Global Financial Crisis and Financial Market Regulation: Updated Alarms and Market Architecture

2019 ◽  
Vol 2 (1) ◽  
pp. 106-112
Author(s):  
Dilbar Rustamova
Keyword(s):  
Financial Crisis ◽  
Financial Market ◽  
Global Financial Crisis ◽  
Market Performance ◽  
Market Regulation ◽  
Financial Market Regulation ◽  
The Global Financial Crisis ◽  
Impact Zones ◽  
Market Behaviour

This paper is structured around two vital problematic areas, such as financial market performance and integration of financial market regulation. It studies the roots, spread and impact zones of the global financial crisis, analysis the financial market behaviour and several regulative policies, and offers scientifically rooted practically proven improvement proposals for ensuring a sound financial market regulation.

scholarly journals Finance and Jobs: How Financial Markets and Prudential Regulation Shape Unemployment Dynamics

2019 ◽  
Vol 12 (1) ◽  
pp. 20 ◽  
Author(s):  
Ekkehard Ernst
Keyword(s):  
Labor Market ◽  
Financial Markets ◽  
Financial Market ◽  
Global Financial Crisis ◽  
Financial Sector ◽  
Market Regulation ◽  
Economic Stability ◽  
Financial Market Regulation ◽  
The Global Financial Crisis ◽  
The Impact

This article explores the impact of financial market regulation on jobs. It argues that understanding the impact of finance on labor markets is key to an understanding of the trade-off between economic stability and financial sector growth. The article combines information on labor market flows with indicators of financial market development and reforms to assess the implications of financial markets on employment dynamics directly, using information from the International Labour Organization (ILO) datatabse on unemployment flows. On the basis of a matching model of the labor market, it analyses the economic, institutional, and policy determinants of unemployment in- and out-flows. Against a set of basic controls, we present evidence regarding the relationship between financial sector development and reforms and their impact on unemployment dynamics. Using scenario analysis, the article demonstrates the importance of broad financial sector re-regulation to stabilize unemployment inflows and to promote faster employment growth. In particular, we find that encompassing financial sector regulation, had it been in place prior to the global financial crisis in 2008, would have helped a faster recovery in jobs.

scholarly journals International cooperation on financial market regulation

2021 ◽  
Author(s):  
Michael Abendschein ◽  
Harry Gölz
Keyword(s):  
Financial Market ◽  
Financial Stability ◽  
Financial Regulation ◽  
Global Financial Crisis ◽  
Local Level ◽  
Market Regulation ◽  
Financial Market Regulation ◽  
The Global Financial Crisis ◽  
Impure Public Good

AbstractAt the latest the global financial crisis has raised the awareness of the need for a globally coordinated financial market regulation. Even though the necessity to cooperate is widely acknowledged, cooperation is often limited in practice. This article characterizes the formation of self-enforcing international financial regulation agreements. Our analysis allows to evaluate the desirability and feasibility of cooperative solutions and explains the challenges associated with the process of cooperation. We model the cooperation of national financial regulators in a game-theoretical framework that considers financial stability to be an impure public good. Joint national supervisory effort is supposed to increase aggregate welfare in terms of a more stable financial system both on a global and on a local level by simultaneously generating incentives to free-ride. Our analysis in general indicates the difficulty of reaching a fully cooperative solution. In our basic version of the model we show that partial cooperation of two or three countries is stable and improves the welfare of all countries relative to the non-cooperative Nash equilibrium. Further analyses highlight the role of additional club benefits. When signatory countries of a coalition gain benefits over and above the joint welfare maximization, stable coalitions of any size become feasible.

scholarly journals Sugar Prices vs. Financial Market Uncertainty in the Time of Crisis: Does COVID-19 Induce Structural Changes in the Relationship?

Agriculture ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 93
Author(s):  
Pavel Kotyza ◽  
Katarzyna Czech ◽  
Michał Wielechowski ◽  
Luboš Smutka ◽  
Petr Procházka
Keyword(s):  
Financial Crisis ◽  
Stock Market ◽  
Financial Market ◽  
Structural Breaks ◽  
Structural Changes ◽  
Global Financial Crisis ◽  
Market Uncertainty ◽  
Volatility Index ◽  
The Global Financial Crisis ◽  
The Relationship

Securitization of the agricultural commodity market has accelerated since the beginning of the 21st century, particularly in the times of financial market uncertainty and crisis. Sugar belongs to the group of important agricultural commodities. The global financial crisis and the COVID-19 pandemic has caused a substantial increase in the stock market volatility. Moreover, the novel coronavirus hit both the sugar market’s supply and demand side, resulting in sugar stock changes. The paper aims to assess potential structural changes in the relationship between sugar prices and the financial market uncertainty in a crisis time. In more detail, using sequential Bai–Perron tests for structural breaks, we check whether the global financial crisis and the COVID-19 pandemic have induced structural breaks in that relationship. Sugar prices are represented by the S&P GSCI Sugar Index, while the S&P 500 option-implied volatility index (VIX) is used to show stock market uncertainty. To investigate the changes in the relationship between sugar prices and stock market uncertainty, a regression model with a sequential Bai–Perron test for structural breaks is applied for the daily data from 2000–2020. We reveal the existence of two structural breaks in the analysed relationship. The first breakpoint was linked to the global financial crisis outbreak, and the second occurred in December 2011. Surprisingly, the COVID-19 pandemic has not induced the statistically significant structural change. Based on the regression model with Bai–Perron structural changes, we show that from 2000 until the beginning of the global financial crisis, the relationship between the sugar prices and the financial market uncertainty was insignificant. The global financial crisis led to a structural change in the relationship. Since August 2008, we observe a significant and negative relationship between the S&P GSCI Sugar Index and the S&P 500 option-implied volatility index (VIX). Sensitivity analysis conducted for the different financial market uncertainty measures, i.e., the S&P 500 Realized Volatility Index confirms our findings.

Fiscal and Monetary Policies in Reaction to the Financial Tsunami by the Taiwanese Government

2011 ◽  
Vol 14 (01) ◽  
pp. 153-169 ◽  
Author(s):  
Hsiao-Yin Chen ◽  
Cheng-Few Lee ◽  
Tzu Tai ◽  
Kehluh Wang
Keyword(s):  
Financial Crisis ◽  
Financial Market ◽  
Global Financial Crisis ◽  
The United States ◽  
Insurance Companies ◽  
Monetary Policies ◽  
Policy Measures ◽  
The Global Financial Crisis ◽  
The Impact ◽  
Taiwanese Government

The main purpose of this paper is to investigate the impact of the 2007 financial tsunami on the Taiwanese financial market. We find that, although significant for banks, security firms, and insurance companies, the effect was relatively lower if compared with that in Europe and the United States. In addition, we present fiscal and monetary policies issued by the Taiwanese government in reaction to the global financial crisis. These policy measures focused on stabilizing the financial market, reducing the level of unemployment, and creating more lending opportunities in support of Taiwanese companies. We also discuss the policy measures of the US government and other Asian countries in relation to the global financial crisis. Finally, we provide some suggestions to improve financial supervision and enhance financial reforms in Taiwan.

Indirect Governance in Global Financial Regulation

2020 ◽  
pp. 203-222
Author(s):  
Thomas Rixen ◽  
Lora Anne Viola
Keyword(s):  
Financial Crisis ◽  
Financial Market ◽  
Financial Stability ◽  
Financial Regulation ◽  
Global Financial Crisis ◽  
Policy Reforms ◽  
Regulatory Standards ◽  
The Global Financial Crisis ◽  
And Control

The global financial crisis led G20 states to conclude that stronger regulatory standards and improved compliance were needed to ensure global financial stability. To this end, the G20, as collective governor, granted an institutional intermediary, the Financial Stability Board (FSB), authority to develop and supervise financial market regulations. However, the G20 designed the FSB in ways that stymied its regulatory competence. Why did the G20 design the FSB in ways that were inadequate to meeting its own governance goal? Competence–control theory provides a compelling answer. The G20 faces a tradeoff between a competent intermediary and control over the intermediary; this tradeoff is exacerbated by the G20’s collective nature. While the G20 has a collective long-term interest in an intermediary with the expertise and capacity to promote stability-enhancing regulations, intense short-term distributive conflicts among member states yield strong incentives to control the intermediary. These internal distributive conflicts are more easily overcome during systemic economic crisis, when a competent intermediary is urgently needed. Once the crisis has passed, however, the governor reasserts control, again compromising the intermediary’s competence. The chapter illustrates this argument with an account of reforming the Financial Stability Forum into the FSB, and three case studies of policy reforms after the financial crisis.

scholarly journals External financial dependence and firms’ crisis performance across Europe

2021 ◽  
Author(s):  
Peter S. Eppinger ◽  
Katja Neugebauer
Keyword(s):  
Financial Crisis ◽  
Survey Data ◽  
Financial Market ◽  
Economic Performance ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
The Novel ◽  
Market Conditions ◽  
Real Performance ◽  
The Global Financial Crisis

AbstractHow do financial market conditions affect real economic performance? Empirical investigations of this question have often relied on measures of external financial dependence (EFD) that are constructed using US data and applied to other countries under the assumption of a stable industry ranking across countries. This paper exploits unique, comparable survey data from seven European countries to show that correlations of EFD across countries are weak, casting some doubt on this assumption. We then use the novel survey-based EFD index to show that the global financial crisis had a disproportionately negative impact on the real performance of financially dependent firms. Further investigations highlight the importance of supply chains in propagating the credit shock.

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