scholarly journals Systemically important financial institutions in Latin America - a Primer

2016 ◽  
Vol 36 (2) ◽  
pp. 410-429
Author(s):  
JACOB KLEINOW ◽  
MARIO GARCIA MOLINA ◽  
ANDREAS HORSCH
Keyword(s):  
Latin America ◽  
Latin American ◽  
Financial Institutions ◽  
Global Financial Crisis ◽  
State Of The Art ◽  
Risk Exposure ◽  
Historical Experience ◽  
Systemic Risks ◽  
Depth Analysis ◽  
The Global Financial Crisis

ABSTRACT Financial institutions show a characteristic risk exposure and vulnerability, making them prone to instability. Financial systems in Latin America, however, were left largely unscathed by the global financial crisis starting in 2008. This state-of-the-art survey provides an in-depth analysis on the identification and regulation of systemically important financial institutions (SIFIs). While Latin America benefits from its rich historical experience in managing systemic risks, we find the problem of SIFIs to be still underestimated. However, there are first efforts to cope with SIFIs in science and particularly Latin American supervisors and regulators are starting to take the threat posed by SIFIs seriously.

China's Belt and Road Initiative in Latin America: What has Changed?

2021 ◽  
pp. 186810262110478
Author(s):  
Rhys Jenkins
Keyword(s):  
Latin America ◽  
Latin American ◽  
Global Financial Crisis ◽  
Belt And Road Initiative ◽  
Economic Relations ◽  
Policy Statements ◽  
Belt And Road ◽  
The Global Financial Crisis ◽  
Latin American Countries ◽  
The Belt And Road

When China invited the Latin American countries to participate in the Belt and Road Initiative, it fuelled expectations of a much closer and more productive relationship with the region. In practice, however, there is little evidence that this was happening even before the coronavirus disease 2019 pandemic. The article shows that neither the policy statements by China nor the trends in economic relations indicate a substantive change in Sino–Latin American relations and that the Belt and Road Initiative represents a repackaging of existing relations and the continuation of trends that have been underway since the global financial crisis.

The return of Keynes and the Phillips curve in Latin America: evidence from four countries

2020 ◽  
Vol 8 (1) ◽  
pp. 84-101
Author(s):  
Esteban Pérez Caldentey ◽  
Nathan Perry ◽  
Matías Vernengo
Keyword(s):  
Latin America ◽  
Latin American ◽  
Phillips Curve ◽  
Global Financial Crisis ◽  
Theoretical Level ◽  
Unemployment Rates ◽  
Keynesian Economics ◽  
Demand Pull ◽  
Wage Inflation ◽  
The Global Financial Crisis

Robert Rowthorn, in his Godley–Tobin Lecture, suggests that Keynesian policies have again been incorporated by the mainstream of the profession, and the old Phillips relation is again relevant. In other words, there seems to be a persistent trade-off between inflation, wage inflation in particular, and unemployment rates, properly measured, which would create the space for Keynesian policies. This paper discusses the return of Keynesian economics, in particular in Latin American economies. While it is true that Keynesian economics made a comeback in terms of policy in Latin America, as in other parts of the world, in the aftermath of the global financial crisis of 2008–2009, it is also true that the Keynesian moment was relatively weak and short-lived. The evidence in Latin America for a Phillips curve is relatively weak, and suggests that inflation is often cost-push rather than demand-pull, which could be understood to suggest that there is space for expansionary fiscal policy, at least in the absence of an external constraint. The authors remain skeptical about the return of Keynesian economics at the theoretical level, and the possibilities for Keynesian policies in the region.

scholarly journals CHANGES IN THE CHINESE DEVELOPMENT STRATEGY AFTER THE GLOBAL CRISIS AND ITS IMPACTS IN LATIN AMERICA

2018 ◽  
Vol 22 (1) ◽  
Author(s):  
Celio Hiratuka
Keyword(s):  
Latin America ◽  
Development Strategy ◽  
Latin American ◽  
Global Financial Crisis ◽  
Trade Flows ◽  
First Century ◽  
Economic Relations ◽  
New Challenges ◽  
The Global Financial Crisis ◽  
Latin American Countries

ABSTRACT This paper aims to analyze the recent changes in economic relations between Latin American countries and China in the context of the transformations occurred in the latter’s development strategy after the global financial crisis. The text argues that, in relation to the first decade of the twenty-first century, connections linked to FDI, financing flows, and infrastructure projects have been growing in importance and present new challenges to Latin America, which surpass the ones based only on trade flows.

MiFID II compliance – are we ready?

2015 ◽  
Vol 23 (2) ◽  
pp. 196-206 ◽  
Author(s):  
Lukasz Prorokowski
Keyword(s):  
European Union ◽  
Financial Institutions ◽  
Financial Services ◽  
Global Financial Crisis ◽  
Content Type ◽  
Depth Analysis ◽  
Compliance Officers ◽  
Nascent Markets ◽  
The Global Financial Crisis ◽  
The Impact

Purpose – This paper aims to discuss the impact of nascent Markets in Financial Instruments Directive (MiFID II) initiatives and, thus, to deliver practical insights into MiFID II implementation, compliance and cost reduction MiFID II constitutes the backbone for the upcoming financial market reforms. With the first proposal of MiFID drafted in October 2011, this regulatory framework has undergone over 2,000 amendments. As MiFID II currently stands, this Directive attempts to address issues exposed by the global financial crisis. Design/methodology/approach – This study, based on secondary research and an in-depth analysis of the MiFID II framework, investigates structural and technological challenges entailed by this Directive. The analysis is broken down into the following sections: technological and structural challenges; costs of implementation; MiFID II teams; facilitating near real-time regulatory reporting; increased transparency requirements; and information technology (IT) initiatives for MiFID II compliance. Findings – MiFID II commands significant changes in business and operating models. With this in mind, the study indicates current technological and structural challenges faced by financial institutions and advises on ways of mitigating MiFID II risks. Although it is too early to assess the costs of implementing MiFID II, this paper suggests ways of reducing MiFID II-related costs. The study also advises on organising dedicated teams to deal with MiFID II. Furthermore, this paper argues that early investments in IT systems and processes would allow financial services firms to gain a competitive advantage and, hence, scoop up market share or launch new, lucrative services – especially in the area of collateralisation and market data processing. Originality/value – This paper shows that the current version of MiFID II still requires a great deal of attention from the regulators that need to readdress contentious issues revolving around the links between MiFID II and other regulatory frameworks such as European Market Infrastructure Regulation and Dodd–Frank. This study addresses the MiFID II compliance issues by adopting European Union and non-European Union banks’ and asset managers’ perspectives and, hence, delivers practical implications for risk managers and compliance officers of various financial institutions.

Financial Integration in Latin America

Policy Papers ◽  
2016 ◽  
Vol 23 (2016) ◽  
Author(s):  
Keyword(s):  
Latin America ◽  
Latin American ◽  
Financial Integration ◽  
Global Financial Crisis ◽  
Access To Credit ◽  
Advanced Economies ◽  
Economic Volatility ◽  
The Global Financial Crisis ◽  
Global Banks ◽  
China’S Growth

Many Latin American economies have experienced significant reductions in growth recently, as a result of the end of the commodity super-cycle and the rebalancing of China’s growth, and a number of global banks have been leaving the region. AlthoughLatin American countries were generally less affected by the global financial crisis (GFC) than other regions, the region continues also to suffer from the protracted sluggish growth in advanced economies. In addition, there has since 2008 been a withdrawal of global banks from the region, thus potentially worsening access to credit or reducing competition in the financial sector. More broadly, the GFC demonstrated that extreme economic volatility can originate from outside the region, rather than internally, as was the experience of the 1980s and 1990s...

Financial Sustainability and Infrastructure Finance

2018 ◽  
Author(s):  
Felipe Carvalho de Rezende
Keyword(s):  
Financial Institutions ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Financial Sustainability ◽  
Infrastructure Finance ◽  
Strategic Role ◽  
Development Banks ◽  
The Global Financial Crisis ◽  
Capital Development

Among the lessons that can be drawn from the global financial crisis is that private financial institutions have failed to promote the capital development of the affected economies, and to dampen financial fragility. This chapter analyses the macroeconomic role that development banks can play in this context, not only providing long-term funding necessary to promote economic development, but also fostering financial stability. The chapter discusses, in particular, the need for public financial institutions to provide support for infrastructure and sustainable development projects. It concludes that development banks play a strategic role by funding infrastructure projects in particular, and outlines the lessons for enhancing their role as catalysts for mitigating risks associated with such projects.

scholarly journals Understanding Financial Instability: Minsky Versus the Austrians

2016 ◽  
Vol 22 (1) ◽  
Author(s):  
Ludwig Van Den Hauwe
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Critical Evaluation ◽  
Central Planning ◽  
Financial Instability ◽  
Conceptual Level ◽  
Theoretical Frameworks ◽  
Historical Experience ◽  
The Global Financial Crisis ◽  
Cross Fertilization

AbstractAlthough Minsky’s interpretation of Keynes’s macroeconomics and essential message clashes with authoritative alternative interpretations, it has become increasingly influential during the years following the Global Financial Crisis, even in mainstream circles. This paper offers a critical evaluation of Minsky’s Financial Instability Hypothesis from the perspective of the alternative Austro-Wicksellian paradigm. Although some of the similarities and/or analogies between Minsky’s approach and that of the Austrian School suggest a more than merely superficial affinity between the two theoretical frameworks and although some scope for cross-fertilization between both approaches can be found, both theoretically and empirically, at a fundamental conceptual level both theories remain incompatible and difficult if not impossible to reconcile, in particular in terms of fundamental causality and in terms of policy conclusions and prescriptions. Despite the fact that Minsky’s policy conclusions are multifaceted and somewhat eclectic, they manifest a lack of familiarity with the conclusions of the Austrian analysis of the problems of central planning by Big Players such as Big Bank and Big Government. Both approaches also offer contrasting interpretations of the historical experience of the Global Financial Crisis.

A Discussion of Aida H. Hozic and Jacqui True’s Scandalous Economics: Gender and the Politics of Financial Crises

2017 ◽  
Vol 15 (2) ◽  
pp. 503-504
Author(s):  
Dara Z. Strolovitch
Keyword(s):  
Political Economy ◽  
Financial Crisis ◽  
Financial Institutions ◽  
Financial Crises ◽  
Global Financial Crisis ◽  
Economic Order ◽  
Macroeconomic Models ◽  
Gender And Race ◽  
Back Cover ◽  
The Global Financial Crisis

“Critical analyses of the global financial crisis of 2008 (GFC) have neglected the ways in which structural inequalities around gender and race factor into (and indeed make possible) the current economic order. Scandalous Economics breaks new ground by arguing that an explicitly gendered approach to the GFC and its ongoing effects can help us to understand both the root causes of the crisis and the failure to significantly reform financial institutions and macroeconomic models.” These words, from the blurb on the back cover of Scandalous Economics, nicely summarize the book’s topic and the general approach to it. Because the book contains contributions from a number of the top political scientists writing about the gendering of political economy, and because this topic is such an important one, we have invited a range of political scientists to comment on the book and on the broader theme of the gendering of political economy.

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