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Commercial paper is a short-term debt instrument issued by large corporations. The commercial paper market has long been viewed as a bastion of high liquidity and low risk. But twice during the financial crisis of 2007–2009, the commercial paper market nearly dried up and ceased being perceived as a safe haven. Major interventions by the Federal Reserve, including large outright purchases of commercial paper, were eventually used to support both issuers of and investors in commercial paper. We will offer an analysis of the commercial paper market during the financial crisis. First, we describe the institutional background of the commercial paper market. Second, we analyze the supply and demand sides of the market. Third, we examine the most important developments during the crisis of 2007–2009. Last, we discuss three explanations of the decline in the commercial paper market: substitution to alternative sources of financing by commercial paper issuers, adverse selection, and institutional constraints among money market funds. [ABSTRACT FROM AUTHOR]

The Federal Reserve's reaction to the Penn Central bankruptcy in 1970 marked a pivotal moment in American financial governance history. This paper delves into the Fed's extraordinary measures to avert a widespread financial crisis following the resulting collapse of the commercial paper market. We outline the crisis's progression, highlighting Penn Central's increasing troubles and the subsequent emergency actions by the Fed, led by chair Arthur Burns in mid-1970. A key focus of our analysis is the financial environment of the 1960s, marked by the growth of complex, intertwined, and increasingly global short-term credit systems, which introduced a new type of systemic risk. We argue that the Penn Central crisis represented the Federal Reserve's initial major intervention in response to this emerging systemic risk, expanding its traditional role as a lender of last resort to individual banks to a broader responsibility as a stabilizer of the entire financial system. The Fed pursued this new systemic guarantee by using moral suasion, encouraging banks to increase lending, and providing structural support to reinforce financial system stability, thereby establishing a new precedent in central banking history. Our study also explores the consequences of the crisis. Despite the successful management of the Penn Central crisis, this paper raises crucial questions about the potential moral hazard and the extensive impact of the Federal Reserve's landmark actions. We contend that reassessing the 1970 Penn Central crisis is essential for a better comprehension of the structure of American financial market governance and the Fed's evolving role in handling subsequent crises, including the Great Financial Crisis of 2008. [ABSTRACT FROM AUTHOR]

Since its inception in the early nineteenth century, the U.S. commercial paper market has grown to become a key source of short-term funding for major businesses, with issuance averaging over $100 billion per day. In the fall of 2008, the commercial paper market achieved national prominence when increasing market stress caused some to fear that, given its size and importance, the market's failure would sharply worsen the recession. The Department of the Treasury and Federal Reserve enacted programs targeted at providing credit and liquidity to restore investor confidence. The authors review the history of the commercial paper market, describe its structure and key relationships to money market mutual funds, and present a detailed discussion of the crisis in the market, including the resulting Federal Reserve programs. [ABSTRACT FROM AUTHOR]

The METI White Paper on International Economy & Trade 2024 emphasizes Japan's support for a rules-based international trade regime based on free trade. It acknowledges the importance of economic security in international trade and the need to respond to social concerns such as labor rights and the environment. The paper highlights the economic benefits of free trade, including lower prices, increased availability of essential goods, and the motivation for domestic economic reforms. Despite rising geopolitical risks, global trade is still projected to grow, indicating the continued progress of globalization. Japan's support for free trade is also driven by the need to maintain influence and partnerships with nations in the Global South. [Extracted from the article]

The antecedents of the global financial crisis have two layers: the superstructure and the microstructure. Simply put, the superstructure refers to factors than are evident and manifested in fundamental indicators while the microstructure is the psychology or what underlies those that can be seen. This paper distills the forerunner of the crisis from its roots in the early years of the 1990 decade when the US eased its monetary policy as a response to the dotcom bubble and the 9-11 terrorist attacks. The unfolding story starts in the boom in mortgages brought about by low interest rates and a liberal loan policy, which by themselves would not have brought great financial distress if the rules of the credit market have taken effect. What turned this risky behavior into the present crisis was the bundling of mortgages by financial institutions into complex securities, such as collaterized debt obligations that were largely left unregulated. Beneath the surface is the underpinning of the crisis, the underlying market psychology characterized by greed, ignorance, herd mentality, disregard for or misuse of information, exuberance, and irrationality. Though not immune to the global financial slowdown, the Philippines has buffers that can serve it in good stead during this challenging period. Domestic demand is a major growth contributor; inflationary pressures are easing; there is policy space for fiscal stimulus; external payments position is manageable; the banking system is well-capitalized; and there is low exposure to financial strains. Still, the effects of the crisis have just reached the country and have just begun to be felt. In expectation of tougher challenges that will be faced by the real and external sectors, the country's central bank has laid out its policy thrusts for 2009. These include sustaining its primary mandate of price stability; maintaining the soundness of the financial system through greater risk management among others; and strengthening engagements with its regional peers for more collaborative action. [ABSTRACT FROM AUTHOR]

The article presents information on the law and legislations regarding the passage of the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act by U.S. President Barack Obama. It mentions that the act was passed in response to the global financial crisis. The act was also implemented in response to requests of the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission.

This Special Issue brings together 13 papers that examine a variety of central topics in the field of international economics and finance. These papers were presented at the 23rd Conference on International Economics held in Málaga (Spain) on 16th–17th June 2022. The conference was organised by the Spanish Association of International Economics and Finance (AEEFI) and the University of Málaga. The selected papers make up an interesting and revealing set of information to study the new challenges of the international economics and finance in a context especially marked by the aftermath of the 2008 financial crisis, the climate change, the challenge posed by the COVID‐19 crisis and the instability unleashed after the invasion of Ukraine in 2022. From different perspectives, the papers analyse how events that have particularly affected the evolution of the world economy have substantially altered the rules of international trade, foreign direct investment, as well as monetary, fiscal or sectoral policy. The conference included two keynote lectures by Per Krusell (Institute for International Economic Studies, Stockholm University) and Fabio Canova (Norwegian Business School and Budapest School for Central Banking Studies), as well as 97 selected contributions. [ABSTRACT FROM AUTHOR]

The global financial crisis that followed Lehman Brothers' declaration of bankruptcy in September 2008 critically highlighted the significance of research on systemic risk and macro-prudential supervision. Accordingly, this paper mainly analyzed the relationship between financial crises and the article output in financial crisis research through the application of bibliometrics. The occurrence of a financial crisis leads to changes in the output of articles on crisis and risks. Hence, we focused on bibliographic coupling (e.g., co-authorship, co-occurrence), data classification by risk type in this study (e.g., market risk, credit risk) and citation analysis (e.g., top 1% cited paper). Meanwhile, the analysis indicated the most relevant disciplines in financial crisis research. For example, the number of top 1% cited articles and citations, MARKET RISK documents and citations published the most papers. In other words, the market risk is valued in the financial risk literature. [ABSTRACT FROM AUTHOR]

By constructing a set of new comprehensive indicators to measure the financialization of the international commodity market from the perspectives of speculation, currency, market links and risk, this paper explores the relationship between the financialization of the international commodity market and the financial characteristics of BRIC countries (BRIC is an acronym for the economic bloc of countries consisting of Brazil, Russia, India, and China) based on the SVAR model. The empirical analysis finds the following: First, the financialization of the international commodity market gets stronger year by year, and it fluctuated at a high level after the 2008 financial crisis. Second, the financialization of the international commodity market has strong explanatory power for the financial development and financial structure of BRIC countries but relatively weak explanatory power for their financial openness and financial fictitiousness. Third, the higher financialization of the international commodity market will restrain the improvement of countries' financial development and direct financing, especially of China and India. Fourth, the financialization of the international commodity market has the strongest explanatory power for Russia's financial openness and financial fictitiousness but relatively weak explanatory power for China. [ABSTRACT FROM AUTHOR]

This note introduces eight studies presented at the second International Workshop on Financial Markets and Nonlinear Dynamics (FMND), organized in Paris on June 4-5, 2015 (). These studies focus, first, on the main effects of the recent financial crisis of 2008-2009. Second, they discuss consequences of the global economic downturn of 2008-09. To do this, the authors focus on the main effects on real economies and financial systems of the financial crisis and then sum up the key reforms, recommendations and new rules and challenges that emerged from the crisis. For each paper under consideration, the economic theory and/or hypothesis suggested is illustrated through an empirical investigation. [ABSTRACT FROM AUTHOR]

This paper revisits the policy drivers of the substantial household credit boom experienced in recent decades. While existing work has typically pointed to the retreat of the state, deregulating and substituting public safety nets by private credit, this paper brings the focus to the active use by governments of 'fiscal policy as credit policy' through homeownership subsidization. In this context, the paper introduces a new unique dataset of 550 homeownership subsidies adjustments in 51 advanced and emerging countries since 1990, which brings two important contributions. First, I show that these fiscal subsidies have been increasingly used since the 1990s and significantly contributed to the easy credit stance up to the global financial crisis in both advanced and emerging countries. Second, using panel fixed effects regressions, I find that these subsidies, and notably mortgage interest deductibility, are indeed significantly associated with household/mortgage credit expansion, with crucial distributional and financial stability implications. [ABSTRACT FROM AUTHOR]

This paper develops a digital platform restrictiveness index for 64 countries based on ECIPE's Digital Trade Estimates database and the Digital Trade Restrictiveness Index. We identify specific restrictions that affect online platforms with a focus on online search, e‐commerce and social media. The results show that both OECD and non‐OECD countries show high levels of trade restrictions on online platforms. Moreover, some of the most restricted countries are characterised by large markets, signifying that a substantial part of the global economy gravitates towards restricting online platforms. Based on the platform restrictiveness index, we perform an econometric analysis showing that trade restrictions for online platforms are significantly associated with lower contributions of the ICT sector to productivity growth in the entire economy. The results suggest that reducing restrictions on online platforms can increase the ICT's contribution to overall productivity growth towards a level seen before the global financial crisis. Sectors that would benefit the most are those that make wider use of online platforms and the Internet, including information services, business services and financial services. [ABSTRACT FROM AUTHOR]

Macro stress testing has become an increasingly important part of central banks' and macroprudential authorities' toolkits in the wake of the Global Financial Crisis. One of the most important parts of the stress testing framework is the estimation of credit risk losses under adverse circumstances. However, standard satellite models based on econometrics of time series may not be well suited to estimate credit risk losses for countries with short time series, incomplete credit cycle or structural breaks, as in the case of Slovakia. Incorporating micro data into the stress testing framework becomes important for such countries. In this paper, we show that using micro data leads to more plausible results compared to time series in form of higher estimated share of nonperforming loans. For the estimations, we use a unique set of individual retail loan data collected from banks operating in Slovakia. As the Slovak banking sector did not face a rapid worsening of the credit quality of retail loans during the Global Financial Crisis, the recent Covid-19 pandemic in 2020 is the only reference period of increased economic and financial tensions. This period also confirms our approach, as using micro data leads to nonperforming loan ratios that are closer to the ratio of indebted households asking for loan payment deferral during the pandemic. [ABSTRACT FROM AUTHOR]

The critical platform studies literature has built a compelling picture of how techniques like worker (mis)classification, algorithmic management and workforce atomisation lie at the heart of how 'work on-demand via apps' actively restructure labour. Much of this emerging scholarship identifies that platform workforces are predominantly comprised of migrant and racially minoritised workers. However, few studies theorise migration and race as structuring logics of the platform model and the precarity it engenders. This paper addresses this gap by exploring how the platform economy – specifically work on-demand via apps – both shapes and is shaped by historically contingent contexts of racialisation, and their constitutive processes such as embodiment and immigration policy/rhetoric. Beyond identifying the over-representation of racial minorities in the platform economy, it argues that processes of racialisation have been crucial at every stage of the platform economy's rise to dominance, and therefore constitutes a key organising principle of platform capitalism – hence the term 'racial platform capitalism'. In doing so, this paper draws on the racial capitalism literature, to situate key platform techniques such as worker (mis)classification and algorithmic management as forms of racial practice, deployed to (re-)organise surplus urban labour-power following the 2008 financial crisis. This framework will be explored through an ethnographic study of Uber's rise in London. Through this, the paper demonstrates a co-constitutive relationship, where the conditions of minoritised workers in a global city like London post-2008, and the political economy of platform companies can be said to have co-produced one another. [ABSTRACT FROM AUTHOR]

This special issue originates from a dual submission conference with the NBER Insurance Working Group and the Corporate Finance Program in 2020. It brings a broader perspective on important frictions in insurance markets, including trust between insurers and policyholders, conflicts of interest among brokers, suboptimal policyholder behavior, and risk-based capital regulation. Several developments in the economy and the academic literature have provided an impetus for new perspectives, including the growth of savings products with minimum return guarantees, the global financial crisis, and intermediary asset pricing. We conclude with an overview of research questions that are promising for further exploration. [ABSTRACT FROM AUTHOR]

Before the global financial crisis, the assistance of the lender of last resort was thought to be limited to commercial banks. During the crisis, however, the Federal Reserve created a number of facilities to support brokers and dealers, money market mutual funds, the commercial paper market, the mortgage-backed securities market, the triparty repo market, and so on. In this paper, we argue that the elimination of specialized banking through the eventual repeal of the Glass-Steagall Act (GSA) has played an important role in the leakage of the public subsidy intended for commercial banks to nonbank financial institutions. In a specialized financial system, which the GSA had helped to create, the use of the lender-of-last-resort safety net could be more comfortably limited to commercial banks. However, the elimination of GSA restrictions on bank-permissible activities has contributed to the rise of a financial system where the lines between regulated and protected banks and the so-called shadow banking system have become blurred. The existence of shadow banking, which is directly or indirectly guaranteed by banks, has made it practically impossible to confine the safety to the regulated banking system. In this context, reforming the lender-of-last-resort institution requires fundamental changes within the financial system itself. [ABSTRACT FROM AUTHOR]

In this paper we analyse why an understanding of the global 'non-system', in which we now live, took so long to arrive after the Bretton Woods system collapsed in 1971. We first describe how knowledge of how an inflation-targeting regime would operate—what we call 'Taylor-rule macroeconomics'—was only gradually created during the 1970s, 1980s, and 1990s. We then describe how, subsequent to this, an awareness emerged, also gradually, of how the international non-system might work, depending, as it does, on Taylor-rule macroeconomics being already in place. We then discuss the Great Moderation, making clear that a well-functioning global non-system would require not just inflation targeting and floating exchange rates in each country, but also adequate fiscal discipline, and a satisfactory form of financial regulation. We describe how a well-functioning version of this global non-system would actually fit together. We then discuss how this non-system has responded to two enormous challenges of the last 15 years, namely the Global Financial Crisis and the Covid pandemic. This discussion of what has happened in the recent past provides the background to a discussion, in the companion paper by Subacchi and Vines in this issue of the Oxford Review of Economic Policy , of the challenges that the global non-system will face in the future. [ABSTRACT FROM AUTHOR]

Epistemic practices are an important but underappreciated component of business ethics; good conduct requires making epistemically sound as well as morally principled judgments. Well-founded judgments are promoted by epistemic virtues, and for organizations, epistemic virtues are arguably achieved through organizational good epistemic practices. But how are such practices to be developed? This paper addresses this normative and practical challenge. The first half of the paper explains what organizational good epistemic practices are and outlines a means for their construction. The second half of the paper demonstrates how specific good epistemic practices could be developed by considering a case of corporate epistemic failings: JPMorgan's notorious 2012 'London Whale' trading losses. Following this, the paper briefly surveys the institutional epistemic failings of the 2008 global financial crisis and the remedial actions that they suggest. Although the discussion is focused on the banking industry, the main ideas, and some of the epistemic practices, generalize to organizations in other industries. [ABSTRACT FROM AUTHOR]

Social policy relates to a variety of social phenomena. Over recent decades, it has attracted the interest of scholars from a variety of academic disciplines as well as that of national and international organizations. This study applied the bibliometric approach to identify and analyse articles present in the Web of Science database, published in the English language, containing the term social policy in the title, abstract, or author keywords. Bibliometric networks and analyses were conducted using bibliometrix and VOSviewer software. The results show that the publication trend of articles on social policy varied over time and in association with social phenomena; for instance, an increase in publications occurred in the wake of the 2008 financial crisis. COVID-19, environmental issues, migration, and austerity were the main social policy topics being addressed in more recent investigations. This paper advances our knowledge about the research trends on the topic of social policy. This analysis included all articles published until the end of 2023 and can thus be considered to be up to date at the time of publication. It highlights the latest topics social policy has become interested in and the range of research disciplines it is associated with. [ABSTRACT FROM AUTHOR]

Securitisation has allowed banks to move from an originate-to-hold to an originate-to-distribute model. While it is widely accepted that this helped banks to achieve higher profitability and diversification, it is also regarded as the main cause of the 2007-08 global financial crisis. The lack of transparency between the securities issued and the performance of the underlying loans led to extreme risk taking and amplified the impacts once the loans started to underperform. This paper explores asset tokenisation, which can bring similar benefits to securitisation while enabling more effective management of the risks due to the traceability and immutability of distributed ledger technology (DLT). The paper argues that tokenisation of assets has now progressed beyond the experimentation phase and is being adopted by major commercial banks, central banks and financial market infrastructures (FMI). In addition, it describes the regulatory tailwinds for market participants to get involved in deploying and using the technology that makes tokenisation possible. While tokens and securities are both claims on assets, tokenisation's additional capabilities of traceability and programmability enable the terms of a claim to be modified programmatically under specific circumstances, for example through a smart contract. A further positive attribute of tokenisation is that it can significantly improve and compress the workflow of existing and new securities, bringing considerable benefits from both operational and cost perspectives. The paper goes on to argue that generalised adoption of DLT along with harmonised standards, interoperability and integration for tokenisation feature among key requirements on which market participants and technology providers are actively working. Finally, the paper makes the point that cryptographically proven data also acts as a stepping-stone for high-quality artificial intelligence (AI) implementations, which can continue to expand productivity and profitability for regulated financial institutions. [ABSTRACT FROM AUTHOR]

Purpose: The dissemination of misleading and false information through media can jeopardize a company's reputation, thus posing a threat to its stock and performance. Institutional investors are known to influence capital markets. Therefore, this paper investigates whether institutional investors engage in shaping the media sentiment stock nexus, stabilize company stocks and enhance performance. Design/methodology/approach: We first investigate the effect of media sentiment on market reactions by using panel regression models. To examine the role of institutional investors, we design a quasi-experiment by exploiting the Financial Crisis of 2008 and go further by examining the heterogeneity across levels of institutional ownership. Due to risk-averse, investors may respond asymmetrically to pessimistic and positive sentiment. Accordingly, we split the sample into two sub-types, good news and bad news, based on keywords representing positive or negative content. Findings: We find supportive evidence that institutional investors have impacts on how the markets react to media news, and the impacts are heterogeneous in the face of bad and good news. We conjecture that institutional investors act as a stabilizer of stock prices through media sentiment management. Originality/value: This paper confirms the distinctive effects of institutional investors on capital markets, and uncovers the behind-the-scenes intervention and possible causal link running from institutional investors to media sentiment management. It contributes to the broad field of institutional investors' behavior, media news involvement in capital markets and market efficiency. [ABSTRACT FROM AUTHOR]

This paper assesses quantitatively the impact of COVID-19 on the Capesize as well as the Panamax sectors using the event analysis method based on the ensemble empirical mode decomposition (EEMD). Different components are decomposed from the freight rates time series. The decomposed dominant modes manage to capture the event of COVID-19, accounting for the major movements of the freight market. The event of 2008 financial crisis is utilized as a benchmark to analyze the impact of COVID-19. Compared to the 2008 financial crisis, the dominant modes during COVID-19 rebound in quite a short time. Factors contributing to the decline of freight rates during the COVID-19 pandemic are relatively simpler than during the 2008 financial crisis, indicating that the COVID-19 should not have a long-lasting impact on the dry bulk shipping market. The results not only prove that the method used in this paper is capable of evaluating the impact of future events on the freight market but also provide some practical implications to the maritime industry. [ABSTRACT FROM AUTHOR]

The widespread and substantial effect of the global financial crisis in history underlines the importance of forecasting financial crisis effectively. In this paper, we propose temporal convolutional network (TCN), which based on a convolutional neural network, to construct an early warning system for financial crises. The proposed TCN is compared with logit model and other deep learning models. The Shapley value decomposition is calculated for the interpretability of the early warning system. Experimental results show that the proposed TCN outperforms other models, and the stock price and the real GDP growth have the largest contributions in the crises prediction. [ABSTRACT FROM AUTHOR]

This paper addressed the globally spread challenges that countries face, such as environmental issues, which have been accumulated for years, and financial crises, which have been repeated many times in the world's economy during capitalism. Indeed, through a qualitative scientific approach, the article argued that laissez-faire economics or laissez-faire capitalism (as an economic system or doctrine, i.e., a liberal and classical view of economics) is not the right way to overcome and deal with these problems. Instead, some interventions in the economy and cooperation between countries and the respective institutions are required so that these difficulties (environmental issues and financial crises), which do not recognize borders, are prevented and afforded properly. Thus, this publication presented how challenging environmental issues are, which are spread worldwide, and it also discussed financial crises, such as the 2008 Financial Crisis (also known as the Great Recession) and the Great Depression of the 1930s. Overall, this paper concluded that dual crises (environmental and financial crises) are the robust proofs that dismiss the extreme form of capitalism or economics, known as laissez-faire. [ABSTRACT FROM AUTHOR]

The 2008 sub-prime mortgage crisis in the United States brought many financial institutions to the brink of bankruptcy. Securities firms were not immune to such issues, given their prominence in the financial market. Consequently, evaluating the performance of securities companies' post-recession is important when determining how to confront market-shaking macroeconomic problems. Consequently, this paper employs a non-radial model of data envelopment analysis (DEA) to measure the performance of revival on Taiwan's securities industry. The research findings suggest that Tachan Securities (TCS) outperformed its peers in the operational period immediately after the global financial crisis, while Capital Securities (CAPITAL) is the best performer in the profit-making period. This paper applies the Boston Consulting Group (BCG) Matrix to analyze strategic positioning and trajectory on the basis of the efficiency value of the two-stage of non-radial DEA model. In order to validate any variances between the efficiencies of different stages after the global financial crisis, this paper conducts non-parametric statistical analysis to examine the variances in the efficiency values of the single-stage and the two-stage model. Finally, the purpose is to understand the impact of the post-crisis environmental variables on the efficiency of the securities industry. The empirical findings can serve as a reference for industry management on the assessment of operating performances and profitability by the characteristic of radial efficiency. Decision-makers in the industry may also refer to the findings as a benchmarking tool for the evaluation of business performance after the global financial crisis. [ABSTRACT FROM AUTHOR]

The paper analyzes household portfolio dynamics in Europe, focusing on the period from 2010 to 2017 using data from the European Central Bank's Household Finance and Consumption Survey (HFCS). The study examines the evolution of household portfolios after the 2008 financial crisis, with housing assets found to be one of the key drivers. On the aggregate level, the household portfolio remained stable between 2010 and 2017. Housing importance remained crucial during all the time and drove the majority of portfolio performance for households in 40-99 percentiles of the wealth distribution. With the evolution of household portfolios, age cohorts 45-54, 65 and older strengthen their positions by increasing the share of their owned assets in comparison to other age cohorts, which lost part of their shares. I conclude the paper with some stylized facts showing the relationship between home ownership, the share of portfolio in housing assets and wealth inequality between countries. The stylized facts provide evidence that household portfolios significantly concentrated in housing assets during the analyzed decade. Furthermore, the transition of households from renters to home owners contributed significantly to the changes in wealth inequality that occurred after the 2008 financial crisis. [ABSTRACT FROM AUTHOR]

The paper examines the effect of the sharp reallocation of business R&D expenditure from experimental research to applied research, since the global financial crisis, on the productivity of the South African national system of innovation (NSI). Business R&D expenditure declined sharply, without reversal, which suggests structural change. The paper applies linear regression models to data on trademarks and patents obtained from the World Intellectual Property Office and business R&D expenditure obtained from the Human Sciences Research Council, South Africa, for the period 2004-2018. The paper finds that reallocation of R&D expenditure from experimental to applied research had detrimental effects on the productivity of the NSI. Counterfactually, reallocation of R&D spending from experimental research to basic research had positive effects on innovation performance. The paper also establishes structural change in the innovation-business R&D spending regime. Policymakers, through tax incentives and nudging, should incentivise reallocation of business R&D spending towards basic research, while adjusting downwards the allocation to experimental and applied research until they reach their optimal levels. Discovery of structural change in the innovation-business R&D expenditure regime, the identification of sub-optimality in business R&D spending allocation, and identifying distorted incentive structures, all bring new knowledge to scholarship on the national system of innovation. [ABSTRACT FROM AUTHOR]

Purpose: The article aims to establish whether the degree of aversion to inflation and the responsiveness to deviations from potential output have changed over time. Design/methodology/approach: This paper assesses time variation in monetary policy rules by applying a time-varying parameter generalised methods of moments (TVP-GMM) framework. Findings: Using monthly data until December 2022 for five inflation targeting countries (the UK, Canada, Australia, New Zealand, Sweden) and five countries with alternative monetary regimes (the US, Japan, Denmark, the Euro Area, Switzerland), we find that monetary policy has become more averse to inflation and more responsive to the output gap in both sets of countries over time. In particular, there has been a clear shift in inflation targeting countries towards a more hawkish stance on inflation since the adoption of this regime and a greater response to both inflation and the output gap in most countries after the global financial crisis, which indicates a stronger reliance on monetary rules to stabilise the economy in recent years. It also appears that inflation targeting countries pay greater attention to the exchange rate pass-through channel when setting interest rates. Finally, monetary surprises do not seem to be an important determinant of the evolution over time of the Taylor rule parameters, which suggests a high degree of monetary policy transparency in the countries under examination. Originality/value: It provides new evidence on changes over time in monetary policy rules. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to investigate the smart economic development (SED) patterns in Europe in relation to competitiveness. Motivational focus corresponds to global events: the fourth industrial revolution, transition to a low-carbon economy, economic shocks (such as the 2008 financial crisis, Brexit or the coronavirus pandemic), which requires rethinking development policies, targeting competitiveness increase and reducing imbalances in economic development. Design/methodology/approach: The analysis includes self-organising neural networks cluster analysis and correlations, comparative analysis of SED indicators structure and cumulative index estimation with World Economic Forum (WEF) global competitiveness index. The panel data set of 19 years from 2000 to 2018 for 30 European countries. Findings: Overall, cross-country examination suggests that European countries of higher competitiveness illustrate higher estimates in SED. The key determinants are juridical fairness, social responsibility, competence building, intelligence and welfare employment to develop smart patterns for reaching higher competitiveness. Research limitations/implications: The limitations relate to the particular sample of European countries and gathering statistical data and a methodology of the SED index calculation. In addition, the paper contains a macroeconomic environment focus on competitiveness estimation. Further research may be improved with micro and mezzo environment incorporation at a cross-country analysis level. Practical implications: By linking well-known terms of competitiveness and economic development with a concept of smartness, new approaches to policymaking emerged. The methodology presented in this paper has implications for territorial cohesion policies, competitiveness and branching strategies. The combination of SED sub-indexes and WEF GCI might aid a more accurate ex ante measurement. Social implications: The findings are essential for fostering a smart approach in economic development for long-term competitiveness. Originality/value: This paper provides original empirical evidence about the relationship between SED and competitiveness and adds new knowledge that smartness becomes a way for building countries' competitiveness by identified two profiles of SED patterns by development stages, namely, integrated to economic development and institutional-based which is divided to focus and balanced. [ABSTRACT FROM AUTHOR]

We provide new evidence that disruptions in firms' access to credit during the Global Financial Crisis significantly affected product innovation in the consumer goods sector. We combine highly granular retail scan data with lending data and find that credit-constrained firms introduced fewer new products, those products were less novel, and new products sold less well. Overall, these findings suggest that disruptions to credit markets impair firms' ability to compete for profits through new product offerings. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to show that Schumpeter can offer important insights for macroeconomic theory today. This applies especially to his distinction between a "real analysis" and a "monetary analysis," as he calls it, and its implications for monetary macroeconomics, especially the theories of financial crises at the national and the global levels. The main problem of the "real analysis" is the identity of the financial sphere with the real sphere. The consequence of this narrow view is the inability to understand the dynamics of a monetary economy, which is the main cause for financial crises. The flaws of the real analysis manifest themselves also at the global level. The Feldstein–Horioka puzzle and the Lucas paradox are obvious "anomalies" of this paradigm. Models based on the real analysis are unable to explain the extent and even direction of international capital flows. Thus, the economics profession was unable to see the risks that were accumulating in the international financial system before the outbreak of the Great Financial Crisis. [ABSTRACT FROM AUTHOR]

Since the Global Financial Crisis, interest in financial cycles has risen significantly. While much of modern macroeconomics conceives financial crises as the results of exogenous shocks, Minsky's financial instability hypothesis posits that financial cycles are endogenous to the economic system. The main contribution of this paper is to use historical macroeconomic data for the United States (1889–2014) to econometrically test for endogenous Minsky cycles: the interaction of procyclical private debt-to-income ratios and a dampening effect of private debt on economic activity. We analyze corporate debt-gross domestic product (GDP) growth cycles, which feature in Minsky's original writings, and mortgage debt-GDP growth cycles as in some recent Minsky-inspired models. We find robust evidence of endogenous corporate debt-GDP cycles over the last 125 years. These results are driven by the pre-World War II (WWII), and post-1973 periods, which had a more liberal economic policy orientation. We find no evidence of mortgage debt-GDP cycles. [ABSTRACT FROM AUTHOR]

This paper examines the socio-spatial constitution of the mall, as a basic consumption place, in the aftermath of the 2008 global economic crisis, employing a geographical approach to malls and a socio-spatial perspective on heterotopia, as a conceptual theoretical tool on the exercise of power and production of space. Introducing the concept of crisis-heterotopia, the case of the Mediterranean Cosmos shopping Centre in Thessaloniki, Greece, is employed, carrying out questionnaires and interviews with residents of Thessaloniki. The findings highlight the internal constitution of the mall as a crisis-heterotopia identified by the socio-spatial and cultural profiles and spatial representations of the consumers. [ABSTRACT FROM AUTHOR]

With the occurrence of the global financial crisis in 2008, the U.S. unconventional monetary policy affected the Chinese market. Based on a monthly data sample from 2008M1 to 2015M12, in this paper we identify U.S. and Chinese monetary policy shocks by using a structural vector autoregression (SVAR) model with multi-external instrumental variables along with principal component analysis (PCA) combined with high-frequency financial market data. The empirical results show that the unconventional monetary policies had a negative effect on China's inflation and output due to the signal effect, and China's stock and commodity markets increased in the short term. During the same period, China's monetary policy had a greater impact on the domestic economy and financial markets. The conclusion of this paper provides a significant reference for relevant departments to make decisions amidst the new wave of unconventional U.S. monetary policies due to the COVID-19 pandemic. [ABSTRACT FROM AUTHOR]

Increasing global concern about climate change and the circular economy have successfully established itselves in international and national policies over the last decade, with the aim of reshaping the production and consumer behavior. The circular economy is one of the core pillars of European Union policy and its success depends on the energy efficiency, reducing production costs, and maintaining employment levels by ensuring continuous strong economic independency of the region. While crises are unavoidable and continue to appear, this paper aims to project the impact of any crisis on sustainability transitions using data analysis of the Global Financial crisis from 2008 to 2009 and discuss how the success of the circular economy implementation and environmental policies could be affected. The paper notes that the global financial crisis of 2008–2009 had a short-term positive impact on environmental degradation and that economic interests overshadowed environmental goals. Due to the recent events of the ongoing Russia and Ukraine war, COVID-19 societal and industrial behavior has shifted from sustainable to linear and has taken a step backward in reducing environmental pollution and achieving Sustainable Development Goals. Analysis of already present data and the context of the 2008–2009 global financial crisis, reviewing of COVID-19 impact on the global economy, health sector, and environmental policies allows us to predict the consequences, as it relates to the future of circular economy policy. [ABSTRACT FROM AUTHOR]

This paper contributes to the ongoing debate on the nature and characteristics of the volatility transmission channels of major crash events in international stock markets between 03 July 1997 and 09 March 2021. Using dynamic conditional correlations (DCC) for conditional correlations and volatility clustering, GARCH-BEKK for the direction of transmission of disturbances, and the Diebold-Yilmaz spillover index for the level of volatility contagion, the paper finds that the climbs in external shock transmissions have long-lasting impacts in domestic markets due to the contagion effect during crisis periods. The findings also reveal that the heavier magnitude of financial stress is transmitted between Asian countries via the Hong Kong stock market. Additionally, the degree of volatility spillovers between advanced and emerging equity markets is smaller compared to the pure spillovers between advanced markets or emerging markets, offering a window of opportunity for international market participants in terms of portfolio diversification and risk management applications. Furthermore, the study introduces a novel early warning system created by integrating DCC correlations with a state-of-the-art deep learning model to predict the global financial crisis and COVID-19 crisis. The experimental analysis of long short-term memory network finds evidence of contagion risk by verifying bursts in volatility spillovers and generating signals with high accuracy before the 12-month crisis period. This provides supplementary information that contributes to the decision-making process of practitioners, as well as offering indicative evidence that facilitates the assessment of market vulnerability for policymakers. [ABSTRACT FROM AUTHOR]

This article provides both stylized facts and estimations of the endogenous nexus of the financial fragility hypothesis (FFH) with public social spending (PSS) for a paradigmatic Eurozone member country. The sample period 1995–2022 includes three major economic crises, the global financial crisis 2007–2009, the European debt crisis 2010–2015 and the COVID-19 pandemic one in 2020–2022. Within the context of the financialization literature, this paper is founded, for the first time, as far as we know, on the "financial fragility hypothesis", combining the effects of both Minsky's "financial instability", as it has been extended for open economies, and the "Eurozone fragility one". Similar to the relevant literature, the findings show that the PSS is associated, in a long-term steady state (cointegration), with the financial fragility process, starting, firstly, from the hedge-financing structure with high profitability of firms, when PSS decreases; secondly, to hyper-speculative financing with risky options, supported by bank credit and openness, indebtedness or discretionary fiscal policy, when PSS rises; thirdly, to the hyper-speculative or even Ponzi financing structures with over-indebtedness (leverage) from the global capital market, inflated asset prices and internationalized fragility, when PSS also rises, and so on. Our conclusion validates Minsky's famous saying, "stability breeds instability", also in the architecturally incomplete Eurozone. Policy implications are straightforward and discussed. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine Nigeria's dynamic output and output volatility connectedness with USA, China and India using quarterly data from 1981Q1 to 2019Q4. Design/methodology/approach: The study adopted the network approach of Diebold and Yilmaz (2014) and used the normalized generalized forecast error variance decomposition from an underlying vector error correction model to build connectedness measures. Findings: The findings show that the global financial crisis (GFC) increased the connectedness index far more than the 2016 Nigeria economic recession. The moderate effect of the 2016 Nigeria economic recession on the connectedness index underscores the fact that Nigeria is a small, open economy with minimal capacity to spread output shock. For both real output and its volatility, the total connectedness index rose smoothly and systematically through time, thereby leaving the economies more connected in the long run. Originality/value: To the best of the authors' knowledge, this paper is among the first to examine Nigeria's dynamic output and output volatility connectedness with the USA, China and India using new empirical insights from the GFC versus 2016 Nigerian recession. The study, therefore, concludes that the Nigerian economy should be diversified immediately as a hedge against future real output shocks, while the USA, China and India should maintain and sustain their current policy frameworks to remain less vulnerable to real output shocks. [ABSTRACT FROM AUTHOR]

Purpose: The concept of compliance is in danger of becoming obsolete as a result of its generalization and overuse. This paper aims to refine the concept of a culture of compliance and its effective implementation in association with financial regulations, in line with the societal expectations of compliance. Design/methodology/approach: This paper begins by assessing the watershed reconception of compliance in light of the Global Financial Crisis of 2008 (GFC). The influence of financial incentivization and structural weakness is highlighted above all. Recommendations focusing on the significance of the corporate context are made from this and viewed in relation to the growing relevance of compliance in regulating cyberspace. Findings: Individuals and their decision-making are heavily influenced by the culture of their environment. Clearly, defining the values behind regulations encourages employees to follow the rules based on the principles that underlie them rather than out of fear of punishment, risk aversion or a sense of the "tick-box" duty. This contributes to the longevity of healthy compliance rather than a compliance fatigue. Originality/value: By casting a look back at the development of compliance, the modern social expectations of compliance can be elucidated and, in turn, translated into mechanisms for corporations to effectively use. The literature on compliance has grown substantially but often limits itself to commentaries on the history of non-compliance or sector-based investigations. Hinged between the past and future of compliance, this study contributes to bridging a considerable gap in the literature by using a wider lens and positive redefinition of compliance. [ABSTRACT FROM AUTHOR]

The paper analyses the links between illicit financial flows, money laundering and dependent financialization using the Baltic states as exploratory case studies. Since the restoration of their independence, Estonia, Latvia and Lithuania have been involved in several massive money laundering scandals, with illicit funds flowing mainly from Russia, as well as other former Soviet Republics. Currently, these episodes have taken on a new dimension in light of the Russian invasion of Ukraine. Until recently, the prevailing narrative was that illicit financial flows and money laundering in the Baltic states resulted from a failure in the financial system's ability to monitor and detect these operations. However, this paper argues that far from being a simple shortcoming, money laundering and illicit financial flows in the Baltic states are products of dependent financialization in two main ways: first, in the decade leading up to the global financial crisis, the overall economic performance and the returns of financial actors in these countries became dependent on foreign capital inflows. This dependency was key to enabling the arrival of illicit financial flows and money laundering from the post-Soviet space, especially after the crisis. Second, due to its comparative advantages and its subordinate position in the international financial system, the banking sector of the Baltic states was used as an intermediary in global financial networks of money laundering for funds from the former USSR, where it assumed most of the financial, legal and reputational risks. Finally, the research also points to the emergence of new risks. [ABSTRACT FROM AUTHOR]

Purpose: Financial stability has become a focal point for central banks since the global financial crisis. However, the optimal mix between monetary and financial stability policies remains unclear. In this study, the "soft" approach to such policy mix was tested – how often monetary policy (in inflation reports) analyses financial stability issues. This paper aims to discuss the aforementioned objective. Design/methodology/approach: A total of 648 inflation reports published by 11 central banks from post-communist countries in 1998-2019 were reviewed using a text-mining method. Findings: Results show that financial stability topics (mainly cyclical aspects of systemic risk) on average account for only 2%of inflation reports' content. Although this share has grown somewhat since the global financial crisis (in CZ, HU and PL), it still remains at a low level. Thus, not enough evidence was found on the use of a "soft" policy mix in post-communist countries. Practical implications: Given the strong interactions between price and financial stability, this paper emphasizes the need to increase the attention of monetary policymakers to financial stability issues. Originality/value: The study combines two research areas, i.e. monetary policy and modern text mining techniques on a sample of post-communist countries, something which to the best of the authors' knowledge has not been sufficiently explored in the literature before. [ABSTRACT FROM AUTHOR]

Education, under the neoliberal doctrine, has undoubtedly undergone multiple reforms that have led to its economisation. They have also turned education into a mechanism that intensifies the reproduction of inequalities and suppresses diversity, which only helps to perpetuate social exclusion. Despite radical criticism of neoliberalism's effect on education, neoliberal educational strategies have emerged stronger in the aftermath of the 2008 financial crisis. The goal of this paper is to review the effect of the neoliberal paradox on diversity and equity in education and to consider a new socio-economic paradigm that would foster more progressive educational practices. Such practices are advocated by Kalantzis and Cope's New Learning model, which points to the relationship between senses of belonging and academic achievement in education. To achieve this, this paper adopts a polemical, critical approach to analysing the selected literature. It highlights the paradoxes and contradictions of neoliberalism on diversity and equity and analyses how inequity is perpetuated through neoliberal education. Then, it discusses neoliberal education and considers the reasons criticism of neoliberalism has been rather ineffective. The paper concludes by exploring alternative pedagogical models and contemplating whether education can be recalibrated in the interest of an inclusive and just society. [ABSTRACT FROM AUTHOR]

Purpose: Since 2008's financial crisis, attention toward supply chain finance (SCF) has increased. However, most research investigates SCF considering single supply chain (SC) stages or buyer–supplier dyads and focuses on a single SCF solution. It is important to see how different solutions are adopted at different SC stages, by actors with different financing needs. This study aims to analyze SCF at different SC stages, to understand why different solutions are implemented at different SC stages and the contingency factors (regulation, SC stage, product category and size) influencing their adoption. Design/methodology/approach: The paper is based on multiple exploratory case studies in the Italian agri-food industry, considering firms distributed at different SC stages and adopting multiple SCF solutions. The paper exploits a contingent approach (Sousa and Voss, 2008) to analyze how contingent factors influence SCF adoption at different SC stages. Findings: Findings explain how and why different SC stages (producer, cooperative, processor and retailer) implement different SCF solutions (reverse factoring, dynamic discounting, inventory finance and Minibond), describing contingency variables' impact on their adoption. Originality/value: To the best of the authors' knowledge, the research is original in its description of SCF at different SC stages, considering different SC actors' drivers and barriers, and questioning the importance of a coordinated approach in SCF adoption along an entire SC. Moreover, the paper adopts a contingent approach, contributing to SCF research, seldomly based on theoretical lenses. [ABSTRACT FROM AUTHOR]

As of April 2020, the IMF categorised seven African countries as being in debt distress, whilst identifying twelve more that were at high risk of becoming distress. It is no longer a secret that considered immutable and eternally binding, debt by the global south (i.e., poor developing African countries) has become a tool for imperial powers in the post-colonial world to enforce and perpetuate their dominance over the global south. This is despite serious global crises that emerge from, and/or were caused by the rich countries of the global north; specifically, the negative effects of the global financial crisis of 2008, devastating impact of Covid-19 pandemic, and impact of Russia–Ukraine war on the African economies and contribution to these debt vulnerabilities. Yet, the rich countries of the global north have insisted on these poor countries to continue financing their debts. The paper considers how African countries could legally cancel the repayment of the debts by relying on the principles of international law (such as pacta sunt servanda, limit to legal obligation to pay, force majeure, State of Necessity or rebus sic stantibus) and States' declarations to commitment to sustainable development agenda (such as the European Union's response to the adoption of the 2030 Agenda featured in its Commission's 2016 Communication) could be used as justifying grounds for cancellation of Africa debts. The paper draws on international law and development in the light of dependency and postcolonial theories and employs the human rights-based approach, interdisciplinary and critical-analytical perspective and using qualitative empirical evidence from rich countries and institutions of the global north and poor developing countries of the global south for analysis. [ABSTRACT FROM AUTHOR]

Legitimacy of private accounting standard setters Accounting standard setting and accountability Private vs public accounting standard setting bodies Lobbying on accounting standard setters Political pressures on the accounting standard setting process Should the economic consequences of accounting be taken into account when issuing accounting standards? This implies that such a concept is used as a political tool to influence the applicable accounting standards, and in her view the EU's arguments show a potential threat to the IFRS's status of globally accepted standards. Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups. [Extracted from the article]

The objective of this paper goes beyond the boundaries of an exploratory analysis to operationalize the association between corporate working capital and return on assets. This paper optimizes the impact of the Cash Conversion Cycle (CCC) on Return on Assets (ROA). The paper develops a mathematical formulation that connects the components of CCC to ROA. The sample includes the non-financial firms listed in DJIA30 and NASDAQ100. The data covers the quarterly periods from June 1992 to March 2018. The paper uses standard statistical tests including linearity (RESET), the Hausman test for fixed and random effects, and the Breusch–Pagan/Cook–Weisberg test for heteroskedasticity. The estimation is carried out using the GLS estimator. This study finds: (a) the optimal, rather than observed, components of CCC are robust and coherent, (b) if firms were to optimize the components of CCC, the ROA improves significantly, (c) the positive estimates of size show that the components of CCC help firms grow, (d) the effects of either observed or optimal CCC on ROA are reached in the short term (four quarters), (e) the results show that observed as well as optimal CCC are able to detect the structural break in the 2008 financial crisis, and (f) the results of a logit analysis show that the optimization algorithm results in significant increases in ROA that are associated with increases in degree of financial leverage and decreases in short-term debt ratio. This paper contributes to the related literature in two ways. First, the paper develops a mathematical structure that associates corporate CCC and ROA in a way that offers a guide to corporate financial managers regarding structural management of corporate CCC. Second, the paper examines the impacts of optimized CCC on ROA. [ABSTRACT FROM AUTHOR]

This paper examines the role of international investment funds in the transmission of global financial conditions to the euro area using structural Bayesian vector auto regressions. While cross-border banking sector capital flows receded significantly in the aftermath of the global financial crisis, portfolio flows from investors actively searching for yield on financial markets worldwide gained importance during the post-crisis "second phase of global liquidity". The analysis presented in this paper shows that a loosening of US monetary policy leads to higher investment fund inflows to equities and debt globally. Focussing on the euro area, these inflows not only imply elevated asset prices but also coincide with increased debt and equity issuance. The findings demonstrate the growing importance of non-bank financial intermediation over the past decade and hold important policy implications for monetary and financial stability. [ABSTRACT FROM AUTHOR]

The paper examines the best fit estimation technique for modeling stock returns volatility and estimates the pass-through effects of volatility risks to stock returns. It provides two main innovations: (1) it analyzes stock returns volatility types namely idiosyncratic and systematic volatility types using recent test by Narayan and Popp (2010) and further modified the estimations to include both symmetric and asymmetric volatility models; and (2) it uses the Kalman filtering process to estimate the pass-through effects of volatility risks to stock returns. The paper finds two structural breaks that occur in 2000 and 2008 which unexpectedly correspond to the millennium development in deposit money banks in Nigeria--their massive listing on the Nigerian Stock Exchange--and the downsizing rally in stock returns caused by the global financial crisis. It notices the existence of persistence and leverage effects in the stock returns volatility and that rising volatility regardless of types, necessitates demand for higher returns by investors to hold stock and portfolio of stocks. Conclusively, it recommends that, when modeling stock return volatility, issues of asymmetric effects, and structural shifts are extremely pertinent and that investors should structure stock portfolio with more of idiosyncratic volatility stocks to maintain stable stock returns. [ABSTRACT FROM AUTHOR]