Giovanni Piersanti
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780199653126
- eISBN:
- 9780191741210
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199653126.001.0001
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This book deals with the genesis and dynamics of exchange rate crises in fixed or managed exchange rate systems. It provides a comprehensive treatment of the existing theories of exchange rate crises ...
More
This book deals with the genesis and dynamics of exchange rate crises in fixed or managed exchange rate systems. It provides a comprehensive treatment of the existing theories of exchange rate crises and of financial market runs. The book aims to provide a survey of both the theoretical literature on international financial crises and a systematic treatment of the analytical models. It analyzes a series of macroeconomic models and demonstrates their properties and conclusions, including comparative statics and dynamic behavior. The models cover the range of phenomena exhibited in modern crises experienced in countries with fixed or managed exchange rate systems. Among the topics covered, beyond currency sustainability, are bank runs, the interaction between bank solvency and currency stability, capital flows and borrowing constraints, uncertainty about government policies, asymmetric information and herding behavior, contagion across markets and countries, financial markets runs and asset price bubbles, strategic interaction among agents and equilibrium selection, the dynamics of speculative attacks and of financial crashes in international capital markets.Less
This book deals with the genesis and dynamics of exchange rate crises in fixed or managed exchange rate systems. It provides a comprehensive treatment of the existing theories of exchange rate crises and of financial market runs. The book aims to provide a survey of both the theoretical literature on international financial crises and a systematic treatment of the analytical models. It analyzes a series of macroeconomic models and demonstrates their properties and conclusions, including comparative statics and dynamic behavior. The models cover the range of phenomena exhibited in modern crises experienced in countries with fixed or managed exchange rate systems. Among the topics covered, beyond currency sustainability, are bank runs, the interaction between bank solvency and currency stability, capital flows and borrowing constraints, uncertainty about government policies, asymmetric information and herding behavior, contagion across markets and countries, financial markets runs and asset price bubbles, strategic interaction among agents and equilibrium selection, the dynamics of speculative attacks and of financial crashes in international capital markets.
Jonathan Hopkin
- Published in print:
- 2020
- Published Online:
- August 2020
- ISBN:
- 9780190699765
- eISBN:
- 9780190097707
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780190699765.003.0006
- Subject:
- Political Science, Comparative Politics, Political Economy
This chapter assesses the Eurozone debt crisis as a conflict between creditor and debtor countries, pitting northern member states against the southern periphery, before looking at the distributional ...
More
This chapter assesses the Eurozone debt crisis as a conflict between creditor and debtor countries, pitting northern member states against the southern periphery, before looking at the distributional politics of austerity in the smaller southern Eurozone states of Greece and Portugal. The Eurozone crisis placed the European Union under extraordinary strain, as markets panicked, leaving the weaker and more indebted member states struggling to avoid financial collapse. The bailouts of Greece, Ireland, and Portugal may have saved them from crashing out of the single currency, but the price was harsh austerity for their citizens and an accumulation of debt comparable to wartime. Meanwhile, the political costs of the euro crisis can be seen in the destabilization of European party systems. Not only did Greece embrace anti-system politics, electing a government opposed to the bailout regime, but the northern European countries that had put up much of the money for the rescues also saw their own political backlash.Less
This chapter assesses the Eurozone debt crisis as a conflict between creditor and debtor countries, pitting northern member states against the southern periphery, before looking at the distributional politics of austerity in the smaller southern Eurozone states of Greece and Portugal. The Eurozone crisis placed the European Union under extraordinary strain, as markets panicked, leaving the weaker and more indebted member states struggling to avoid financial collapse. The bailouts of Greece, Ireland, and Portugal may have saved them from crashing out of the single currency, but the price was harsh austerity for their citizens and an accumulation of debt comparable to wartime. Meanwhile, the political costs of the euro crisis can be seen in the destabilization of European party systems. Not only did Greece embrace anti-system politics, electing a government opposed to the bailout regime, but the northern European countries that had put up much of the money for the rescues also saw their own political backlash.
Hal S. Scott
- Published in print:
- 2016
- Published Online:
- January 2017
- ISBN:
- 9780262034371
- eISBN:
- 9780262332156
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262034371.003.0002
- Subject:
- Economics and Finance, Economic History
This chapter discusses the second of the three components of systemic risk: contagion. Contagion involves run behavior, whereby fears of widespread financial collapse lead to the withdrawal of ...
More
This chapter discusses the second of the three components of systemic risk: contagion. Contagion involves run behavior, whereby fears of widespread financial collapse lead to the withdrawal of funding from banks and other financial institutions. Financial institutions are vulnerable to contagion due to their dependence on short-term borrowing to fund long-term investment activity. When short-term debt investors suddenly refuse to extend funding, institutions relying on such funding engage in fire sales of assets and ultimately fail. The chapter covers the history of contagion in the US financial system; run behavior by short-term creditors which leads to financial panic; information economics as an explanation for the run on repo and collateralized lending; and the three leading measures of systemic risk: conditional value at risk, systemic expected shortfall, and measure of interconnectedness.Less
This chapter discusses the second of the three components of systemic risk: contagion. Contagion involves run behavior, whereby fears of widespread financial collapse lead to the withdrawal of funding from banks and other financial institutions. Financial institutions are vulnerable to contagion due to their dependence on short-term borrowing to fund long-term investment activity. When short-term debt investors suddenly refuse to extend funding, institutions relying on such funding engage in fire sales of assets and ultimately fail. The chapter covers the history of contagion in the US financial system; run behavior by short-term creditors which leads to financial panic; information economics as an explanation for the run on repo and collateralized lending; and the three leading measures of systemic risk: conditional value at risk, systemic expected shortfall, and measure of interconnectedness.
Jonathan Hopkin
- Published in print:
- 2020
- Published Online:
- August 2020
- ISBN:
- 9780190699765
- eISBN:
- 9780190097707
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780190699765.003.0005
- Subject:
- Political Science, Comparative Politics, Political Economy
This chapter traces the response to inequality and financial collapse in the United Kingdom, with the anti-system Right represented by the Brexit campaign, and the Left by Jeremy Corbyn’s takeover of ...
More
This chapter traces the response to inequality and financial collapse in the United Kingdom, with the anti-system Right represented by the Brexit campaign, and the Left by Jeremy Corbyn’s takeover of the Labour Party. Like Trump’s election in the United States, which it preceded by less than six months, the Brexit vote was an anti-system vote, a vote of rejection of the existing political establishment and the economic policies it had implemented since the 1980s. Just as Trump’s victory mobilized entrenched racial divides in the United States, Brexit reflected a long-standing skepticism about European integration in British society. The chapter then argues that Brexit formed part of a wider anti-system revolt in Britain, which replaced the centrist politics of the 1990s and 2000s with a deeply polarized politics pitting half the country against the other.Less
This chapter traces the response to inequality and financial collapse in the United Kingdom, with the anti-system Right represented by the Brexit campaign, and the Left by Jeremy Corbyn’s takeover of the Labour Party. Like Trump’s election in the United States, which it preceded by less than six months, the Brexit vote was an anti-system vote, a vote of rejection of the existing political establishment and the economic policies it had implemented since the 1980s. Just as Trump’s victory mobilized entrenched racial divides in the United States, Brexit reflected a long-standing skepticism about European integration in British society. The chapter then argues that Brexit formed part of a wider anti-system revolt in Britain, which replaced the centrist politics of the 1990s and 2000s with a deeply polarized politics pitting half the country against the other.
Paula Jarzabkowski, Rebecca Bednarek, and Paul Spee
- Published in print:
- 2015
- Published Online:
- April 2015
- ISBN:
- 9780199664764
- eISBN:
- 9780191811487
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199664764.003.0007
- Subject:
- Business and Management, Finance, Accounting, and Banking, International Business
Chapter 7 offers a novel theoretical framework for understanding market-making, based on relationality, nested relationality, and relational presence. Relationality occurs between actors, their ...
More
Chapter 7 offers a novel theoretical framework for understanding market-making, based on relationality, nested relationality, and relational presence. Relationality occurs between actors, their practices and the collective practice of the market. Nested relationality captures the interdependent practice of a global market, coordinating individuals from different geographic locations and different firms, writing different types of risk, with different calculative practices into a coherent pattern of trading. Relational presence refers to the social resources that connect and coordinate underwriters around the world, despite a lack of direct or real-time interaction. This theory of market making allows practice scholars to address big questions about market practice, including some of the questions about financial collapse in other financial markets. The chapter concludes with a strong message of caution for the reinsurance market about the potential for social and economic collapse as the multiple, small, taken-for-granted, and critically interrelated practices of this market are eroded.Less
Chapter 7 offers a novel theoretical framework for understanding market-making, based on relationality, nested relationality, and relational presence. Relationality occurs between actors, their practices and the collective practice of the market. Nested relationality captures the interdependent practice of a global market, coordinating individuals from different geographic locations and different firms, writing different types of risk, with different calculative practices into a coherent pattern of trading. Relational presence refers to the social resources that connect and coordinate underwriters around the world, despite a lack of direct or real-time interaction. This theory of market making allows practice scholars to address big questions about market practice, including some of the questions about financial collapse in other financial markets. The chapter concludes with a strong message of caution for the reinsurance market about the potential for social and economic collapse as the multiple, small, taken-for-granted, and critically interrelated practices of this market are eroded.
- Published in print:
- 2008
- Published Online:
- March 2013
- ISBN:
- 9780226684482
- eISBN:
- 9780226684505
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226684505.003.0018
- Subject:
- History, American History: 20th Century
In January 1969, Weaver returned to New York for good. He would live in the city for the next twenty-eight years, until his death, and would continue to contribute his time and knowledge to solving ...
More
In January 1969, Weaver returned to New York for good. He would live in the city for the next twenty-eight years, until his death, and would continue to contribute his time and knowledge to solving urban and racial problems. During the 1970s, Weaver would lead a major public institution through a formative period in the history of American universities, and he would serve on the boards of numerous public and private organizations, most importantly the Municipal Assistance Corporation, the entity created to bring the city back from the brink of financial collapse. Throughout the decade, one that was an economic and social disaster for American cities in general (and New York in particular), Weaver would witness the scaling back or elimination of many of the initiatives he had promoted. Despite these travails, Weaver would remain optimistic about the future of cities and of African Americans.Less
In January 1969, Weaver returned to New York for good. He would live in the city for the next twenty-eight years, until his death, and would continue to contribute his time and knowledge to solving urban and racial problems. During the 1970s, Weaver would lead a major public institution through a formative period in the history of American universities, and he would serve on the boards of numerous public and private organizations, most importantly the Municipal Assistance Corporation, the entity created to bring the city back from the brink of financial collapse. Throughout the decade, one that was an economic and social disaster for American cities in general (and New York in particular), Weaver would witness the scaling back or elimination of many of the initiatives he had promoted. Despite these travails, Weaver would remain optimistic about the future of cities and of African Americans.
Paula Jarzabkowski, Rebecca Bednarek, and Paul Spee
- Published in print:
- 2015
- Published Online:
- April 2015
- ISBN:
- 9780199664764
- eISBN:
- 9780191811487
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199664764.003.0006
- Subject:
- Business and Management, Finance, Accounting, and Banking, International Business
Chapter 6 introduces current shifts stemming from the fact that multinational insurance companies are now buying reinsurance as large bundled multi-territory, or even global, deals that cover ...
More
Chapter 6 introduces current shifts stemming from the fact that multinational insurance companies are now buying reinsurance as large bundled multi-territory, or even global, deals that cover multiple disasters. This change has fundamental consequences for how the reinsurance market works, eroding vital principles that have been an important counter-balance to the unpredictability of disasters. Specifically, it marginalizes the process through which consensus price is established. This has been critical for collective risk-bearing and flattens market cycles, which has been critical for stabilizing long-term capital flow. Such changes have a multitude of cascading effects, such as eroding business relationships, increasing the reliance on complex statistical models, and opening the gate for competition from alternative risk transfer products from new players such as hedge funds. Reinsurance is shifting from a market for Acts of God to a market for financial commodities, with potentially devastating effects for the provision of risk cover.Less
Chapter 6 introduces current shifts stemming from the fact that multinational insurance companies are now buying reinsurance as large bundled multi-territory, or even global, deals that cover multiple disasters. This change has fundamental consequences for how the reinsurance market works, eroding vital principles that have been an important counter-balance to the unpredictability of disasters. Specifically, it marginalizes the process through which consensus price is established. This has been critical for collective risk-bearing and flattens market cycles, which has been critical for stabilizing long-term capital flow. Such changes have a multitude of cascading effects, such as eroding business relationships, increasing the reliance on complex statistical models, and opening the gate for competition from alternative risk transfer products from new players such as hedge funds. Reinsurance is shifting from a market for Acts of God to a market for financial commodities, with potentially devastating effects for the provision of risk cover.
