Financial integration in the European Union — the impact of the crisis on the bond market
Research background: In our paper we have analyzed the influence of the crisis on the
financial integration in the European Monetary Union. We have analyzed EMU capital
market to show the impact of the crisis, with the focus on the bonds market. The determinants
of the research are yields and standard deviations on medium-term and long-term
triple-A bond markets, as well as CDS medium-term premiums.
Purpose of the article: The aim of this paper is to show the volatility of researched determinants
in periods of crisis in EMU zones.
Methods: As a model we used a modified theoretical CAL portfolio model. In the last
fifteen years Europe has been faced with two major crises: the world economic crisis and
sovereign debt crisis.
Findings & Value added: We believe that the sovereign crisis hit EMU more, leaving the
deeper implications on the financial integration. Our analysis has showed that the crisis had a major impact on the financial integration. Yields and standard deviations increased multiply
in periods of crisis and left the impact of volatility on the capital market. However, the
degree of convergence of euro area bond markets largely stabilized in last two years.
If you build the present in the image of the past you will miss out entirely on challenges of the future. The first meeting of the G20 leaders originally set up as the finance ministers’ forum at the initiative of the G8 leaders2 more than a decade ago in 1999 after the Asian financial crisis, launched a new phase of development both of the international financial architecture and the global governance system. The EU participation in the G20 has been full scale from its birth, unlike gradual inclusion of the EU into the G7 processes. The reasons are clear. The internal factor defining the EU influence in the G20 was the beginning of the third stage of EMU and adoption of the single currency. Success of the euro as the single and a second reserve currency, its establishment as a factor of the global economic and monetary system, defined the EU role in the G20.
The article deals with the research of construction of the term structure of interest rates on the China’s bond market. The article provides an overview of the China’s bond market and its mechanism. Based on the data from China Central Depository & Clearing (CCDC), article gives the result of the computer simulation.
Using data on foreign borrowing, I identify Russian banks that were affected by the sudden stop of external financing caused by the Lehman Brothers’ collapse. Applying the difference-in-difference method, I compare these «affected» banks to «unaffected» ones and find that the Russian Central Bank’s (CBR) anti-crisis financial assistance primarily went to the former group. Tracing the impact of the CBR’s liquidity infusions on banks’ portfolio allocation decisions, I find that banks used CBR funds not only to pay out foreign debt, but also to accumulate cash deposits in non-resident banks. I also find that affected banks increased their holdings of market securities significantly more than unaffected ones, which suggests that the CBR’s bailout policies impacted their risk-taking strategies. While there was no significant difference in corporate lending growth between the two groups after the sudden stop, lending to borrowers with weaker banking relationships (individuals and entrepreneurs) decreased more among affected banks.
The economic crisis of 2008, starting from US banking crisis, affected the economic and political developments in varied ways around the world. This edited volume examines the imact of the crisis on Eastern Europe and Russia, and the resulting policy responces. Taken as a whole, the economies of the former state social countries - frequently still referred to as transition economies - were hit hard by the crisis, suffering falls in GDP in 2009 that were deeper than the average around the world. However, there was considerable variety in the effects on individual countries, whilst some continuing to grow , others suffered quite exceptional falls in output. Policy responces were also quite diverse and do not obviously fit with the nature and severity of economic factors. The more general impacts on political life were also varied. In many cases very much the same governments continued in power, while in othere there were significant changes and signs of a growing instability in party and political structures. The articles in this book explore these differencies between countries and set them in a wider international context.
The article deals with the actual situation in Russian banking system, analyzing causes and effects of excess liquidity of Russian banks.
The review provides a detailed analysis of main trends in Russia's economy in 2008. The paper contains five big sections that highlight single aspects of Russia's economic development: the socio-political context; the monetary and credit and financial spheres; the real sector; social sphere; institutional challenges. The paper employs a huge mass of statistical data that forms the basis of original computation and numerous charts.
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.