scholarly journals Investigating the Psychology of Financial Markets During COVID-19 Era: A Case Study of the US and European Markets

2020 ◽  
Vol 11 ◽  
Author(s):  
Khurram Shehzad ◽  
Liu Xiaoxing ◽  
Muhammad Arif ◽  
Khaliq Ur Rehman ◽  
Muhammad Ilyas
Keyword(s):  
Financial Markets ◽  
The Us ◽  
European Markets

The World Economy

2008 ◽  
Vol 203 ◽  
pp. 8-30
Keyword(s):  
Financial Markets ◽  
Federal Reserve ◽  
World Economy ◽  
Aggressive Response ◽  
Share Price ◽  
Careful Examination ◽  
Hard Data ◽  
The Past ◽  
The Us ◽  
European Markets

The past few weeks have seen turmoil and turbulence in global financial markets, with 21 January seeing the sharpest one-day share price falls in many Asian and European markets since 2001, ostensibly in response to widespread fears of an imminent recession in the US. A careful examination of the available real indicators suggests that much of the recent panic in financial markets is not based on fundamentals, although the aggressive response of the Federal Reserve, with the biggest rate move since 1994 at an unscheduled meeting, gave the impression that it was privy to information that had not yet appeared in hard data, such as the imminent collapse of a major US bank. However it is also possible that the Federal Reserve acted precipitately to technical fall out from losses at Société Générale in France, which seems to have sparked much of the panic trading. The Banque de France informed the Federal Reserve of the matter in advance of their meeting scheduled for the following week. It is possible that if the Federal Reserve had waited for all the information they needed they might not have acted, and indeed they may have damaged their credibility by their precipitate action.

scholarly journals Central Bank Policy in Times of Turbulence on Financial Markets

2021 ◽  
Vol 8 (2) ◽  
pp. 6-18
Author(s):  
M. Zharikov
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Financial Markets ◽  
Lender Of Last Resort ◽  
Financial Failure ◽  
The Us

This article is devoted to a central bank’s response to a financial crisis based on a case study of the US Federal Reserve’s handling of the financial crisis in 2008–2010. This article will also be focusing on the intense phase of the financial crisis. It is focusing primarily on the lender of last resort function of a central bank. The article concludes with the most significant issues about the aftermath and the recovery, as well as lessons to deal with financial failure during the coronavirus and its aftermath.

Disruptive Soft Law and Post-Crisis US Reform

2018 ◽  
Author(s):  
Abraham L. Newman ◽  
Elliot Posner
Keyword(s):  
Financial Markets ◽  
Great Recession ◽  
Regulatory Reform ◽  
The United States ◽  
Soft Law ◽  
Long Term Effects ◽  
The Great Recession ◽  
The Us ◽  
International Interaction

Chapter 6 examines the long-term effects of international soft law on policy in the United States since 2008. The extent and type of post-crisis US cooperation with foreign jurisdictions have varied considerably with far-reaching ramifications for international financial markets. Focusing on the international interaction of reforms in banking and derivatives, the chapter uses the book’s approach to understand US regulation in the wake of the Great Recession. The authors attribute seemingly random variation in the US relationship to foreign regulation and markets to differences in pre-crisis international soft law. Here, the existence (or absence) of robust soft law and standard-creating institutions determines the resources available to policy entrepreneurs as well as their orientation and attitudes toward international cooperation. Soft law plays a central role in the evolution of US regulatory reform and its interface with the rest of the world.

Banking on Failure

2020 ◽  
Author(s):  
Richard S Collier
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Current Position ◽  
Tax System ◽  
Number Of Factors ◽  
Tax Systems

This book seeks to explain why and how banks ‘game the system’. More specifically, its objective is to account for why banks are so often involved in cases of misconduct and why those cases often involve the exploitation of tax systems. To do this, a case study is presented in Part I of the book. This case study concerns a highly complex transaction (often referred to as ‘cum-ex’) designed to exploit a flaw at the intersection of the tax system and the financial markets settlements system. It was entered into by a very large number of banks and other financial institutions. A number of factors make the cum-ex transaction remarkable, including the sheer scale of the financial amounts involved, the large number of banks and financial institutions involved, the comprehensive failure of the controls infrastructure in this highly regulated sector, and the fact that authorities across Europe have found it so difficult to deal with the transaction. Part II of the book draws out the wider significance of cum-ex and what it tells us about modern banks and their interactions with tax systems. The account demonstrates why the exploitation of tax systems by banks is practically inevitable due to a variety of systemic features of the financial markets and of tax systems themselves. A number of possible responses to the current position are suggested in the final chapter.

Prohibition, Legalization, and Political Consumerism

2018 ◽  
pp. 740-769 ◽  
Author(s):  
Elizabeth A. Bennett
Keyword(s):  
Social Movements ◽  
Legal Status ◽  
Ethical Issues ◽  
Drug Control ◽  
Psychoactive Substance ◽  
Political Consumerism ◽  
Control Laws ◽  
The Past ◽  
The Us

Cannabis (marijuana) is the most commonly consumed, universally produced, and frequently trafficked psychoactive substance prohibited under international drug control laws. Yet, several countries have recently moved toward legalization. In these places, the legal status of cannabis is complex, especially because illegal markets persist. This chapter explores the ways in which a sector’s legal status interacts with political consumerism. The analysis draws on a case study of political consumerism in the US and Canadian cannabis markets over the past two decades as both countries moved toward legalization. It finds that the goals, tactics, and leadership of political consumerism activities changed as the sector’s legal status shifted. Thus prohibition, semilegalization, and new legality may present special challenges to political consumerism, such as silencing producers, confusing consumers, deterring social movements, and discouraging discourse about ethical issues. The chapter concludes that political consumerism and legal status may have deep import for one another.

Did Groupthink or Polythink Derail the 2016 Raqqa Offensive?

2019 ◽  
Author(s):  
Kasey Barr ◽  
Alex Mintz
Keyword(s):  
Decision Making ◽  
Group Dynamics ◽  
Decision Making Process ◽  
Islamic State ◽  
Study Analysis ◽  
Strategic Decisions ◽  
Case Study Analysis ◽  
The Us ◽  
Tactical Decisions

This chapter examines the effect of group dynamics on the 2016 decision within the administration of President Barack Obama to lead the international coalition in a mission to liberate Raqqa, Syria, from the Islamic State. The authors show that whereas the groupthink syndrome characterized the decision-making process of the US-led coalition’s decision to attack Raqqa, it was polythink that characterized the decision-making dynamics both in the US-led coalition and within the inner circle of Obama’s own foreign policy advisors. Through case-study analysis, the authors illustrate that groupthink is more likely in strategic decisions, whereas polythink is more likely in tactical decisions.

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