scholarly journals Globalization in Growing Financial Markets as a Threat to the Financial Security of the Global Economy

2020 ◽  
Vol XXIII (Special Issue 1) ◽  
pp. 335-355
Author(s):  
Magdalena Redo ◽  
Marta Gebska
Keyword(s):  
Financial Markets ◽  
Global Economy ◽  
Financial Security

Ocena antykryzysowej polityki gospodarczej Stanów Zjednoczonych i wybranych państw członkowskich Unii Europejskiej w latach 2005–2014

2016 ◽  
pp. 26-46
Author(s):  
Marcin Jan Flotyński
Keyword(s):  
United States ◽  
European Union ◽  
Financial Markets ◽  
Global Economy ◽  
Global Financial Crisis ◽  
The United States ◽  
The European Union ◽  
High Volatility ◽  
The Global Financial Crisis ◽  
Domestic Products

The global financial crisis in 2007–2009 began a period of high volatility on the financial markets. Specifically, it caused an increased amplitude of fluctuations of the level of gross domestic products, the level of investment and consumption and exchange rates in particular countries. To address the adverse market circumstances, governments and central banks took actions in order to bolster the weakening global economy. The aim of this article is to present the anti-crisis actions in the United States and selected member states of the European Union, including Poland, and an assessment of their efficiency. The analysis conducted indicates that generally the actions taken in the United States in response to the crisis were faster and more adequate to the existing circumstances than in the European Union.

EVALUATION OF FINANCIAL SECURITY OF THE REPUBLIC OF CRIMEA

2020 ◽  
pp. 56-67
Author(s):  
Elena Evgenevna Mashyanova ◽  
Elena Aleksandrovna Smirnova
Keyword(s):  
Financial Markets ◽  
Negative Impact ◽  
Gradual Increase ◽  
Financial System ◽  
Financial Security ◽  
Key Factors ◽  
Factors Affecting ◽  
External Threats ◽  
The Republic ◽  
Global Financial System

In modern conditions of development, financial security is an integral part of the overall security of the region and is formed on the basis of the functioning of the financial system. The complication of relationships between key segments of international financial markets, as well as the limited ability to accurately predict future trends in the development of the global financial system, lead to a gradual increase in the risks that accompany the activities of economic entities, and an increase in the number and scale of internal and external threats that have a negative impact on the financial security of the state. This formulation of the issue requires generalization of approaches to determining the financial security of the region in order to further formalize this issue and determine the key factors affecting it. The article considers the types of financial security, as well as certain areas of ensuring the financial security of the region and their priority. In work the assessment of the level of socio-economic development of the region with a view to ensuring financial security on the basis of which offers the main activities and priority areas of implementation of the investment policy that will ensure financial security of the Republic of Crimea.

Impact of FII’s and FDI’s on Indian Stock Market

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Dr. Kamlesh Kumar Shukla
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Global Economy ◽  
Short Term ◽  
Earnings Growth ◽  
The Past ◽  
Bull Market ◽  
Indian Stock Market

FIIs are companies registered outside India. In the past four years there has been more than $41 trillion worth of FII funds invested in India. This has been one of the major reasons on the bull market witnessing unprecedented growth with the BSE Sensex rising 221% in absolute terms in this span. The present downfall of the market too is influenced as these FIIs are taking out some of their invested money. Though there is a lot of value in this market and fundamentally there is a lot of upside in it. For long-term value investors, there’s little because for worry but short term traders are adversely getting affected by the role of FIIs are playing at the present. Investors should not panic and should remain invested in sectors where underlying earnings growth has little to do with financial markets or global economy.

COVID -19 and Indian Financial Markets: A Review

2020 ◽  
Vol 16 (02) ◽  
pp. 1-8
Author(s):  
Kamaldeep Kaur Sarna
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Financial Services ◽  
Stock Markets ◽  
Global Economy ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Management Strategies ◽  
The Impact

COVID-19 is aptly stated as a Black Swan event that has stifled the global economy. As coronavirus wreaked havoc, Gross Domestic Product (GDP) contracted globally, unemployment rate soared high, and economic recovery still seems a far-fetched dream. Most importantly, the pandemic has set up turbulence in the global financial markets and resulted in heightened risk elements (market risk, credit risk, bank runs etc.) across the globe. Such uncertainty and volatility has not been witnessed since the Global Financial Crisis of 2008. The spread of COVID-19 has largely eroded investors’ confidence as the stock markets neared lifetimes lows, bad loans spiked and investment values degraded. Due to this, many turned their backs on the risk-reward trade off and carted their money towards traditionally safer investments like gold. While the banking sector remains particularly vulnerable, central banks have provided extensive loan moratoriums and interest waivers. Overall, COVID-19 resulted in a short term negative impact on the financial markets in India, though it is making a way towards V-shaped recovery. In this context, the present paper attempts to identify and evaluate the impact of the pandemic on the financial markets in India. Relying on rich literature and live illustrations, the influence of COVID-19 is studied on the stock markets, banking and financial institutions, private equities, and debt funds. The paper covers several recommendations so as to bring stability in the financial markets. The suggestions include, but are not limited to, methods to regularly monitor results, establishing a robust mechanism for risk management, strategies to reduce Non-Performing Assets, continuous assessment of stress and crisis readiness of the financial institutions etc. The paper also emphasizes on enhancing the role of technology (Artificial Intelligence and Virtual/Augmented Reality) in the financial services sector to optimize the outcomes and set the path towards recovery.

The International Role of the U.S. Dollar

FEDS Notes ◽  
2021 ◽  
Vol 2021 (2998) ◽  
Author(s):  
Carol Bertaut ◽  
◽  
Bastian von Beschwitz ◽  
Stephanie Curcuru ◽  
◽  
...  
Keyword(s):  
Financial Markets ◽  
Rule Of Law ◽  
Capital Flows ◽  
Global Economy ◽  
The Rule Of Law ◽  
Strong Property ◽  
International Role ◽  
Openness To Trade ◽  
The U.S

For most of the last century, the preeminent role of the U.S. dollar in the global economy has been supported by the size and strength of the U.S. economy, its stability and openness to trade and capital flows, and strong property rights and the rule of law. As a result, the depth and liquidity of U.S. financial markets is unmatched, and there is a large supply of extremely safe dollar-denominated assets.

Globalization of Financial Risks and Evaluation of Common Stocks

2014 ◽  
pp. 231-240
Author(s):  
Dilaysu Cinar
Keyword(s):  
Financial Markets ◽  
Interest Rates ◽  
Global Economy ◽  
Cash Flows ◽  
Financial Risks ◽  
Treasury Bills ◽  
Government Bonds ◽  
Common Stocks ◽  
Management Policies ◽  
Globalization Strategy

Risk can be defined as uncertainty about the events that will occur in the future. Risks are encountered in all areas of life, and become more important when it comes to financial markets. Risk in financial markets is defined as investment securities. If the investment vehicle is government bonds or treasury bills, they are considered to be free of risk. Because of the sudden changes in exchange rates in the process of globalization or fluctuations in interest rates influencing the cash flows of companies, most companies consider hedging as a viable part of the globalization strategy. Risk management policies to ease problems and disasters, which may arise from the use of instruments. The stock market serves as a bridge between economic activity and finance under favor of functions such as reducing the risk of investment, and it meets the capital needs for companies. For this reason, the development of stock markets plays an important role for the global economy and finance. Thus, the aim of this chapter is to introduce financial risks and their effect on common stocks.

The Impact of the COVID-19 Pandemic on Stock Markets

2020 ◽  
Vol 1 (2) ◽  
pp. 57-70
Author(s):  
Rui Dias ◽  
João Manuel Pereira
Keyword(s):  
Financial Markets ◽  
Global Economy ◽  
Structural Breaks ◽  
Research Question ◽  
Causal Link ◽  
Data Series ◽  
Fluctuation Analysis ◽  
Wald Tests ◽  
The Impact ◽  
Detrended Fluctuation

COVID-19 has had a marked impact on the global economy, resulting in uncertainty, pessimism, and adverse effects on financial markets. In light of this event, this paper aims to test whether the evolution of COVID-19 (confirmed cases and deaths) is responsible for the stock market indices in eight European countries, from December 31, 2019 to July 23, 2020. Two key research questions have been raised to determine this causal link: Does the increase in COVID-19 cases and deaths cause shockwaves in Europe's financial markets? If so, does the presence of long memories cause high levels of arbitration? The results show mostly structural breaks in March 2020. In contrast, the VAR Granger Causality/Block Exogeneity Wald Tests model shows that the COVID-19 data series (confirmed cases and deaths) do not cause shocks in Europe's financial markets, which in return does not validate the first research question. The results of the exponents detrended fluctuation analysis (DFA) shows significant long memories ranging between 0.61-0.73.

The Fiscal Response to the Global Crisis

2009 ◽  
Vol 34 (3) ◽  
pp. 47-52
Author(s):  
Errol D'Souza
Keyword(s):  
Financial Markets ◽  
Global Economy ◽  
Financial Integration ◽  
Global Financial Crisis ◽  
Global Crisis ◽  
Fiscal Stimulus ◽  
Subprime Mortgage ◽  
Direct Exposure ◽  
The Global Financial Crisis ◽  
Lack Of Commitment

India's banks had no direct exposure to the subprime mortgage assets. Yet India was affected by the global financial crisis as its economy has significantly integrated with the global economy in the recent past in terms of the globalization of trade and financial integration. The global crisis resulted in a reversal of capital flows to India and a slump in the demand for its exports. This caused a deceleration in growth and the policy response was a fiscal and monetary stimulus that resulted in the fiscal deficit being the highest since 1993–94, the revenue deficit that is the largest ever in India's history, and an aggressive reduction in monetary policy rates. The massive government borrowing programme has resulted in a hardening of the yield on government securities which adversely affects aggregate output. As financial markets have factored in a lack of commitment to fiscal correction, the intentions of the fiscal stimulus have been impeded. The fiscal stimulus lacks sustainability, states Errol D'Souza.

Counting the Environment: The Environmental Implications of International Accounting Standards

2011 ◽  
Vol 11 (2) ◽  
pp. 75-97 ◽  
Author(s):  
Jason Thistlethwaite
Keyword(s):  
Financial Markets ◽  
Environmental Performance ◽  
Global Economy ◽  
Environmental Governance ◽  
Economic Value ◽  
Accounting Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Environmental Implications ◽  
Balance Sheets

Although rarely studied, international accounting standards shape what information regarding a firm's environmental performance is communicated to international financial markets. This article builds on scholarship describing the influence of international accounting standards on private financial markets to show that nominally technical choices regarding how to recognize and measure firms' environmental impacts hold the potential to reduce these impacts. Obscure accounting debates within the International Accounting Standards Board (IASB) mask important political choices about what a firm must disclose to investors about its environmental liabilities and risks. IASB decisions about how these appear on corporate balance sheets change the link between a firm's environmental performance and its economic value and, thereby, contribute to steering private financial markets toward rewarding sustainable behavior within the global economy. This analysis demonstrates the authority of the IASB as an overlooked source of global environmental governance.

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