ECONOMIC REPERCUSSIONS OF EXTREME EVENTS FOR AN ISLAND NATION: CASE OF SINGAPORE

2016 ◽  
Vol 61 (01) ◽  
pp. 1640011
Author(s):  
SECK TAN ◽  
ALLEN LAI YU-HUNG
Keyword(s):  
Economic Growth ◽  
Severe Acute Respiratory Syndrome ◽  
Financial Markets ◽  
Financial Market ◽  
Extreme Events ◽  
Preventive Measures ◽  
Global Financial Crisis ◽  
Economic Recovery ◽  
Policy Responses ◽  
Policy Measures

Having achieved an export-led exponential economic growth, Singapore remains vulnerable to both natural disasters and economic crises. However, the economic repercussions and policy responses to extreme events for an island nation like Singapore are not as widely known or studied. This paper illustrates that impacts of a health disaster [Severe Acute Respiratory Syndrome (SARS)] and an economic crisis [Global Financial Crisis (GFC)] on the Singapore economy based on selected indicators of the financial market, macroeconomy and property sector. Crises of different nature entail different policy responses of different scales and this is highlighted in the policy responses to both SARS and GFC toward economic recovery. In the case of SARS, there were preventive measures toward diseases but no reactive measures as the SARS virus was a new strain. For GFC, the policy measures were simply reactive as preventive measures failed to regulate the financial markets effectively. Our paper makes the case that the impacts of such extreme events are systemic as they affect all aspects of Singaporean society and that, moreover, the island nation is more vulnerable to these shocks than is currently acknowledged.

Fiscal and Monetary Policies in Reaction to the Financial Tsunami by the Taiwanese Government

2011 ◽  
Vol 14 (01) ◽  
pp. 153-169 ◽  
Author(s):  
Hsiao-Yin Chen ◽  
Cheng-Few Lee ◽  
Tzu Tai ◽  
Kehluh Wang
Keyword(s):  
Financial Crisis ◽  
Financial Market ◽  
Global Financial Crisis ◽  
The United States ◽  
Insurance Companies ◽  
Monetary Policies ◽  
Policy Measures ◽  
The Global Financial Crisis ◽  
The Impact ◽  
Taiwanese Government

The main purpose of this paper is to investigate the impact of the 2007 financial tsunami on the Taiwanese financial market. We find that, although significant for banks, security firms, and insurance companies, the effect was relatively lower if compared with that in Europe and the United States. In addition, we present fiscal and monetary policies issued by the Taiwanese government in reaction to the global financial crisis. These policy measures focused on stabilizing the financial market, reducing the level of unemployment, and creating more lending opportunities in support of Taiwanese companies. We also discuss the policy measures of the US government and other Asian countries in relation to the global financial crisis. Finally, we provide some suggestions to improve financial supervision and enhance financial reforms in Taiwan.

Fiskalpolitik und Finanzmärkte: Perspektiven für Forschung und Wirtschaftspolitik

2012 ◽  
Vol 13 (Supplement) ◽  
pp. 13-35
Author(s):  
Gernot Müller
Keyword(s):  
Fiscal Policy ◽  
Financial Markets ◽  
Financial Market ◽  
Economic Activity ◽  
Global Financial Crisis ◽  
New Keynesian ◽  
Sovereign Risk ◽  
Market Conditions ◽  
Fiscal Multiplier ◽  
The Global Financial Crisis

AbstractThe conduct of fiscal policy has been altered considerably in the context of the global financial crisis, that is, at times when financial markets conditions were extraordinary turbulent. Yet financial market conditions determine how fiscal impulses are transmitted through the economy and, eventually, the size of the fiscal multiplier. I develop a comprehensive perspective on how financial market conditions alter the effects of fiscal policy on economic activity within a New Keynesian framework. Drawing on historical as well as systematic considerations, I distinguish a scenario of 1) “normal times” characterized by smoothly operating financial markets, 2) financial markets characterized by tight credit conditions in the private sector and constraints on monetary policy and 3) financial markets, in addition, characterized by high sovereign risk. I argue that the size and even the sign of the multiplier may differ across these scenarios.

scholarly journals Russian Financial Market: Is there Potential for Stimulating Economic Growth?

Vestnik NSUEM ◽  
2020 ◽  
pp. 86-104
Author(s):  
A. V. Novikov ◽  
I. Ya. Novikova
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
Market Economy ◽  
Financial Market ◽  
Market Segmentation ◽  
Point Of View ◽  
Gdp Growth ◽  
Investment Incentives ◽  
Russian Economy ◽  
Instrumental Approaches

Russia has passed the path of forming a market economy, which was accompanied by a multidirectional dynamics of GDP growth rates. The article considers the financial market as a factor of stimulating economic growth. Four stages of development of the market economy of Russia are justified. Starting from 2020, the fifth stage of economic growth based on the development of innovative technologies, digitalization of the economy. The features of these stages are analyzed from the point of view of investment incentives for development. Institutional and instrumental approaches to financial market segmentation are highlighted, and the features of implementing these approaches at each stage of the Russian economy development are considered. The formation of the financial market considered from the standpoint of the analysis of indicators, revealing the state of the financial markets: depth, access, stability and efficiency of the financial market. Measures for the development of the financial market are proposed.

scholarly journals The Serbian economy ten years after the global economic crisis

2020 ◽  
Vol 65 (225) ◽  
pp. 33-71
Author(s):  
Milica Uvalic ◽  
Bozidar Cerovic ◽  
Jasna Atanasijevic
Keyword(s):  
Economic Growth ◽  
Development Strategy ◽  
Economic Crisis ◽  
Global Financial Crisis ◽  
Policy Responses ◽  
Development Level ◽  
Global Economic Crisis ◽  
The Global Financial Crisis ◽  
Delayed Transition

The global financial crisis hit the Serbian economy severely in late 2008. The subsequent decade has been characterized by negative or very modest economic growth and Serbia is now just slightly above the development level of ten years ago. This paper analyses the most important economic milestones during this decade and investigates why only modest progress has been made, despite various measures implemented by the Serbian government. It examines the background to Serbia?s delayed transition and analyses the effects of the global economic crisis on the Serbian economy. It outlines the policy responses and their results, focusing on public finance, foreign trade, reindustrialisation, FDI, the labour market, and sources of growth. The paper sets out the key challenges to accelerating Serbia?s economic growth and identifies the main elements of a new long-term development strategy.

Part II The Financial Crisis of 2007–2011, 7 The Initial Impact of the Financial Crisis on Financial Markets

2018 ◽  
Author(s):  
Mccormick Roger ◽  
Stears Chris
Keyword(s):  
Risk Management ◽  
Financial Crisis ◽  
Financial Markets ◽  
Financial Market ◽  
Global Financial Crisis ◽  
Financial Institution ◽  
Financial Failure ◽  
Regulatory Failure ◽  
The Global Financial Crisis ◽  
The Uk

This chapter discusses the initial impact of the global financial crisis, covering the seize-up of the inter-bank market; the run on Northern Rock in September 2007; the ‘regulatory failure’ in the UK and proposed changes; other UK financial institution failures, near failures, and rescues; and US financial market problems. It argues that throughout history, there have been episodes of over-eager lending, reckless investing and poor risk management, leading to financial failure and calls for help. Although the recent crisis was supposedly different because the securitization of debt gave the appearance of liquidity and sophisticated risk management, it also had the same common themes of greed and stupidity.

scholarly journals Methodological tools for the integral assessment of financial availability in the context of digitalization of financial markets

2020 ◽  
pp. 15-34
Author(s):  
Л. К. Васюкова ◽  
А. Е. Литвиненко
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
Financial Market ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Inclusion ◽  
Market Potential ◽  
The Russian Federation ◽  
Integral Assessment ◽  
Physical Accessibility

Гармоничное направление развития финансового рынка – это такое направление, при котором финансовая доступность способствует экономическому росту. Приоритетность развития доступности финансовых услуг в Российской Федерации была определена президентом ещё в 2007 г. и подтвердилась в 2010 г., когда Россия приняла на себя обязательства, задекларированные «Сеульским консенсусом Группы 20 в области развития для обеспечения всеобщего роста», которые касались развития инфраструктуры, роста доступности финансовых услуг. Развитие финансового рынка неразрывно связано с мерами по формированию инфраструктуры предоставления финансовых услуг, повышению финансовой грамотности граждан и предпринимателей, формированию устойчивого платёжеспособного спроса на финансовые услуги, эффективной защиты прав потребителей и т.д. Особое значение в вопросе доступности финансовых услуг занимает механизм её оценки. В статье предлагается методический инструментарий интегральной оценки доступности финансовых услуг. Авторы предлагают рассматривать финансовую доступность как многомерный динамический объект, потенциал которого рассчитывается по комплексу показателей, характеризующих разные компоненты финансовой доступности с учётом особенностей развития финансового рынка страны или региона, в том числе уровня цифровизации региональных финансовых рынков. Авторами представлены результаты проверки гипотезы о наличии взаимосвязи между финансовой доступностью и таким макроэкономическим показателем, как экономический рост. Ключевые слова: финансовая доступность, интегральный показатель, востребованность финансовых услуг, цифровизация финансового рынка, потенциал, компоненты финансовой доступности, потребитель финансовых услуг; физическая доступность, методический инструментарий. A harmonious direction for the development of the financial market is a direction in which financial inclusion contributes to economic growth. The priority of de-veloping the financial services accessibility in the Russian Federation was determined by the President back in 2007 and was confirmed in 2010, when Russia assumed the commitments declared by the "Seoul Consensus of the Group of 20 in the field of development for universal growth", which related to the development of infrastructure and availability of financial services. Development of the financial market is inextricably linked with the measures to form the infrastructure for the provision of financial services, increase in the financial literacy of citizens and entrepreneurs, creation of a stable solvent demand for financial services, effective consumer protection, etc. The mechanism of its assessment is of particular importance in the issue of the availability of financial services. The article proposes a methodological toolkit for the integral assessment of the availability of financial services. The authors suggest considering financial accessibility as a mul-tidimensional dynamic object, the potential of which is calculated by using a set of indicators characterizing different components of financial accessibility, taking into account the peculiarities of development of the financial market in a country or a region, including the level of digitalization of regional financial markets. The authors present the results of testing the hypothesis that there is a relationship between financial affordability and a macroeconomic indicator such as as economic growth. Key words: financial availability, integral indicator, demand for financial services, digitalization of the financial market, potential, components of financial inclusion, consumer of financial services; physical accessibility, methodological tools.

The role of local financial market on economic growth

2016 ◽  
Vol 7 (2) ◽  
pp. 225-240 ◽  
Author(s):  
Rafiu Adewale Aregbeshola
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Financial Markets ◽  
Financial Market ◽  
Social Stress ◽  
Developing Economies ◽  
Market Development ◽  
Content Type ◽  
Financial Market Development

Purpose – Capital market development has been identified as one of the critical underpinnings of economic growth, in the developed but more essentially in the developing economies. Evidence abounds on the virtues of adequately spanned capital markets to provide requisite capital needed to fund investment activities as well as infrastructural developments. Although, foreign capital may be sourced to supplement inadequate local capital base, the associated costs (both logistics and supervisory) are generally daring to consider as convenient alternatives. Various studies have examined the role of local financial market development on economic growth, but none have strictly generated a combined focus on the three major African groupings – the Southern, the Western and the Northern African regions. In addition, there is no documented study that has compared the economic performance of each of these three major economic groupings in Africa. The purpose of this paper is to fill these voids. Design/methodology/approach – Various econometric techniques that include descriptive statistics, unit root tests, dynamic panel estimations and Granger causality tests. Findings – Using data generated from the African development indicators between 1980 and 2012 in contemporary econometric estimations, this study finds that local financial markets play crucial roles in economic development of each of these groupings, albeit in varying magnitude. The study also observes that local financial market plays very little role in the overall economic development of the three groupings when interacted. Research limitations/implications – A limited dataset, which reduces the time span as well as the number of countries covered in the study. A wider coverage may have altered the result generated, especially for the pooled estimation. Practical implications – That African countries should develop local financial markets in order to improve their level of economic growth. Social implications – Low rate of economic development has created a lot of social stress in Africa. Further, the fact that African leaders have largely not been able to grow their national economies in a meaningful and sustainable manner further unnerves skittish entrepreneurial underdevelopment on the continent, thereby exacerbates incidence and prevalence of poverty, and consequent social uprisings on a number of occasions. Originality/value – This study finds that financial market plays an important role on economic growth, whereas the effects are lower in the Southern African region. More specifically, the effects of financial market development on economic growth are stronger in North and West Africa than in Southern African regions. Given that Southern Africa financial market is more developed than the other two regions, this finding buttresses the fact that financial market development is significantly more important as a growth-driver in less developed financial markets than in developed ones.

scholarly journals Financial market development, global financial crisis and economic growth: evidence from developing nations

2016 ◽  
Vol 15 (3) ◽  
pp. 199-214 ◽  
Author(s):  
Rubi Ahmad ◽  
Oyebola Fatima Etudaiye-Muhtar ◽  
Bolaji Tunde Matemilola ◽  
Amin Noordin Bany-Ariffin
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Financial Market ◽  
Global Financial Crisis ◽  
Developing Nations ◽  
Market Development ◽  
Financial Market Development

scholarly journals Finance and Jobs: How Financial Markets and Prudential Regulation Shape Unemployment Dynamics

2019 ◽  
Vol 12 (1) ◽  
pp. 20 ◽  
Author(s):  
Ekkehard Ernst
Keyword(s):  
Labor Market ◽  
Financial Markets ◽  
Financial Market ◽  
Global Financial Crisis ◽  
Financial Sector ◽  
Market Regulation ◽  
Economic Stability ◽  
Financial Market Regulation ◽  
The Global Financial Crisis ◽  
The Impact

This article explores the impact of financial market regulation on jobs. It argues that understanding the impact of finance on labor markets is key to an understanding of the trade-off between economic stability and financial sector growth. The article combines information on labor market flows with indicators of financial market development and reforms to assess the implications of financial markets on employment dynamics directly, using information from the International Labour Organization (ILO) datatabse on unemployment flows. On the basis of a matching model of the labor market, it analyses the economic, institutional, and policy determinants of unemployment in- and out-flows. Against a set of basic controls, we present evidence regarding the relationship between financial sector development and reforms and their impact on unemployment dynamics. Using scenario analysis, the article demonstrates the importance of broad financial sector re-regulation to stabilize unemployment inflows and to promote faster employment growth. In particular, we find that encompassing financial sector regulation, had it been in place prior to the global financial crisis in 2008, would have helped a faster recovery in jobs.

scholarly journals Investments and portfolio structure of private pension and insurance companies in North Macedonia

2020 ◽  
Vol 9 (5) ◽  
pp. 227-234
Author(s):  
Bulent Dervishi
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Supply And Demand ◽  
Active Role ◽  
Pension Funds ◽  
Private Pension ◽  
Insurance Companies

The financial market in general is where supply and demand for funds are met. In other words, funds saved in the financial market are directed to investments in order to contribute to the economy. In the Macedonian financial market, the banking sector is really dominant but also pension funds and insurance funds have an active role. This research will be studied the distribution of pension funds’ portfolios in the North Macedonian financial market. The global financial crisis in 2008 negatively affected the economies and financial markets of many countries, including the USA and Europe, and the effects of the crisis continued until 2013. This negatively affected the confidence in the financial markets, and the current surplus of funds was directed towards low-risk but fixed or low-yield financial instruments. As of 31.12.2018, fund accumulation in private pension funds amounted to 1.04 billion euros, corresponding to approximately 10 percent of GDP. The total premium production of insurance companies is around 157 million euros, while the GDP ratio of premium production is around 1.5 percent. Funds collected in both sectors are generally used in treasury bills, bank deposits, and stocks traded on the Macedonia Stock Exchange and foreign financial markets.

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