Evolution of the Global Financial Network and Contagion: A New Approach

Evolution of the Global Financial Network and Contagion: A New Approach

Author: Ms.Yevgeniya Korniyenko

Publisher: International Monetary Fund

ISBN: 9781484353240

Category: Business & Economics

Page: 41

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This paper studies the interconnectedness of the global financial system and its susceptibility to shocks. A novel multilayer network framework is applied to link debt and equity exposures across countries. Use of this approach—that examines simultaneously multiple channels of transmission and their important higher order effects—shows that ignoring the heterogeneity of financial exposures, and simply aggregating all claims, as often done in other studies, can underestimate the extent and effects of financial contagion.The structure of the global financial network has changed since the global financial crisis, impacted by European bank’s deleveraging and higher corporate debt issuance. Still, we find that the structure of the system and contagion remain similar in that network is highly susceptible to shocks from central countries and those with large financial systems (e.g., the USA and the UK). While, individual European countries (excluding the UK) have relatively low impact on shock propagation, the network is highly susceptible to the shocks from the entire euro area. Another important development is the rising role of the Asian countries and the noticeable increase in network susceptibility to shocks from China and Hong Kong SAR economies.

Digital Currencies and the New Global Financial System

Digital Currencies and the New Global Financial System

Author: Ranjan Aneja

Publisher: Taylor & Francis

ISBN: 9781000783742

Category: Business & Economics

Page: 211

View: 298

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This book analyses the current debate around Central Bank Digital Currencies (CBDC) and the future of New Global Financial System. It offers deep insight into the global monetary policy in the context of digital and cryptocurrencies and examines both the opportunities and challenges to come. The book draws a clear distinction between digital and cryptocurrencies and answers several research questions, such as what the consequences of forming Central Bank Digital Currencies and their impact on the financial markets, in both advanced and developing economies, might be. Another question refers to whether the role of monetary policy easing has led to the rise of the virtual currency market, while still others relate to the impact of the pandemic on international settlements. The book also discusses the issue of investment in cryptocurrencies, and the related risks, whether or not this is a profitable investment vehicle, and how the digital banking system evaluates such investments. Further, the book also highlights the post-pandemic challenges for central banks, such as future monetary policy. It includes a complex review of the literature and presents elaborate econometric models of digital currencies and cryptocurrencies. The book has a wide geographic focus, examining these aspects from the perspective of several countries including China, India and the US. The primary audience for the book is researchers, scholars and students of international finance and economics but it will also appeal to practitioners concerned with the digitalisation of financial systems, policymakers and regulatory agencies.

Cross-Border Interbank Contagion Risk Analysis

Cross-Border Interbank Contagion Risk Analysis

Author: Roman Matousek

Publisher: Cambridge University Press

ISBN: 9781108898171

Category: Business & Economics

Page:

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This Element provides a detailed overview of the structural changes in the Asia-Pacific region from the early 2000s onwards. It reviews the most relevant literature on this important topic. The following two research areas are explored: first, by deploying visual network analysis (VNA), we analyse cross-border interbank claims and liabilities of the individual countries located in the Asia-Pacific region. Such an analysis evaluates interbank exposures to systematically important banks within the specific market. The important advantage of VNA is that it allows us to examine the 'hierarchical' cross-country interbank contagion risk that seems to have been neglected in similar studies. Secondly, we evaluate the contagion risk to the individual countries spreading from the financial centres in Hong Kong, Singapore, Tokyo, New York and London. The analysis unveils links and statistical factors that could be used as a key tool for detecting the potential triggers of systemic risk.

The Handbook of Global Shadow Banking, Volume I

The Handbook of Global Shadow Banking, Volume I

Author: Luc Nijs

Publisher: Springer Nature

ISBN: 9783030347437

Category: Business & Economics

Page: 800

View: 212

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This global handbook provides an up-to-date and comprehensive overview of shadow banking, or market-based finance as it has been recently coined. Engaging in financial intermediary services outside of normal regulatory parameters, the shadow banking sector was arguably a critical factor in causing the 2007-2009 financial crisis. This volume focuses specifically on shadow banking activities, risk, policy and regulatory issues. It evaluates the nexus between policy design and regulatory output around the world, paying attention to the concept of risk in all its dimensions—the legal, financial, market, economic and monetary perspectives. Particular attention is given to spillover risk, contagion risk and systemic risk and their positioning and relevance in shadow banking activities. Newly introduced and incoming policies are evaluated in detail, as well as how risk is managed, observed and assessed, and how new regulation can potentially create new sources of risk. Volume I concludes with analysis of what will and still needs to happen in the event of another crisis. Proposing innovative suggestions for improvement, including a novel Pigovian tax to tame financial and systemic risks, this handbook is a must-read for professionals and policy-makers within the banking sector, as well as those researching economics and finance.

Research Handbook on Cross-Border Bank Resolution

Research Handbook on Cross-Border Bank Resolution

Author: Matthias Haentjens

Publisher: Edward Elgar Publishing

ISBN: 9781786435989

Category: Law

Page: 448

View: 359

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Since 2008, many countries across the globe have witnessed the introduction of new recovery and resolution regimes for banks. Whereas much may have been achieved on regional levels, this has not been perfect, and many global challenges remain unsolved. The Research Handbook on Cross-Border Bank Resolution analyses the strengths and weaknesses of the current regulatory framework for cross-border bank crises with contributions from eminent experts from the US, EU, Japan and China. The topic is addressed from both economic, and legal perspectives, with a special section devoted to real-life cases.

Issues in Political Systems Research: 2013 Edition

Issues in Political Systems Research: 2013 Edition

Author:

Publisher: ScholarlyEditions

ISBN: 9781490107981

Category: Political Science

Page: 847

View: 966

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Issues in Political Systems Research / 2013 Edition is a ScholarlyEditions™ book that delivers timely, authoritative, and comprehensive information about Nations and Nationalism. The editors have built Issues in Political Systems Research: 2013 Edition on the vast information databases of ScholarlyNews.™ You can expect the information about Nations and Nationalism in this book to be deeper than what you can access anywhere else, as well as consistently reliable, authoritative, informed, and relevant. The content of Issues in Political Systems Research: 2013 Edition has been produced by the world’s leading scientists, engineers, analysts, research institutions, and companies. All of the content is from peer-reviewed sources, and all of it is written, assembled, and edited by the editors at ScholarlyEditions™ and available exclusively from us. You now have a source you can cite with authority, confidence, and credibility. More information is available at http://www.ScholarlyEditions.com/.

A network analysis of global banking

A network analysis of global banking

Author: Ms.Camelia Minoiu

Publisher: International Monetary Fund

ISBN: 9781455227051

Category: Business & Economics

Page: 43

View: 173

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In this paper we explore the properties of the global banking network using cross-border bank lending data for 184 countries over 1978-2009. Specifically, we analyze financial interconnectedness using network metrics of centrality, connectivity, and clustering. We document a relatively unstable global banking network, with structural breaks in network indicators identifying several waves of capital flows. Interconnectedness rankings, especially for borrowers, are relatively volatile over the period. Connectivity tends to fall during and after systemic banking crises and sovereign debt crises. The 2008-09 global financial crisis stands out as an unusually large perturbation to the cross-border banking network.

The Handbook of Historical Economics

The Handbook of Historical Economics

Author: Alberto Bisin

Publisher: Academic Press

ISBN: 9780128162682

Category: Business & Economics

Page: 1002

View: 791

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The Handbook of Historical Economics guides students and researchers through a quantitative economic history that uses fully up-to-date econometric methods. The book's coverage of statistics applied to the social sciences makes it invaluable to a broad readership. As new sources and applications of data in every economic field are enabling economists to ask and answer new fundamental questions, this book presents an up-to-date reference on the topics at hand. Provides an historical outline of the two cliometric revolutions, highlighting the similarities and the differences between the two Surveys the issues and principal results of the "second cliometric revolution" Explores innovations in formulating hypotheses and statistical testing, relating them to wider trends in data-driven, empirical economics

The Handbook of Globalisation, Second Edition

The Handbook of Globalisation, Second Edition

Author: Jonathan Michie

Publisher: Edward Elgar Publishing

ISBN: 9780857931443

Category: Political Science

Page: 584

View: 328

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Acclaim for the first edition: Even those who dislike the word globalisation cannot avoid using it. This remarkable book clarifies the concept of globalisation, and the ways in which it should be used. It is an invaluable guide to the economic and social processes of the 21st century. Daniele Archibugi, Italian National Research Council, Italy Admirably edited. With a wealth of applied detail, the contributors visit all the interesting questions in international political economy. Ciaran Driver, University of London, UK This Handbook brings together a stunning range of writing on a subject which has tended to be wrapped in mystery and controversy. From the opening chapters that debate the newness of globalisation to the chapters that analyse the hegemony of neo-liberalism this book weaves together the most up to date and challenging academic work. . . Vishnu Padayachee, University of Natal, Durban, South Africa Globalisation is a ubiquitous buzzword. But what does it really mean and what are its implications for human well-being? The Handbook of Globalisation pulls together current work from a sterling cast of innovative thinkers on these questions. It is no surprise that one finds penetrating insights and innovative policy approaches on nearly every page. Robert Pollin, University of Massachusetts, Amherst, US Globalisation is an issue that has been high on the research agenda for several years, spawning a vast and at times unwieldy literature. A concept often ill-defined, it has generated a plethora of unresolved and fiercely contested questions, the nature of which depends on which side of the ideological divide one stands. The 2008 global credit crunch, which in 2009 created the first global recession since the 1930s, demonstrated that the capitalism unleashed model of globalisation which had been promoted from the 1980s onwards was both damaging and unsustainable. With contributions from the leading commentators in the field and an over-arching introduction from the editor, the concerns of this updated and revised handbook are two-fold. Firstly, to redefine the concept of globalisation and dispel the haze that surrounds it through a systematic and thorough examination of the debate. Secondly, to advance the frontiers of current critical thinking on the role and impact of globalisation, on the winners and losers in the process, and on the implications for society, the economy and governance. Offering a genuinely inter-disciplinary perspective, this Handbook represents the definitive guide to what is an all-pervasive issue. It should be on the bookshelves of all postgraduate and advanced undergraduate students in economics, business, international studies and related fields, as well as scholars and policymakers with an interest in the global economy and in the functioning of an increasingly globalised world.

New Approaches to Economic Challenges Systemic Thinking for Policy Making The Potential of Systems Analysis for Addressing Global Policy Challenges in the 21st Century

New Approaches to Economic Challenges Systemic Thinking for Policy Making The Potential of Systems Analysis for Addressing Global Policy Challenges in the 21st Century

Author: OECD

Publisher: OECD Publishing

ISBN: 9789264494565

Category:

Page: 155

View: 814

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In Systemic Thinking for Policy Making world experts from the OECD and International Institute for Applied Systems Analysis (IIASA) pool their expertise and experience to propose new approaches to analysing the interconnected trends and issues shaping today’s and tomorrow’s world.

The Network Challenge

The Network Challenge

Author: Paul R. Kleindorfer

Publisher: Pearson Prentice Hall

ISBN: 9780137011919

Category: Business & Economics

Page: 590

View: 284

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While managers typically view business through the lens of a single firm, this book challenges readers to take a broader view of their enterprises and opportunities. Here, more than 50 leading thinkers in business and many other disciplines take on the challenge of understanding, managing, and leveraging networks.

Networks of International Trade and Investment

Networks of International Trade and Investment

Author: Matthew Smith

Publisher: Vernon Press

ISBN: 9781622732784

Category: Business & Economics

Page: 344

View: 741

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In recent decades, the international economy has witnessed fundamental changes in the way manufacturing is organised: products are no longer manufactured in their entirety in a single location. Instead, the production process is often split across a number of stages located in countries that are frequently far apart from each other. By spreading out their manufacturing and supply chain activities globally through international investment and intra-firm trade, Multinational enterprises (MNEs) play a focal role in this reorganisation of production. Our ability to understand the global economy, therefore, requires an understanding of the interdependencies between the entities involved in such fragmented production. Traditional methods and statistical approaches are insufficient to address this challenge. Instead, an approach is required that allows us to account for these interdependencies. The most promising approach so far is network analysis. ‘Networks of International Trade and Investment’ makes a case for the use of network analysis alongside existing techniques in order to investigate pressing issues in international business and economics. The authors put forward a range of well-informed studies that examine compelling topics such as the role of emerging economies in global trade and the evolution of world trade patterns. They look at how network analysis, as both an approach and a methodology, can explain international business and economics phenomena, in particular, in relation to international trade and investment. Providing a comprehensive but accessible explanation of the applications of network analysis and some of the most recent methodological advances in its field, this edited volume is an important contribution to research in international trade and investment.