In the wake of the Global Crisis, emerging Europe has experienced a sharp drop in investment levels. As a result, income convergence has virtually come to a halt. This column presents key findings of the EBRD’s latest Transition Report, urging countries in emerging Europe to rebalance their financial systems in order to reignite economic growth. Rebalancing is necessary in terms of the available debt–equity mix, the currency composition of credit, banks’ funding sources, and cross-border investment partners.
Çağatay Bircan, Ralph De Haas, Hans Peter Lankes, Alexander Plekhanov, Tuesday, November 10, 2015 - 00:00
Gaston Gelos, Hiroko Oura, Saturday, July 25, 2015 - 00:00
The growth of the asset management industry has raised concerns about its potential impacts on financial stability. This column assesses the systemic risk created by fund managers’ incentive problems and a first-mover advantage for end investors. Fund flows and fund ownership affect asset prices, and fund managers’ behaviour can amplify risks. This lends support to the expansion and strengthening of industry oversight, both at the individual fund and market levels.
Ross Levine, Chen Lin, Thursday, July 2, 2015 - 00:00
Labour market regulations have important implications for both the incidence of cross-border acquisitions, and the outcomes for acquiring firms. This column explores how variations in labour regulations between countries affect cross-border acquisitions and subsequent firm performance. For a sample of 50 countries, firms are found to enjoy larger returns when they acquire a target in a country with weaker labour regulations than the acquirer’s home country.
Nicolas Magud, Sebastián Sosa, Wednesday, May 13, 2015 - 00:00
Emerging markets are not the hot investment prospect they used to be. This column estimates that weaker private investment in these nations is a slowdown after a period of boom rather than an outright slump. Prospects for a recovery of business investment, however, are not promising. Commodity prices are expected to remain weak and external financial conditions are set to become tighter.
Aqib Aslam, Samya Beidas-Strom, Daniel Leigh, Seok Gil Park, Hui Tong, Saturday, April 18, 2015 - 00:00
Andrew W. Lo, Richard T. Thakor, Tuesday, March 24, 2015 - 00:00
Alan J Auerbach, Kevin Hassett, Tuesday, March 3, 2015 - 00:00
Andrés Rodríguez-Pose, Yannis Psycharis, Vassilis Tselios, Tuesday, March 3, 2015 - 00:00
Francesco D'Acunto, Marcel Prokopczuk, Michael Weber, Thursday, February 26, 2015 - 00:00
Jon Danielsson, Eva Micheler, Katja Neugebauer, Andreas Uthemann, Jean-Pierre Zigrand, Monday, February 23, 2015 - 00:00
Simon Wren-Lewis, Friday, January 30, 2015 - 00:00
Kristina Morkunaite, Felix Huefner, Thursday, November 27, 2014 - 00:00
Jean Pisani-Ferry, Friday, November 7, 2014 - 00:00
Charles A.E. Goodhart, Philipp Erfurth, Tuesday, November 4, 2014 - 00:00
Charles A.E. Goodhart, Philipp Erfurth, Monday, November 3, 2014 - 00:00
David Chambers, Elroy Dimson, Monday, October 20, 2014 - 00:00
Christian Thimann, Friday, October 17, 2014 - 00:00
Gaston Gelos, Hiroko Oura, Saturday, August 23, 2014 - 00:00
The landscape of portfolio investment in emerging markets has evolved considerably over the past 15 years. Financial markets have deepened and become more internationally integrated. The mix of global investors has also changed, with more money intermediated by mutual funds. This column explains that these changes have made capital flows and asset prices in these economies more sensitive to global financial shocks. However, broad-based financial deepening and improved institutions can enhance the resilience of emerging-market economies.
Raphael Boleslavsky, Christopher Cotton, Saturday, August 16, 2014 - 00:00
Grade inflation is widely viewed as detrimental, compromising the quality of education and reducing the information content of student transcripts for employers. This column argues that there may be benefits to allowing grade inflation when universities’ investment decisions are taken into account. With grade inflation, student transcripts convey less information, so employers rely less on transcripts and more on universities’ reputations. This incentivises universities to make costly investments to improve the quality of their education and the average ability of their graduates.
Coen Teulings, Richard Baldwin, Wednesday, September 10, 2014 - 00:00
The CEPR Press eBook on secular stagnation has been viewed over 80,000 times since it was published on 15 August 2014. The PDF remains freely downloadable, but as the European debate on secular stagnation is moving into policy circles, we decided to also make it a Kindle book. This is available from Amazon; all proceeds will help defray VoxEU expenses.