scholarly journals Predicting Economic Crisis using Financial to Real Sector Disproportion: Theory and Evidence

Author(s):  
Anna Svirina ◽  
Elena Parfenova ◽  
Olga Shindor
Keyword(s):  
Author(s):  
K. E. Маnuylov

The article highlights the transformation of financial market, which determines its insulation as an independent economy sector. The tendency was first analyzed in late XIX century and has been developing since then, resulting in dissociation of real and financial sectors. Due to uncertainty traders lack decision guidelines, as speculative transactions do not imply property management. As a result, their decisions are based on expectations and market value losses any connection to real sector performance. Financial derivatives development through late XX century has brought financial market independence to a new level and inflation of the sector to values, exceeding world GDP. Stock market has provided the basis for property and management separation, and derivatives, in turn, separate returns from property and risk from asset. As risk valuation turns out to be the measure of market expectations, it is sure to affect the basic asset prices even more than underlying real capital. The imbalance is believed to have been one of the determinants of the modern financial and economic crisis. Financial market has evidently transformed to a casino to a greater extent, than Keynes identified.


Subject Early signs of recovery and consolidation in Ukraine's banking sector. Significance For Ukraine's banking sector, the effects of the economic crisis since early 2014 include dramatic currency devaluation, the undermining of public trust and numerous bankruptcies. The crisis has also had positive effects as the National Bank of Ukraine (NBU) set about purging the sector of weak, poorly run institutions. Impacts Capital requirements will cause significant consolidation in the near-to-medium term, as many smaller banks will be unable to comply. By failing to resume large-scale lending to the real sector, the banks will limit the chances of a quick recovery. Russian-owned banks are not immediately threatened by official sanctions, owing to the hefty deposit base they have developed.


2021 ◽  
Vol 11 (2) ◽  
pp. 78-82
Author(s):  
Vido Metti Sitepu

Indonesia as a development country, has a good economic growth in the 1990's. It shows by increasing of GDP year by year, stabilization of inflation, etc. But since 1997's economic crisis in Asia's countries, Indonesia's economic growth has been declining. It effected the monetary sector and real sector, and add again with progressively the amount of foreign debt of Indonesia, so that effect of Rupiah rate wich progressively weakening. This paper will analyze the foreign direct investment also foreign debt, on the economic growth of Indonesia. By using the OLS model on Indonesia yearly data from 1975-2009 and the confirm the significant of these independent variables as the factors that effected the economic growth of Indonesia. Foreign direct investment and foreing debt represent the way able to be gone through by government in overcoming deficit of national saving utilize to push the national development to get the good economic growth. Pursuant to things told above, writer try to study the problem of economic growth in Indonesia in its relation with the foreign direct investment and foreign debt by lifting title “Influence on The Foreign Direct Investment and The Foreign Debt to Economic Growth of Indonesia”.


2018 ◽  
Vol 18 (2) ◽  
pp. 137
Author(s):  
Husni Mubarrak

This article would like to discuss an Indonesian experience in developing Baitul Mal wat Tamwil (BMT) since 1990’s as an alternative microfinance which based on loss and profit sharing schema that realized a more just economic system. This research is conducted by both bibliographical overviews and empirical investigations. This paper would like to elaborate more on how BMT developed and maintained its capacity and efforts, in providing a more just alternative model instead of interest system which had shown negative spread and pseudo economic growth. This, however, requires emphasizing the main differences between both systems (sharing and interest). It also discusses on how BMT upgraded competitively various attractive products which based on loss and profit sharing. The establishment of BMT in Indonesia could not be separated from the emergence of “creative minority” and “enlightened group” in some campuses in Indonesia to build BMT since 1984, which later followed and developed by Indonesian Muslim Intellectual Association (Ikatan Cendekiawan Muslim Indonesia/ ICMI) since 1991. The research findings showed that the schema which is used by BMT on loss and profit sharing is a real practical effort which then has successfully developed, massively contributed and largely triggered Indonesian economic in the real sector, especially for the small and medium economic scale enterprises (SMES) in order to poverty alleviation. It also reflected as an experiment of early steps in recognizing Islamic economy in Indonesia. BMT also still could survive, even when a huge economic crisis struck Indonesia particularly and South East Asia generally in 1997.


Author(s):  
KAMİL GÜNGÖR

Interest-free banking became important issue in the world in the1960s, and in Turkey in 1980s, respectively. Interest free banking, which is named “participation banking” in Turkey, is a new method in that it is significantly different from conventional banking on fund collection and use. Participation banks have offeredtheir customers different alternatives from conventional banks both in Turkey and in the world. This shows the capacity of participation banks as an alternative to commercial banks as well as their complementary role in their functions. Economic policies should be sustainable and support real sector. If public deficits, governmentborrowing requirement and risks are too high, it would be difficult for investors to make their investment decisions. Participation banks which support real sector are cures to both the global and local economic crisis. The commercial banks are expected to exhibit similar functions.


2021 ◽  
Vol 1 (10(74)) ◽  
pp. 41-45
Author(s):  
S. Lenkin

The socio-economic realities caused by the global economic crisis and the pandemic objectively require a revision of traditional approaches to the management of state and municipal property, more active involvement in the sphere of civil legal turnover and market relations of the most important natural resource of the country - public lands belonging to municipalities and subjects of the Russian Federation. Based on the principles of public-private partnership, as a permanent mechanism of self-financing and a "point of growth" of the real sector of the economy, an original method of involving public land assets of Russia in mortgage turnover is proposed.


2001 ◽  
Vol 60 (1) ◽  
pp. 11-14 ◽  
Author(s):  
Lucia Savadori ◽  
Eraldo Nicotra ◽  
Rino Rumiati ◽  
Roberto Tamborini

The content and structure of mental representation of economic crises were studied and the flexibility of the structure in different social contexts was tested. Italian and Swiss samples (Total N = 98) were compared with respect to their judgments as to how a series of concrete examples of events representing abstract indicators were relevant symptoms of economic crisis. Mental representations were derived using a cluster procedure. Results showed that the relevance of the indicators varied as a function of national context. The growth of unemployment was judged to be by far the most important symptom of an economic crisis but the Swiss sample judged bankruptcies as more symptomatic than Italians who considered inflation, raw material prices and external accounts to be more relevant. A different clustering structure was found for the two samples: the locations of unemployment and gross domestic production indicators were the main differences in representations.


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