scholarly journals The Global Financial Crisis and the Stabilizing Effect of Financial Transaction Taxes

2014 ◽  
Author(s):  
Deniz Aytaç
Keyword(s):  
Financial Crises ◽  
Global Financial Crisis ◽  
Capital Inflows ◽  
Economic Damage ◽  
Short Term ◽  
Capital Movements ◽  
Financial Transaction ◽  
Stabilizing Effect ◽  
Transaction Taxes ◽  
The Global Financial Crisis

With the liberalization policies that started in the 1980s, almost a race began in lifting the barriers to capital movements, particularly in developing countries, with the aim of achieving capital inflows from countries with a savings surplus to countries with a current deficit. However, the crises that broke out one after another in the liberalized financial markets in the 1990’s and the global crisis that occurred in the 2007-2008 period as a result of increased volatility in short-term capital movements and of excessive credit growth have raised again the need to bring short-term capital movements under control. The present study discusses the feasibility of financial transaction taxes as a stabilizer in the economy due to the need to mitigate the destructive impacts of financial crises and to finance the economic damage after the crisis or, in other words, the increased need for fiscal consolidation resulting from the crisis. In the light of the findings obtained, it has been noted that financial transaction taxes applied at a low rate in financing the increased public debt on account of the support provided to the financial sector because of the crisis constitute an important item of revenue due to the high volatility in short-term capital movements. In this context, it has been concluded that financial transaction taxes, although difficulties are encountered in their application, can have a considerable stabilizing effect in the future, taking the periodical nature of financial crises into account.

scholarly journals 28 Months Later: How Inflation Targeters Outperformed Their Peers in the Great Recession

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
Irineu E de Carvalho Filho
Keyword(s):  
Interest Rates ◽  
Inflation Targeting ◽  
Global Financial Crisis ◽  
Trade Openness ◽  
Capital Inflows ◽  
Current Account Balance ◽  
Short Term ◽  
Cross Sectional ◽  
Trading Partners ◽  
The Global Financial Crisis

Twenty-eight months after the onset of the global financial crisis of August 2008, the evidence on post-crisis GDP growth emerging from a sample of 51 advanced and emerging countries is flattering for inflation targeting countries relative to their peers. The positive effect of IT is not explained away by plausible pre-crisis determinants of post-crisis performance, such as growth in private credit, ratios of short-term debt to GDP, reserves to short-term debt and reserves to GDP, capital account restrictions, total capital inflows, trade openness, current account balance and exchange rate flexibility, or post-crisis drivers such as the growth performance of trading partners and changes in terms of trade. We find that inflation targeting countries lowered nominal and real interest rates more sharply than other countries; were less likely to face deflation scares; and had sharp real depreciations without a relative deterioration in their risk assessment by markets. While the task of establishing causal relationships from cross-sectional macroeconomics series is daunting, our reading of this evidence is consistent with the resilience of IT countries being related to their ability to loosen their monetary policy when most needed, thereby avoiding deflation scares and the zero lower bound on interest rates.

A Discussion of Aida H. Hozic and Jacqui True’s Scandalous Economics: Gender and the Politics of Financial Crises

2017 ◽  
Vol 15 (2) ◽  
pp. 503-504
Author(s):  
Dara Z. Strolovitch
Keyword(s):  
Political Economy ◽  
Financial Crisis ◽  
Financial Institutions ◽  
Financial Crises ◽  
Global Financial Crisis ◽  
Economic Order ◽  
Macroeconomic Models ◽  
Gender And Race ◽  
Back Cover ◽  
The Global Financial Crisis

“Critical analyses of the global financial crisis of 2008 (GFC) have neglected the ways in which structural inequalities around gender and race factor into (and indeed make possible) the current economic order. Scandalous Economics breaks new ground by arguing that an explicitly gendered approach to the GFC and its ongoing effects can help us to understand both the root causes of the crisis and the failure to significantly reform financial institutions and macroeconomic models.” These words, from the blurb on the back cover of Scandalous Economics, nicely summarize the book’s topic and the general approach to it. Because the book contains contributions from a number of the top political scientists writing about the gendering of political economy, and because this topic is such an important one, we have invited a range of political scientists to comment on the book and on the broader theme of the gendering of political economy.

Financial Crises in American History

2021 ◽  
Author(s):  
Christoph Nitschke ◽  
Mark Rose
Keyword(s):  
United States ◽  
19Th Century ◽  
American History ◽  
Financial Crises ◽  
Global Financial Crisis ◽  
The United States ◽  
Political Processes ◽  
The Global Financial Crisis ◽  
Changing Economy ◽  
Political Design

U.S. history is full of frequent and often devastating financial crises. They have coincided with business cycle downturns, but they have been rooted in the political design of markets. Financial crises have also drawn from changes in the underpinning cultures, knowledge systems, and ideologies of marketplace transactions. The United States’ political and economic development spawned, guided, and modified general factors in crisis causation. Broadly viewed, the reasons for financial crises have been recurrent in their form but historically specific in their configuration: causation has always revolved around relatively sudden reversals of investor perceptions of commercial growth, stock market gains, monetary availability, currency stability, and political predictability. The United States’ 19th-century financial crises, which happened in rapid succession, are best described as disturbances tied to market making, nation building, and empire creation. Ongoing changes in America’s financial system aided rapid national growth through the efficient distribution of credit to a spatially and organizationally changing economy. But complex political processes—whether Western expansion, the development of incorporation laws, or the nation’s foreign relations—also underlay the easy availability of credit. The relationship between systemic instability and ideas and ideals of economic growth, politically enacted, was then mirrored in the 19th century. Following the “Golden Age” of crash-free capitalism in the two decades after the Second World War, the recurrence of financial crises in American history coincided with the dominance of the market in statecraft. Banking and other crises were a product of political economy. The Global Financial Crisis of 2007–2008 not only once again changed the regulatory environment in an attempt to correct past mistakes, but also considerably broadened the discursive situation of financial crises as academic topics.

A Discussion of Aida H. Hozic and Jacqui True’s Scandalous Economics: Gender and the Politics of Financial Crises

2017 ◽  
Vol 15 (2) ◽  
pp. 511-512
Author(s):  
Daniel W. Drezner
Keyword(s):  
Political Economy ◽  
Financial Crisis ◽  
Financial Institutions ◽  
Financial Crises ◽  
Global Financial Crisis ◽  
Economic Order ◽  
Macroeconomic Models ◽  
Gender And Race ◽  
Back Cover ◽  
The Global Financial Crisis

“Critical analyses of the global financial crisis of 2008 (GFC) have neglected the ways in which structural inequalities around gender and race factor into (and indeed make possible) the current economic order. Scandalous Economics breaks new ground by arguing that an explicitly gendered approach to the GFC and its ongoing effects can help us to understand both the root causes of the crisis and the failure to significantly reform financial institutions and macroeconomic models.” These words, from the blurb on the back cover of Scandalous Economics, nicely summarize the book’s topic and the general approach to it. Because the book contains contributions from a number of the top political scientists writing about the gendering of political economy, and because this topic is such an important one, we have invited a range of political scientists to comment on the book and on the broader theme of the gendering of political economy.

scholarly journals What Has Publishing Inflation Forecasts Accomplished? Central Banks and Their Competitors

2019 ◽  
pp. 736-778 ◽  
Author(s):  
Pierre L. Siklos
Keyword(s):  
Global Financial Crisis ◽  
Central Banks ◽  
Output Gap ◽  
Great Moderation ◽  
Confidence Set ◽  
Short Term ◽  
Inflation Forecasts ◽  
Advanced Economies ◽  
The Global Financial Crisis ◽  
Model Confidence Set

This chapter explores short-term sources of inflation forecast disagreement in nine advanced economies. Domestic versus global factors among other determinants are considered. The chapter also adapts an idea from the model confidence set approach to obtain a quasi-confidence interval for inflation forecast disagreement. Some forecasters may change their outlook, especially when data are frequently revised (e.g., the output gap). This extension is also considered. Estimates of disagreement are found to be sensitive to the chosen benchmark, and central banks need not always be the benchmark of choice. The range of forecast disagreement can be high even when levels of disagreement are low. There is little evidence that forecasts are strongly coordinated with those of the central bank. Finally, at least over the period considered, which covers the end of the Great Moderation and the global financial crisis, there is consistent evidence that global factors impact forecast disagreement.

After The Global Crisis, Is It Globalization or Globalonelization?

2015 ◽  
pp. 287-307
Author(s):  
Ayfer Gedikli ◽  
Seyfettin Erdoğan ◽  
Durmuş Çağrı Yıldırım
Keyword(s):  
Emerging Economies ◽  
Financial Crises ◽  
Local Governments ◽  
World Wide ◽  
Global Financial Crisis ◽  
Economic Consequences ◽  
Global Crisis ◽  
The World ◽  
The Global Financial Crisis

Since the rise of globalization which has abolished the role of nation-state gradually, the world has been increasingly dealing with world-wide pandemics and multi-regional financial crises. The nature of the Global Financial Crisis has made it clear that financially integrated and globalized markets which are poorly regulated with lax supervision, can pose significant risks, with disastrous economic consequences. Did global unfairness and loose monetary policy or lack of common fiscal policy deepen the crisis? Is globalization responsible from the loss of power of local governments on their economies? Finally, can “deglobalization” be an alternative solution for the emerging economies? The answers of these questions are even more crucial after the “FED tapering”. In this context, this chapter discusses the future of financial globalization with respect to its effects on the emerging economies during the global crisis.

Dating Banking and Currency Crises in Turkey, 1990-2014

2016 ◽  
pp. 240-273
Author(s):  
Ali Ari ◽  
Raif Cergibozan ◽  
Sedat Demir
Keyword(s):  
Financial Crisis ◽  
Financial Crises ◽  
Early Warning System ◽  
Currency Crises ◽  
Global Financial Crisis ◽  
Empirical Studies ◽  
Banking Crisis ◽  
Warning System ◽  
Turkish Economy ◽  
The Global Financial Crisis

The last two decades characterized by financial crisis episodes have seen a proliferation of empirical studies. These early warning system models allowed researchers to distinguish certain key determinants of financial crises, and helped predicting and preventing the occurrence of some crises. However, crises continue to arise as recently illustrated by the onset of the global financial crisis. This clarifies that there are still a lot to learn about financial crises. In this sense, this paper aimed to compare the performance of several currency and banking crisis indicators within the Turkish economy which underwent severe financial crises in the last twenty years. Different currency crisis indicators performed well by detecting the 1994, 2001 and 2008 currency crises, while banking crisis indicators had significant inconsistencies. However, two banking crisis indicators we developed stand for valuable efforts in dating banking crises by constructing aggregate indexes, and contribute significantly to the empirical crisis literature.

scholarly journals Regulating Private Higher Education in South Africa

2015 ◽  
Author(s):  
Chika Sehoole
Keyword(s):  
Higher Education ◽  
South Africa ◽  
Financial Crises ◽  
Global Financial Crisis ◽  
Private Higher Education ◽  
Private Companies ◽  
The Public ◽  
The Government ◽  
Laws And Policies ◽  
The Global Financial Crisis

This article makes case of how South Africa has been able to use its laws and policies to achieve its objectives of regulating private higher education. This happened in the context of an ascendancy of neo-liberal policies which favoured deregulation and the rolling back of the state. Through these policies the government was able to protect the public even during the global financial crisis as it had registered credible and financially sound institutions which could weather off the financial crises which affected many private companies worldwide.

Labour Markets in the Global Financial Crisis: The Good, the Bad and the Ugly

2014 ◽  
Vol 228 ◽  
pp. R58-R64 ◽  
Author(s):  
Mary C. Daly ◽  
John G. Fernald ◽  
Òscar Jordà ◽  
Fernanda Nechio
Keyword(s):  
Financial Crisis ◽  
Labour Market ◽  
Global Financial Crisis ◽  
Technological Changes ◽  
Okun’S Law ◽  
Short Term ◽  
Demand Shock ◽  
Okun's Law ◽  
Global Demand ◽  
The Global Financial Crisis

This note examines labour market performance across countries through the lens of Okun's Law. We find that after the 1970s but prior to the global financial crisis of the 2000s, the Okun's Law relationship between output and unemployment became more homogenous across countries. These changes presumably reflected institutional and technological changes. But, at least in the short term, the global financial crisis undid much of this convergence, in part because the affected countries adopted different labour market policies in response to the global demand shock.

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