Over the last two decades there has been a notable increase in the number
of corporate governance codes and principles, as well as a range of
improvements in structures and mechanisms. Despite this, corporate governance
failed to prevent a widespread default of fiduciary duties of
corporate boards and managerial responsibilities in the finance industry,
which contributed to the 2007–2010 global financial crisis.
The global economy has been developing rapidly and gaining many achievements which have a lot
of motivating influences on the wealth of many countries in the recent decades. However, there still
remain a number of difficult problems that need proper solutions brought in by the governments.
Financial crisis is not out of the case. For many years now, financial crisis is deemed to offend so
many countries and people including economists, brokers, bankers, policy makers, and so on.
My interest in business cycles was rekindled by Professor Jim Ford, my mentor during the first part of my career at the
University of Birmingham. Since completing my PhD on business cycles in 1983, my lecturing and research had focussed
on money, banking and finance. Jim introduced me to Shackle’s much neglected work on business cycles, which is discussed
in Chapter 4 and emphasises the key role bank lending decisions play in the propogation of business cycles.
I recently received a letter from a Vanguard shareholder who described the current global financial crisis as “a crisis of ethic proportions.” Substituting ethic for epic is not only a fine turn of phrase; it accurately places a heavy responsibility for the meltdown on a broad deterioration in traditional ethical standards. In fact, The Wall Street Journal retained that phrase as the title of my op-ed essay that was published just three weeks ago.
This paper makes a case that the global imbalances of the 2000s and the recent global
financial crisis are intimately connected. Both have their origins in economic policies
followed in a number of countries in the 2000s and in distortions that influenced the
transmission of these policies through U.S. and ultimately through global financial
markets. In the U.S., the interaction among the Fed’s monetary stance, global real interest
rates, credit market distortions, and financial innovation created the toxic mix of
conditions making the U.S.
As we have witnessed during this crisis, financial stress can spread easily and quickly
across national boundaries. Yet, regulation is still set largely in a national context.
Without consistent supervision and regulation, financial institutions will tend to move
their activities to jurisdictions with looser standards, creating a race to the bottom and
intensifying systemic risk for the entire global financial system.
The world is near the bottom of a global recession that is causing widespread business
contraction, increases in unemployment, and shrinking government revenues. Although recent
data indicate the large industrialized economies may have reached bottom and are beginning to
recover, for the most part, unemployment is still rising. Numerous small banks and households
still face huge problems in restoring their balance sheets, and unemployment has combined with
sub-prime loans to keep home foreclosures at a high rate.
The calm before the storm? That question dominated the stage at the
seventh annual conference on emerging markets finance, cosponsored
by the World Bank and the Brookings Institution and held at Brookings in
late April 2005.
At the time of the conference, it had been a little less than eight years since
the onset of the Asian financial crisis, an event that had depression-like effects
throughout much of Asia and, for a time, seemed to threaten global economic
This book has almost nothing to do with the current housing and credit crisis. Wolf only says in the last couple of pages that part of the world savings glut was recycled in excess US residential investment. And, that's it.
During the last decade, hedge funds have become one of the most important institutional
investors in global financial markets. Although their activities have been viewed critically by
regulators, politicians, and the public, this negative perspective is often based more on myth
than on thorough economic analysis and empirical facts. Most people lack the necessary
information and understanding of the role that hedge funds play in financial markets. Blaming
them for the financial crisis or other market turbulences is often based on specific conjectures
and not on rigorous research.
Amjid Ali, senior manager, HSBC Amanah Global, believes that shariah finance is broadening
its appeal and reach—both among Muslims and non-Muslims—as a result of the banking and
financial crisis. Recognized as one of the most influential Muslims in the United Kingdom by the
Muslim Power 100 Awards, Ali has 22 years of branch banking experience with Midland Bank and
HSBC in the United Kingdom. In September 2003 he joined HSBC Amanah UK as senior business
development manager, with responsibility for raising the profile of Amanah Home Finance in
the United Kingdom.
During the three years that have elapsed since the collapse of Lehman Brothers in
2008 – an event which heralded the most serious global financial crisis since the 1930s
– CEPR’s policy portal Vox, under the editorial guidance of Richard Baldwin, has
produced 15 books on crisis-related issues written by world-leading economists and
specialists. The books have been designed to shed light on the problems related to
the crisis and to provide expert advice and guidance for policy makers on potential
Our goal is to provide food for thought rather than an off-the-shelf solution. Many of the outside practices we
explore are somewhat distant from conventional thinking. We are aware that some of our ideas will be controversial.
We therefore do not necessarily speak of them as “recommendations.
Expanding nursing education programs at all levels is essential to ensuring access to quality
health care for the world’s population. The easing of the nursing shortage in some nations is a
direct result of the global financial crisis and should not be used as justification to cut funding for
entry-level and advanced programs that prepare professional nurses.
It has been widely acknowledged that Bulgaria’s macroeconomic performance has
changed dramatically since 1997. Macroeconomic and financial stability have been restored
and economic activity started to recover; inflation was brought down to single-digit numbers,
real incomes have been rising and the chronic fiscal gap has been closed. A CBA is an
extremely rigid macroeconomic regime which hardens macro-budget constraints as it
eliminates direct central bank credits to finance the budget deficit.
This report explores both the short- and medium-term impacts of the financial crisis on developing countries. It presents evidence that the financial boom played a critical role in the growth boom experienced by developing countries between 2003 and 2007, but that tighter conditions in the future are expected to result in weaker growth over the next 5 to 15 years. Although global growth has resumed, the recovery is fragile, and unless
The questions can only provide meaningful information about the level of financial literacy of
individuals and populations if they are sufficiently varied to differentiate between high and low achievers
by combining a mixture of easy and more difficult problems. The analysis of responses to each question
shows that the spread of difficulty in the core questionnaire is appropriate; differentiating well both within
countries and across countries.
The global financial crisis of 2007–09 was the result of a cascade of financial shocks that
threw many economies off course. The economic damage has been extensive, with few
countries spared – even those far from the source of the turmoil. As with many economic
events, the impact has varied from country to country, from sector to sector, from firm to firm,
and from person to person. China’s growth, for example, never dipped below 6% and
Australia’s worst quarter was one with no growth.
The macroeconomic performance of individual countries varied markedly during the 2007–09
global financial crisis. While China’s growth never dipped below 6% and Australia’s worst
quarter was no growth, the economies of Japan, Mexico and the United Kingdom suffered
annualised GDP contractions of 5–10% per quarter for five to seven quarters in a row. We
exploit this cross-country variation to examine whether a country’s macroeconomic
performance over this period was the result of pre-crisis policy decisions or just good luck.
The answer is a bit of both.
Fiscal, monetary and regulatory policymakers around the world may be asking the same
questions. Why was my country hit so hard by the recent events while others were spared?
In this paper we examine whether national authorities in places that suffered severely during
the global financial crisis are justified in believing they were innocent victims and that the
variation in national outcomes was essentially random.