The complex and covert web of financial protectionism

2014 ◽  
Vol 16 (4) ◽  
pp. 579-613 ◽  
Author(s):  
Kevin Young
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Government Interventions ◽  
Crisis Type ◽  
The 2008 Financial Crisis ◽  
Using Data ◽  
The Global Financial Crisis ◽  
Type 3

In the wake of the 2008 financial crisis, governments turned to protectionist policies to support their financial sectors. Yet these policy choices have been highly variegated, and like many recent protectionist policies reflect a process of adaptation to changing circumstances. Using data on a variety of government interventions in the financial sector since the crisis, I show that financial protectionism comes in at leastthreetypes, only two of which have witnessed a traceable increase since the global financial crisis. These are protection through market entry restrictions (Type 1), through asymmetrically applied regulation (Type 2) and protection through subsidies (Type 3). While Type 1 has not appeared to change significantly since the crisis, Type 2 and Type 3 have. I present empirical evidence which suggests that while Type 3 financial protectionism proliferated during and shortly after the crisis, it is unlikely to continue. Type 2 financial protectionism, I conclude, is more likely to take off into the future because of the nature of interest group effects associated with asymmetric regulation as a form of government intervention.

scholarly journals Over the Cliff: From the Subprime to the Global Financial Crisis

2011 ◽  
Vol 25 (1) ◽  
pp. 49-70 ◽  
Author(s):  
Frederic S Mishkin
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Financial System ◽  
The United States ◽  
Investment Bank ◽  
Government Interventions ◽  
Troubled Asset Relief Program ◽  
The Government ◽  
The Global Financial Crisis ◽  
Relief Program

The financial crisis of 2007 to 2009 can be divided into two distinct phases. The first and more limited phase from August 2007 to August 2008 stemmed from losses in one relatively small segment of the U.S. financial system—namely, subprime residential mortgages. Despite this disruption to financial markets, real GDP in the United States continued to rise into the second quarter of 2008, and forecasters were predicting only a mild recession. In mid-September 2008, however, the financial crisis entered a far more virulent phase. In rapid succession, the investment bank Lehman Brothers entered bankruptcy on September 15, 2008; the insurance firm AIG collapsed on September 16, 2008; there was a run on the Reserve Primary Fund money market fund on the same day; and the highly publicized struggle to pass the Troubled Asset Relief Program (TARP) began. How did something that appeared in mid-2008 to be a significant but fairly mild financial disruption transform into a full-fledged global financial crisis? What caused this transformation? Did the government responses to the global financial crisis help avoid a worldwide depression? What challenges do these government interventions raise for the world financial system and the economy going forward?

The global financial crisis reveals consolidation and guarantees to be key issues for financial sustainability

2014 ◽  
Vol 26 (1) ◽  
pp. 165-180 ◽  
Author(s):  
Andreas Bergmann
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Accounting Standards ◽  
Financial Sustainability ◽  
Government Interventions ◽  
Key Issues ◽  
The Global Financial Crisis

This paper investigates the accounting and reporting of government interventions during the most recent global financial crisis. It shows that governments do not report all their interventions as required by accounting standards. The incompleteness of information may systematically lead to erroneous decisions and therefore jeopardize financial sustainability. Particularly relevant are shortcomings in the field of consolidation and the presentation of financial guarantees.

scholarly journals Linking Evaluation and Spending Reviews: Challenges and Prospects

2018 ◽  
Vol 32 (3) ◽  
Author(s):  
Jim McDavid ◽  
Astrid Brousselle ◽  
Robert P. Shepherd ◽  
David Zussman
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Government Interventions ◽  
Widespread Adoption ◽  
The Global Financial Crisis

The global financial crisis in 2008 was a significant watershed for governments everywhere. Diminished prospects for growth coupled with continuing demands for government interventions and chronic constraints on resources, prompted in part by the widespread adoption of variants of neo-liberalism (constrain resources to limit spending and shrink governments), have created fiscal environments where rationing expenditures among programs and policies is chronic and even acute.

Corporate Change After the Global Financial Crisis

2020 ◽  
Vol 53 (2) ◽  
pp. 245-271
Author(s):  
Ivo Arnold
Keyword(s):  
Financial Crisis ◽  
Interest Rates ◽  
Business Model ◽  
Global Financial Crisis ◽  
Jel Classification ◽  
Long Run ◽  
Corporate Change ◽  
History Of ◽  
Using Data ◽  
The Global Financial Crisis

Abstract This paper examines the strategic response of the Dutch bank ING to the global financial crisis. Prior to the crisis, ING was a prominent global exponent of direct banking, using the so-called pure play internet (PPI) business model. PPI banking is a hybrid business model that combines features of relationship and transaction banking. Downsides of this business model are that it may lead to overexposure in securities and that it may attract savers that have an above-average sensitivity to interest rates or risk. Using data on the geographical activities of ING, the timeline of relevant events in the history of ING and strategy statements of ING management, we examine how ING has responded to the strategic challenges of the crisis. We conclude that PPI banking should be viewed more as a market penetration strategy than as a full-blown business model that is tenable in the long run. JEL Classification: G01, G21

Financial Crisis and Interest Rate Pass-Through in Australia

2013 ◽  
Vol 16 (04) ◽  
pp. 1350023 ◽  
Author(s):  
Milind Sathye
Keyword(s):  
Interest Rate ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Oecd Country ◽  
Lending Rate ◽  
Pass Through ◽  
Using Data ◽  
The Global Financial Crisis ◽  
The Impact ◽  
The Relationship

The study contributes to the extant literature on interest rate pass-through in two ways. First, we examine the impact of the global financial crisis on the historical relationship between policy rate and the home lending rate. Second, we provide evidence from a hitherto unexplored OECD country (Australia) using data from recent years and provide new insights for advancing the pass-through literature. We found complete or near-complete pass-through in the money market rates and a statistically significant temporary change in the relationship between the policy rate and home lending rate since the onset of the financial crisis.

scholarly journals Dividend Smoothing and Signaling Under the Impact of the Global Financial Crisis: A Comparison of US and Southeast Asian Markets

2016 ◽  
Vol 8 (11) ◽  
pp. 118 ◽  
Author(s):  
Xuan Minh Nguyen ◽  
Quoc Trung Tran
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Southeast Asian ◽  
Good Opportunity ◽  
Crisis Period ◽  
Dividend Payments ◽  
Dividend Smoothing ◽  
Using Data ◽  
The Global Financial Crisis ◽  
The Impact

<p>Under the impact of the global financial crisis, firms experience more external financial constraints and this is a good opportunity to investigate dividend smoothing and signaling behavior. Using data from the US market where the crisis originates and five Southeast Asian markets which are slightly affected by the crisis, we find that US firms pursue dividend smoothing model and they also follow signaling theory by increasing dividends in the post-crisis period to earn good reputation. However, Malaysia, Philippines and Indonesia following dividend smoothing model fail to pay more dividends in the post-crisis period. Thailand and Singapore increase dividend payments in the post-crisis period but they fail to pursue the dividend smoothing model significantly.</p>

The Simple Truth: Ambiguity Works. Discursive Strategies by Swedish Public Authorities During the 2008 Financial Crisis

2017 ◽  
Vol 55 (2) ◽  
pp. 220-236 ◽  
Author(s):  
Catrin Johansson ◽  
Lars Nord
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Public Authorities ◽  
Public And Private ◽  
The Public ◽  
Discursive Strategies ◽  
Private Organizations ◽  
Analytical Point ◽  
The 2008 Financial Crisis ◽  
The Global Financial Crisis

The global financial crisis that broke out in 2008 affected a large number of governmental, public, and private organizations. This article explores communication of public authorities in Sweden during the crisis, and highlights their discursive strategies between 2008 and 2010, analyzing press releases. As an analytical point of departure, complexity theory is combined with theory on strategic ambiguity in order to analyze which communication strategies were employed by the authorities. Results show that the public authorities embraced complexity and ambiguity differently in their communication, and consequences of their different approaches are discussed. The study also confirms that the different roles of significant actors during a crisis influence the selection of possible message strategies.

scholarly journals Economic Strategies of Households during the Period of Recovery Following the Global Financial Crisis

Südosteuropa ◽  
2020 ◽  
Vol 68 (3) ◽  
pp. 323-342
Author(s):  
Marija Babović
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Diverse Range ◽  
Starting Position ◽  
The Social ◽  
Economic Strategies ◽  
Formal Employment ◽  
Economic Position ◽  
The 2008 Financial Crisis ◽  
The Global Financial Crisis

AbstractThe aim of this article is to provide longitudinal insights into the economic strategies that households from differing social strata have adopted as they attempt to adjust to the changing socio-economic environment of the postsocialist transformation. A survey conducted in 2012 showed a significant decline in proactive economic strategies and a strong reliance on pensions and formal employment, occurring as a result of the 2008 financial crisis. The latest data, from a 2018 survey, show that post-crisis recovery has been followed by a renewal of proactive economic strategies, along with a more diverse range of labour strategies, and that households adopting these are achieving a better economic position. As was the case before the financial crisis, the economic position of households has been strongly influenced by the type of strategy they choose. This has greater significance than their starting position in the social strata.

scholarly journals Industry- and liquidity-based momentum in Australian equities

2019 ◽  
Vol 5 (1) ◽  
Author(s):  
Yeng May Tan ◽  
Fan Fah Cheng
Keyword(s):  
Financial Crisis ◽  
Strong Evidence ◽  
Predictive Power ◽  
Global Financial Crisis ◽  
Momentum Strategies ◽  
Industry Level ◽  
Using Data ◽  
The Global Financial Crisis ◽  
Determining Factor

AbstractThis study examined momentum profitability in Australia, providing further evidence for intermediate-term momentum profitability. Using data spanning different market states, we found that momentum was stronger after the global financial crisis. We also examined industry-level momentum strategies and found strong evidence for industry momentum. Specifically, industries that perform well relative to other industries continue to outperform others while those that underperform continue to perform poorly. This finding suggests the exploitability of return continuation and profit-making opportunities for traders at the industry level. Regarding liquidity, we found that it has no clear predictive power for momentum returns. Hence, our results do not appear to support the conjecture that liquidity can be a determining factor for momentum profitability in Australia.

scholarly journals DID THE CRISIS STRENGTHEN BANK COMPETITION IN INDONESIA?: MARKET STRUCTURE ANALYSIS PRE AND POST THE 2008 FINANCIAL CRISIS

2020 ◽  
Vol 5 (2) ◽  
pp. 147
Author(s):  
Khoirunurrofik Khoirunurrofik ◽  
Mohammad Alvin Prabowosunu ◽  
Mohammad Ikhsan Fansuri
Keyword(s):  
Financial Crisis ◽  
Interest Rates ◽  
Market Structure ◽  
Global Financial Crisis ◽  
Substantial Part ◽  
Banking Competition ◽  
Market Structure Analysis ◽  
Before And After ◽  
The 2008 Financial Crisis ◽  
The Global Financial Crisis

The banking industry has become a substantial part of the economy. This paper traces the change in market structure and assess the level of competition among the top 10 banks of Indonesia for the period 2005-2014. Then also distinguishing between before and after the Global Financial Crisis. Utilizing the Panzar-Rosse method and panel data, we discovered that the results show an increase in the H-value from 2005-2009 to 2010-2014 and a movement towards an almost perfectly competitive environment. Interest rates drove the short response of post-crisis on the competition. Therefore governmental supervision is required to prevent liquidity issues due to the imposition of high-interest rates. Keywords: Banking, Competition, Global Financial Crisis, Panzar-Rosse ModelJEL Classification: D40, D41, G21, L11

Sign in / Sign up

Export Citation Format

Share Document