the repo crisis, such as tax payments draining liquidity at the same time as the Treasury bonds were settled, changes in regulations leading to inability to use the reserves on the market, a problem of market domination and change in behavior of the non-bank participants. It builds on the theories of the economist ...


Culture Of Countries And Country-Index Crash Risk, Jason Petri 2020 The University of Akron

Culture Of Countries And Country-Index Crash Risk, Jason Petri

Williams Honors College, Honors Research Projects

Previously crash- risk studies have focused on assessing at the firm level the likelihood of a firm’s equity to crash (a rapid decline in value), apart from the dynamics of its respective country-level market. In this study, however, I examine the determinants of an overall countrylevel equity crash apart from the dynamics of the global market. I will argue that this is a very different focus of analysis that will provide valuable information to both investors and policy makers. Expansion of credit and subsequent equity-market bubbles and crashes are of particular concern to foreign direct investors (FDI), as country-level ...


Does A Change In Immigration Affect The Unemployment Rate In Host Countries? Evidence From Australia, Mostafa AboElsoud, Anas AlQudah, Eman Elish 2020 The British University in Egypt

Does A Change In Immigration Affect The Unemployment Rate In Host Countries? Evidence From Australia, Mostafa Aboelsoud, Anas Alqudah, Eman Elish

Economics

is study examines and evaluates the dynamic causality relationship between immigration, unemployment, wages and GDP per capita in host countries with a focus on Australia. Previous research has indicated that the economic impact of immigration is significant; nonetheless, its effect on the labour market being positive or negative is inconclusive. This study uses a Vector Error Correction Model (VECM) to examine the dynamic short- and long-run nexus between these variables in Australia over the period 1980–2016. The paper provides clear evidence to policymakers on the positive spillover effect of immigration policies developed by the Australian government.


Effectiveness Of Interest Rate Policy On The Management Of Macroeconomic Stability: Evidence From The United Kingdom, Mostafa AboElsoud 2020 The British University in Egypt

Effectiveness Of Interest Rate Policy On The Management Of Macroeconomic Stability: Evidence From The United Kingdom, Mostafa Aboelsoud

Economics

This study examines the dynamic relationship between the London Interbank Offered Rate (LIBOR), the inflation rate, the unemployment rate and economic growth in the context of the UK, for the period 1992: Q1 to 2016: Q4. The study aims to evaluate the impact of the LIBOR on the management of macroeconomic stability in the UK during the period under review. The study employs a vector autoregressive (VAR) model to examine the dynamic relationship between interest rates, unemployment and GDP. A co-integration test evaluates the long-run relationship between these variables, and the VAR Granger-causality tests the direction of causation among the ...


Digital Commons powered by bepress