Search

This paper reviews some of the recent studies on international capital flows with a focus on the role of European global banks. It presents a revision to the commonly held "global saving glut" view that East Asian economies (along with oil-rich nations) were the dominant suppliers of capital that fueled the asset price boom in many parts of the world in the early 2000s. It argues that the role of funding costs and a "liberal" regulatory regime that allowed for an unprecedented expansion of the balance sheets of European banks was no less important. Finally, we describe the aftermath of the crisis in terms of some of the challenges faced by Europe as a whole and European banks in particular. [ABSTRACT FROM AUTHOR]

The article presents research paper about the methodological inquiry of how to measure the real value of the real output of bank services. It states that the paper shows that the bias of the deflated-balance series differs across types of bank services, countries and over time. Moreover, it notes that the official estimate of European bank output growth is most probably biased relative to that of the U.S.

The article presents the author's insight regarding challenges for monetary policy that the European Monetary Union (EMU) faces. He states that EMU will find it difficult to ensure monetary policy stability if membership requirement will not be met in the union. He mentions that in order for the policy not continually be challenged by financial crisis, the central bankers should take into consideration the implication of monetary policy in the financial stability as well as the price stability.

Discusses issues on securities trading and settlement in Europe. Restructuring of European stock exchanges and settlement systems; Principal steps in a securities transaction; Relative cost savings from clearing and settlement system consolidation; Factors driving structural change in Europe. INSET: Trade Execution, Clearing, and Settlement.

Focuses on the proposed European currency unit. Exchange rate; Monetary policy; History of monetary unions; Potential gains from monetary union; Surrounding monetary independence; Stabilizing factors; Incentives for monetary restraint.

Applies the aggregation theoretic framework to money holdings of European residents. Definition of the Divisia index; How the European Divisia was derived; Analysis of the Divisia index and the simple-sum measure of European money.

The article discusses the sovereign debt crisis in the European countries to finance increased consumption and housing investment. The Target2 system which offsets much of the capital flight with credits extended collectively by euro area central banks to central banks in the periphery is stated. The risk of a country's dependence on borrowed money as its imports exceed its exports is cited. A graph depicting the Periphery Current Account Balances is presened.

The authors of this article provide a general introduction to the concept of sovereign debt—including the seductive nature of borrowing and the strategies associated with default—before analyzing the current debt crises in Europe. They focus on Greece's current woes but also discuss Portugal, Ireland, Italy, and Spain. The authors also discuss the environment in the United States, which has a high debt burden of its own, and present fiscal choices for policymakers and taxpayers. [ABSTRACT FROM AUTHOR]

In the United States and Europe, central banks have essentially been the only policymaking entities consistently willing and able to take bold measures to deal with an unusually complex set of national, regional, and global economic and financial challenges since the onset of the Great Recession and financial crisis. The author advocates for other agencies, in both the public and private sectors, to urgently work in conjunction with central bank policies. He states that it is critical that policymakers, business leaders, investors, and researchers alike understand better why so many unthinkable events have become facts, why the outlook remains "unusually uncertain," and what changes are needed to limit the risks of further disruptions and bad surprises down the road. Central banks may find themselves facing one of two extremes: complementing policies by other agencies that put the global economy back on the path of high sustained growth and ample job creation or cleaning up in the midst of a global recession, forced deleveraging, and disorderly debt deflation. [ABSTRACT FROM AUTHOR]

Reports on a study that examined the nationality and international reach of banks that provide short-term financial services across Europe to affiliates of multinational corporations. Time series data on the progress of integration in Europe; Conclusion that banking markets need not become more integrated even as economic activity otherwise becomes increasingly global.

Presents a documentation of the behavior of inflation dispersion and inflation differentials in Euro-area countries before and after the introduction of the Euro. Details on the process of European monetary union; Discussion on the currency union and inflation differentials; Adoption of the Euro and the behavior of inflation.

Focuses on efforts to establish consolidated stock exchanges in Europe. Advantages of consolidation; Comparison between the consolidation of stock exchanges in Europe and in the U.S.; Barriers to consolidation.

Examines the implications of changes in the financial system for the supervision of financial institutions in Europe. Trends in the financial sector in Europe; Changes in the European banking structure; Observations on the organization and structure of banking supervision in the European Union.

Presents an abstract of the research `Using Option Prices to Estimate Probabilities in the European Monetary System,' by Allan M. Malz. Use of jump-diffusion model of exchange rate behavior in estimating the realignment probabilities of future exchange rates.

Traces the evolution of Federal Reserve Wire Transfer (Fedwire), an electronic funds and securities transfer system in Europe. Origins of the Fedwire system; Strategies for consolidating the system; Benefits of consolidation; Lessons learned from the Federal Reserve's experience with Fedwire. INSET: Fedwire: The Federal reserve wire transfer service..