Financial Exposure and the International Transmission of Financial Shocks - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Financial Exposure and the International Transmission of Financial Shocks write by Güneş Kamber. This book was released on 2013. Financial Exposure and the International Transmission of Financial Shocks available in PDF, EPUB and Kindle.
Country Transparency and the Global Transmission of Financial Shocks
Country Transparency and the Global Transmission of Financial Shocks - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Country Transparency and the Global Transmission of Financial Shocks write by Mr.Luis Brandão Brandao Marques. This book was released on 2013-07-03. Country Transparency and the Global Transmission of Financial Shocks available in PDF, EPUB and Kindle. This paper considers the role of country-level opacity (the lack of availability of information) in amplifying shocks emanating from financial centers. We provide a simple model where, in the presence of ambiguity (uncertainty about the probability distribution of returns), prices in emerging markets react more strongly to signals from the developed market, the more opaque the emerging market is. The second contribution is empirical evidence for bond and equity markets in line with this prediction. Increasing the availability of information about public policies, improving accounting standards, and enhancing legal frameworks can help reduce the unpleasant side effects of financial globalization.
International Financial Contagion
International Financial Contagion - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook International Financial Contagion write by Stijn Claessens. This book was released on 2013-04-17. International Financial Contagion available in PDF, EPUB and Kindle. No sooner had the Asian crisis broken out in 1997 than the witch-hunt started. With great indignation every Asian economy pointed fingers. They were innocent bystanders. The fundamental reason for the crisis was this or that - most prominently contagion - but also the decline in exports of the new commodities (high-tech goods), the steep rise of the dollar, speculators, etc. The prominent question, of course, is whether contagion could really have been the key factor and, if so, what are the channels and mechanisms through which it operated in such a powerful manner. The question is obvious because until 1997, Asia's economies were generally believed to be immensely successful, stable and well managed. This question is of great importance not only in understanding just what happened, but also in shaping policies. In a world of pure contagion, i.e. when innocent bystanders are caught up and trampled by events not of their making and when consequences go far beyond ordinary international shocks, countries will need to look for better protective policies in the future. In such a world, the international financial system will need to change in order to offer better preventive and reactive policy measures to help avoid, or at least contain, financial crises.
Understanding Financial Interconnectedness
Understanding Financial Interconnectedness - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Understanding Financial Interconnectedness write by International Monetary Fund. Strategy, Policy, & Review Department. This book was released on 2010-04-10. Understanding Financial Interconnectedness available in PDF, EPUB and Kindle. This paper seeks to advance our understanding of global financial interconnectedness by (i) mapping aspects of the architecture of global finance and (ii) investigating critical fault lines related to interconnectedness along which systemic risks were built up and shocks transmitted in the crisis. It thus takes initial steps toward operationalizing enhanced financial sector and macro-financial surveillance called for by the IMF’s Executive Board and by experts such as de Larosiere et al. (2009). Getting a better handle on interconnectedness would strengthen the Fund‘s ability, together with the Financial Stability Board, to track systemic risk concentrations. It would also inform spillover and vulnerability analyses, and sharpen bilateral and multilateral surveillance.
Transmission Channels of Financial Shocks to Stock, Bond, and Asset-Backed Markets
Transmission Channels of Financial Shocks to Stock, Bond, and Asset-Backed Markets - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Transmission Channels of Financial Shocks to Stock, Bond, and Asset-Backed Markets write by Massimo Guidolin. This book was released on 2015-11-12. Transmission Channels of Financial Shocks to Stock, Bond, and Asset-Backed Markets available in PDF, EPUB and Kindle. Researchers, policymakers and commentators have long debated the patterns through which adverse shocks in a few markets may quickly spread to a range of apparently disconnected financial markets causing widespread losses and turmoil. This book uses modern linear and non-linear econometric methods to characterize how shocks to the yield of risky fixed income securities, such as sub-prime asset-backed or low-credit rating sovereign bonds, are transmitted to the yields in other markets. These include equity and corporate bond markets as well as relatively risk-free fixed income securities, such as highly rated asset-backed securities and sovereign bonds from core Eurozone countries. The authors analyse and compare the results from linear and non-linear models to identify and assess four distinct contagion channels characterizing both US and European financial markets. These include the correlated information, risk premium, flight-to-liquidity, and flight-to quality channels. The results of this study support the theory that both investors and policy-makers ought to pay special attention to liquidity and commonalities in the perceptions of the probabilities of default, as channels through which financial shocks propagate.
