scholarly journals Before the ‘locomotive’ runs: the impact of the 1973–1974 oil shock on Japan and the international financial system

2020 ◽  
Vol 27 (3) ◽  
pp. 418-435
Author(s):  
Kazuhiko Yago

This article offers a Japanese perspective on the debate about the international financial system immediately after the first oil shock of 1973–4. Using archival records from the OECD and Bank of Japan, I analyze the three key policy issues discussed at the meetings of Working Party 3 (WP3) of the OECD: petrodollar recycling, balance-of-payments adjustments, and the management of global growth. Documents show that the Japanese approach to capital controls, exchange rate management, state-led growth orientation and international banking strategies was rather strengthened by the impact of the oil shock. By 1975 the OECD viewed Japan, together with Germany and the United States, as one of the ‘locomotives’ that would trigger a revival of economic growth in the industrialized West.

Author(s):  
Yilmaz Akyüz

After recurrent crises with severe consequences in the 1990s and early 2000s EDEs have become even more closely integrated into what is now widely recognized as an inherently unstable international financial system. This chapter discusses the factors accelerating global financial integration of EDEs, including monetary policies in major advanced economies, notably the United States. It examines capital inflows and outflows, external balance sheets, the size and composition of gross external assets and liabilities, distinguishing between equity and debt, private and public sectors, local currency and foreign currency debt, bond issues and bank loans, and cross-border and local lending by international banks. It provides data and information on the currency composition of external debt, and non-resident participation in domestic financial markets of emerging economies. These are used to identify the changes in the depth and pattern of integration of emerging economies into the international financial system since the early 1990s.


2021 ◽  
pp. 232949652110246
Author(s):  
Raphaël Charron-Chénier ◽  
Louise Seamster ◽  
Thomas M. Shapiro ◽  
Laura Sullivan

Student debt in the United States has had a disproportionate negative impact on black and Latinx borrowers. We argue that analyses of plans proposing student debt cancellation should therefore foreground their potential impact on racial equity. To do so, we use data from the 2019 Survey of Consumer Finances and model the impact of debt cancellation on four key policy outcomes (reach, impact on the most vulnerable borrowers, borrower wealth gains, and impact on racial wealth gaps). We examine universal policy designs as well as designs that incorporate an income eligibility threshold as a means of targeting benefits toward less affluent borrowers. We find that cancellation amounts ranging from $50,000 to $75,000 yield the most desirable outcomes, especially when paired with a relatively low household income eligibility cutoff at between $100,000 and $150,000. Such policies would cancel roughly half of all outstanding student debt without substantially expanding the racial wealth gap, while still reaching a large majority of borrowers and leading to substantial wealth gains, especially for black households.


2019 ◽  
pp. 185-193
Author(s):  
Jerome Roos

This chapter considers why the International Monetary Fund (IMF) did it not prevent Argentina's record default of 2001. It suggests that the IMF was both unable and unwilling to stop it. While the second enforcement mechanism of conditional IMF lending was initially fully operative, helping to enforce Argentina's compliance in the first years of the crisis, the outcome of the megaswap greatly reduced the risk of an Argentine default to the international financial system. Combined with mounting domestic opposition in the United States to further international bailout loans, this greatly weakened the IMF's capacity to impose fiscal discipline on Argentina, eventually leading the Fund to pull the plug on its own bailout program, causing the second enforcement mechanism to break down altogether. The chapter recounts the process through which this breakdown occurred.


Author(s):  
Dawn Joosten-Hagye ◽  
Anne Katz

This chapter examines loneliness and how it affects health and well-being. It discusses how loneliness may lead to ill health but also how ill health may lead to feelings of loneliness. It reviews the evidence suggesting that loneliness is not only linked to overall morbidity and mortality in older adults but also a major predictor of psychological distress. With the global growth of the aging population, considerable research attention focuses on these issues in Europe, the United States, and Australia. The proportion of Australians aged 65 years or older is growing, with prevalence rates of loneliness among older adults as high as 30%. The impact of this is discussed in this chapter, as are recent developments, current conditions, historical trends, transnational feminism and advocacy, and how loneliness impacts the health and well-being of older women in Australia.


2020 ◽  
Vol 12 (2) ◽  
Author(s):  
Sayed Emara ◽  

The study aimed to measure the effects of the Covid-19 epidemic on global growth rates in vital sectors around the world specially – Agriculture – Construction – Manufacturing – Mining -& Transport, because it is the sectors that most to the formation of the GDP and has been directly affected by the Corona pandemic, the study proved too that the Corona virus epidemic has affected, to varying levels and degrees, the economies of the countries of the world. In most different sectors, especially developing countries, but the regional and local impact of the COVID-19 crisis was highly variable, with important economic and social dimensions in addition to the implications for crisis management and political responses to deal with it... Therefore, this paper takes an in-depth look at the impact. Linked to the COVID-19 crisis, the global growth rate at the time of lockdown, which led to the emergence of very difficult fateful challenges in many economies in the world, especially the developed ones, as well as the surprise of the emergence of emerging economies that surfaced and showed positive and significant recovery in growth rates for many of their sectors Vitality at a time in which a number of advanced economies surprised us by achieving a negative growth rate in light of their enormous economic potential, so we were interested to choose a heterogeneous package from the countries of the world (9 countries )to represent the diversity required for the different impact of the Corona virus on the different world economies and the expectations which the world economy will be appear in the global growth rates after the end of this pandemic.. So we exclusively selected 9 countries: Egypt, Saudi Arabia, Ethiopia, India, China, Germany, France, the United States of America and Australia, as examples. Stratification on this research


2015 ◽  
pp. 58-72
Author(s):  
O. Butorina

The increased economic power of the United States and their enormous golden reserves are the main reasons used by economists to explain why the Bretton Woods conference of 1944 put the dollar in the centre of a new international financial system. However, it is not clear if these conditions were sufficient for the introduction of a gold (de facto dollar) standard and excluded any other type of international financial order. The study of historical data reveals an effective diplomatic maneuver conducted by the U.S. administration with an aim to prevent a global transit to fiat money, to keep the importance of gold and to build a strictly hierarchical international financial system.


1998 ◽  
Vol 163 ◽  
pp. 37-63
Author(s):  
Julian Morgan ◽  
Nigel Pain ◽  
Florence Hubert

Global economic conditions improved markedly last year. Within the OECD, output growth is estimated to have risen to 3 per cent, the best outturn since 1989. Growth was particularly buoyant in North America, reflecting strong domestic demand, with the NAFTA economies forecast to have grown by 4 per cent. Economic prospects also improved in Europe, with growth picking up in both Germany and France. However this has yet to produce any significant declines in unemployment in those countries, suggesting that a considerable degree of slack still remains in their labour markets. In contrast, the unemployment rate in the United States has fallen under 5 per cent for the first time since the early 1970s. Growth has slowed, although not yet collapsed, in Japan with domestic demand having proved unexpectedly weak in the aftermath of moves to tighten fiscal policy. We expect to see some slowdown in global growth this year, largely as a result of the impact of recent developments in Asia, with the growth in OECD GDP projected to moderate to 2.6 per cent, some 0.4 percentage points lower than we would otherwise have predicted.


2010 ◽  
Vol 24 (4) ◽  
pp. 127-140 ◽  
Author(s):  
J. C Sharman

The last few years have seen an international campaign to ensure that the world's financial and banking systems are “transparent,” meaning that every actor and transaction within the system can be traced to a discrete, identifiable individual. I present an audit study of compliance with the prohibitions on anonymous shell companies. In particular, I describe my attempts to found anonymous corporate vehicles without proof of identity and then to establish corporate bank accounts for these vehicles. (Transactions processed through the corporate account of such a “shell company” become effectively untraceable—and thus very useful for those looking to hide criminal profits, pay or receive bribes, finance terrorists, or escape tax obligations.) I solicited offers of anonymous corporate vehicles from 54 different corporate service providers in 22 different countries, and collated the responses to determine whether the existing legal and regulatory prohibitions on anonymous corporate vehicles actually work in practice. To foreshadow the results, it seems that small island offshore centers may have standards for corporate transparency and disclosure that are higher than major OECD economies like the United States and the United Kingdom.


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