The Treasury-Federal Reserve Study of the Government Securities Market

2021 ◽  
pp. 256-268
Keyword(s):  
Federal Reserve ◽  
Securities Market ◽  
The Government

scholarly journals SUBPRIME MORTGAGE CRISIS IN THE UNITED STATES IN 2007–2008: CAUSES AND CONSEQUENCES (PART I)

Ekonomika ◽  
2015 ◽  
Vol 93 (4) ◽  
pp. 85-118 ◽  
Author(s):  
Vaidotas Pajarskas ◽  
Aldona Jočienė
Keyword(s):  
United States ◽  
Federal Reserve ◽  
The United States ◽  
Mortgage Market ◽  
Subprime Mortgage ◽  
Market Expansion ◽  
Mortgage Crisis ◽  
Subprime Mortgage Crisis ◽  
The Government ◽  
The Impact

The main purpose of this article is to determine which factors and how contributed to the subprime mortgage crisis in the United States in 2007–2008, what their causal links and effects on the markets and the whole economy were, and to assess what actions could have been taken by the Federal Reserve and the Government in order to mitigate or prevent the consequences of subprime mortgage crisis and housing bubble. In order to obtain the research results, the authors performed a qualitative analysis of the scientific literature on the course of events and their development that led to the subprime mortgage crisis, and focused on the insufficiently regulated home mortgage market expansion, the impact on the subprime mortgage crisis of financial innovations and financial engineering, poorly evaluated systemic risks and policy undertaken by both the U.S. Government and the Federal Reserve before and after the crisis. The quantitative research focused on two main parts: firstly, analysis of the dependence between the causes of subprime mortgage crisis and the consequences, using a statistical and regression analysis, and secondly, an alternative path the Government and the Federal Reserve could have taken in their policy actions and the results they could have produced. The authors believe that the results of the research could give useful guidelines to the central bankers and government officials on how to make long-term decisions that can help in preparing for the financial distress, mitigating the consequences when the crisis strikes, accelerating the recovery and even preventing the crisis it in the future. The second part of the qualitative research will appear in the next issue of the journal.

Federal Reserve Operations in the Money and Government Securities Market

1957 ◽  
Vol 39 (4) ◽  
pp. 479
Author(s):  
C. R. Whittlesey ◽  
Robert V. Roosa
Keyword(s):  
Federal Reserve ◽  
Securities Market

scholarly journals Directions of government debt securities market development

2021 ◽  
Vol 12 (2) ◽  
Author(s):  
Yuliia Nehoda ◽  
Keyword(s):  
Foreign Currency ◽  
Government Debt ◽  
Time Frame ◽  
Securities Market ◽  
Debt Structure ◽  
State Budget ◽  
Government Bonds ◽  
Trading Systems ◽  
The Government ◽  
Foreign Currency Debt

The securities market is a powerful platform to accumulate capitals for further investment in favor of structural reconstruction of economy, increasing population welfare level at the cost of fund financial instrument holding. As one of financial instruments the government debt securities gained widespread use as reliable, easy-to-use and readily obtainable financial assets. The place of bonds of domestic government loan in the formation of Ukraine’s public debt and financing of the state budget deficit is highlighted in the article. The modern statistics confirms the safety and viability for the use of internal government debt securities, and the author in made research proves significant increase of amounts attracted to budget financial fund from Ukrainian domestic government bonds settlement. The article systemizes the data on main indicators of the domestic market of Ukrainian domestic government bonds, determines the portfolio structure on the basis of ownership and describes ways to expand range of potential investors, for example, by involving physical entities. Several banks – primary dealers were chosen to analyze the purchase terms of Ukrainian domestic government bonds for citizens of Ukraine on the primary market. The directions of developments of domestic internal bet market was determined, and they are to strengthen communication with fund market participants, to concentrate liquidity in certain instruments, to protect investors multilateral trading systems, to make pricing transparent on the Ukrainian domestic government bonds market, to arrange auctions regularly, diversification of foreign currency debt structure portfolio etc. The well-structured process of Ukrainian domestic government bonds emission in the part of public debts management strategy will allow to hold investors with such investment time frame interested to obtain instruments in the mid-run.

Investing Productively: The Securities Market

New India ◽  
2020 ◽  
pp. 130-144
Author(s):  
Arvind Panagariya
Keyword(s):  
Financial Markets ◽  
Securities Market ◽  
Securities Markets ◽  
Publicly Traded ◽  
Productive Activities ◽  
Private Placements ◽  
Insurance Funds ◽  
Debt Market ◽  
The Government

Relative to labor, capital is India’s scarce factor of production. Therefore, it is particularly important that it is allocated to the most productive activities. Well-functioning financial markets are critical to achieving this objective. Accordingly, this chapter focuses on the securities markets in India. In terms of new issues, private placements have dominated securities markets in India, both in equity and in debt. When it comes to public placements, while there is a bit of liquidity in equities, the same is not the case in the debt market. The market in publicly traded corporate bonds is thin, with limited liquidity. This chapter offers a number of ideas to deepen this market. For instance, rules governing investment in these bonds by pension, provident, and insurance funds may be liberalized. The government may also partially de-risk long-term bonds for infrastructure projects through provision of collateral.

scholarly journals Private shareholding: An analysis of an eclectic group of central banks

2016 ◽  
Vol 19 (1) ◽  
pp. 150-159 ◽  
Author(s):  
Jannie Rossouw
Keyword(s):  
South Africa ◽  
Central Bank ◽  
Federal Reserve ◽  
European Central Bank ◽  
The United States ◽  
Central Banks ◽  
European Central ◽  
Dividend Payments ◽  
Implementation Of Monetary Policy ◽  
The Government

Although the title seems to be a contradictio in terminis, this paper identifies a small, eclectic number of central banks with private shareholders about which little has been published. It is shown that only the central banks of Belgium, Greece, Italy, Japan, South Africa, Switzerland, Turkey and the United States (US) Federal Reserve allow shareholding other than by the government of the respective countries, although not in all instances by the general public. This paper considers private shareholding in this eclectic group of central banks, despite the trend of nationalising central banks that commenced in 1935. Private shareholding is defined as shareholding in a central bank by any party other than the respective government or governments (e.g. the European Central Bank) where the central bank is located.Large differences in the classes of shareholders of these eclectic central banks and differences in their approaches to dividend payments are highlighted in the paper. The conclusions reached are, firstly, that investment only in the shares of the central banks of Belgium and Greece (albeit only for residents in the latter instance) can be regarded as growth investments. Secondly, shareholding in the Italian central bank has been used to recapitalise ailing commercial banks. Thirdly, shareholders play no role in the formulation and implementation of monetary policy. Lastly, the shareholding structure of these banks contributes to improved governance in the case of the central banks of Belgium, Greece, Italy, South Africa, Switzerland and Turkey, but no evidence can be found that central banks with shareholders in any way outperform central banks without shareholders.

scholarly journals PIERWSZY BANK STANÓW ZJEDNOCZONYCH JAKO PIERWOWZÓR SYSTEMU REZERWY FEDERALNEJ

2017 ◽  
Vol 9 (1) ◽  
pp. 171
Author(s):  
Wojciech Kwiatkowski
Keyword(s):  
United States ◽  
Supreme Court ◽  
Federal Government ◽  
Federal Reserve ◽  
Financial Stability ◽  
The United States ◽  
The Supreme Court ◽  
The Government ◽  
Banking Institution ◽  
The Right

First Bank of the United States as a Prototype for the Federal Reserve SystemSummaryThe article describes the history of the First Bank of the United Statesfirst banking- institution, that was charted in XVII-th century North America as an effect of a cooperation of two federal bodies – Congress and the President. Although, the federal government possessed only 20 %, of the shares with federal licences it could conduct its activity on territory of the whole country. Moreover – the Bank is now referred to as the first central bank in the United States because of its national scope and services rendered to the federal government. The Bank helped the government to obtain emergency loans, facilitated the payment of taxes, and served as the receiver and disburser of the public funds. In addition, it issued bank notes and made them fully redeemable in coin. During a 20-years period the Bank achieved a commercial success and maintained a financial stability. However, in 1811 Congress did not renew the charter because the Bank’s constitutionality was questioned.Alexander Hamilton (the first U.S. Secretary of the Treasury), who was [the followerof creation of the bank, already in 1790 assumed that the federal government had the power to charter banks because the Constitution granted the government the right to establish institutions necessary for its operations. Addifferent viewpoint was presented by Thomas Jefferson who favored a more decentralized government and believed that only the states could charter banks under the Constitution. Furthermore – because the Constitution did not expressly grant the power to Congress, he reasoned that federally chartered banks were unconstitutional. Finally in 1819, as a far-reaching decision, the Supreme Court Chief Justice John Marshall followed Hamilton’s reasoning and ruled in case McCulloch vs Maryland that the Second Bank of the United States was constitutional. For U.S. federal government this decision of the Supreme Court was very important about 200 years later – in 1913, when president Wilson, many politicians’ and main U.S. bankers decided to create the Federal Reserve System.

scholarly journals THE IMPORTANCE OF INSTITUTIONAL INVESTORS DIVERSIFICATION IN THE DEVELOPMENT OF THE GOVERNMENT SECURITIES MARKET

MEST Journal ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 28-36
Author(s):  
Rodica Hincu ◽  
Ana Litocenco
Keyword(s):  
Institutional Investors ◽  
System Development ◽  
Securities Market ◽  
Complex Process ◽  
Domestic Savings ◽  
International Investors ◽  
The Republic ◽  
The Government ◽  
Domestic Banks ◽  
Market Infrastructure

The development of a government securities market is a complex process that is interrelated with the financial and market system development of each country. For many countries, this implies huge challenges that often are amplified by economic issues. For instance, some government securities markets rely on a few domestic banks for funding, which makes competition scarce, and transaction costs high. In addition to this, the lack of a sound market infrastructure may make specific actions to develop a government securities market premature and ineffective. At the same time, the insufficiency of institutional investors, low domestic savings rates, and lack of interest from international investors generate a small, highly homogeneous investor group, contrary to the diversity needed for an efficient market. Furthermore, economic instability, often accompanied by high fiscal deficits, rapid growth of the money supply, and a deteriorating exchange rate, weakens investor confidence and increases the risks associated with the development of a market for government securities. This article aims to describe the importance of a diversified investor base in developing a government securities market and to show the experience of the Republic of Moldova in this regard.

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