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Since the beginning of the financial crisis in 2008, the Dutch economy lost 6% of gdp relative to Germany, even though the Netherlands (unlike the GIPSI countries) did not face serious problems to finance its sovereign debt. This bad performance is explained by the interaction of fiscal policy and the housing market. This makes the Netherlands an interesting case because these effects can be analyzed in isolation of stress on financial markets. We sketch a simple overlapping generation framework. House price declines lead to a temporary drop in consumption, forcing a reallocation of labour from domestic to tradable industries. This leads to a loss in industry specific human capital, causing a jump in unemployment. The analysis yields a number of lessons for fiscal policy in the aftermath of a financial crisis and for the current EU framework for the evaluation of member states' fiscal policy. Fiscal policy provided too little intergenerational insurance and the EU framework is an obstacle to do that.

Based on a sample of 182 Portuguese fitness SMEs we study the investment determinants of fitness SMEs in Portugal. The multiple empirical evidence obtained in this study lets us conclude that the main explanatory theories of firm investment cannot be considered mutually exclusive in explaining the investment of Portuguese fitness SMEs, since: 1) they adjust investment as a function of sales, corroborating the assumptions of Neoclassical theory; 2) cash flow is an important financial resource for investment, corroborating the assumptions of Free Cash Flow theory; and 3) external finance, namely debt, is a restrictive determinant of investment, which corroborates the assumptions of Agency theory. Besides these results, we find that growth opportunities and government subsidies are positive determinants of investment in Portuguese fitness SMEs, and the financial crisis of 2008 has a negative influence on investment in Portuguese fitness SMEs. The financial crisis of 2008 also means greater relative importance of cash flow and government subsidies for increased investment, and debt for diminished investment, in fitness SMEs.

Abstract Since the beginning of the financial crisis in 2008, the Dutch economy lost 6% of gdp relative to Germany, even though the Netherlands (unlike the GIPSI countries) did not face serious problems to finance its sovereign debt. This bad performance is explained by the interaction of fiscal policy and the housing market. This makes the Netherlands an interesting case because these effects can be analyzed in isolation of stress on financial markets. We sketch a simple overlapping generation framework. House price declines lead to a temporary drop in consumption, forcing a reallocation of labour from domestic to tradable industries. This leads to a loss in industry specific human capital, causing a jump in unemployment. The analysis yields a number of lessons for fiscal policy in the aftermath of a financial crisis and for the current EU framework for the evaluation of member states' fiscal policy. Fiscal policy provided too little intergenerational insurance and the EU framework is an obstacle to do that. JEL codes E32, E62 and J64

This is a review and a summary of some of the key arguments
presented by Mian and Sufi in their recent book "House of Debt." It
highlights the contribution of Mian and Sufi by showing how they have
solved the mystery of why there was a huge drop in aggregate demand
during the Great Depression of 1929 and also following the recent Global
Financial Crisis of 2007-08. The article shows how major economists like
Keynes, Friedman, Lucas and others tried and failed to provide an
adequate explanation of this mystery. The key to the mystery is the huge
amount of levered debt present during both of these economic crises. The
solution suggested by Mian and Sufi is to replace interest based debt by
equity based contracts in financial markets. This solution resonates
strongly with Islamic teachings on finance. These links are also
highlighted in this article. JEL classification: B22, E12, E32 Keywords:
Great Depression, Global Financial Crisis, Debt-Deflation, Levered
Debt

International bank regulation has ramped to prominence over the past two decades, as nations and the global economy have lurched from one financial crisis to another. The current global financial crisis has brought unprecedented general attention to the subject. It is possible that we will witness fundamental changes in the way nations cooperate in the regulation of their financial institutions. Major reform efforts are underway. Yet international bank regulation has unusual characteristics and does not fit easily within the traditional framework of international law. The emerging system is also extremely fluid and complex-matching an extremely fluid and complex system of international finance. Interesting features have begun to emerge, suggesting that the time has come to recognize international banking regulation as an example of a complex adaptive system of the type that attracts the application of complexity theory. This paper outlines the features of the subject and the elements of complexity theory that seem helpful in elucidating the internationalization of international bank regulation.

PurposeThe purpose of this paper is to identify both the problems and their solutions in the corporate governance systems of Korean business groups (chaebols) in the wake of the Asian financial crisis.Design/methodology/approachThis is a conceptual paper and includes suggestions for improving international governance systems.FindingsIn this paper, the author focuses on how chaebols should be restructured to improve the Korean economy. In order to figure out how they should be restructured, the author explains the positives and negatives of their current structure and how these can be modified/eliminated to make stronger corporate governance.Originality/valueThe paper provides conceptual insights into systems and laws, which can be used to improve the corporate governance of business groups.

This research was conducted in Greece during a period of major economic crisis when everyday events contributed to a changing and threatening socio-political environment. The paper looks at the structure of reactions Greek people (N=1040) have towards the crisis. Informed by social psychological theories of collective action and relative deprivation it is hypothesized that these reactions would depend on people's actual financial position, their sense of grievances and feelings of vulnerability and the emotions they felt towards the crisis. Results show that people have multiple ways of reacting that go from radical and even violent practices towards individual solutions and depression. These reactions are differently predicted by people's position, feelings of vulnerability and sense of grievances and by different emotions. It is not people's actual position that influences reactions and feelings of vulnerability are a major predictor. Moreover, sense of grievances are linked to more radical forms of action but also to depression. Emotions play an important role in predicting reactions to the crisis. Anger is confirmed as a predictor of political participation and collective action whereas fear and frustration are a major predictor of depression. Positive emotions also predict collective action with the exception of violent practices.

The aim of this paper is to examine the impact on bank stock prices of the Asian and Russian financial crises for a sample of European banks. This issue is of importance regarding financial fragility and contagion effects within the banking industry. We develop an event study methodology based on a large number of macroeconomic news and on public announcements of individual bank exposure during the sharpest episodes in 1997 and in 1998. Whereas bank stocks did not react promptly to the Asian crisis we show evidence of significant abnormal returns for a large number of banks to events of the Russian Crisis suggesting the presence of contagion effects.

BA comprehensive look at the crisis of unfunded pension liabilities and what must be done to avoid the same problem in the future/b As the generational bubble of the Baby Boomers begins to retire, it is increasingly evident that governments, corporations, and individuals have failed to adequately prepare for the obligations and needs of this giant cohort. Retirees are outliving actuarial life expectancies, pension liabilities are skyrocketing, pension plans are underfunded, and medical costs rise, the United States alone can expect unfunded liabilities to exceed $4 trillion./ Even while the American economy shows signs of sustained recovery, states and local governments will still experience sharp increases in pension fund payments through the next year or longer. iGlobal Pension Crisis/i looks at this situation and offers practical advice for retirement plan managers and financial advisors, while also explaining how to strengthen pensions and prevent similar crises in the future./ ulliOffers a clear and comprehensive explanation of the current pension crisis for retirement fund managers, financial advisors, and economists/liliIncludes prescriptive guidance on how to strengthen the pension fund system and prevent another similar crisis/liliWritten by venture capitalist, entrepreneur, and former senior Wall Street executive Rich Marin/li/ul.

The paper analyses the trend of global stock market linkages via daily data of 51 stock indices spanning the period 22 July 2005 to 30 June 2016 which covers four regions: America, Europe, Asia Pacific and Africa. A dynamic conditional multivariate generalized autoregressive conditional heteroskedasticity (DCC-MVGARCH) approach was used to calculate dynamic correlation coefficient in order to construct the volatility networks. The methods of minimum spanning tree (MST) and low pass filter were for the first time applied to analyze the variable periodicity of the comovement. The original contribution of this paper is that contrary to previous works, financial events such as Quantitative Easing (QE) and Bailouts are accounted for rather than only crisis factors such as the 2008 financial crisis and the European Debt crisis. The main findings of the paper are as follows: (1) Financial crisis promotes and strengthens global stock markets linkage in the short run; (2) Linkage cycles post crisis are significantly short, due to the effect of monetary policy spillover effects caused by QE from developed to developing countries; and (3) European stock markets are the information transmission hub for global stock market. The research conclusions would be significant for both government to regulate markets as well as for investors to diversify risks.

The paper analyses the trend of global stock market linkages via daily data of 51 stock indices spanning the period 22 July 2005 to 30 June 2016 which covers four regions: America, Europe, Asia Pacific and Africa. A dynamic conditional multivariate generalized autoregressive conditional heteroskedasticity (DCC-MVGARCH) approach was used to calculate dynamic correlation coefficient in order to construct the volatility networks. The methods of minimum spanning tree (MST) and low pass filter were for the first time applied to analyze the variable periodicity of the comovement. The original contribution of this paper is that contrary to previous works, financial events such as Quantitative Easing (QE) and Bailouts are accounted for rather than only crisis factors such as the 2008 financial crisis and the European Debt crisis. The main findings of the paper are as follows: (1) Financial crisis promotes and strengthens global stock markets linkage in the short run; (2) Linkage cycles post crisis are significantly short, due to the effect of monetary policy spillover effects caused by QE from developed to developing countries; and (3) European stock markets are the information transmission hub for global stock market. The research conclusions would be significant for both government to regulate markets as well as for investors to diversify risks.

Referencing key contemporary debates on issues like surveillance, identity, the global financial crisis, the digital divide and Internet politics, Andrew White provides a critical intervention in discussions on the impact of the proliferation of digital media technologies on politics, the economy and social practices.

Explores the relationship between economic growth and social developments in Korea over the last three decades. Analyzes the forces behind the trends in the narrowing of income distribution in the 1980s and early 1990s, and the deterioration evident in the post financial crisis years. - Provided by publisher

There is a world-wide debate at the moment about the appropriate role for the state in modern societies in the light of the world financial crisis. This text provides a comprehensive analysis and critique of neo-liberal or economic liberal ideas on this issue.