Financial Sector Structure and Financial Crisis Burden
We consider an overlapping generations model in the presence of financial intermediation. The paper focuses on the analysis of the consequences of a sudden negative repayments shock on financial intermediation capacity and consequently on the economy as a whole. The model exhibits a property of the ‘chain reaction’ when a single macroeconomic shock can lead to the exhaustion of credit resources and subsequently to the collapse of the banking system. To maintain the capability of the system to recover, a regulatory intervention is needed even in presence of the state guarantees on agents’ deposits in the banks. We compare the results for an intermediated economy with those derived for the market economy and draw some broad conclusions regarding the crisis consequences depending on the financial sector structure. We also compare the model predictions with the stylised facts about the Russian financial crisis of 1998.
With a view to ensuring a follow up of the implementation of the Recommendation, the International Labour Office was instructed to assist constituents in developing national policies and setting up monitoring and implementing mechanisms, as well as to promote good practices at the national and international levels concerning the determination and use of employment relationships. In response to that decision, the International Labour Office, developed in 2007 an Annotated Guide to Recommendation No. 198 using the technical expertise of a group of experts from around the world which presented examples in law and practice on how the various aspects of the Recommendation were being dealt with in many countries in different regions. Over the recent years, there have been increasing developments at the European level regarding the employment relationship in legislation, case law, collective agreements and soft law. In this context, the ILO, and in particular the then Industrial and Employment Relations Department (DIALOGUE) undertook a strategic partnership with the European Labour Law Network (ELLN), a network of independent legal experts from all European Union Member States and European Economic Area countries, in order to produce an updated version of the 2007 annotated Guide with a specific focus on European countries. The European Labour Law Network was established in 2005 on initiative of Professors Guus Heerma van Voss (University of Leiden) and Bernd Waas (University of Frankfurt am Main), the latter being the editor of this Guide. The European Labour Law Network is comprised of non-governmental legal experts from all European Member States and the EEA countries. In December 2007, the European Labour Law Network signed a contract with the Directorate-General for Employment, Social Affairs and Inclusion of the European Commission in Brussels (formerly the Directorate-General for Employment, Social Affairs and Equal Opportunities) and, under the name ‘European Network of Legal Experts in the Field of Labour Law, dealing with both individual and collective rights/aspects’, became the European Commission’s official advisory board on issues relating to developments in individual and collective labour law. In this capacity, the Network has been conducting extensive research for the European Commission. Among other things, it produced a Thematic Report on the “Characteristics of the Employment Relationship” in 2009. This guide builds upon up-dated information analysed in that research project. (More information at: http://www.labourlawnetwork.eu). In summer 2013 International Labour Office approached Russian labour law scholars, - associate professors Elena Gerasimova (NRU HSE), Nikita Lyutov (MSAL, NRU HSE) and Daria Chernyaeva (NRU HSE), – with a suggestion to prepare a Russian translation of the Gude and to amend it with materials concerning the CIS countries.
The paper analyses how the individuals' deposits influences the resources of Russian banks. We show that the depositors panic in the crisis has a serious effect on stability of both bank and national bank system. We show the tendencies how the volume and structure of individuals' deposits change; how to avoid the rash of withdrawals by individual depositors; and how the resources of Russian banks shrank because of such withdrawals happened in the period of the crisis. We also present our assessment of how the resources of Russian banks reduced because of the rash of withdrawals in the crisis.
We proposed the nonlinear dynamic model of the formation of the market prices of precious metals based on the econophysic considerations. This model is a system of three ordinary differential equations relating the time dependence of elasticity, variations of bid and ask prices; it is similar to the Lorenz system. The areas of the dynamic stochasticity in experimental data were found with the comparing of the experimental and the theoretical ask and bid prices. These areas are the precursors of the crisis mode in the form of dynamic chaos.
We present a complex analysis of business models for large, medium and small Russian commercial banks from 2006 to 2009. The Russian banks are grouped based on homogeneity criteria of their financial and operational outcomes. The banks’ structure of assets and liabilities, profitability and liquidity ratio are taken into account. The results show how the banks are adjusted their business models before and after the financial turmoil taken place in 2008. In addition, the prevailing banking business models observed for the leading banks in Russia are defined. The banks often changing their business models are found and analyzed.
The process of the IPO of banks in Russia is its infancy but the rapid growth is forecasted. This context raises the issue of the factors determining the floated banks stock value. The results of the research on 2007-2009 Russian data showed that the bank stock price is dependent on the macroeconomic indicators (such as the oil prices and the Dow Jones index volatility) and the some banking system indicators(the interbank interest rate, the bank’s ROA, and ROE). However, the results adjusted to the global financial crisis effect proved to exclude the ROE factor and showed the dependence of the stocks prices of the floated banks from the historic trend of the American economy. The models developed are of the practical application and can be used by the institutional as well as the private investors.
The author traces the analysis evolution of the monetary shocks effects on the economy, exploring the key approaches to modeling of the monetary transmission mechanism. The article emphasizes the necessity of the monetary transmission mechanism modification in the conditions of current financial crisis: the active role reflection of the financial intermediaries, accounting of the development degrees of institutional capacity in the economy.
The Group of Eight (G8) has had extensive and even existential experience with financial crises (Kirton 2007). The groups creation was driven by financial crises created by and in the US, in the form of the Nixon Administration’s unilateral destruction of the Bretton Woods system of fixed exchange rates on August 15, 1971 and the imminent bankruptcy of New York City at the time of the first summit at Rambouillet in November 1975. Then came a succession of real and potential crises, notably Britain’s need for support from the International Monetary Fund (IMF) in the mid 1970s and Italy’s need in 1976, the developing countries debt crisis of the early 1980s, the American stock market plunge of October 1987, the attack on the European Monetary System (EMS), the Mexican peso crisis starting on December 20, 1994, the Asian-turned-global financial crisis of 1997–1999, the 9/11 terrorist attacks on America, the Enron–dot.com bust and the America-turned-global financial crisis from 2008 to now. Since the G8’s 1975 start, such crises have been created by others to afflict a vulnerable America, and been created by America to attack the rest of the world. In both cases such crisis have been conscious, calculated controlled and targeted, as on August 15, 1971 and September 11, 2001, and unco.nscious, uncalculated, uncontrolled and untargeted events characterized by contagion, complexity and uncertainty that no one can fully comprehend, as in the global crisis from 2008 until now.
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.