<!CDATAThis paper surveys dynamic stochastic general equilibrium models with financial frictions in use by central banks and discusses priorities for future development of such models for the purpose ...of monetary and financial stability analysis. It highlights the need to develop macrofinancial models which allow analysis of the macroeconomic effects of macroprudential policy tools and to evaluate elements of the Basel III reforms as a priority. The paper also reviews the main approaches to introducing financial frictions into general equilibrium models.>
This paper documents and analyzes crisis-related changes in government debt issuance practices in the 16 euro zone countries and Denmark. Using a newly constructed database on primary market debt ...issuance during 2007-09, we find evidence of a shift away from pre-crisis standards of best funding practices competitive auctions of debt instruments with a fixed coupon, long maturity and local currency denomination (DLTF). Exploiting the cross-country panel data dimension of the data, we conclude that the crisis and related changes in the macroeconomic environment and investor sentiment can account for a significant proportion of the deviation. The negative effect of the crisis on DLTF debt issuance was especially pronounced in high deficit and high debt euro area countries, and has forced governments to assume additional risk.
Latvia stands out as the East European country hardest hit by the global financial crisis; it lost approximately 25 percent of its GDP between 2008 and 2010. It was also the most overheated economy ...before the crisis. But in the second half of 2010, Latvia returned to economic growth. How did this happen so quickly? Current Latvian Prime Minister Valdis Dombrovskis, who shepherded Latvia through the crisis, and renowned author Anders Åslund discuss why the Latvian economy became so overheated; why an IMF and European Union stabilization program was needed; what the Latvian government did to resolve the financial crisis and why it made these choices; and what the outcome has been. This book offers a rare insider's look at how a national government responded to a global financial crisis, made tough choices, and led the country back to economic growth.
This volume consists of papers presented at the Korea-World Bank High Level Conference on Post-Crisis Growth and Development.The volume is organized as follows. In chapters one and two, II SaKong, ...chairman of the Presidential Committee for the Group of Twenty (G-20) Seoul Summit, and Ngozi Okonjo- Iweala, managing director of the World Bank, provide convincing arguments on the importance of integrating development into the G-20 agenda, the need to give voice to non-G-20 developing countries, and the key role Korea can play as a bridge between developed and developing countries. Chapters' three to six cover broad development themes. Justin Yifu Lin's paper (chapter three) examines the emergence of multipolar growth in the postcrisis period and the reforms needed to support regional spillovers; Zia Qureshi's paper (chapter four) argues for including development issues in the G-20 growth framework and mutual assessment process and therefore more systematically into G-20 policy discussions; Wonhyuk Lim (chapter five) provides an in-depth analysis of Korea's development experience that illustrates how a low-income country can transform itself into an advanced economy; and the papers by Delfin Go and Hans Timmer and by Jomo Kwame Sundaram (chapter six) provide differing but complementary views on the impact of the global crisis on achieving the Millennium Development Goals (MDGs) by 2015 and what it will take to regain momentum toward their completion. Chapters' seven to ten review specific sectoral policies and actions needed to achieve strong, sustainable, and balanced growth. Chapter seven by Bernard Hoekman and John Wilson discusses aid for trade and recommitting to the Doha agenda; chapter eight by Marianne Fay, Michael Toman, and co-authors looks at infrastructure and sustainable development; chapter nine by Christopher Delgado and co-authors argues for multilateral action on agriculture and food security. Finally, chapter ten by Peer Stein, Bikki Randhawa, and Nina Bilandzic advances inclusive finance as a topic for the G-20 agenda. The volume concludes with a matrix of policy actions summarizing the main action points presented in the sectoral papers (appendix A) and data tables of selected economic and social indicators for both G-20 and non-G-20 countries (appendix B).
Since the summer of 2007, credit markets in almost all industrial countries have been in substantial turmoil and this has become the focus of intense policy debates. The papers in this volume are ...contributed by the world's leading financial experts and constitute a thorough examination of the first credit market turmoil of the 21st Century. They provide an overview of the main causes, transmission mechanisms and economic implications of what by now has become a major systemic financial crisis. They assess the most important policy considerations and conclude about how to stabilize financial systems, attenuate repercussions on the real economy and shape future regulatory structures. The analyses, conclusions, and recommendations can be expected to influence both public and private policies to mitigate, if not prevent, such crises in the future.
Contents: Poverty and the response to the economic crisis in Liberia. brief overview -- Poverty and human development diagnostic -- Poverty in Liberia. level, profile and determinants -- Education in ...Liberia. basic diagnostic using the 2007 CWIQ survey -- Health in Liberia. basic diagnostic using the 2007 CWIQ survey -- Impact of higher food prices and fiscal measures taken to respond to the crisis -- Rice prices and poverty in Liberia -- Benefit incidence of fiscal measures to deal with the impact on households of the economic crisis in Liberia. comparing import and income taxes -- Evaluation of the cash for work temporary employment program -- Ex ante assessment of the potential impact of labor intensive public works in Liberia -- Liberia's cash for work temporary employment project. responding to crisis in low income, fragile countries -- Impact of labor intensive public works in Liberia. results from a light evaluation survey -- List of tables, figures, and boxes.
This article briefly examines international policy responses to the global financial crisis and initiatives undertaken in Australia to review consumer regulation. It seeks to draw conclusions about ...the direction of consumer regulation and protection.
The 2007-09 financial crisis was predictable and avoidable but American and British regulators chose not to intervene. They failed to enforece legislation or implement their own policies because of ...an Anglo-American 'regulatory culture' of non-intervention that came to dominate financial regulation worldwide. Hong Kong - the international financial centre of an increasingly prosperous China - defied world opinion and made stability its priority, even where that meant extensive government intervention. This policy ensured Hong Kong's robust performance intvention. This policy ensured Hong Kong's robust performance during the 1997-8 Asian financial crisis and the global crisis. More significantly, it made possible Hong Kong's impressive contributions to financing China's economic take-off and to the modernisation of its financial institutions. Reluctant Regulators is a scathing indictment of regulatory inertia in the West. It provides important and original insights into the causes of financial crises and pays special attention to China's attempts at reform and Hong Kong's place in China's financial modernisation. The book will be of interest to professionals in financial services, to policy-maker, and to scholars and students in economics, political science and economic history.
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