Strategic and Innovative Actions of the Government During the Financial Crisis

2019 ◽  
pp. 352-370 ◽  
Author(s):  
Seçil Şenel
Keyword(s):  
Financial Crisis ◽  
Economic Crisis ◽  
Financial Crises ◽  
Social Problems ◽  
Government Intervention ◽  
Crisis Period ◽  
Mortgage Crisis ◽  
Economic Depression ◽  
The Government

Financial crises cause significant economic and social problems for the countries. Many companies stop their operations and a lot of people lose their jobs. Especially after the globalization, there is an increase in the number of financial crises. Because of this aspect, governments try to implement necessary actions to prevent the crisis. In this scope, government intervention to the market during the crisis period is a much-debated concept. The aim of this chapter is to identify the success of government intervention in the market in crisis period. For this purpose, three different financial crises are analyzed, which are 1929 Economic Depression, 2001 Turkish Economic Crisis, and 2008 Global Mortgage Crisis. As a result, it is identified that when government intervene into the market in crisis period, the countries can much easily overcome the crisis. Therefore, it is recommended that strategic and innovative actions should be taken by the government in case of economic crisis, such as increasing liquidity level and implementing new regulations.

scholarly journals ON THE REFLECTION OF CORONOMICS IN ECONOMIC SCIENCE AND ECONOMIC POLICY

2020 ◽  
pp. 15-24
Author(s):  
VLADIMER PAPAVA
Keyword(s):  
Economic Policy ◽  
Food Security ◽  
Economic Crisis ◽  
Inflation Targeting ◽  
Economic Incentives ◽  
Economic Security ◽  
Economic Science ◽  
Individual Country ◽  
Crisis Period ◽  
The Government

The paper discusses the economic issues of the COVID-19 pandemic. The resulting coronomic crisis is not a typical economic crisis since the coronomic crisis was not formed in the economy itself but is the result of the inability of medicine to solve the pandemic problem. The coronomic crisis is, by its very nature, an atypical economic crisis and is fundamentally different from other atypical economic crises that took place in the XX century. The coronomic crisis put the issue of the “crisis of globalization” on the agenda. The coronomic crisis exposed the weaknesses of globalization. Overcoming the COVID-19 pandemic is possible exclusively at the global level. The paper shows that the current process of de-globalization is “forced” by its nature and it will definitely be replaced by a qualitatively renewed process of globalization. Economic recovery from the corona crisis will be most successful only on the basis of the adherence to a free trade regime. In economic science, the problem of government intervention in the economy, especially during the pandemic and the post-pandemic period, is still relevant. The corona crisis has clearly confirmed the inability of inflation targeting to achieve macroeconomic stability. The coronomic crisis requires two approaches to economic policy. In particular, we mean an anti-crisis economic policy and a post-crisis economic policy. Economic incentives provided by the government to businesses contribute to the zombieing of the economy which will be one of the most difficult problems of the post-crisis period. The coronomic crisis made the issue of the economic security of each individual country even more urgent. The problem of ensuring food security is equally important. The economic policy of the post-crisis period must necessarily include measures to ensure a country’s food security. Since the possibility of a repetition of a pandemic in the future is similar to the current one, the problems of coronomics should remain in the field of study of economists for many years.

scholarly journals BANKING SECTOR MODERNIZATION(SPANISH RECIPE)

2017 ◽  
pp. 47-54
Author(s):  
Timofey Malashenko
Keyword(s):  
Financial Crisis ◽  
Economic Crisis ◽  
National Economy ◽  
Banking Sector ◽  
Banking System ◽  
Crisis Period

The aim of the research is to analyze transformation of the Spanish banking sector after the financial crisis of the year 2008. The author examines a hypothesis that banking system played an important role in the development of Spain’s economy. Spain’s banking sector was substantially transformed during the economic crisis, and now serves as a prerequisite for development of Spain’s national economy during post crisis period

scholarly journals The relationship between financial crisis and earnings management: Some evidence from the Italian context

2019 ◽  
Vol 17 (1) ◽  
pp. 325-335 ◽  
Author(s):  
Francesco Grimaldi
Keyword(s):  
At Risk ◽  
Financial Crisis ◽  
Earnings Management ◽  
Financial Crises ◽  
Macroeconomic Factors ◽  
Crisis Period ◽  
Macroeconomic Conditions ◽  
Investigation Period ◽  
Italian Context ◽  
The Relationship

The aim of this research is to investigate the relationship between the financial crisis and earnings management. Despite the wealth of research examining earnings management, we still have much to learn about the effects of macroeconomic factors on accounting discretional decisions; the recent financial crises may be one of such factors. Particularly, this study aims at investigating whether, in the Italian context, the precarious macroeconomic conditions and the consequent difficulties suffered by listed companies have constituted an incentive to implement earnings management or not. The research is based on a sample of 89 non-financial listed Italian companies and an investigation period (2005-2016) split out into three different sub-periods: a pre-crisis period (2005-2008), a crisis period (2009-2012) and a post-crisis period (2013-2016). The research is conducted using the Beneish Model, due to its capability to identify, although on the basis of likelihood, companies that potentially adopt earnings management. The results of this study suggest an overall low presence of companies at risk of manipulation throughout the period under investigation; however, the most consistent number of such companies is recorded during the pre-crisis period.

The Social Impact of the Financial Crises in the Recent Past and Evidence Thereof — With Special Reference to India

2017 ◽  
Vol 6 (2) ◽  
pp. 1-12
Author(s):  
Asim Kumar Karmakar ◽  
Sebak Kumar Jana
Keyword(s):  
Financial Crisis ◽  
Financial Crises ◽  
Social Impact ◽  
Global Financial Crisis ◽  
Labour Force ◽  
Social Indicators ◽  
Well Being ◽  
Significant Loss ◽  
Special Focus ◽  
Crisis Period

Financial crises have significant short-term and long-term social costs. As a result, economic and social indicators have dwindled significantly since 2007. The soar in the unemployment rate has been most marked in so called advanced economies, reaching alarming levels in the tangential Europe with more than half of the young labour force unemployed in Greece and Spain. What is more, the crises, one global and another Euro zone financial crisis, have inexplicably hurt the poor. The progress in poverty alleviation has been not smooth across regions, and the pace has slowed since 2007 across the board. The crisis has also created challenges to the achievement of other development targets, including reduction of the occurrence of malnutrition and mortality rates, and civilizing gender equality in education and access to hygienic water and sanitation. This also suggests a significant loss or a reversal of the progress in development. In the above background, this paper presents evidence on the extent to which the global financial crisis and other crises since 2007 has been associated with deteriorating economic and social well-being indicators with a special focus on India. The results clearly indicate that poverty levels have been falling before the pre-crisis period but the post-crisis period witnessed a jump in the poverty rates across India.

Long-Term Scarring from the Financial Crisis

2009 ◽  
Vol 210 ◽  
pp. 36-38 ◽  
Author(s):  
Ray Barrell
Keyword(s):  
Financial Crisis ◽  
Financial Crises ◽  
Asset Prices ◽  
Banking Sector ◽  
Oecd Countries ◽  
Risk Premia ◽  
Crisis Period ◽  
Permanent Effect ◽  
Output Costs

It is useful to look at the distinction between transitory and permanent effects of a crisis. Financial crises normally bring on a recession, and the output costs can be large, as Hoggarth and Saporta (2001) discuss. In the majority of cases since 1970 in the OECD countries output returns to its trend level and there is no permanent effect. However, there may have been a permanent scar on the level of output in Japan after its crisis in the early 1990s, making the crisis and subsequent recession much more costly. This may reflect the nature and length of the crisis, as the banking sector was left to flounder for some years before its rescue toward the end of the crisis period. This appears to have left a permanent scar because risk premia were subsequently higher, and real asset prices have not fully recovered.

scholarly journals THE ECONOMIC CRISIS AS A PREREQUISITE FOR REGIONAL SHIFTS IN THE ECONOMY OF JAPAN

2017 ◽  
pp. 127-133
Author(s):  
P. Makarenko
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Economic Crisis ◽  
Global Financial Crisis ◽  
Small And Medium Enterprises ◽  
Technological Development ◽  
Real Estate Market ◽  
Negative Effects ◽  
Industrial Growth ◽  
The Government

In article analyzed the signs and consequences of the economic crisis in Japan, revealed a system of anti-crisis government measures to stimulate economic growth, the stock market and real estate market, public policy and social programs. Successful anti-crisis measures and the negative effects of regulatory policy in the fall of domestic and foreign markets were considered. We were analyzed three major economic crises: the post-war crisis, the crisis of the 90s, the 2008 financial crisis. The economic crisis of the early 90s had a very specific background; analysis and reflection of them are allowed to reduce the crisis of 2008. The first crisis was caused mainly by internal economic factors, and the second – the global financial crisis. Pre-crisis economic had certain market conditions. During export economy Japan generated industrial growth, increase a foreign production, results of direct investment. Japanese companies had pursued a policy of active promotion in Asian markets. Over the years 2002-2007 decline the consumer demand, and in 2008 there were the first signs of recession. Textile and chemical industry, general engineering, ferrous metallurgy, information and communication electronic equipment had reduced production and profits. After analyzing the current situation in the world markets, the Japanese government approved the “Complex strategic measures to overcome the crisis.” The government executed the following major steps: 1. Increase local and regional regulation; 2. Reduction of taxes; 3. Exchange and stock markets regulation; 4. Reduce military spending; 5. The increase in exports, business building in regional market centers; 6. Promote small and medium enterprises (SMEs); 7. Formation of innovative markets; 8. Development of logistics infrastructure; 9. Reduce energy dependence, changing sources of energy; 10. The reform of social policy; 11. The reform of regional policy and investment; 12. The development of tourism projects. The experience of Japan can be adapted a series of reforms: decentralization, solving demographic problems, increasing regional and international business, scientific and technological development, investment in infrastructure and trade logistics, tourism development. Successfully reforms and strategic location was allowed Japan to survive the economic crisis and achieve economic growth.

scholarly journals The Impacts of Global Financial Crisis on Construction Sector in Turkey

2014 ◽  
Author(s):  
Fatih Kürşat Fırat ◽  
Esra Soyu
Keyword(s):  
Financial Crisis ◽  
Construction Industry ◽  
Economic Crisis ◽  
Global Financial Crisis ◽  
Gdp Growth ◽  
Construction Sector ◽  
Global Crisis ◽  
Mortgage Crisis ◽  
The World ◽  
Global Economic Crisis

The global crisis in United States began as the form of the mortgage crisis in the housing market. Profound effects the financial crisis emerged in 2008 spread rapidly throughout the world as a result of globalization and also its effects were felt in our country. Both in earlier crises and the emergence and spread of the global economic crisis in the cyclical indicators are known to play an important role. There are different opinions on this subject in the literature. It is seen that there is a relation between the global crisis in the financial sectors and the construction sector based on mostly housing industry. Especially in the developing countries like Turkey, the construction sector, which is an important contribution to the economic growth, is seen negatively affected by the global crisis. The aim of this study is to analyze the variations occurred in the construction industry during the 2008 global economic crisis and is to introduce how the construction sector is affected by the crisis. Here, Turkey's main economic indicators during the crisis are examined considering the construction sector and GDP growth rates. As a result of this study, it is put forward that the construction sector in Turkey is one of the sectors most affected by the global crisis.

scholarly journals Spread and Liquidity Issues: A markets comparison

2016 ◽  
Vol 62 (1) ◽  
pp. 3-11
Author(s):  
Sebastjan Strašek ◽  
Bor Bricelj
Keyword(s):  
At Risk ◽  
Risk Factor ◽  
Financial Crisis ◽  
Risk Aversion ◽  
Economic Crisis ◽  
Financial Crises ◽  
Value At Risk ◽  
Risk Framework ◽  
Standard Value ◽  
Spread Analysis

Abstract The financial crises are closely connected with spread changes and liquidity issues. After defining and addressing spread considerations, we research in this paper the topic of liquidity issues in times of economic crisis. We analyse the liquidity effects as recorded on spreads of securities from different markets. We stipulate that higher international risk aversion in times of financial crises coincides with widening security spreads. The paper then introduces liquidity as a risk factor into the standard value-at-risk framework, using GARCH methodology. The comparison of results of these models suggests that the size of the tested markets does not have a strong effect on the models. Thus, we find that spread analysis is an appropriate tool for analysing liquidity issues during a financial crisis.

scholarly journals The Impact of Political Stability on the Effectiveness of the Early Warning Systems in Predicting the Financial Crises: The Case of Jordan and Qatar

2020 ◽  
Vol 11 (4) ◽  
pp. 398
Author(s):  
Baker Shnekat ◽  
Ghazi Al-Assaf
Keyword(s):  
Financial Crisis ◽  
Early Warning ◽  
Financial Crises ◽  
Political Stability ◽  
Early Warning Systems ◽  
Warning Systems ◽  
Economic Variables ◽  
Goods And Services ◽  
The Government ◽  
The Impact

The research aims to identify the impact of political stability in determining the effectiveness of early warning systems in predicting financial crises. The research applied a standard descriptive approach.In general, when comparing the two countries before including the model for economic variables the results showed that the nature of the impact of economic variables is different as the index of the financial crisis in Jordan is affected by the import of goods and services while the most influential indicators in the early warning model for the occurrence of the financial crisis in Qatar is the index of exporting goods and services on the basis that the system Qatari financial is very sensitive to the subject of export of gas and oil. Also, the results showed that there is a very significant impact of political stability on the financial crisis, which is greater than the impact of economic indicators, and if the two countries differed in which indicators for political stability have the greatest impact on the occurrence of the financial crisis, in Jordan the most influential indicator was the government effectiveness variable in Qatar, the regulatory quality index was the most influential.

The Social Impact of the Financial Crises in the Recent Past and Evidence Thereof

2019 ◽  
pp. 1428-1441
Author(s):  
Asim Kumar Karmakar ◽  
Sebak Kumar Jana
Keyword(s):  
Financial Crisis ◽  
Financial Crises ◽  
Social Impact ◽  
Global Financial Crisis ◽  
Labour Force ◽  
Social Indicators ◽  
Well Being ◽  
Significant Loss ◽  
Special Focus ◽  
Crisis Period

Financial crises have significant short-term and long-term social costs. As a result, economic and social indicators have dwindled significantly since 2007. The soar in the unemployment rate has been most marked in so called advanced economies, reaching alarming levels in the tangential Europe with more than half of the young labour force unemployed in Greece and Spain. What is more, the crises, one global and another Euro zone financial crisis, have inexplicably hurt the poor. The progress in poverty alleviation has been not smooth across regions, and the pace has slowed since 2007 across the board. The crisis has also created challenges to the achievement of other development targets, including reduction of the occurrence of malnutrition and mortality rates, and civilizing gender equality in education and access to hygienic water and sanitation. This also suggests a significant loss or a reversal of the progress in development. In the above background, this paper presents evidence on the extent to which the global financial crisis and other crises since 2007 has been associated with deteriorating economic and social well-being indicators with a special focus on India. The results clearly indicate that poverty levels have been falling before the pre-crisis period but the post-crisis period witnessed a jump in the poverty rates across India.

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