The Impact of the Epidemic on China's Real Economy

2021 ◽  
Author(s):  
Ke Xu
Keyword(s):  
Real Economy ◽  
The Impact

scholarly journals Russia’s banking sector during the pandemic

2022 ◽  
pp. 157-163
Author(s):  
E. N. Gavrilova
Keyword(s):  
Systematic Approach ◽  
Banking Sector ◽  
Banking System ◽  
Policy Instruments ◽  
Graphical Methods ◽  
Real Economy ◽  
Good Test ◽  
Russian Economy ◽  
Monetary Authorities ◽  
The Impact

Quarantine and self-isolation have become a new challenge for the Russian economy, changed many areas of our life, revealed new weaknesses in the banking system and monetary regulation of the economy, and also become a good test for the post-crisis financial system. In this article using a systematic approach to the study of information, analytical and graphical methods the dynamics of the Russian banking sector during the development of the coronavirus pandemic and the specifics of recovery from the crisis have been investigated. The innovations and improvements brought about by the pandemic have been studied. The Central Bank of Russia’s monetary policy instruments used to mitigate the impact of the pandemic on the real economy in general and on the banking sector in particular have been reviewed. The features of anti-crisis measures taken by the monetary authorities in our country have been revealed. 

scholarly journals Prone to Fail: The Pre-Crisis Financial System

2019 ◽  
Vol 33 (1) ◽  
pp. 81-106 ◽  
Author(s):  
Darrell Duffie
Keyword(s):  
Housing Market ◽  
Financial Stability ◽  
Financial System ◽  
Market Discipline ◽  
Real Economy ◽  
Balance Sheets ◽  
The Core ◽  
Better Regulation ◽  
Weakly Supervised ◽  
The Impact

The financial crisis that began in 2007 was triggered by over-leveraged homeowners and a severe downturn in US housing markets. However, a reasonably well-supervised financial system would have been much more resilient to this and other types of severe shocks. Instead, the core of the financial system became a key channel of propagation and magnification of losses suffered in the housing market. Critical financial intermediaries failed, or were bailed out, or dramatically reduced their provision of liquidity and credit to the economy. In short, the core financial system ceased to perform its intended functions for the real economy at a reasonable level of effectiveness. As a result, the impact of the housing-market shock on the rest of the economy was much larger than necessary. In this essay, I will review the key sources of fragility in the core financial system. I discuss the weakly supervised balance sheets of the largest banks and investment banks; the run-prone designs and weak regulation of the markets for securities financing and over-the-counter derivatives; the undue reliance of regulators on “market discipline; and the interplay of too-big-to-fail and the failure of market discipline. Finally, I point to some significant positive strides that have been made since the crisis: improvements in the capitalization of the largest financial institutions, a reduction of unsafe practices and infrastructure in the markets for securities financing and derivatives, and a significantly reduced presumption that the largest financial firms will be bailed out by taxpayer money in the future. But I will also mention some remaining challenges to financial stability that could be addressed with better regulation and market infrastructure.

scholarly journals Household Debt Revaluation and the Real Economy: Evidence from a Foreign Currency Debt Crisis

2020 ◽  
Vol 110 (9) ◽  
pp. 2667-2702 ◽  
Author(s):  
Emil Verner ◽  
Győző Gyöngyösi
Keyword(s):  
Foreign Currency ◽  
Debt Crisis ◽  
Spillover Effects ◽  
Household Debt ◽  
Sudden Increase ◽  
Real Economy ◽  
Balance Sheets ◽  
Default Rates ◽  
Foreign Currency Debt ◽  
The Impact

We examine the consequences of a sudden increase in household debt burdens by exploiting variation in exposure to household foreign currency debt during Hungary’s late-2008 currency crisis. The revaluation of debt burdens causes higher default rates and a collapse in spending. These responses lead to a worse local recession, driven by a decline in local demand, and negative spillover effects on nearby borrowers without foreign currency debt. The estimates translate into an output multiplier on higher debt service of 1.67. The impact of debt revaluation is particularly severe when foreign currency debt is concentrated on household, rather than firm, balance sheets. (JEL E21, E32, F34, G51)

Bank Cleanups, Capitalization, and Lending: Evidence from India

2020 ◽  
Author(s):  
Yakshup Chopra ◽  
Krishnamurthy Subramanian ◽  
Prasanna L Tantri
Keyword(s):  
Information Asymmetry ◽  
Risk Shifting ◽  
Real Economy ◽  
Economic Stability ◽  
The Real ◽  
Quality Review ◽  
Shadow Banks ◽  
Zombie Lending ◽  
Asset Quality ◽  
The Impact

Abstract We examine the Indian bank asset quality review, which doubled the declared loan delinquency rate. Relative economic stability during the exercise and the absence of a capital backstop together make it unique. We find that the expected reduction in information asymmetry does not automatically lead to the recapitalization of banks by markets. The consequent undercapitalization leads to underinvestment and risk-shifting through zombie lending. The impact flows to the real economy through borrowers, including shadow banks, and adversely impacts growth. These findings show that bank cleanup exercises not accompanied by policies aimed at recapitalization may be insufficient even during normal times.

scholarly journals Tawhid and Shariah Economics: Positioning Tauhid as Philosophical Foundation of Shariah Economics

2019 ◽  
Vol 4 (2) ◽  
pp. 145
Author(s):  
Nurul Hilmiyah ◽  
Bayu Taufiq Possumah ◽  
Muhammad Hakimi Mohd Shafiai
Keyword(s):  
Economic System ◽  
Human Life ◽  
Economic Science ◽  
Real Economy ◽  
Human Beings ◽  
General Equilibrium Theory ◽  
Mainstream Economic ◽  
Mainstream Economics ◽  
Islamic Economic ◽  
The Impact

Purposes: In the social sciences, economics is one of the most influential and prestigious disciplines. Mainstream economics typically view economic agent as amoral, entirely self-interested, unrealistic and has damaging effects. In the last few decades, while remaining a powerful discipline, economics has narrowed in scope. Consequently, to reinvigorate economics, especially in times of crisis or major institutional change, mainstream economics has almost lost a key reserve of alternative thinking. This study intends to investigate the contemporary mainstream economic system, does Islamic Economics taking advantage of the shortfall of the system outlined above based on Tawhidical approach?Design/Methodology/Approach: This paper using the descriptive qualitative method Findings: Modern economics is normative bias; does not explain actual economies but describes a "utopia" in which Pareto optimality applies. The excessive unrealistic assumption is the impact of the inconsistency of modern economic theory. The important aspects of human behavior ignored by this assumption as the theory of economic man. In addition, the general equilibrium theory of neoclassical is not compatible with an economy that develops over time. It relies too much on complex mathematical models without sufficient attention to whether this really illustrates the real economy and ignores the complexity of nature and human creativity. At the contrary, Islam cause to be present the Tawhidic based economics approaches can be focused towards seeing wholes of economics, rather than parts; seeing economics activities as worship, rather than competition; cultivating the solidarity (charity), rather than individualism and creating the justice, rather than injustice. Thus this paper designed to provide the concept of Islamic economic system with Tawhid as the basis, to fit the philosophy of economic science and reality of human life. The paper shows the position of Tawhid in the system and theory of economy.  It becomes a must to do to create prosperity and benefit for all mankind, with the aim to realign and comparing to the mainstream economic system and their theory.Originality/Value: This paper proposes the position of Tawhidic based economics approach in setting the economic system. The position of this foundation offers basic guidelines for the justice and fairly system, which is benefited to all human beings regardless of religions, races, and castes, and furthermore to the sustainable economic development and welfare for the ummah.

scholarly journals DEPOSIT AND FINANCING INSTRUMENTS THROUGH WAQF BANK FOR FOSTERING REAL ECONOMY AND SOCIAL SUSTAINABILITY

2019 ◽  
Vol 4 (2) ◽  
pp. 611
Author(s):  
Muhammad Ridhwan Ab. Aziz ◽  
Mohd Asyraf Yusof
Keyword(s):  
Economic Development ◽  
Risk Sharing ◽  
Global Financial Crisis ◽  
Government Expenditure ◽  
Social Sustainability ◽  
Islamic Finance ◽  
Real Economy ◽  
Financial Products ◽  
Muslim Countries ◽  
The Impact

During the global financial crisis and its aftermath, Islamic financial institutions were less affected, protected by their fundamental operating principles of risk sharing and the avoidance of leverage and speculative financial products. This has led to a greater appreciation of the role of Islamic finance in supporting economic growth across the globe. The contribution of Islamic finance and Islamic social finance especially through waqf sector promotes real economic development and could help to foster real economy and social sustainability.� The impact and contribution of waqf for economic development in fostering real economy and social sustainability can be obverved in many areas such as enhancing economic progress, eradicating proverty, restoring distribution of income, reducing government expenditure, preventing deficit financing and stimulate growth and job creation. Therefore, a new mechanism is needed to support non-bankable and poor customers for financing facilities via Shariah compliant Islamic financial products and services.The purpose of this paper is to examine the most feasible mechanism for deposit and financing instruments based on waqf through Waqf Bank that able to foster and stimulate economic and social sustainability in the real economy sector especially for Muslim countries. The methodology of research in this study is through qualitative research based on interviews with Muslim scholars as well as Islamic banking and waqf practitioners. The finding of this study shows that there is feasible mechanism and modus operandi for the development of deposit and financing instruments in the Waqf Bank that able to be applied in many Muslim countries worldwide.

scholarly journals Economic Security of Entrepreneurial Structures in the Minds of Digitalization

2020 ◽  
pp. 263-272
Author(s):  
Yurii Malakhovskyi ◽  
◽  
Oleh Onofriichuk ◽  
Olena Kulishova ◽  
◽  
...  
Keyword(s):  
Positive Impact ◽  
Economic Security ◽  
Real Economy ◽  
The Real ◽  
Use Of Resources ◽  
Efqm Model ◽  
Number Of Factors ◽  
Security Indicators ◽  
High Level ◽  
The Impact

The purpose of this publication is to study the system of economic security parameters and improve the process of using RADAR logic as an element of assessing the information security of the enterprise. The importance of the concept of economic security of enterprises (EBP) is that scientists recognize it as an important factor in national security, since the real economy is an environment of planning, organization and the best use of resources. Four main factors of EBP are considered: a) planning; b) monitoring of the external and internal environment; (b) identifying and implementing threat response measures; d) control and improvement of the system. Taking into account the turbulence of the external environment, the impact on the formation of parameters of the EBP of macro-, meso- and microeconomic level factors is investigated. It is proposed to lay the methodology based on the model of the European Quality Management Fund (EFQM) as the basis for the formation of the EBP culture. Its goal is to achieve a high level of business excellence, the direction is to promote the processes of coordination of business and security goals, coordination of efforts to achieve sustainable security indicators, the formation of market knowledge and best practices for their exchange. The prospects for practical use of the EFQM model, the components of which are: basic concepts of perfection are carefully studied; criteria; RADAR logic. The conclusion about the feasibility of implementing the RADAR system is substantiated. Full and comprehensive implementation of the system can have a positive impact on the level of short-term liquidity of the company's assets, its long-term solvency, the formation of the desired level of profitability for shareholders, and generate positive external effects for society and the environment. The complexity of ensuring the EBP is explained by the variety of manifestations and relationships of interactive elements among the internal components of enterprises and the unpredictability of the manifestation of external factors. A logical conclusion is drawn about the importance of the EBP concept, its ability to include a significant number of factors in the sphere of management influence. The direct consequences of using the EBP concept are the comprehensive provision of both its own economic security and the fundamental principles of its organization, the safety of the activities of individuals, the ability to take into account numerous factors in the formation of the actual level of regional, national and international economic security of the state. The strategic directions of further research are outlined: study, schematization, numerical formalization of system-structural relations of components and threats to economic security of enterprises, the real sector and the national economy as a whole.

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