The role of corporate saving in global rebalancing

Philippe Bacchetta, Kenza Benhima 24 August 2014

a

A

The increase in global imbalances in the last decade posed a theoretical challenge for international macroeconomics. Why did some less-developed countries with a higher need for capital, like China, lend to richer countries? The inconsistency of standard open-economy dynamic models with actual global capital flows had already been stressed before (e.g. by Lucas 1990), but the sensitivity to this issue became more acute with increasing global imbalances. This stimulated the development of several alternative theoretical frameworks.

a

A

Topics:  International finance International trade

Tags:  interest rates, global imbalances, capital flows, saving, global crisis, credit constraints, savings glut, zero lower bound, corporate saving, global rebalancing

Ballooning finance

Bruno Biais, Jean-Charles Rochet, Paul Woolley 21 August 2014

a

A

One of the curiosities of the modern economy is why the finance sector is so large. Economists have only recently sought to document and ponder this phenomenon. Empirically, Greenwood and Scharfstein (2013) find that, in the US, financial services, which accounted for 2.8% of GDP in 1950, made up 8.3% of GDP in 2006.

a

A

Topics:  Financial markets

Tags:  securitisation, financial crises, moral hazard, asymmetric information, financial innovation, global crisis, bubbles, monitoring, shirking, junk bonds, CDOs, CDSs, ETFs

Identifying and quantifying monetary policy transmission through bank balance sheets

Kaoru Hosono, Daisuke Miyakawa 09 August 2014

a

A

How does monetary policy affect firm activities? While there is long-standing literature on this issue, the transmission mechanism of monetary policy is currently attracting renewed attention. The reason is that many central banks – including the US Federal Reserve, the Bank of England, the ECB, and the Bank of Japan – have introduced unconventional monetary policies such as quantitative easing and credit easing in the wake of the Global Crisis, and sooner or later will have to exit from these policies.

a

A

Topics:  Financial markets Global crisis Monetary policy

Tags:  monetary policy, Japan, global crisis, quantitative easing, unconventional monetary policy, balance sheets, financial accelerator, credit easing, bank lending channel

Economic policies pursuant to the Global Crisis: A critique

Richard Wood 13 July 2014

a

A

Interrelated economic problems

Current high public debt burdens are due to three main forces:

a

A

Topics:  Global crisis Macroeconomic policy

Tags:  global crisis, policy response, overt money financing

R&D internationalisation during the Global Crisis

Bernhard Dachs, Georg Zahradnik 06 July 2014

a

A

Foreign firms’ share of total business R&D expenditure increased during the last three decades in almost all countries where data is available, but this trend stopped with the Global Crisis of 2008–2009. In most countries, R&D of foreign firms was more severely affected by the crisis than R&D of domestic firms. However, the crisis did not lead to a new global distribution of overseas R&D expenditure.

a

A

Topics:  Global crisis Productivity and Innovation

Tags:  R&D, globalisation, multinationals, FDI, innovation, global crisis, persistence, autonomy, subsidiaries

Reform and be re-elected: Evidence from the post-crisis period

Marco Buti, Alessandro Turrini, Paul van den Noord 04 July 2014

a

A

The former Eurogroup president allegedly said, “We all know what to do but we don’t know how to be re-elected once we have done it” (The Economist 2007). In an earlier VoxEU column (Buti et al. 2008), we argued that the presumed electoral risk for a reformist government – based on the statement by Mr Juncker – is largely unfounded, in particular if a number of conditions are met.

a

A

Topics:  Politics and economics

Tags:  elections, reforms, global crisis

Low interest rates and secular stagnation: Is debt a missing link?

Claudio Borio, Piti Disyatat 25 June 2014

a

A

Today, the US government can borrow for ten years at a fixed rate of around 2.5%. Adjusted for expected inflation, this translates into a real borrowing cost of under 0.5%. A year ago, real rates were actually negative. With low interest rates dominating the developed world, many worry that an era of secular stagnation has begun (Summers 2013).

a

A

Topics:  Financial markets Global crisis Monetary policy

Tags:  interest rates, monetary policy, global crisis, debt, secular stagnation, risk-taking channel of monetary policy, natural rate of interest, monetary non-neutrality

Teaching economics as if the last three decades had happened

Wendy Carlin interviewed by Viv Davies,

Date Published

Tue, 05/20/2014

a

A

a

A

Topics

Frontiers of economic research
Tags
financial crisis, global crisis, academia, teaching, economics education, undergraduates

Related Article(s)

Greening Economics: It is time How should macroeconomics be taught to undergraduates in the post-crisis era? A concrete proposal Are economics graduates fit for purpose? Why teaching economics must now change in light of the crisis
MP3 File Details

Listen

Unfortunately the file could not be found.

Open in a pop-up window Open in a pop-up window

Download

Download MP3 File (5.67MB)

MP3 File Size

5.67MB

MP3 RSS File Size

5,670,000

MP3 Length (Minutes)

6

MP3 Length (Seconds)

12

The mainstream economics curriculum needs an overhaul

Diane Coyle 04 May 2014

a

A

One of the delayed consequences of the financial crisis is a widespread and apparently growing desire to change how economics is taught. Students in a number of countries, including vocal groups in Chile and the UK, have recently intensified the demand for reform. One recent example is a report from the Post-Crash Economics Society at the University of Manchester (Post-Crash Economics Society 2014).

a

A

Topics:  Education Global crisis

Tags:  education, financial crisis, global crisis, academia, teaching, economics education, undergraduates

Global Crises: Causes, Consequences and Policy Responses

Stijn Claessens interviewed by Viv Davies,

Date Published

Fri, 04/18/2014

a

A

See Also

Stijn Claessens, M Ayhan Kose, Luc Laeven, Fabian Valencia (eds) Global Crises: Causes, Consequences and Policy Responses (IMF, February, 2014) 

a

A

Topics

Macroeconomic policy
Tags
financial crises, banking crises, global crisis, fiscal deficit, debt, default, recovery

Related Article(s)

Derivatives and the Eurozone crisis Understanding contagious bank runs The PADRE plan: Politically Acceptable Debt Restructuring in the Eurozone
MP3 File Details

Listen

Unfortunately the file could not be found.

Open in a pop-up window Open in a pop-up window

Download

Download MP3 File (13.9M)

MP3 File Size

13.9M

MP3 RSS File Size

13900000

MP3 Length (Minutes)

15

MP3 Length (Seconds)

8

When

April 2014

Where

London

Pages

Events