Author: Claudio E. RaddatzPublisher: World Bank Publications
ISBN:
Category :
Languages : en
Pages : 53
Book Description
Liquidity Needs and Vulnerability to Financial Undervelopment
Author: Claudio E. RaddatzPublisher: World Bank Publications
ISBN:
Category :
Languages : en
Pages : 53
Book Description
Liquidity Needs and Vulnerability to Financial Underdevelopment
Author: Claudio E. RaddatzPublisher:
ISBN:
Category :
Languages : en
Pages : 53
Book Description
Raddatz provides evidence of a causal and economically important effect of financial development on volatility. In contrast to the existing literature, the identification strategy is based on the differences in sensitivities to financial conditions across industries. The results show that sectors with larger liquidity needs are more volatile and experience deeper crises in financially underdeveloped countries. At the macroeconomic level, the results suggest that changes in financial development can generate important differences in aggregate volatility. The author also finds that financially underdeveloped countries partially protect themselves from volatility by concentrating less output in sectors with large liquidity needs. Nevertheless, this insulation mechanism seems to be insufficient to reverse the effects of financial underdevelopment on within-sector volatility. Finally, Raddatz provides new evidence that:ʼn Financial development affects volatility mainly through the intensive margin (output per firm).ʼn Both the quality of information generated by firms, and the development of financial intermediaries have independent effects on sectoral volatility.ʼn The development of financial intermediaries is more important than the development of equity markets for the reduction of volatility.This paper - a product of Macroeconomics and Growth, Development Research Group - is part of a larger effort in the group to understand the determinants of macroeconomic volatility.
Beyond Racial Capitalism
Author: Caroline Shenaz HosseinPublisher: Oxford University Press
ISBN: 0192694502
Category : Social Science
Languages : en
Pages : 272
Book Description
Knowledge-making in the field of alternative economies has limited the inclusion of Black and racialized people's experience. In Beyond Racial Capitalism the goal is close that gap in development through a detailed analysis of cases in about a dozen countries where Black people live and turn to co-operatives to manage systemic exclusion. Most cases focus on how people use group methodology for social finance. However, financing is not the sole objective for many of the Black people who engage in collective business forms; it is about the collective and the making of a Black social economy. Systemic racism and anti-Black exclusion create an environment where pooling resources, in kind and money, becomes a way to cope and to resist an oppressive system. This book examines co-operatives in the context of racial capitalism-a concept of political scientist Cedric J. Robinson's that has meaning for the African diaspora who must navigate, often secretly and in groups, the landmines in business and society. Understanding business exclusion in the various cases enables appreciation of the civic contributions carried out by excluded racial minorities. These social innovations by Black people living outside of Africa who build co-operative economies go largely unnoticed. If they are noted, they are demoted to an “informal” activity and rationalized as having limited potential to bring about social change. The sheer determination of Black diaspora people to organize and build co-operatives that are explicitly anti-racist and rooted in mutual aid and the collective is an important lesson in making business ethical and inclusive.
Creditless Recoveries
Author: Mr.Abdul AbiadPublisher: International Monetary Fund
ISBN: 1455221023
Category : Business & Economics
Languages : en
Pages : 32
Book Description
Recoveries that occur in the absence of credit growth are often dubbed miracles and named after mythical creatures. Yet these are not rare animals, and are not always miracles. About one out of five recoveries is "creditless", and average growth during these episodes is about a third lower than during "normal" recoveries. Aggregate and sectoral data suggest that impaired financial intermediation is the culprit. Creditless recoveries are more common after banking crises and credit booms. Furthermore, sectors more dependent on external finance grow relatively less and more financially dependent activities (such as investment) are curtailed more during creditless recoveries.
Rethinking Expectations
Author: Roman FrydmanPublisher: Princeton University Press
ISBN: 0691155232
Category : Business & Economics
Languages : en
Pages : 440
Book Description
This book originated from a 2010 conference marking the fortieth anniversary of the publication of the landmark "Phelps volume," Microeconomic Foundations of Employment and Inflation Theory, a book that is often credited with pioneering the currently dominant approach to macroeconomic analysis. However, in their provocative introductory essay, Roman Frydman and Edmund Phelps argue that the vast majority of macroeconomic and finance models developed over the last four decades derailed, rather than built on, the Phelps volume's "microfoundations" approach. Whereas the contributors to the 1970 volume recognized the fundamental importance of according market participants' expectations an autonomous role, contemporary models rely on the rational expectations hypothesis (REH), which rules out such a role by design. The financial crisis that began in 2007, preceded by a spectacular boom and bust in asset prices that REH models implied could never happen, has spurred a quest for fresh approaches to macroeconomic analysis. While the alternatives to REH presented in Rethinking Expectations differ from the approach taken in the original Phelps volume, they are notable for returning to its major theme: understanding aggregate outcomes requires according expectations an autonomous role. In the introductory essay, Frydman and Phelps interpret the various efforts to reconstruct the field--some of which promise to chart its direction for decades to come. The contributors include Philippe Aghion, Sheila Dow, George W. Evans, Roger E. A. Farmer, Roman Frydman, Michael D. Goldberg, Roger Guesnerie, Seppo Honkapohja, Katarina Juselius, Enisse Kharroubi, Blake LeBaron, Edmund S. Phelps, John B. Taylor, Michael Woodford, and Gylfi Zoega.
Community Economies in the Global South
Author: Caroline Shenaz HosseinPublisher: Oxford University Press
ISBN: 0198865627
Category : Business & Economics
Languages : en
Pages : 275
Book Description
People across the globe engage in social and solidarity economics to help themselves, their community, and society on their own terms. Community Economies in the Global South examines how people who conscientiously organize rotating savings and credit associations (ROSCAs) bring positive changes to their own lives as well as others. ROSCAs are a long-established and well documented practice, especially those organized by women of colour. Members make regular deposits to a fund as a savings that is then given in whole or in part to each member in turn based on group economics. This book spotlights women in Latin America, the Caribbean, Africa, and Asia who organize and use these associations, composed of ordinary people belonging to similar class origins who decide jointly on the rules to suit the interests of their members. The case studies show how they vary greatly across countries in the Global South, demonstrating that ROSCAs are living proof that diverse community economies do exist and have been around for a very long time. The contributors recount stories of the self-help, activism, and perseverance of racialized people in order to push for ethical, community-focused business, and to hold onto local knowledge, grounded theory, and lived experience, reducing the need to rely on external funding as people find ways to finance sustainable, debt-free business ventures. The first collection on this topic edited by two women of colour with roots in the Global South, this volume is a rallying call to other scholar-activists to study and report on how racialized people come together, pool goods, and diversify business in the Global South.
Revisiting the Monetary Transmission Mechanism Through an Industry-Level Differential Approach
Author: Sangyup ChoiPublisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 61
Book Description
By combining industry-level data on output and prices with monetary policy rates for a panel of 88 countries, this paper analyzes how the effects of monetary policy vary with certain industry characteristics. Next to being interesting in their own right, our results are informative on the importance of various transmission mechanisms (as they are expected to vary systematically with the included characteristics). Rather than relying on standard monetary policy shock identification, we overcome the endogeneity problem by taking a differential approach (interacting our monetary policy measure with industry-level characteristics). Our results suggest that monetary contractions reduce output by more in industries featuring assets that are more difficult to collateralize (as predicted by the balance sheet channel) and in industries more reliant on international trade (as predicted by the exchange rate channel). Consistent with the financial accelerator mechanism, we find that the balance sheet channel becomes stronger during bad times. At the same time, we do not find evidence supporting the traditional interest rate channel of monetary policy; the same goes for the cost channel.
Fiscal Redistribution and Income Inequality in Latin America
Author: Edwin GoniPublisher: World Bank Publications
ISBN:
Category : Debt Markets
Languages : en
Pages : 31
Book Description
Abstract: Income inequality in Latin America ranks among the highest in the world. It can be traced back to the unequal distribution of assets (especially land and education) in the region. But the extent to which asset inequality translates into income inequality depends on the redistributive capacity of the state. This paper documents the performance of Latin American fiscal systems from the perspective of income redistribution using newly-available information on the incidence of taxes and transfers across the region. The findings indicate that: (i) the differences in income inequality before taxes and transfers between Latin America and Western Europe are much more modest than those after taxes and transfers; (ii) the key reason is that, in contrast with industrial countries, in most Latin American countries the fiscal system is of little help in reducing income inequality; and (iii) in countries where fiscal redistribution is significant, it is achieved mostly through transfers rather than taxes. These facts stress the need for fiscal reforms across the region to further the goal of social equity. However, different countries need to place different relative emphasis on raising tax collection, restructuring the tax system, and improving the targeting of expenditures.
Are External Shocks Responsible for the Instability of Output in Low Income Countries?
Author: Claudio E. RaddatzPublisher: World Bank Publications
ISBN:
Category : Business cycles
Languages : en
Pages : 53
Book Description
External shocks, such as commodity price fluctuations, natural disasters, and the role of the international economy, are often blamed for the poor economic performance of low-income countries. The author quantifies the impact of these different external shocks using a panel vector autoregression (VAR) approach and compares their relative contributions to output volatility in low-income countries vis-à-vis internal factors. He finds that external shocks can only explain a small fraction of the output variance of a typical low-income country. Internal factors are the main source of fluctuations. From a quantitative perspective, the output effect of external shocks is typically small in absolute terms, but significant relative to the historic performance of these countries.
Corporate Governance and Capital Flows in a Global Economy
Author: Peter CorneliusPublisher: Oxford University Press, USA
ISBN: 9780195167054
Category : Business & Economics
Languages : en
Pages : 532
Book Description
With global financial markets having become more integrated, the book pays particular attention to the role of corporate governance in emerging-market economies and international capital flows. Rich in facts and ideas, the book is for anyone interested in financial crises, international risk management and global competitiveness.