scholarly journals Finance, financiers and financial centres: a special issue in honour of Youssef Cassis Introduction

2020 ◽  
Vol 27 (3) ◽  
pp. 283-302
Author(s):  
Carlo Edoardo Altamura ◽  
Martin Daunton
Keyword(s):  
Interest Rates ◽  
Global Financial Crisis ◽  
Social Characteristics ◽  
Special Issue ◽  
Low Interest Rates ◽  
Rise Of China ◽  
Initial Work ◽  
The Global Financial Crisis ◽  
City Of London ◽  
The Impact

This special issue celebrates the career of Youssef Cassis. The introduction will outline his major contributions from his initial work on social characteristics of the financiers of the City of London, and their relationship with landed aristocrats and industry, through his analysis of a succession of financial centres, the comparative study of big business, the relationship between finance and politics, to his new project on the memory of financial crises. Then, we will draw on Youssef's mode of analysis to consider some of the more pressing issues in the era since the global financial crisis and the impact of Covid-19. We will consider the role of central banks, the challenge of fintech, the impact of low interest rates on inequality, savings and debt, and the potential shift in financial centres and reserve currencies with the rise of China. We will conclude by arguing that the mode of analysis developed by Cassis over his long and productive career has never been more pertinent.

Assessing The Impact Of The Global Financial Crisis On GCC Countries

2010 ◽  
Vol 8 (2) ◽  
Author(s):  
Hisham H. Abdelbaki
Keyword(s):  
Financial Crisis ◽  
Interest Rates ◽  
Global Financial Crisis ◽  
The United States ◽  
Font Size ◽  
Negative Effects ◽  
Gcc Countries ◽  
The World ◽  
The Global Financial Crisis ◽  
The Impact

<p class="MsoNormal" style="text-align: justify; margin: 0in 27pt 0pt;"><span style="font-family: Times New Roman;"><span style="color: #0d0d0d; font-size: 10pt; mso-bidi-language: AR-EG;">No doubt, the </span><span style="color: #0d0d0d; font-size: 10pt;">international financial crisis that started in the United States of America will cast its effects on all countries of the world, developed and developing. Yet these effects vary from one country to another for several reasons. The GCC countries would not escape these negative effects of this severe crisis. The negative effects of the crisis on gulf countries come from many aspects: first, decrease in price of oil on whose revenues the development programs in these countries depend; second, decrease in the value of US$ and the subsequent decrease in the assets owned by these countries in US$; third, a case of economic stagnation will prevail in the world with effects starting to appear. </span><span style="color: #0d0d0d; font-size: 10pt; mso-bidi-language: AR-EG;">It is obvious that this would be reflected on the real sector in the economies causing a series of negative effects through decrease of the world demand for exports of GCC countries of oil, petrochemicals and aluminum.<span style="mso-spacerun: yes;">&nbsp; </span>Lastly, increased inflation rates with decreased interest rates will result in a decrease in real interest with an accompanying decrease in incentives for saving and consequently investment and economic development. The main aim of the research is to assess the economic effects of the global financial crisis on GCC countries. The paper results are that the big reserves of foreign currencies achieved by the GCC countries in the past few years have helped increase their ability to bear the effects of the financial effects on one hand and their ability to adopt expansionary policies through pumping liquidity to absorb the regressive effects of the crisis on the other. The paper recommends the necessity of taking precautionary procedures for the effects which will result from the expansionary policies effective in GCC countries. <strong></strong></span></span></p>

The Impact of the Global Financial Crisis on Central Banking

2019 ◽  
pp. 170-192
Author(s):  
Alex Cukierman
Keyword(s):  
Financial Crisis ◽  
Interest Rates ◽  
Financial Stability ◽  
Inflation Targeting ◽  
Global Financial Crisis ◽  
The United States ◽  
Central Banking ◽  
The Global Financial Crisis ◽  
The Impact ◽  
Regulatory Reforms

This chapter describes the impacts of the global financial crisis on monetary policy and institutions. It argues that during the crisis, financial stability took precedence over traditional inflation targeting and discusses the emergence of unconventional policy instruments such as quantitative easing (QE), forex market interventions, negative interest rates, and forward guidance. It describes the interaction between the zero lower bound (ZLB) and QE, and proposals, such as raising the inflation target, to alleviate the ZLB constraint. The chapter discusses the consequences of the relative passivity of fiscal policies, “helicopter money,” and 100 percent reserve requirement. The crisis triggered regulatory reforms in which central banks’ objectives were expanded to encompass macroprudential regulation. The chapter evaluates recent regulatory reforms in the United States, the euro area, and the United Kingdom. It presents data on new net credit formation during the crisis and discusses implications for exit policies.

scholarly journals Financial Repression is Knocking at the Door, Again

2019 ◽  
Vol 2019 (211) ◽  
Author(s):  
Etibar Jafarov ◽  
Rodolfo Maino ◽  
Marco Pani
Keyword(s):  
Interest Rates ◽  
Global Financial Crisis ◽  
Rent Seeking ◽  
Financial Repression ◽  
Capital Movements ◽  
The Past ◽  
Percentage Points ◽  
Legal Restrictions ◽  
The Global Financial Crisis ◽  
The Impact

Financial repression (legal restrictions on interest rates, credit allocation, capital movements, and other financial operations) was widely used in the past but was largely abandoned in the liberalization wave of the 1990s, as widespread support for interventionist policies gave way to a renewed conception of government as an impartial referee. Financial repression has come back on the agenda with the surge in public debt in the wake of the Global Financial Crisis, and some countries have reintroduced administrative ceilings on interest rates. By distorting market incentives and signals, financial repression induces losses from inefficiency and rent-seeking that are not easily quantified. This study attempts to assess some of these losses by estimating the impact of financial repression on growth using an updated index of interest rate controls covering 90 countries over 45 years. The results suggest that financial repression poses a significant drag on growth, which could amount to 0.4-0.7 percentage points.

scholarly journals External Debt Management in Pakistan: A Market-Based Assessment

2017 ◽  
Vol 22 (Special Edition) ◽  
pp. 25-51
Author(s):  
Jamshed Y. Uppal
Keyword(s):  
Interest Rates ◽  
Global Financial Crisis ◽  
External Debt ◽  
International Markets ◽  
Debt Management ◽  
Bond Yields ◽  
Yield Spreads ◽  
Marginal Costs ◽  
Low Interest Rates ◽  
The Global Financial Crisis

Economists typically use multiple indicators to assess the burden of external debt, such as the ratios of the stock of debt to exports and to gross national product, and the ratios of debt service to exports and to government revenue. As opposed to those methodologies, this article examines the Pakistan’s external debt position using a market based approach which analyzes the marginal costs of external debt as indicated by the yields on the country’s Eurobonds and the spreads on the Credit Default Swaps (CDS) traded in the international markets. The results show a sharp decline in the yields on the Pakistani Eurobonds from their peak reached during the global financial crisis (GFC) period and this decline was largely driven by quantitative easing and the resultant low interest rates in the international debt markets. Also, the continued decline in the yields in the more recent period, 2013-2017, was due to strengthening of the county’s borrowing capacity over the period. The analysis also shows that Pakistani yields seem to be converging to yields for other Asian countries, even though that the yield-spreads between Pakistan and others countries are still substantial. In conclusion the decrease in bond yields and CDS spreads may signal that the country’s external debt is currently at sustainable levels.

Policy will be key to supporting cashless consumption

2018 ◽  
Keyword(s):  
Interest Rates ◽  
Digital Divide ◽  
Financial Services ◽  
Global Financial Crisis ◽  
Content Type ◽  
Electronic Transactions ◽  
Opt Out ◽  
The World ◽  
Low Interest Rates ◽  
The Global Financial Crisis

Subject Cashless society transformation. Significance Transacting electronically is quicker and cheaper than using cash, provided the infrastructure is in place to support the transactions. Across the world, the number of electronic transactions and the supporting infrastructure has surged over the last two decades. Card payments averaged 25.3% of GDP in 2016 in the 24 countries the Committee for Payments and Markets Infrastructure covers, up from 12.8% in 2000. Despite this, cash retains a key role, paradoxically even more since the global financial crisis, as ultra-low interest rates in the ten post-crisis years reduced the opportunity cost of holding cash. Impacts All cashless transactions are automatically tracked, forcing consumers to sacrifice more privacy without the ability to ‘opt-out’. An individual’s credit standing will gain importance and may become as key to gaining employment as it is to accessing financial services. There will be a digital divide not only in access to and exclusion from financial services but also the ability to pay. Payments for services could become the fastest-growing category of cashless transactions.

Macroeconomic factors and stock prices in the food and drink industry

2019 ◽  
Vol 121 (7) ◽  
pp. 1627-1641
Author(s):  
Jana Šimáková ◽  
Daniel Stavárek ◽  
Tomáš Pražák ◽  
Marie Ligocká
Keyword(s):  
Interest Rates ◽  
Stock Prices ◽  
Stock Price ◽  
Global Financial Crisis ◽  
Supply And Demand ◽  
Macroeconomic Factors ◽  
Content Type ◽  
Food And Drink ◽  
The Global Financial Crisis ◽  
The Impact

Purpose The purpose of this paper is to estimate and evaluate the impact of macroeconomic fundamentals on stock prices of selected food and drink industry stocks during the period of 2005–2015, which saw the global financial crisis and its aftermath. Design/methodology/approach The paper employed correlation analysis and the Johansen cointegration test with the vector error correction mechanism for EU companies operating in the food and drink industry. The paper tested the effects of GDP, inflation and interest rates (IR) on the stock prices of companies from Austria, Croatia, Cyprus, Denmark, Finland, Germany, Ireland, Italy, Lithuania, Poland, Spain and the UK. Findings Based on the results, the authors can see that GDP has a generally positive effect on stock price development. In contrast, the relationship between stock prices and inflation and IR is negative in most cases. Originality/value Despite the fact that a majority of empirical research on companies in the food and drink sector was performed using the microeconomic approach, this paper used the macroeconomic approach and clearly demonstrated the effects of selected macro-variables on stock prices in selected EU markets. Macroeconomic factors shape the company’s performance and could potentially lead to persistent changes in supply and demand conditions in food and drink markets.

scholarly journals Analysis of Interest Rate Impact on the Profitability Level of the Banking System in Albania during the Period 2005 -2014

2015 ◽  
Vol 3 (1) ◽  
pp. 203
Author(s):  
Sokol Ndoka ◽  
Anilda Bozdo
Keyword(s):  
Interest Rate ◽  
Financial Crisis ◽  
Interest Rates ◽  
Global Financial Crisis ◽  
Banking System ◽  
The Other ◽  
Factors Affecting ◽  
The Interest Rate ◽  
The Global Financial Crisis ◽  
The Impact

This study is an analysis of the movement and impact of interest rates on the profitability level of the banking system in Albania. This analysis covers a 10-year timeframe (is organized in three time segments - before, during and after the financial crisis), taking into consideration the critical point of the years 2008-2009 considered as the “peak” of the global financial crisis. Such separation is made in order to see the possible changes of each period of time and to identify the impact differences of this factor in each period of study. This study is based on the hypothesis that the decrease of the interest rate has positively affected the income increase from interest as a result of the impact of two factors, negative levels of Gaps and an increased level of spread toward the average assets. As a matter of fact, it has neutralized on a certain level the other risks such as that of the loan which has dominated over the other risks. This paper is based on an empirical study with secondary quantitative and qualitative data. This study provides a considerable contribution in the framework of identification of factors affecting the profitability of the banking system in Albania, namely in the context of interest rate; In addition, this study aims at highlighting the importance of open Gaps minimization for the efficient profitability increase of the financial system.

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