Download or read book Foreign Investors Under Stress written by Ila Patnaik and published by International Monetary Fund. This book was released on 2013-05-22 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Emerging market policy makers have been concerned about the financial stability implications of financial globalization. These concerns are focused on behavior under stressed conditions. Do tail events in the home country trigger off extreme responses by foreign investors – are foreign investors `fair weather friends'? In this, is there asymmetry between the response of foreign investors to very good versus very bad days? Do foreign investors have a major impact on domestic markets through large inflows or outflows – are they ‘big fish in a small pond’? Do extreme events in world markets induce extreme behavior by foreign investors, thus making them vectors of crisis transmission? We propose a modified event study methodology focused on tail events, which yields evidence on these questions. The results, for India, do not suggest that financial globalization has induced instability on the equity market.

Download or read book International Financial Governance under Stress written by Geoffrey R. D. Underhill and published by Cambridge University Press. This book was released on 2003-04-03 with total page 411 pages. Available in PDF, EPUB and Kindle. Book excerpt: Persistent episodes of global financial crises have placed the existing system of international monetary and financial governance under stress. The resulting economic turmoil provides a focal point for rethinking the norms and institutions of global financial architecture and the policy options of public and private authorities at national, regional and transnational levels. This volume moves beyond analysis of the causes and consequences of recent financial crises and concentrates on issues of policy. Written by distinguished scholars, it focuses on the tension between global market structures and national policy imperatives. Accessible to both specialists and general readers, the analysis is coherent across a broad range of theoretical and empirical cases. Offering a series of reasoned policy responses to financial integration and crises, the volume grapples directly with the institutional and often-neglected normative dimensions of international financial architecture. The volume thus constitutes required reading for scholars and policy-makers.

Download or read book The Behavior of Fixed income Funds during COVID 19 Market Turmoil written by Mr.Frank Hespeler and published by International Monetary Fund. This book was released on 2020-12-14 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: This note analyzes the stress experienced (and caused) by open-end mutual funds during the March COVID-19 stress episode, with a focus on global fixed-income funds. In light of increased valuation uncertainty, funds experienced a short period of intense withdrawals while the market liquidity of their holdings deteriorated substantially. To cover redemptions, afflicted funds predominantly shed liquid assets first—for example, cash, cash equivalents, and US Treasury securities. But forced asset sales amplified price pressures in markets and contributed to liquidity falling across fixed-income markets. This drop in market liquidity, as well as the general stress in financial markets, may have led to fund investors becoming even more sensitive to challenging portfolio performance and encouraged further withdrawals. Only after central banks intervened, directly and indirectly supporting asset managers, did liquidity and redemption stress subside. Overall, the March episode validated the financial-stability concerns about liquidity vulnerabilities in the fund industry and calls for further action to address them.

Download or read book Stress Testing at the IMF written by Mr.Tobias Adrian and published by International Monetary Fund. This book was released on 2020-02-05 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explains specifics of stress testing at the IMF. After a brief section on the evolution of stress tests at the IMF, the paper presents the key steps of an IMF staff stress test. They are followed by a discussion on how IMF staff uses stress tests results for policy advice. The paper concludes by identifying remaining challenges to make stress tests more useful for the monitoring of financial stability and an overview of IMF staff work program in that direction. Stress tests help assess the resilience of financial systems in IMF member countries and underpin policy advice to preserve or restore financial stability. This assessment and advice are mainly provided through the Financial Sector Assessment Program (FSAP). IMF staff also provide technical assistance in stress testing to many its member countries. An IMF macroprudential stress test is a methodology to assess financial vulnerabilities that can trigger systemic risk and the need of systemwide mitigating measures. The definition of systemic risk as used by the IMF is relevant to understanding the role of its stress tests as tools for financial surveillance and the IMF’s current work program. IMF stress tests primarily apply to depository intermediaries, and, systemically important banks.

Download or read book Development Under Stress written by Saman Kelegama and published by SAGE. This book was released on 2006-11-14 with total page 314 pages. Available in PDF, EPUB and Kindle. Book excerpt: Sri Lanka is credited with being the pioneer of economic liberalisation in South Asia. Why, then, is economic progress painfully slow with the outcome being far below the country’s potential? This book examines the process of development and the implementation of reforms in Sri Lanka after the economic liberalisation of 1977. The author shows that while part of the story lies in the ongoing conflict in the North-East, which has lasted over 20 years, there are a number of other factors which have impeded economic progress, thereby, designating it development under stress The book describes the key features of the Sri Lankan socio-political and economic system that prevented the country from achieving higher levels of economic growth. It explains why the country could not match the economic achievements of South Korea and Malaysia— countries that had similar per capita income levels to that of Sri Lanka in the 1950s. The author focuses on five core themes: - Economic development since Independence - The debate on economic liberalisation - Macroeconomic management - Sectoral policy - Employment and poverty

Download or read book Global Financial Stability Report October 2019 written by International Monetary Fund. Monetary and Capital Markets Department and published by International Monetary Fund. This book was released on 2019-10-16 with total page 109 pages. Available in PDF, EPUB and Kindle. Book excerpt: The October 2019 Global Financial Stability Report (GFSR) identifies the current key vulnerabilities in the global financial system as the rise in corporate debt burdens, increasing holdings of riskier and more illiquid assets by institutional investors, and growing reliance on external borrowing by emerging and frontier market economies. The report proposes that policymakers mitigate these risks through stricter supervisory and macroprudential oversight of firms, strengthened oversight and disclosure for institutional investors, and the implementation of prudent sovereign debt management practices and frameworks for emerging and frontier market economies.

Download or read book Global Financial Stability Report April 2021 written by International Monetary Fund and published by International Monetary Fund. This book was released on 2021-04-06 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: Extraordinary policy measures have eased financial conditions and supported the economy, helping to contain financial stability risks. Chapter 1 warns that there is a pressing need to act to avoid a legacy of vulnerabilities while avoiding a broad tightening of financial conditions. Actions taken during the pandemic may have unintended consequences such as stretched valuations and rising financial vulnerabilities. The recovery is also expected to be asynchronous and divergent between advanced and emerging market economies. Given large external financing needs, several emerging markets face challenges, especially if a persistent rise in US rates brings about a repricing of risk and tighter financial conditions. The corporate sector in many countries is emerging from the pandemic overindebted, with notable differences depending on firm size and sector. Concerns about the credit quality of hard-hit borrowers and profitability are likely to weigh on the risk appetite of banks. Chapter 2 studies leverage in the nonfinancial private sector before and during the COVID-19 crisis, pointing out that policymakers face a trade-off between boosting growth in the short term by facilitating an easing of financial conditions and containing future downside risks. This trade-off may be amplified by the existing high and rapidly building leverage, increasing downside risks to future growth. The appropriate timing for deployment of macroprudential tools should be country-specific, depending on the pace of recovery, vulnerabilities, and policy tools available. Chapter 3 turns to the impact of the COVID-19 crisis on the commercial real estate sector. While there is little evidence of large price misalignments at the onset of the pandemic, signs of overvaluation have now emerged in some economies. Misalignments in commercial real estate prices, especially if they interact with other vulnerabilities, increase downside risks to future growth due to the possibility of sharp price corrections.

Download or read book How to Control Risk to Become a More Successful Investor written by Van K. Tharp and published by . This book was released on 1984-12 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Swing Pricing and Fragility in Open end Mutual Funds written by Dunhong Jin and published by International Monetary Fund. This book was released on 2019-11-01 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: How to prevent runs on open-end mutual funds? In recent years, markets have observed an innovation that changed the way open-end funds are priced. Alternative pricing rules (known as swing pricing) adjust funds’ net asset values to pass on funds’ trading costs to transacting shareholders. Using unique data on investor transactions in U.K. corporate bond funds, we show that swing pricing eliminates the first-mover advantage arising from the traditional pricing rule and significantly reduces redemptions during stress periods. The positive impact of alternative pricing rules on fund flows reverses in calm periods when costs associated with higher tracking error dominate the pricing effect.

Download or read book International Investment Law written by Hélène Ruiz Fabri and published by Bloomsbury Publishing. This book was released on 2022-05-19 with total page 663 pages. Available in PDF, EPUB and Kindle. Book excerpt: Written by leading experts in the field, this collection offers a critical and comparative analysis of the existing case law on international investment law. The book makes a topical contribution to the existing literature, showing most notably that: (1) international investment law has a longer history than that generally considered and that this history is fundamental to understanding its development; (2) international investment law is crafted today by a large number of actors. These include not only investment arbitrators, but also a variety of international and national courts and tribunals; and (3) the literature and case law in languages other than English and from different legal cultures is essential to grasp the essence of the development of the topic. This book brings together more than 40 experts from different countries and legal traditions and combines conceptual analysis and archival investigation of landmark case law to provide the reader with a fresh and innovative understanding of the breadth of international investment law.

Download or read book Chinese National Security Decisionmaking Under Stress written by Andrew Scobell and published by DIANE Publishing. This book was released on 2005 with total page 258 pages. Available in PDF, EPUB and Kindle. Book excerpt: If there is one constant in expert analyses of the history of modern China, it is the characterization of a country perpetually in the throes of crises. While China at the mid-point of the Twenty-first Century's first decade is arguably the most secure and stable it has been in more than a century, crises continue to emerge with apparent frequency. Consequently, the study of china's behavior in conditions of tension and stress is of considerable importance to policy makers and analysts around the world.

Download or read book The Legal Protection of Foreign Investments Against Political Risk written by Thomas Nektarios Papanastasiou and published by Quid Pro Books. This book was released on 2015-08-19 with total page 281 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Legal Protection of Foreign Investments Against Political Risk examines how political risks associated with foreign direct investment in the energy sector are managed or mitigated, and suggests new ways to deal with the possibility of such risk. It applies its analysis—using case studies and international law, and examining actual contracts—to the specific context of foreign investment in five Asian countries’ power infrastructure projects. “Legal protection of foreign investments against political risk has been a problem for a long time. Professor Papanastasiou’s book brilliantly balances the legitimate regulatory power of host states with legitimate business interests of foreign investors by presenting a neatly designed multi-layered legal framework for political risk management. This is an important contribution to both the study of international investment law and the practice of foreign investment business transactions.” — Junji Nakagawa, Professor of International Economic Law, Institute of Social Science, University of Tokyo Author, International Harmonization of Economic Regulation (Oxford University Press, 2011) “This book is an impressive and important entry into the field of international investment law scholarship. While maintaining a focus on the important Japanese and Asian regions, it also provides a general and up-to-date coverage of relevant international investment law and political risk considerations faced by multinational corporations. It is impressively concise, yet thorough; it is practical, yet takes into account relevant and recent legal scholarship; it is well-written and organized. The ultimate goal is to help foreign investors and their advisors understand the current international investment law framework and climate to enable them to devise strategies to help their clients reduce political risk, and to protect their clients’ property rights and investments. This work should be of interest to in-house counsel and international law practitioners, as well as to law students and scholars for its coverage of current international investment law standards, scholarship, and practices.” — N. Stephan Kinsella, Attorney, Houston, Texas Co-author, International Investment, Political Risk, and Dispute Resolution (OUP, 2005) “This study contributes insightfully to the literature on international economics and, in particular, on the laws protecting foreign investment. The book is unique in two ways. First, it analyzes and measures the impact of such multi-tier legal frameworks as FTAs, investment contracts, FDI regulations and insurance by combining legal interpretative tools and scoring techniques. Second, it adds a new narrative on how Japanese business can use law to secure investments from political risks in the energy sector of foreign countries.” — Shujiro Urata, Professor of International Economics, Graduate School of Asian Pacific Studies, Waseda University Co-editor, Economic Consequences of Globalization: Evidence from East Asia (Routledge, 2012)

Download or read book The Politics of India under Modi written by Vikash Yadav and published by University of Michigan Press. This book was released on 2023-07-18 with total page 269 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the right-wing, Hindu-nationalist government of Narendra Modi’s Bharatiya Janata Party (BJP) came to power at the national level in 2014, and with its consolidation of power in the 2019 general election, India has witnessed a significant realignment of its national politics and a shift toward the right of the political spectrum. The Politics of India under Modi provides a detailed overview of India’s political trends, economic prospects, and international relations in the twenty-first century. This book is designed as a supplement and update for existing syllabi that trace India’s political economy from the birth of the republic to the quest for economic liberalization and great power status. Undergraduates and scholars interested in India’s foreign policy and political reform will find value in this timely book. “The subject of this book is extremely compelling and important, as well as timely. BJP rule and the Modi regime, it is now clear, represent some critical turning points in Indian politics, which have yet to be analyzed in depth academically by experts. I see this book as a key first step in this process.” -Rina Verma Williams, School of Public and International Affairs at the University of Cincinnati

Download or read book Take the Money and Run written by Eric C. Anderson and published by Bloomsbury Publishing USA. This book was released on 2009-03-20 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this book, an expert in the field explains why the United States is the world's largest debtor nation and how America's relationship to creditor states is of growing economic, diplomatic, and even national security concern. Foreign countries are not merely investing in U.S. corporations but are purchasing them outright: Abu Dhabi bought Citigroup securities, Kuwait purchased a large block Merrill Lynch stock, and China bought Morgan Stanley's convertible securities-and this happened before the September 2008 meltdown of Wall Street. The means by which wealthy foreign states make these purchases are sovereign wealth funds, their surplus capital that they are seeking to invest in order to generate the greatest return. Currently, the largest sovereign wealth funds are held by the United Arab Emirates (of which Abu Dhabi is part), Norway, Singapore, Kuwait, and the People's Republic of China; Qatar and Libya are also in the top ten. The United States has no such fund (although the state of Alaska does). This book takes a close look at China's and Norway's sovereign wealth funds to explain how they work. The author also uses domestic examples (Harvard's endowment, the California's state employees' retirement fund) to propose how the United States could create a sovereign wealth fund, speculating that such a fund could solve the looming Social Security funds shortfall. Most important, the book elucidates the national security aspects of not having an American sovereign wealth fund when so many other nations-both friend and foe-have them.

Download or read book Governing under Stress written by Marjorie Griffin Cohen and published by Zed Books Ltd.. This book was released on 2013-07-04 with total page 243 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume is the first work to emerge from a major international comparative research project exploring the political economy of globalization. This inter-disciplinary team of scholars is focusing on the semi-periphery of world power. Whether defined in social, cultural, economic or simply spatial terms, 'semi-peripheral' countries share two qualities: they are conscious of their subordination to the hegemonic powers at the centre of the global system - the United States and the European Union; they are also strong enough to have some ability to resist their domination. The structural position of these middle powers in global capitalism is unlike those countries at the centre that do not experience domination, and different from those Third World countries on the periphery that have no means to achieve more cultural and political autonomy, more distinctive and diversified development, or greater social equity and better income redistribution. Four countries in North America, Central America, Europe and the Antipodes - namely Canada, Mexico, Norway and Australia - have been selected in order to explore the complexities of globalization from the perspective of the semi-periphery. Opening chapters examine the international institutions, including the North America Free Trade Agreement, the World Trade Organization and the European Union, which now amount to a quasi-constitutional conditioning framework for middle powers under globalization. In the second part, contributors detail the pressures with which these countries have to cope and consider their ability to pursue policies appropriate to the needs and democratically defined goals of each. And in the concluding part, after discussing the new economic, political and social issues of 'governing under stress', they appraise the possibilities for middle powers to chart distinctive national courses in the face of globalization's constraining challenge.

Download or read book The Financial System Under Stress written by Marc Uzan and published by Routledge. This book was released on 1996-07-11 with total page 250 pages. Available in PDF, EPUB and Kindle. Book excerpt: The collapse of Barings bank and the currency crisis in Mexico are just two instances of stress in an international financial system still largely governed by the institutions established by the Bretton Woods Committee in 1944. Here, the authors put forward an agenda for a new system of international economic institutions to fit the changes in inte

Download or read book Mexico written by International Monetary Fund. Western Hemisphere Dept. and published by International Monetary Fund. This book was released on 2014-11-12 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: This 2014 Article IV Consultation highlights that after a sharp slowdown in 2013, growth in Mexico is projected to recover to 2.4 percent this year. The strong recovery in the United States in the second quarter of 2014 has triggered a rebound in Mexico’s manufacturing production and exports. In addition, construction activity is firming up, supported by a rebound of residential investment and an increase of government spending on infrastructure. Mexico’s external position remains broadly consistent with fundamentals and desirable policy settings. In 2014, the current account deficit is projected to remain unchanged with an improving trade balance offset by a continued increase in factor payments.