The stock market is a powerful tool for controlling corporation’s behaviour. But what is best:
Stock market turnover and corporate governance
Alex Edmans, Vivian W Fang, Emanuel Zur, 16 February 2013
Limits to currency momentum trading
Lukas Menkhoff, Lucio Sarno, Maik Schmeling, Andreas Schrimpf, 31 March 2012
Momentum trading, ie buying past winners and selling past losers, is a very popular trading strategy in many assets. In foreign exchange high returns to momentum trading have been documented since the 1970s and have fuelled concerns about destabilising speculation.
Innovations in the real economy thrive on modern financial markets
Thomas Meyer, 19 August 2011
There is by now a fairly large literature arguing that modern financial markets are very important drivers of innovations in the real economy. Efficient financial markets should allocate capital towards up-and-coming sectors, promising companies, and exciting business ideas but away from declining industries.
Contingent capital and risk taking: Evidence from Britain’ banks 1878-1912
Richard S. Grossman, Masami Imai, 7 September 2010
From the enactment of the first commercial banking codes in the nineteenth century through the adoption of the Basel and Basel II accords in recent years to the anticipated adoption of Basel III, policymakers have argued that holding increased amounts of capital promotes bank “soundness and stability” (Basel Committee on Banking Supervision 1988, 2004).
The US financial reform bill: Hit or flop?
Thorsten Beck, 16 June 2010
A few weeks ago, the US Senate passed its version of the Financial Reform Bill. While it still has to be reconciled with the House version, the outline of the regulatory reform in the US is slowly becoming clear. A thorough assessment of the Bill, however, is made difficult by the sheer size of the Bill with over 1,000 pages, compared to 53 pages of the Glass-Steagall Act.
Financial markets regulation: The tipping point
Venkatachalam Shunmugam, 18 May 2010
While over-the-counter markets for collateralised debt obligations and credit default swaps are blamed for the financial crisis of 2007-2009, what has been overlooked is the menace of rising opacity in the exchange-traded market. This raises questions about the fundamentals of this market’s very existence, i.e.
Why policymakers need to take note of high-frequency finance
Richard Olsen, 6 March 2010
I believe high-frequency finance is turning aspects of economics and finance into a hard science. The discipline was officially inaugurated at a conference in Zurich in 1995 that was attended by over 200 of the world’s top researchers. Since then, there have been a large number of publications including a book with the title Introduction to High-frequency Finance.
Debt management in Latin America: How safe is the new debt composition?
Eduardo Cavallo, 24 February 2010
Latin American public debt levels as a share of GDP declined substantially during the five years leading up to the global financial crisis.
Finance, redistribution, globalisation
Giuseppe Bertola, Anna Lo Prete, 3 December 2008
The current global financial crisis highlights the vexed issues of what role national governments should and do play in an internationally integrated economic system.
Time for unorthodox monetary policy
John Muellbauer, 27 November 2008
The world economy is trapped in a dangerous global downward spiral of falling asset prices, shrinking credit, and rising bankruptcies, foreclosures and unemployment – all of which feed into more of the same – and drag commodity and now goods prices down with them.1 We were among the first to give a research-based warning of the coming price deflation i
- Fiscal consolidation: At what speed?Blanchard, Leigh
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
- Helicopter money as a policy optionReichlin, Turner, Woodford
- The case for 4% inflationBall
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Reichlin, Baldwin, 14 April 2013
Reichlin, Turner, Woodford
CEPR Policy Research
- The "Greatest" Carry Trade Ever? Understanding Eurozone Bank RisksAcharya, Steffen
- Political Credit Cycles: The Case of the Euro ZoneFernández-Villaverde, Garicano, Santos
- Winning by Losing: Incentive Incompatibility in Multiple QualifiersDagaev, Sonin
- Income and schoolingBrückner, Gradstein
- Monetary Policy and Rational Asset Price BubblesGalí