scholarly journals Presidential Pendulums in Finance

2020 ◽  
Vol 2020 (2) ◽  
Author(s):  
Christina Parajon Skinner
Keyword(s):  
Financial Services ◽  
Financial Regulation ◽  
Financial Sector ◽  
Executive Branch ◽  
Administrative Law ◽  
Real Economy ◽  
The Past ◽  
Overall Stability ◽  
Push And Pull ◽  
Rule Making

While administrative law formally requires that financial regulation derive from notice-and-comment rulemaking, Presidents of the past two administrations have made novel use of an array of executive branch tools to effectively regulate and deregulate the financial services industry. This Article claims that such a shift away from formal administrative law rule-making processes toward presidentially driven deregulation has implications for the overall stability of the financial system. Specifically, this Article suggests that a President’s ability to unilaterally and informally deregulate (and, by extension, regulate) the financial sector can make regulatory cycles more frequent. In turn, the financial cycle may become shorter, steeper, and more severe. If Presidents push and pull on the financial sector, the pendulum of economic activity can swing sharper and faster than it has before—with accompanying repercussions for businesses and households in the real economy.

Norges Bank 1816-2016

2020 ◽  
Author(s):  
Einar Lie
Keyword(s):  
Political Institutions ◽  
Financial Services ◽  
Executive Branch ◽  
The Political ◽  
Napoleonic Wars ◽  
Discretionary Power ◽  
Dual Purpose ◽  
The Past ◽  
Monetary System ◽  
History Of

This book traces the 200-year history of Norges Bank, which was established in 1816 with a dual purpose: to bring order and stability to the chaotic monetary system following the Napoleonic wars and provide Norway with a bank. The present Norges Bank is a modern well-functioning central bank, with strong likenesses to similar institutions in other countries. This book is particularly concerned with the relations between the bank and the political institutions. The bank’s role has been shaped and reshaped by perceptions of what kind of financial services Norway needed, how economic policy was coordinated, and how discretionary power was distributed between the elected bodies, the executive branch, and underlying institutions with a defined mandate. The central aim of this book is to trace and explain these changes over the past two centuries. It is also, to some extent, a contribution to the relatively broad literature on the history of national central banks.

scholarly journals Regtech: Bits and Bytes of Financial Regulation

2021 ◽  
Vol 3 (1-2) ◽  
pp. 103-109
Author(s):  
Dr. Krishnendu Ghosh
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Financial Stability ◽  
Structural Changes ◽  
Financial Regulation ◽  
Global Financial Crisis ◽  
Academic Research ◽  
Financial Sector ◽  
Regulatory Compliance ◽  
Cyber Attacks

Global Financial Crisis of 2008 has caused dramatic structural changes in the financial sector and financial services worldwide. Technological disruption has changed the dimension of finance around the world. Increasing threats of cyber-attacks has raised a serious concern for the banking and financial sector across the entire world. Supervisory mechanisms, compliances and regulations have become the key factors of consideration. The paper stresses out an importance of stringent financial regulations and regulatory compliance in the recent era of technological changes and innovations towards financial stability. This paper attempts to establish a strong theoretical overview of the promise and potential of the Regulatory Technologies (RegTech) for the wider financial ecosystem based on existing academic research and also publicly available practice-oriented insights from industry sources. The purpose of this paper is to develop an insight about the implications of RegTech for financial institutions and regulation. This study will help regulatory standard setters, bankers, investors, national & international financial institutions and other academicians to envisage the future of disruptive potential in financial technology.

From meditation to action – a research agenda for studying informal global rule-making: remarks on ‘Cosmopolitanism, publicity, and the emergence of a “global administrative law”’

2020 ◽  
pp. 1-7
Author(s):  
Oliver Westerwinter
Keyword(s):  
Global Governance ◽  
Comparative Research ◽  
Research Agenda ◽  
Institutional Design ◽  
Administrative Law ◽  
Democratic Legitimacy ◽  
Institutional Architecture ◽  
Global Law ◽  
Rule Making ◽  
Law Making

Abstract Friedrich Kratochwil engages critically with the emergence of a global administrative law and its consequences for the democratic legitimacy of global governance. While he makes important contributions to our understanding of global governance, he does not sufficiently discuss the differences in the institutional design of new forms of global law-making and their consequences for the effectiveness and legitimacy of global governance. I elaborate on these limitations and outline a comparative research agenda on the emergence, design, and effectiveness of the diverse arrangements that constitute the complex institutional architecture of contemporary global governance.

On the formation of a New Paradigm of fiscal Policy

2013 ◽  
pp. 152-158 ◽  
Author(s):  
V. Senchagov
Keyword(s):  
Public Finance ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Domestic Demand ◽  
Real Economy ◽  
New Paradigm ◽  
Monetary Aggregate ◽  
The Past ◽  
The Global Financial Crisis

Due to Russia’s exit from the global financial crisis, the fiscal policy of withdrawing windfall spending has exhausted its potential. It is important to refocus public finance to the real economy and the expansion of domestic demand. For this goal there is sufficient, but not realized financial potential. The increase in fiscal spending in these areas is unlikely to lead to higher inflation, given its actual trend in the past decade relative to M2 monetary aggregate, but will directly affect the investment component of many underdeveloped sectors, as well as the volume of domestic production and consumer demand.

Financialization

2018 ◽  
pp. 276-290
Author(s):  
Ravi Roy ◽  
Thomas D. Willett
Keyword(s):  
Financial Markets ◽  
Financial Services ◽  
Capital Mobility ◽  
Global Financial Crisis ◽  
Economic Globalization ◽  
The Past ◽  
The World ◽  
The Global Financial Crisis ◽  
National Economies ◽  
Global Financial System

The size and scope of financial sectors throughout the world have grown exponentially in tandem with the rise of globalization and increased capital mobility. The terms “economic globalization” and “financialization” are often discussed as inextricably related phenomena. Although the rapid increase in the number and variety of financial services and products during the past four decades has helped spur economic growth and create wealth on an unprecedented scale, the devastating fallout from the global financial crisis of 2008–2009, and the economic turbulence that followed, demonstrates how poorly managed financial sectors can simultaneously cause enormous pain. This chapter argues that if the opportunities created by economic globalization and financialization are to be maximized, while at the same tempering volatile financial markets, then the global financial system (and the national economies connected with it) must be fundamentally restructured. A number of ways that should be taken under consideration are discussed.

Social Policies and Center-Right Governments in Argentina and Chile

2017 ◽  
Vol 59 (03) ◽  
pp. 72-97 ◽  
Author(s):  
Sara Niedzwiecki ◽  
Jennifer Pribble
Keyword(s):  
Social Policy ◽  
Executive Branch ◽  
Welfare States ◽  
Cash Transfers ◽  
Policy Reforms ◽  
Left Turn ◽  
The Past ◽  
Poverty And Inequality ◽  
Left Party ◽  
Spending Cuts

AbstractLatin America's “left turn” expanded cash transfers and public services, contributing to lower poverty and inequality. Recently, right-leaning candidates and parties have begun to win back seats in the legislature, and in some cases have captured the executive branch. This shift has sparked debate about the future of Latin America's welfare states. This article analyzes social policy reforms enacted by two recent right-leaning governments: that of Sebastián Piñera in Chile (2010–14) and Mauricio Macri in Argentina (2015–). It finds that contrary to neoliberal adjustment policies of the past, neither Macri nor Piñera engaged in privatization or deep spending cuts. Instead, both administrations facilitated a process of policy drift in some sectors and marginal expansion in others. Policy legacies and the strength of the opposition help to explain these outcomes, suggesting that Latin America's political context has been transformed by the consolidation of democracy and the experience of left party rule.

scholarly journals Exploring the Role of Islamic Fintech in Combating the Aftershocks of COVID-19: The Pen Social Innovation of the Islamic Financial System

2021 ◽  
Vol 7 (2) ◽  
pp. 136
Author(s):  
Mustafa Raza Rabbani ◽  
Abu Bashar ◽  
Nishad Nawaz ◽  
Sitara Karim ◽  
Mahmood Asad Mohd. Ali ◽  
...  
Keyword(s):  
Financial Services ◽  
Open Innovation ◽  
Financial Stability ◽  
Social Innovation ◽  
Global Financial Crisis ◽  
Financial System ◽  
Real Economy ◽  
Business Context ◽  
The World

The purpose of the current study is to investigate the role of the Islamic financial system in recovery post-COVID-19 and the way Fintech can be utilized to combat the economic reverberations created by COVID-19. The global financial crisis of 2008 has established the credentials of the Islamic financial system as a sustainable financial system which can save the long run interests of the average citizens around the world while adding value to the real economy. The basic ethical tenets available in the Islamic financial system make it more suited and readymade to fight the economic aftershocks of a pandemic like COVID-19. The basic principles of ethical Islamic finance have solid connections to financial stability and corporate social responsibility within the wide-reaching business context. With the emergence of Financial technology (Fintech) it has provided a missing impetus to the Islamic financial system to compete on equal ground with its conventional counterpart and prove its mettle. The study uses discourse analysis along with the content analysis to extract content and draw a conclusion. The findings of the study indicate that COVID-19 pandemic has provided the opportunity for the social and open innovation to grow and finance world have turned to open innovation to provide a speedy, timely, reliable, and sustainable solution to the world. The findings of the study provide significant implications for governments and policy makers in efficient application of Fintech and innovative Islamic financial services to fight the economic consequences of the COVID-19 pandemic.

The Impact of ‘Branchless Banking’ on Building Society Branch Networks

2001 ◽  
Vol 33 (8) ◽  
pp. 1371-1384 ◽  
Author(s):  
Richard Willis ◽  
J Neill Marshall ◽  
Ranald Richardson
Keyword(s):  
Financial Services ◽  
Financial Sector ◽  
Telephone Call ◽  
Current Phase ◽  
The Internet ◽  
Building Society ◽  
Call Centres ◽  
Complex Picture ◽  
Use Of The Internet ◽  
The Impact

The authors examine the impact of the remote delivery of financial services on the branch network of British building societies. The current phase of branch-network rationalisation in the financial sector in Europe and North America is argued in the academic literature to be the inevitable consequence of the growth of electronic and telemediated forms of delivery of financial services. In the British building society sector, despite some evidence of branch closure as the use of the Internet and telephone call centres in the delivery of financial services has grown, the picture that emerges is of a dynamic branch network that is responding to changing customer demands and new technological possibilities. Face-to-face advice and discussions between customers and trained ‘experts’ remain an important part of the mortgage transaction. In the savings market, where products have become more commodified, telephone call centres and, more recently, the Internet have become more prominent, but institutions still rely heavily on the branch network to deliver services. The authors suggest that, although there have been changes in the relative importance of different distribution channels as sources of business in the financial sector, it is wrong to view these changes in terms of a simple branch-versus-direct dichotomy. A more complex picture is presented, with most institutions adopting a multichannel approach to the delivery of financial services, and electronic forms of delivery of financial services being developed as an additional delivery channel alongside the branch.

Modelling the UK Banking Sector

2010 ◽  
Vol 214 ◽  
pp. F67-F72
Author(s):  
Ray Barrell ◽  
Simon Kirby ◽  
E. Philip Davis
Keyword(s):  
Banking Sector ◽  
National Income ◽  
Financial System ◽  
Financial Sector ◽  
Equation Model ◽  
Dsge Models ◽  
Real Economy ◽  
Equilibrium Models ◽  
Return To Equilibrium ◽  
Dynamic Stochastic

The financial crisis that emerged during 2007 and overwhelmed the financial system in late 2008 also brought to the fore some of the obvious failings of the style of modelling that had been fashionable in central banks in the previous decade. The shift to Dynamic Stochastic General Equilibrium models (DSGE) of whatever sort left no real scope for money and financial markets to have an impact on the real economy. This was in part because equilibrium models based on theory are unlikely to be designed to cope with a period of disequilibrium, which is when the financial system becomes important in macroeconomics. DSGE models come in various guises, and it was common to operate with a three-equation model with demand, supply and the interest rate as the equations. It is hard to see how the financial sector could fit into this, or what use it would be even if it were included. Larger DSGE models that respect the national income identity are easier to augment with a financial sector; but even that developed by the US Federal Reserve (see Edge, Kiley and Laforte, 2010) tends to return to equilibrium rather more rapidly than seems reasonable.

Benefit-Cost Analysis for Financial Regulation

2013 ◽  
Vol 103 (3) ◽  
pp. 393-397 ◽  
Author(s):  
Eric Posner ◽  
E. Glen Weyl
Keyword(s):  
Cost Analysis ◽  
Financial Markets ◽  
Financial Regulation ◽  
Allocative Efficiency ◽  
Social Value ◽  
Wall Street ◽  
Benefit Cost Analysis ◽  
The Social ◽  
Benefit Cost ◽  
Rule Making

Calls for benefit-cost analysis in rule-making, based on the Dodd-Frank Wall Street Reform Act, have revealed a paucity of work on allocative efficiency in financial markets. We propose three principles to help fill this gap. First, we highlight the need for quantifying the statistical cost of a crisis to trade off the risk of a crisis against loss of growth during good times. Second, we propose a framework quantifying the social value of price discovery, and highlighting which arbitrages are over- and under-supplied from a social perspective. Finally, we distinguish between insurance benefits and gambling-facilitation harms of market completion.

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