scholarly journals Market of Stocks during Crisis Looks Like a Flock of Birds

Entropy ◽  
2020 ◽  
Vol 22 (9) ◽  
pp. 1038
Author(s):  
Bahar Afsharizand ◽  
Pooya H. Chaghoei ◽  
Amirhossein A. Kordbacheh ◽  
Andrey Trufanov ◽  
Golamreza Jafari
Keyword(s):  
Phase Space ◽  
Financial Crisis ◽  
Financial Markets ◽  
Collective Behaviour ◽  
Complex Behaviour ◽  
Vicsek Model ◽  
Resultant Velocity

A crisis in financial markets can be considered as a collective behaviour phenomenon. The collective behaviour is a complex behaviour which exists among a group of animals. The Vicsek model has been adapted to represent this complexity. A unique phase space has been introduced to represent all possible results of the model. The return of the transaction volumes versus the return of the closed price of each share has been used within the defined phase space. The findings show that the direction of the resultant velocity vectors of all share in this phase space act in the same direction when the financial crisis happens. By monitoring the market’s collective behaviour, it will be possible to gain more knowledge about the condition of the market days in crisis. This research aims to investigate the collective behaviour of stocks using the Vicsek model to study the condition of the market during the days in crisis.

Normative dimensions of central banking: How the guardians of financial markets affect justice

2017 ◽  
Author(s):  
Peter Dietsch
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Financial Markets ◽  
Central Banking ◽  
Democratic Legitimacy ◽  
Policy Agenda ◽  
Theory Of Justice ◽  
Introductory Section ◽  
The Impact

Monetary policy, and the response it elicits from financial markets, raises normative questions. This chapter, building on an introductory section on the objectives and instruments of monetary policy, analyzes two such questions. First, it assesses the impact of monetary policy on inequality and argues that the unconventional policies adopted in the wake of the financial crisis exacerbate inequalities in income and wealth. Depending on the theory of justice one holds, this impact is problematic. Should monetary policy be sensitive to inequalities and, if so, how? Second, the chapter argues that the leverage that financial markets have today over the monetary policy agenda undermines democratic legitimacy.

The COVID-19 and bond spreads

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Rui Esteves ◽  
Nathan Sussman
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Emerging Economies ◽  
Explanatory Power ◽  
Financial Stress ◽  
International Financial Crisis ◽  
Bond Spreads

AbstractFinancial markets reacted with a vengeance to the COVID-19 pandemic. We argue that while the spread of the pandemic is statistically significant in explaining changes to bond spreads, it has little additional explanatory power over variables that capture financial stress. Financial markets reacted as in any international financial crisis by penalizing emerging economies exposing existing vulnerabilities. This finding highlights the need for credible, but flexible, sovereign currencies and the need to build up liquidity reserves.

Foucault against the Foucauldians? On the problem of the neoliberal state

Thesis Eleven ◽  
2021 ◽  
pp. 072551362110533
Author(s):  
Henry Maher
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Global Financial Crisis ◽  
The State ◽  
Original Text ◽  
Relevant Today ◽  
The Global Financial Crisis

The survival of neoliberal forms of governance after their apparent repudiation during the Global Financial Crisis is a problem that continues to generate significant scholarly controversy. One of the most influential accounts of the survival of neoliberalism in the crisis draws on Michel Foucault’s The Birth of Biopolitics to claim that states intervening to support financial markets during the crisis was simply the neoliberal system working as expected. Returning to Foucault’s original text, I argue this account constitutes a systematic misreading because it treats Foucault as having developed an instrumentalist theory of the neoliberal state, a possibility Foucault explicitly rejected. I suggest that the reasons that led Foucault to reject an instrumentalist theory of the state remain just as relevant today, and accordingly argue for a return to Foucault’s methodological decision to treat neoliberalism not as a theory of state but as a discourse which constructs a novel bio-political governmentality.

Risk Factors in Equilibrium Models of Open Economies

2010 ◽  
pp. 23-28
Author(s):  
D. Kuz'min
Keyword(s):  
Risk Factors ◽  
Financial Crisis ◽  
Financial Markets ◽  
Global Financial Crisis ◽  
Household Consumption ◽  
Equilibrium Models ◽  
Government Consumption ◽  
Cyclic Processes ◽  
The Usa ◽  
Liquidity Crisis

World liquidity crisis, which started in the USA in 2007, is reputed to be the first full-fledged global financial crisis. The liquidity crisis became global exactly due to the influence of large economies' national financial markets on many small ones. The analysis of the crisis expansion and development in these states (the USA, China, Iceland, Mexico, CEE countries) demonstrated that not only working accounts and reserves, but also foreign and internal borrowings, and therefore, household consumption, investments and government consumption proved to be affected by cyclic processes.

scholarly journals The Effect of FOMC Votes on Financial Markets

2019 ◽  
Vol 101 (5) ◽  
pp. 921-932
Author(s):  
Carlos Madeira ◽  
João Madeira
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Financial Markets ◽  
Interest Rates ◽  
Stock Prices ◽  
Open Market ◽  
Federal Open Market Committee ◽  
2008 Financial Crisis ◽  
Treasury Securities ◽  
Stock Market Reaction

This paper shows that since votes of members of the Federal Open Market Committee have been included in press statements, stock prices increase after the announcement when votes are unanimous but fall when dissent (which typically is due to preference for higher interest rates) occurs. This pattern started prior to the 2007–2008 financial crisis. The differences in stock market reaction between unanimity and dissent remain, even controlling for the stance of monetary policy and consecutive dissent. Statement semantics also do not seem to explain the documented effect. We find no differences between unanimity and dissent with respect to impact on market risk and Treasury securities.

scholarly journals The impact of the financial crisis on earnings management: Empirical evidence from Italian and Spanish listed companies

2019 ◽  
Vol 16 (2) ◽  
pp. 121-130 ◽  
Author(s):  
Francesco De Luca ◽  
Francesco Paolone
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Performance Indicators ◽  
Listed Companies ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
Time Period ◽  
Security Offerings ◽  
The Impact ◽  
Giving Bad News

Our study adopts a reliable and widely acknowledged model to detect accounts manipulation in order to assess the impact of the financial crisis on Italian and Spanish listed companies’ propensity to manage their earnings. The analysis is conducted on 565 publicly traded companies on the Italian and Spanish financial markets during the time period 2005-2013. We find a lower propensity to manipulate earnings in both countries during the pre-crisis period (2005-2008) as suggested by a decrease in the number of high-risk manipulators until 2008 included. With the spread of the financial crisis, companies become more manipulators. We believe that the reason for this is to avoid giving bad news to markets, investors, and lenders after that the crisis may have impacted too negatively on firms’ performance indicators and financial equilibrium. Our empirical results provide various implications for further studies related to managements’ incentives concurrently with security offerings.

scholarly journals Market of Stocks During Crisis Looks Like a Flock of Birds

2020 ◽  
Author(s):  
Bahar Afsharizand ◽  
Pooya H. Chaghoei ◽  
A A. Kordbacheh ◽  
A Trufanov ◽  
G.Reza Jafari
Keyword(s):  
Phase Space ◽  
Collective Behavior ◽  
Unique Point ◽  
Property A ◽  
Vicsek Model ◽  
Cooperative Effects ◽  
Cooperative Movement ◽  
Vector Velocity ◽  
Work Cooperative ◽  
The One

According to its inner property, a crisis in the financial market can be considered as a collective behavior phenomenon. Through the prism of collective behavior, the crisis does not happen if the companies are independent of each other. In this work, cooperative movement processes in a stock market are investigated in a manner similar to that Vicsek first described collective behavior for self-propelled entities. To this end, a phase space is defined as the one in which the return of volume of transactions versus return of price is represented with each share in each day corresponding to a unique point in the space. The findings of the observation show that during times of crisis, the phase space is limited with the vector velocity of shares in the same direction. In contrast, on a regular day, the phase space is entirely accessible, with vector velocity aligned randomly. Moreover, in line with the Vicsek model, an order parameter is introduced, which evaluates the cooperative effects for the shares so that the higher the value of this parameter, the stronger the collective behavior of the shares.

scholarly journals FRACTAL MARKETS HYPOTHESIS AND THE GLOBAL FINANCIAL CRISIS: SCALING, INVESTMENT HORIZONS AND LIQUIDITY

2012 ◽  
Vol 15 (06) ◽  
pp. 1250065 ◽  
Author(s):  
LADISLAV KRISTOUFEK
Keyword(s):  
Financial Crisis ◽  
Complex Systems ◽  
Financial Markets ◽  
Global Financial Crisis ◽  
Efficient Markets ◽  
Investment Horizon ◽  
Heterogenous Agents ◽  
Efficient Markets Hypothesis ◽  
The Global Financial Crisis ◽  
Underlying Processes

We investigate whether the fractal markets hypothesis and its focus on liquidity and investment horizons give reasonable predictions about the dynamics of the financial markets during turbulences such as the Global Financial Crisis of late 2000s. Compared to the mainstream efficient markets hypothesis, the fractal markets hypothesis considers the financial markets as complex systems consisting of many heterogenous agents, which are distinguishable mainly with respect to their investment horizon. In the paper, several novel measures of trading activity at different investment horizons are introduced through the scaling of variance of the underlying processes. On the three most liquid US indices — DJI, NASDAQ and S&P500 — we show that the predictions of the fractal markets hypothesis actually fit the observed behavior adequately.

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