In this paper we care about the determinant of capital account crises. We use the panel data of 207 countries and areas for 1970-2007 to estimate a series of probit equations to analyze whether the ...economic development and foreign economic policies are the determinant of large contractions of international capital flows. We find that higher development level, growth rate, domestic demand and the proportion of service industry reduces the probability of capital account crises. Foreign economic policies such as exchange rate system, degree of financial openness, foreign trade structure, affect the probability of international capital reversal, but the effect degree is restricted by the economic development in different degree.
In this paper the author compared 13stock exchange indexes of American, British and German markets and determined their impact on Polish Wig and WIG20 indexes. The analysis proved that the British ...FTSE100 and FTSE250 as well as the German DAX had the biggest influence on the Warsaw indexes. The relations among all these indexes were also heavily influenced by the Russian and American economic crisis and Poland's access to the European Union.
Faced with income fluctuations, countries smooth their consumption by raising savings when income is high, and vice versa. How much of these savings do countries invest at home and abroad? In other ...words, what are the effects of fluctuations in savings on domestic investment and the current account? In the long-run, we find that countries invest the marginal unit of savings in domestic and foreign assets in the same proportions as in their initial portfolio, so that the latter is remarkably stable. In the short run, we find that countries invest the marginal unit of savings mostly in foreign assets, and only gradually do they rebalance their portfolio back to its original composition. This means that countries not only try to smooth consumption, but also domestic investment. To achieve this, they use foreign assets as a buffer stock.
Ageing and Global Capital Flows Clausen, Volker
Innovation, Employment and Growth Policy Issues in the EU and the US,
2009, 20090520
Book Chapter
The world economy, and in particular the major industrial economies, will experience a considerable ageing of their populations over the next decades. It is generally accepted that this demographic ...transition will have important effects on macroeconomic developments and capital markets. This panel contribution concentrates on the role of international capital flows in an ageing world economy. It addresses the question to which extent international capital flows may soften the demographic burden on national economies and facilitate the adjustment to the global demographic transition. Particular attention is paid to the case of Germany as a country which ages relative to the world economy.
