Bonds, money markets, capital markets, and financial organizations

2005 ◽  
pp. 243-266
Author(s):  
Dimitris N. Chorafas
Keyword(s):  
Capital Markets ◽  
Money Markets

The Baring Crisis and the Brazilian Encilhamento, 1889–1891: An Early Example of Contagion Among Emerging Capital Markets

2005 ◽  
Vol 12 (2) ◽  
pp. 199-225 ◽  
Author(s):  
GAIL D. TRINER ◽  
KIRSTEN WANDSCHNEIDER
Keyword(s):  
Financial Crisis ◽  
Capital Markets ◽  
Capital Flows ◽  
International Markets ◽  
Money Markets ◽  
Bond Yield ◽  
History Of ◽  
Emerging Capital Markets ◽  
The Impact

This article assesses the role of international markets in the brazilian financial crisis of 1890/91 (the crash of the encilhamento). It looks for the impact of the argentine financial crisis in 1890 (the baring crisis) on brazilian access to capital markets. The history of bond yield fluctuations in london for brazilian and argentine debt, exchange rates, data on investment flows and archival and journalistic accounts reveal a close congruence between the argentine and brazilian crises. The effects of the argentine experience carried over to brazil because the open capital and money markets of the period easily transmitted crisis from one economy to another and because fundamental conditions in both economies rendered them similarly vulnerable to fluctuations in capital flows. The article raises this case as a precedent for the contagious financial crises that emerging markets faced at the end of the twentieth century.

Short-Term Funding Stresses and Asset Prices: Lessons from U.S. History

FEDS Notes ◽  
2020 ◽  
Vol 2020 (2790) ◽  
Author(s):  
Colin Weiss ◽  
Keyword(s):  
Capital Markets ◽  
Federal Reserve ◽  
Asset Prices ◽  
Asset Price ◽  
Bond Markets ◽  
Short Term ◽  
Money Markets ◽  
Price Fluctuations ◽  
History Of

Recent stress episodes in U.S. short-term dollar funding markets have brought renewed attention to the functioning of these markets and how they interact with capital markets more generally. The history of U.S. money markets and stock and bond markets before the founding of the Federal Reserve offer a unique perspective on how the structure of money markets can contribute to broader asset price fluctuations.

scholarly journals INTERRELATION OF THE MONEY AND CAPITAL MARKETS

Ekonomika ◽  
2009 ◽  
Vol 88 ◽  
pp. 66-82
Author(s):  
Meilė Jasienė ◽  
Arvydas Paškevičius
Keyword(s):  
Pacific Ocean ◽  
Financial Markets ◽  
Financial Market ◽  
Capital Markets ◽  
North American ◽  
Structural Changes ◽  
Vast Number ◽  
Money Markets ◽  
European North ◽  
Ocean Region

The structure of financial markets is a constantly developing organism displaying an ever-changing pattern of the weight in the overall financial market structure of its constituents such as capital market, money market and the market of financial derivatives as a product of thetwo markets. The changes and the new developments are caused by a vast number of reasons and factors including the interaction of the markets concerned. The structural changes taking place in the financial markets and the related forecasts are of great importance to the investors and investment portfolio managers. The financial markets of Lithuania have already become an integral part of the global financial system therefore the authors of the present study did not limit the scope of the survey exclusively to the Lithuanian markets and took a broader view by carrying out a survey of the financial market segments such as capital and money markets of a number of Eastern European, Western European, North American States and the Pacific Ocean region, also the trends of the structural developments as well as the factors causing the processes.The purpose of the present study was to assess whether capital and money markets develop in parallel, i.e., the development of one market creates the conditions favourable for the growth and development of the other, or the two markets perform as competitors. The object of the survey: money and capital markets of East European, West European, North American and Pacific Ocean region countries. Methods used: analysis of the research literature, statistical grouping, correlation analysis.

scholarly journals Norway

2020 ◽  
Vol 20 (264) ◽  
Author(s):  
Keyword(s):  
Risk Management ◽  
Central Bank ◽  
Foreign Exchange ◽  
Financial Institutions ◽  
Capital Markets ◽  
Financial Stability ◽  
Bond Markets ◽  
Liquidity Shocks ◽  
Money Markets ◽  
Commercial Paper

Norwegian banks and other financial institutions rely heavily on capital markets for liquidity and risk management. Liquidity conditions in the Norwegian financial sector are affected by central bank operations and the lending and funding activities of financial institutions, both domestically and abroad. Nearly 40 percent of the funding of Norwegian banks is obtained from market sources, using commercial paper, covered bonds, and senior unsecured bonds issued both domestically and abroad. Correspondingly, money markets, foreign exchange (FX) swap markets and bond markets are crucial to the credit intermediation process and a dislocation in these markets—the inability of financial institutions to roll over, or obtain new, funding—could have significant consequences for financial stability. Against this background, this note analyzes core funding markets for Norwegian banks and assesses Norges Bank’s capacity to manage systemic liquidity conditions and counteract liquidity shocks in normal times and in times of stress.

Metamorphoses of Financial Capital

2013 ◽  
pp. 106-122
Author(s):  
L. Evstigneeva ◽  
R. Evstigneev
Keyword(s):  
Capital Markets ◽  
World Market ◽  
Global Market ◽  
Market Model ◽  
Financial Capital ◽  
Self Organization ◽  
Money Markets ◽  
The World ◽  
International Banks ◽  
Political Form

Financial capital is considered as a precondition of forming an integral market system. Based on financial capital a vertical market model is taking shape. It includes the following leading markets: strategic markets of financial capital, finance and money markets, markets of physical (cluster) capital, markets of social (consumers) capital. Markets of financial capital build the world reproduction model of synergetic character. Sustainability of the world market is maintained within the framework of the following types of big financial capital systems: cooperation of industrial and banking capital (Hilferding), international banks (Keynes), state monopoly of GDP (well known as far back, as in the USSR period). One can consider this framework as a political form of general equilibrium of the global market. A systemic function of financial capital is gathering power for ensuring endogenous evolution of economy and society on the principles of market self-organization. The authors believe this is the only way out of a deadlock for our economy and society.

scholarly journals How to stabilize the banking system: lessons from the pre-1914 London money market

2016 ◽  
Vol 23 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Carolyn Sissoko
Keyword(s):  
World War I ◽  
Capital Markets ◽  
Banking System ◽  
Money Market ◽  
Structural Reform ◽  
World War ◽  
High Quality ◽  
Money Markets ◽  
Successful Model ◽  
Reasonable Explanation

This article argues that the British financial system in the era prior to World War I provides modern policymakers with a successful model of how to stabilize the banking system. This model had two components: incentives were structured to ensure that all banks that originated or traded assets on the money market sought only to trade in high-quality assets; and macro-prudential regulation promoted the segregation of money markets from capital markets, monitored the growth of money market credit, and restricted trade on the money market in assets issued by entities and sectors whose money market liabilities were growing so fast that the most reasonable explanation was that the money market was being used to finance longer-term investment. These facts indicate that policymakers can successfully stabilize the banking system through a combination of structural reform and regulation of the growth of credit.

Forming Sources of Long-run Growth: How to Understand Them?

2014 ◽  
pp. 4-20 ◽  
Author(s):  
G. Idrisov ◽  
S. Sinelnikov-Murylev
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Economic Policy ◽  
Business Cycle ◽  
Capital Markets ◽  
Productivity Growth ◽  
Government Spending ◽  
Long Run ◽  
Accelerate Growth ◽  
Budget Institutions

The paper analyzes the inconsequence and problems of Russian economic policy to accelerate economic growth. The authors consider three components of growth rate (potential, Russian business cycle and world business cycle components) and conclude that in order to pursue an effective economic policy to accelerate growth, it has to be addressed to the potential (long-run) growth component. The main ingredients of this policy are government spending restructuring and budget institutions reform, labor and capital markets reforms, productivity growth.

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