The Financial Crisis and the EU Response B. Supporting the Financial System and Sovereigns Under Financial Stress

2014 ◽  
Author(s):  
Javier Villar Burke
Keyword(s):  
Financial Crisis ◽  
Financial System ◽  
Financial Stress ◽  
The Eu

scholarly journals How Well Does the Cleveland Fed’s Systemic Risk Indicator Predict Stress?

2020 ◽  
pp. 1-6
Author(s):  
Ben R. Craig
Keyword(s):  
Financial Crisis ◽  
Systemic Risk ◽  
Financial System ◽  
Financial Stress ◽  
Risk Indicator ◽  
Corrective Response

A number of financial stress measures were developed after the financial crisis of 2007–2009 in the hope that they could provide regulators with advance warning of conditions that might warrant a corrective response. The Cleveland Fed’s systemic risk indicator is one such measure. This Commentary provides a review of the SRI’s performance from 2001 to 2020 and finds that it has performed well, providing a reliable, valid, and timely signal of elevated levels of financial system stress.

Krise überwunden – Folgeschäden bleiben

2011 ◽  
Vol 55 (1-2) ◽  
Author(s):  
Rüdiger Pohl
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
World Economy ◽  
Financial System ◽  
Market Signals ◽  
Output Losses ◽  
European Stability Mechanism ◽  
The Government ◽  
Bail Out ◽  
The Eu

Financial crisis bettered - consequential damage remains. Reflections on the financial crisis. Among the characteristics of the financial system the most unfavorable is its inherent instability. As Keynes pointed out, this instability emerges from inevitable uncertainty in financial markets. Although a much more pronounced one than the crises before the financial crisis of 2007 was a consequence of this instability. In case of a crisis the government may prevent the financial system from collapsing, as could be seen in the aftermath of 2007. However, there is no chance for an ex ante avoidance of financial crises. Even stricter regulation, which makes sense in order to strengthen the resilience of financial institutions against shocks, may only reduce but not eliminate the probability of crises. Despite its instability the financial system contributes significantly to the dynamic trend growth of the world economy. The direct costs of the 2007 crisis in terms of output losses could turn out to be relatively small on the global level. The paradigm shift in the EU regarding government debt should cause more concern. The non-bail-out-paradigm is undermined by the new European Stability Mechanism (ESM). The ESM delivers financial assistance to over-indebted member states. By this market signals will be suppressed and incentives for a debt reduction will be weakened - bad news for the Euro.

scholarly journals Integration of the Financial Market EU after the Financial Crisis

2018 ◽  
Vol 27 (5) ◽  
pp. 67-78
Author(s):  
Anna Krawczyk-Sawicka
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Financial Market ◽  
Financial System ◽  
Eu Countries ◽  
Eu Integration ◽  
The World ◽  
The Creation ◽  
The Moment ◽  
The Eu

The EU integration and the creation of the so-called European single financial market requires creation of institutional solutions corresponding to the integrated structure. At the moment, we are dealing with globalisation of financial markets, and thus with a growth in their integration. However, full integration of the financial system, or the lack thereof, will be only achieved when European states overcome the still lasting financial crisis and its effects in the form of recession in most EU countries. The purpose of this article is to present the situation concerning the integration of financial markets, as illustrated with the example of countries belonging to the EU, with emphasis on the situation on the Polish financial market after the deepest and the most severe financial crisis for the world economies, namely after 2008–2009 as compared with the period preceding the financial crisis.

Financial Supervisory and Regulatory Reform of the EU after the Global Financial Crisis

2013 ◽  
Author(s):  
Yoo-Duk Kang ◽  
Kyuntae Kim ◽  
Tae Hyun Oh ◽  
Cheol-Won Lee ◽  
Hyun Jean Lee ◽  
...  
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Regulatory Reform ◽  
The Global Financial Crisis ◽  
The Eu

Return Characteristics of Commodities

2018 ◽  
Author(s):  
Dianna Preece
Keyword(s):  
Financial Crisis ◽  
Negative Correlation ◽  
Institutional Investors ◽  
Financial Stress ◽  
Commodity Futures ◽  
Futures Contracts ◽  
The Subject ◽  
Diversified Portfolio

The role of commodities in a diversified portfolio has been the subject of research and debate since the late 1970s. Investors can hold the physical commodity or use derivatives such as futures contracts to access commodity exposure. Institutional investors primarily gain exposure to commodities via futures contracts. Commodity futures returns are comprised of a collateral return, a spot return, and a roll return. Research dating back to the late 1970s suggests that commodities should be included in diversified portfolios because they act as an inflation hedge, are portfolio diversifiers due to negative correlation with stocks and bonds, and potentially offer returns and volatility comparable to equities. Commodity performance has been generally weak in the years following the financial crisis of 2007–2008. Many studies find that correlation of commodity returns with stocks and bonds increases during periods of financial stress.

After the 2008 Financial Crash

2017 ◽  
Author(s):  
Christopher Hood ◽  
Rozana Himaz
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
The Other ◽  
Political Debate ◽  
Deficit Reduction ◽  
The Eu

This chapter describes the long 2010–15 fiscal squeeze under the first Conservative–Liberal coalition since the early 1920s, in the aftermath of the 2008 global financial crisis and with debt and deficit at levels not seen for four decades or more. It included sharp political debate over timing, depth, and tax/spending balance of fiscal squeeze, with most of the coalition squeeze based on its Labour predecessor’s plans, and the deficit reduction outcome roughly the same as those Labour plans, principally because of shortfall on the revenue side. This episode was marked by a repeat of ‘bear trap’ tactics by the incumbents, and the post-squeeze 2015 election rewarded one party in the coalition, while the other party was heavily punished and so was the Labour Opposition. How far the victory of ‘Vote Leave’ (Brexit) in the 2016 referendum on UK membership of the EU can be attributed to fiscal squeeze is debatable.

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