scholarly journals Impact of the covid-19 crisis on global financial imbalances

2020 ◽  
Vol 3 (2) ◽  
pp. 42-52
Author(s):  
Valentina Fetiniuc ◽  
Ivan Luchian
Keyword(s):  
Financial Crisis ◽  
Economic Crisis ◽  
Global Economy ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Negative Consequences ◽  
Market Values ◽  
International Financial Crises ◽  
Transnational Companies ◽  
Remedial Actions

Abstract Following the synthesis of theories related to the mechanisms of international financial crises, authors Kovalev and Paseko developed the Model of global imbalance synergy, which substantiates the idea of generating economic and financial crisis situations globally by manifesting the chain of different imbalances. The model starts from global monetary and demographic imbalances, which determine the imbalances between real and financial sector of global economy, as well as real and market values of transnational companies. Together they all lead to imbalances in the distribution of global wealth in industrially developed and developing countries, as well as imbalance between consumption and income in industrially developed countries. Studies in this area have demonstrated the viability and usefulness of this model. The current situation tends to make some clarifications in this model. First of all, it is about the onset of a pro-cyclical economic crisis in 2018, against the background of which in 2020 an economic crisis of a pandemic nature began. Secondly, the latter tends to exacerbate global imbalances, which may ultimately trigger a global financial crisis. The situation is exacerbated by global trade conflicts with negative consequences, continued currency clashes and inflated financial bubbles. This situation requires urgent remedial actions at the global level.

scholarly journals Assumptions of the Global Economic Crisis and Its Inception in the Spring of 2020 Due to the COVID-19 Pandemic

2020 ◽  
Vol 15 (2) ◽  
pp. 191-212
Author(s):  
Alexey Portanskiy ◽  
◽  
Yulia Sudakova ◽  
Alexander Larionov ◽  
◽  
...  
Keyword(s):  
Financial Crisis ◽  
Economic Crisis ◽  
International Organizations ◽  
Global Economy ◽  
World Economy ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
International System ◽  
The World ◽  
Global Economic Crisis

Analytical agencies, as well as international organizations, have identified significant threats to the development of the world economy, increasing the likelihood of a new global financial crisis in late 2020–early 2021. The main challenges to the system come from trade wars that could lead to a crisis in the international system of trade regulation, a decrease in the effectiveness of public policy instruments, and a deterioration in the dynamics of global economic growth. An important factor leading to a slowdown in the global economy in 2020 will also be the coronavirus pandemic, although it is difficult, in the first half of 2020, to assess its final impact. The combination of these negative factors, coupled with the unresolved problems of the 2008 global financial crisis, significantly increases the likelihood of a new global economic crisis which could surpass the Great Depression of the 1930s. This study systematizes the main forecasts by international organizations and analytical agencies for the growth of the world economy and considers various theoretical concepts to identify the symptoms of the impending crisis. Ultimately, this article offers options for reducing the negative impact of the crisis on Russia. In connection with the coronavirus pandemic, preliminary estimates have been made of the likely damage to the world economy and the prospects for its recovery.

scholarly journals Causes, Effects And Prevention of Global Financial Crisis In Viewpoint of Islam

2021 ◽  
Author(s):  
Gul Ghutai ◽  
Sanaullah Ansari
Keyword(s):  
Interest Rate ◽  
Financial Crisis ◽  
Economic Crisis ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Easy Access ◽  
Interest Rate Policy ◽  
Access To Credit ◽  
Rate Policy ◽  
Main Component

Abstract Global financial crisis is not a new phenomenon. The world has witnessed financial crisis since many centuries. The repetition of global financial crisis reveals that global financial setup is not stable thus, prone to frequent financial crisis. However, zero interest rate policy has been launched by developed countries in order to offset the effects of global financial crisis but to date the issue of financial and monetary instability has not been overcome. Interest rate as the main component of financial setup has adversely affected the permanent solution to global financial crisis. The study is undertaken to analyze the effect of interest rate (riba) in propagation of global financial crisis and to analyze the alternate financial mechanism to prevent global financial and economic crisis on permanent basis. However, the qualitative research methodology is pursued to build a conceptual framework by applying inductive paradigm to address the issue of understanding the rationale behind the prohibition of interest based financial paradigm particularly in regard to Islamic perspective. The expected outcome suggests that man-made laws in order to subside divine laws in financial paradigm have given rise to financial, ethical and economic crisis. Global financial crisis is the outcome of easy access to credit, abundance of loans upon interest, speculation, greed as well as corruptive motives to exploit each other.

scholarly journals The Financial Crisis in the 2000s: Further Effects Regarding Lending, Regulation and Efficiency

2021 ◽  
Vol 15 (2) ◽  
pp. 155-175
Author(s):  
Benedikt FRANK
Keyword(s):  
Financial Crisis ◽  
Economic Crisis ◽  
Global Economy ◽  
Best Practice ◽  
Global Financial Crisis ◽  
Central Element ◽  
Bank Profitability ◽  
Global Economic Crisis ◽  
Underlying Causes ◽  
The Global Financial Crisis

The global financial crisis starting in 2007 was a central element of the new millennium and had a major impact on the global economy. This paper deals with the underlying causes and fundamental conditions as well as research and insights on the financial crisis in the area of liabilities and future lending, effects of regulations and bank resilience, as well as the changes in the banking industry in relation to the determinants of profitability. With three hypotheses developed on the basis of existing literature, that is critically evaluated and appraised, the paper aims to explore the global economic crisis from perspectives and origins beyond the often analysed triggers. The focus is on the pivotal point of the economic crisis: the banks and their international interconnectedness regarding lending, durability, and efficiency. Among other things, the findings revealed that the effect of the external funding shock on banks' domestic lending is significant, strong regulation, characterized as one-size-fits-all international best practice, is not always the blueprint for bank resilience and that efficiency has been a determining factor in bank profitability. Furthermore, no paradigm shift took place after the global economic crisis, and banks still seem to have to be rescued by the state in the event of bankruptcy due to their size.

Global Financial Crisis and Its Impact on Russia

2009 ◽  
pp. 9-27 ◽  
Author(s):  
A. Kudrin
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Central Bank ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Real Economy ◽  
Energy Prices ◽  
Russian Government ◽  
The Real

The article examines the causes of origin and manifestation of the current global financial crisis and the policies adopted in developed countries in 2007—2008 to deal with it. It considers the effects of the financial crisis on Russia’s economy and monetary policy of the Central Bank in the current conditions as well as the main guidelines for the fiscal policy under different energy prices. The measures for fighting the crisis that the Russian government and the Central Bank use to support the real economy are described.

International Financial Centres after the Global Financial Crisis and Brexit

2018 ◽  
Keyword(s):  
New York ◽  
Financial Crisis ◽  
Global Economy ◽  
Global Financial Crisis ◽  
New Technology ◽  
Interdisciplinary Approach ◽  
Important Change ◽  
Social Scientists ◽  
The Global Financial Crisis ◽  
Financial Technology

This book gathers leading economic historians, geographers, and social scientists to focus on the developments in key international financial centres following the 2008 Global Financial Crisis and to consider the likely effects of Brexit on these centres. Eleven centres in eight countries are taken into consideration: New York, London, Frankfurt, Paris, Zurich/Geneva, Hong Kong/Shanghai/Beijing, Tokyo, and Singapore. The book addresses three main issues. The first is the hierarchy of international financial centres, in particular whether Asian financial centres have taken advantage of the crisis in the West. The second is the medium-term effects of the crisis, with respect to the volume of business activity (including employment), and the level of regulation, with concerns regarding the risks of regulatory overkill. And the third is the rise of new technology, known as fintech, possibly the most important change in the decade following the crisis, with questions as to whether it will render financial centres, as we know them, unnecessary for the functioning of the global economy, and which cities are likely to emerge as hubs of new financial technology. Finally, the book discusses the likely effects of Brexit on international financial centres, in particular London, Paris, and Frankfurt. The book takes a decidedly interdisciplinary approach, with a general introduction providing a global overview from a historical perspective, and a general conclusion providing a global overview from a geographical perspective. Its focus on the implications for global financial centres is unique among books about the aftermath of the Global Financial Crisis.

Determinants of Spot and Forward Interest Rates in Brazil in an International Liquidity Scenario: An Econometric Analysis for the Period 2007-2019

2021 ◽  
Vol 10 (1) ◽  
pp. 19
Author(s):  
Pedro Raffy Vartanian ◽  
Sérgio Gozzi Citro ◽  
Paulo Rogério Scarano
Keyword(s):  
Financial Crisis ◽  
Interest Rates ◽  
Global Financial Crisis ◽  
International Liquidity ◽  
Vector Autoregressive ◽  
International Financial Crises ◽  
International Financial Crisis ◽  
Level Of Activity ◽  
Systemic Crisis ◽  
The Global Financial Crisis

Over the last 25 years, Brazil has been among the countries with the highest interest rates globally. High interest rates have been necessary during several recent times, such as in the period from 1997 to 1999, due to the repeated international financial crises that have plagued the country. From 1999, a sustained path of interest rate reduction begun. With the outbreak of the 2008 international financial crisis, the Brazilian monetary authorities promoted a new round of falling domestic interest rates in response to the recessive effects and the threat of a systemic crisis that could hang over the national financial system. In 2012, a set of interventionist nature policies led to a decrease in the Selic rate. Thus, looking at the last 25 years, it appears that many factors have started to influence the trajectory of Brazilian interest rates. In this context, the present work aims to identify, based on empirical research, the determinants of spot and future interest rates. As a methodology, the research uses a multivariate econometric vector autoregressive model (VAR) with error correction (VEC). The analysis covers the years 2017 to 2019, corresponding to the period in the aftermath of the global financial crisis of 2008. The results evidence that both the spot rate and the DI future can be determined by the fluctuations in the level of inflation and by the level of activity and the real exchange rate, in addition to the effects of the lagged variables themselves.

The French Parti socialiste (2010-16): from office to crisis

2017 ◽  
Author(s):  
Sophie Di Francesco-Mayot
Keyword(s):  
Financial Crisis ◽  
Economic Crisis ◽  
Global Financial Crisis ◽  
Socialist Party ◽  
Political Crisis ◽  
Social Democratic ◽  
High Unemployment ◽  
Democratic Parties ◽  
Social Democratic Parties ◽  
The Eu

This chapter examines the French Socialist Party (Parti socialiste, PS), which is one of the least successful of the major European social democratic parties. It focuses on the period between the 2008 global financial crisis until the end of François Hollande's presidency in 2017. The crisis of the PS is twofold: first, a political crisis that is revealed by the divisive nature of the Party's internal courants (factions). Whereas the factions initially contributed to the PS's internal democracy, over the past two decades they have significantly affected the PS's cohesiveness and ability to effectively develop and implement necessary policies. And second, an economic crisis that is exemplified by the PS's inability to adapt to its external and internal environments, such as the neoliberal imperatives of the EU, unprecedented high unemployment, and increasing insecurity.

Revisiting Macroeconomy–Stock Market Relationship During Times of Economic Crisis: A Study of Emerging Markets

2017 ◽  
Vol 13 (1-2) ◽  
pp. 52-69
Author(s):  
Gagan Deep Sharma ◽  
Mrinalini Srivastava ◽  
Mansi Jain
Keyword(s):  
Latin America ◽  
Financial Crisis ◽  
Stock Market ◽  
Emerging Markets ◽  
Economic Crisis ◽  
Global Financial Crisis ◽  
Market Returns ◽  
Stock Market Returns ◽  
Macroeconomic Variables ◽  
The Relationship

This article examines the relationship between six macroeconomic variables and stock market returns of 13 emerging markets from Latin America, Europe, Africa and Asia in the context of global financial crisis of 2008. The findings reveal some commonality in determination and variation of returns with macroeconomic variables from pre-crisis (1st January 2005–31st March 2009) to post-crisis period (1st April 2009–31st March 2016). Further, results show co-integration among most of the macroeconomic variables depicting significant implications for investors and policymakers.

Stakeholder Agriculture

2020 ◽  
pp. 258-281
Author(s):  
Alexandros Antonaras ◽  
Alexandros Kostopoulos
Keyword(s):  
Financial Crisis ◽  
Rural Areas ◽  
Social Innovation ◽  
Global Financial Crisis ◽  
Negative Consequences ◽  
Dramatic Decline ◽  
New Business ◽  
Per Capita ◽  
Recent Financial Crisis ◽  
Agricultural Entrepreneurship

The shift in agricultural production and agribusiness may be a solution in reducing unemployment and particularly that of young people which is dramatically high in several European countries that are experiencing the negative consequences of the recent global financial crisis that led to a dramatic decline in their GDP per capita and has affected all sectors of economic activity, including agriculture. The overall scope of this chapter is to present an Agricultural Entrepreneurship and Social Innovation Framework that can lead to a new business model with social aspects, contribute to the economic growth and sustainability and hence combat the phenomenon of unemployment and poverty in rural areas that have been seriously affected by the recent financial crisis.

The Paradigm of the Investment Development Path

2020 ◽  
pp. 1379-1391
Author(s):  
Marian Cătălin Voica ◽  
Mirela Clementina Panait ◽  
Irina Gabriela Radulescu
Keyword(s):  
Financial Crisis ◽  
Global Economy ◽  
Multinational Enterprises ◽  
Developed Countries ◽  
Original Model ◽  
Foreign Direct Investments ◽  
Member States ◽  
Development Path ◽  
International Financial Crisis

This article describes how foreign direct investments (FDI) is one of the most important forces that influences the global economy. Along the last two and a half decades, the motivations and the field of interest of multinational enterprises (MNEs) mutated to new forms under the influence of globalization and the international financial crisis. Those two events had a dramatic impact on the evolution of inward and outward flow of FDI. The main scope of this article is to analyze the advance of the EU28 member states through the stages of the Investment Development Path (IDP) in the period from 1990 to 2014 and to explore the viability of the original model in nowadays global economy realities. The results show that FDI is useful to gauge the economics of lesser developed countries.

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