Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

The effectiveness of the monetary policy transmission mechanism in open economies could be impaired if interest rates are driven primarily by global factors, especially during periods of large capital inflows. The main objective of this paper is to assess whether this is true for emerging Asia’s economies. Using a dynamic factor model and a structural vector auto-regression model, we show that long-term interest rates in Asia are indeed predominantly driven by global factors. However, monetary policy transmission mechanism remains effective in the region, as it operates predominantly through short-term interest rates. Nevertheless, the monetary transmission mechanism, though effective, is somewhat weaker in Asia during the periods of surges in capital inflows.

Finance --- Business & Economics --- Money --- Monetary policy --- Capital movements --- Capital flight --- Capital flows --- Capital inflow --- Capital outflow --- Flight of capital --- Flow of capital --- Movements of capital --- Balance of payments --- Foreign exchange --- International finance --- Transmission mechanism (Monetary policy) --- E-books --- Monetary transmission mechanism --- Banks and Banking --- Exports and Imports --- Interest Rates: Determination, Term Structure, and Effects --- Monetary Policy --- Open Economy Macroeconomics --- International Investment --- Long-term Capital Movements --- Banking --- International economics --- Long term interest rates --- Yield curve --- Central bank policy rate --- Short term interest rates --- Capital inflows --- Financial services --- Interest rates --- United States

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

The paper developes a VAR macrofinance model of the Czech economy. It shows that yield misalignments from the yields implied by the macrofinance model partially determine subsequent yield changes over three to nine months. These yield misalignments tend to persist for a number of months. This persistence of the misalignments was explained by (a) the fact that the macro-economy influences asset markets only at lower frequencies, (b) the liquidity effect particularly during the times of capital inflows to Czech Republic, and (c) the fact that not all misalignments were greater than their historical one standard deviation.

Macroeconomics --- Economics --- Finance --- Econometric models. --- Czech Republic --- Česká republika --- ČR --- Tschechische Republik --- Česko --- Czechia --- チェコ --- Cheko --- チェコ共和国 --- Cheko Kyōwakoku --- Tschechien --- Tschechenland --- Tschechei --- République tchèque --- República Checa --- Chequia --- Txèquia‏ --- Txeca --- República Txeca --- Češka --- Czech Socialist Republic (Czechoslovakia) --- Czechoslovakia --- Economic conditions --- Banks and Banking --- Finance: General --- Inflation --- Investments: Bonds --- Industries: General --- Financial Econometrics --- Interest Rates: Determination, Term Structure, and Effects --- Portfolio Choice --- Investment Decisions --- General Financial Markets: General (includes Measurement and Data) --- Macroeconomics: Production --- Price Level --- Deflation --- Investment & securities --- Yield curve --- Sovereign bonds --- Industrial production --- Stock markets --- Financial services --- Financial institutions --- Production --- Prices --- Financial markets --- Interest rates --- Bonds --- Industries --- Stock exchanges

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This 2012 Article IV Consultation—Selected Issues Paper on Euro Area Policies argues that the creation of a common eurozone financial stability architecture is an immediate priority to restore the viability of the Economic and Monetary Union. The paper presents a narrative of the various stages of the banking and sovereign crisis since the Summer of 2011. It also characterizes the downward spirals at play in periphery euro area countries and describes the process of financial de-integration within the euro area.

Monetary policy --- Monetary management --- Economic policy --- Currency boards --- Money supply --- Europe --- Economic policy. --- Banks and Banking --- Investments: Bonds --- Macroeconomics --- Money and Monetary Policy --- Public Finance --- General Financial Markets: General (includes Measurement and Data) --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Fiscal Policy --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Financial Institutions and Services: Government Policy and Regulation --- Debt --- Debt Management --- Sovereign Debt --- Interest Rates: Determination, Term Structure, and Effects --- Investment & securities --- Banking --- Monetary economics --- Finance --- Public finance & taxation --- Bonds --- Bond yields --- Sovereign bonds --- Credit default swap --- Financial institutions --- Public debt --- Yield curve --- Financial services --- Banks and banking --- Fiscal policy --- Credit --- Crisis management --- Debts, Public --- Interest rates --- Spain

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

The Philippine quarterly update provides an update on key economic and social developments, and policies over the past three months. Despite heightened global economic uncertainty, the Philippine economy grew by 6.4 percent in the first quarter of 2012, a solid recovery from the relatively low 3.9 percent outturn for 2011. Higher growth was driven by a recovery in net exports and government spending, and robust private consumption. However, the ongoing European debt crisis and the slowdown in China pose significant downside risks to growth. The main channels of contagion to the Philippines are direct exports and remittance linkages to Europe, and indirect impact through regional production networks centered on China. The challenge for policymakers is to cushion the economy from potential external shocks, while ensuring that the Philippines invest in inclusive growth. Political commitment and strong macroeconomic fundamentals provide a window of opportunity for investing in inclusive growth by accelerating the implementation of reforms that improve the business environment for firms of all sizes, and boosting public investment in key infrastructure. Faster human capital accumulation will enhance productivity and drive growth in the medium term by enabling the country to shift gears towards higher value-added activities and more innovation.

Access to Finance --- Accounting --- Analysis of Economic Growth --- Banking Sector --- Corruption --- Debt Markets --- Developing Countries --- Domestic Debt --- Economic Management --- Economic theory & Research --- Emerging Markets --- Equity Markets --- Expenditures --- External Shocks --- Finance and Financial Sector Development --- Financial Crisis --- Financial Institutions --- Financial Services --- Financial Stability --- Fiscal Policy --- Foreign Banks --- Fraud --- Global Economy --- Gross Domestic Product --- Human Capital --- Inflation --- Insurance --- Investment Climate --- Job Creation --- Life Insurance --- Macroeconomic Management --- Macroeconomics and Economic Growth --- Minimum Wage --- Monetary Policy --- Natural Disasters --- Private Investment --- Private Sector Development --- Profitability --- Public Debt --- Public Spending --- Recession --- Remittances --- Risk Aversion --- Risk Management --- Sovereign Debt --- Tax Policy --- Transparency --- Unemployment --- Urban Areas --- Yield Curve

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This study finds that equity returns in the banking sector in the wake of the Great Recession and the European sovereign debt crisis have been driven mainly by weak growth prospects and heightened sovereign risk and to a lesser extent, by deteriorating funding conditions and investor sentiment. While the equity return performance in the banking sector has been dismal in general, better capitalized and less leveraged banks have outperformed their peers, a finding that supports policymakers’ efforts to strengthen bank capitalization.

Finance --- Business & Economics --- Investment & Speculation --- Capital market. --- Investments. --- Investing --- Investment management --- Portfolio --- Capital markets --- Market, Capital --- Disinvestment --- Loans --- Saving and investment --- Speculation --- Financial institutions --- Money market --- Securities --- Crowding out (Economics) --- Efficient market theory --- Country risk --- Global Financial Crisis, 2008-2009 --- Econometric models --- Europe --- Economic conditions. --- E-books --- Global Economic Crisis, 2008-2009 --- Subprime Mortgage Crisis, 2008-2009 --- Financial crises --- Country risk, Political --- Political risk (Foreign investments) --- Risk --- Banks and Banking --- Financial Risk Management --- Investments: Stocks --- Financial Crises --- Information and Market Efficiency --- Event Studies --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Financial Institutions and Services: Government Policy and Regulation --- Interest Rates: Determination, Term Structure, and Effects --- Banking --- Economic & financial crises & disasters --- Investment & securities --- Financial services law & regulation --- Stocks --- Capital adequacy requirements --- Yield curve --- Financial regulation and supervision --- Financial services --- Commercial banks --- Banks and banking --- Asset requirements --- Interest rates --- United States