Current Global Financial Crisis Research Articles

A Study Literature of Interest Rates and Islamic Monetary Policy

This paper provides a comprehensive analysis of the existing literature about contemporary Islamic monetary policy and its implementation through interest rates in the context of monetary policy. Upon conducting a comprehensive examination of the pertinent literature, it becomes evident that numerous conventional monetary policy instruments can be suitably modified and employed within the framework of Islamic monetary policy. Using interest rates as a monetary policy tool has been observed to directly impact injustice, including social unfairness, widespread corruption, and manipulation by global financial institutions that governments and authorities support. The current global financial crisis exemplified this. This study aims to analyze the several alternatives to interest rates utilized in Islamic monetary policy tools while also conducting a literature analysis on Islamic monetary policy.

Has the current global financial crisis significantly affected momentum profitability?

In this study, we examine the behavior of stock price changes in an emerging market to search for possible momentum incidents. Our findings indicate that the existence of momentum can be characteri...

COVID-19 AS A FORM OF HYBRID WAR

The article presents a comparative analysis of the Great Depression of the 1930s and the current global financial and economic crisis. It is emphasized that overcoming the first great depression and eliminating imbalances in the economy was achieved only during the Second World War, and the modern crisis, which has been raging for 11 years, has not yet ended. This crisis was not followed by the elimination of all imbalances accumulated in the economy. After the acute phase (recession) ended in 2009, stagnation (depression) occurred, which needed to be restored. We have been waiting for a revival for many years, now 2020, but it is not visible. Comparing the crisis of the 30s of the last century and the current global financial and economic crisis, the following differences are obvious: stagnation in the 1930s lasted from 1933 to 1939, or six years that ultimately ended in World War II. After the crisis of 2007-2009, stagnation continued for 11 years, with depression almost two times longer and more delayed. Despite the fact that in a sense, the situation in Western countries is better in the 21st century than in the 1930s, since there is no longer the Soviet Union with its dynamically developing economy, but China has unprecedentedly high rates of economic growth. The thirty-year economic dynamics of China can definitely be called a boom phase. Not a single country in the West has experienced such a long boom in the history of capitalism. It is clear that in such a situation the West must do something. Of course, the West, through war, has repeatedly overcome the accursed resistance of the capitalist rule of production. But with the help of war, overcoming the contradiction of capitalism today is deadly dangerous. The first two world war occurred without the use of nuclear weapons or any other weapons of mass destruction. The third world war, of course, will be accompanied by the inevitable use of weapons of mass destruction. And therefore, it is necessary to change something in the world war, which will magically help correct the imbalance of the capitalist economy, revive it, and maintain the status quo of the ruling elite. An alternative to a hot war can be the Cold War, which today they prefer to call hybrid. It involves the use of financial, commercial, economic, psychological and information resources. However, all this is not enough to provide the authorities with powers that would allow them to move from market methods to administrative-command methods of managing the economy. It is with the help of the latter that the imbalance that has accumulated in the economy can be overcome. It is in this context that Coronavirus “appears” as an alternative to the global war to eliminate the imbalances accumulated in the leading economies of the world.

The Financial Crisis Viewed from the Perspective of the 'Social Costs' Theory

This paper examines the causes and consequences of the current global financial crisis. It largely relies on the work of Hyman Minsky, although analyses by John Kenneth Galbraith and Thorstein Veblen of the causes of the 1930s collapse are used to show similarities between the two crises. K.W. Kapp’s “social costs” theory is contrasted with the recently dominant efficient markets hypothesis to provide the context for analyzing the functioning of financial institutions. The paper argues that, rather than operating efficiently, the financial sector has been imposing huge costs on the economy - costs that no one can deny in the aftermath of the economy’s collapse. While orthodox approaches lead to the conclusion that money and finance should not matter much, the - alternative tradition from Veblen and Keynes to Galbraith and Minsky - provides the basis for developing an approach that puts money and finance front and center. Including the theory of social costs also generates policy recommendations more appropriate to an economy in which finance matters.

Market Risk Reporting by the World's Top Banks: Evidence on the Diversity of Reporting Practice and the Implications for Accounting Harmonisation

The increasing adoption of international accounting standards and global convergence of accounting regulations is frequently heralded as serving to reduce diversity in financial reporting practice. In a process said to be driven in large part by the interests of international business and global financial markets, one might expect the greatest degree of convergence to be found amongst the world’s largest multinational financial corporations. This paper challenges such claims and presumptions. Its content analysis of longitudinal data for the period 2000-2006 reveals substantial, on going diversity in the market risk disclosure practices, both numerical and narrative, of the world’s top-25 banks. The significance of such findings is reinforced by the sheer scale of the banking sector’s risk exposures that have been subsequently revealed in the current global financial crisis. The variations in disclosure practices documented in the paper apply both across and within national boundaries, leading to a firm conclusion that, at least in terms of market risk reporting, progress towards international harmonisation remains rather more apparent than real.

The Global Financial Crisis and Islamic Finance

The conventional view holds that the current global financial crisis was caused by extraordinarily high liquidity, reckless lending practices, and rapid pace of financial engineering which created complex and opaque financial instruments used for risk transfer. There was break down of lender borrower relationship, informational problems caused by lack of transparency in asset market prices, particularly in the market for structured credit instruments. There was outdated, lax or absent regulatory-supervisory oversight, faulty risk management and accounting models; and the emergence of an incentive structure that not only encouraged excessive risk taking but also created a complicit coalition of financial institutions, real estate developers and appraisers, insurance companies and credit rating agencies whose actions led to a deliberate under pricing of risk. Such crisis would not have occurred under an Islamic financial system – due to the fact that most, if not all, of the factors that have caused or contributed to the development and the spread of the crisis are not allowed under the rules and guidance of Shariah. The current global financial crisis is largely seen as a real test of the resilience of the Islamic financial services industry and its ability to present itself as a more reliable alternative to the conventional financial system.

Право человека на достойную жизнь

The issues of defining and interpreting the right to a decent life now cause a lot of controversyand debate in the scientific environment, since there is no holistic understanding of a decent life andlegal fixing in normative acts, which causes problems of application in theoretical and law enforcementactivities.Thearticle considers political, legal, socio-economic, environmental, social factors affecting theprovision of human rights for a decent life, the main problems of the current legislation of the Republicof Kazakhstan and its correlation with international legal norms are outlined.An analysis of scientific approaches to the concept of «the right to a decent life» was conducted toachieve the goal and objectives, basic criteria for a decent life such as the quality and standard of livingof a person were determined, the content of each of them was disclosed. Some recommendations aregiven on the transformation of the norms of international law and international practice in the field ofensuring the right to a decent life in the national legislation and policy of the Republic of Kazakhstan.The authors conclude that the main goal in the form of ensuring a decent standard of living and improvingthe quality of life, especially in the conditions of the current global financial crisis, the problemof realizing the right to a decent life is a complex problem that must be solved jointly by all governmentbodies responsible for well-being and health person in Kazakhstan.Key words: the right to a decent life, the state, the quality of life, the standard of living, human andcitizen rights.

The Access to Performance in Romanian Academic System Possibilities for Increasing the Competitiveness of Universities in Romania

There is a debate among experts who analyse the involvement of universities in the economic life of the geographical area they cover, regarding the role that each of the components occupies, which is considered to directly contribute to regional development: the main product of education, the graduate and the technology transfer of university research. Through graduates with solid knowledge in a particular, current field with insufficient staff are quickly assimilated by society, universities strengthen their position on the educational market. Through technology transfer offers in dynamic areas of the economy, universities not only increase their prestige but procure the funds necessary to complete the financial deficit produced by underfunding, specific of many countries, including Romania, in the current global financial crisis. Universities everywhere make huge endeavours in order to be known, recognized. Therefore, the two aspects (graduate-student and research-technology transfer) are the best and most direct ambassadors for the prestige of any academic school. Romania is no exception, but regardless of the efforts made by academia in our country, most studies on the analysis of the role that universities play in society outline a weak partnership between universities and the economy in general and industry in particular. For this reason, in this paper, we want to analyse the competitiveness of universities in Romania in 2016, their role in economic life, we want to know how much and what part of university research is valued in real life, the causes and effects of the lack of involvement (in a greater degree) of all stakeholders - from governments to research assistants - and, last but not least, we want to discuss some solutions that would increase competitiveness among Romanian universities.

Citius, Altius, Fortius in a deregulated labour market: narratives of precarious graduates

Labour markets foster qualification models and professionalisation strategies characterised by insecurity and deregulation. This article analyses narratives of precarious graduates through a subject-oriented approach, taking into account the increasing vulnerability, insecurity and fragmentation that characterise the professional experiences of graduates in the current global economic and financial crisis. Drawing upon information-rich evidence from 21 focus group interviews carried out in a research project in Portugal, this article aims to highlight how young graduates are experiencing, interpreting and managing dilemmas in their transitions from higher education into the labour market. It concludes that ambivalent and unpredictable paths have become the ‘main route’ for accessing a profession in a context of precariousness.

The synergy of the refugee crisis and the financial crisis in Greece: Impact on mental health.

The current global financial crisis that started in 2008 resulted in a significant decline in global trade, slowing/reversing economic growth worldwide, and a dramatic increase in public sector debt. At the same time, the global migrant/refugee crisis has reached extreme rates, with millions of people being forced to abandon their homes and communities because of war, political violence or related threats. There is a broad consensus about the deleterious consequences of these crises on psychological well-being, depression, anxiety disorders, insomnia, alcohol abuse and suicidal behavior. Although the separate consequences of economic recession and immigration are extensively discussed in previous research, we know very little about the processes through which the intersection of economic crisis and migrant crisis contributes to the vulnerabilities of natives and migrants during these crises. Of particular concern is the status of children, adolescents and their families, who constitute one of the most vulnerable groups in society. To discuss the contexts that economic and migrant crises shape and suggest possible effects of this intersection on mental health risks, especially among children, adolescents and their families, through reflecting on the recent experience in Greece. Review of the literature and critical analysis of the effects of the confluent crises. The interactive effects of these two crises need further exploration. Novel and diverse models of psychological understanding need to be developed in order to manage the effects of the confluent crises. The role of mental health professionals is crucial in this respect, offering culturally flexible, accommodating and empathetic approaches, allowing healing and acceptance in the face of adversity.

The Economics of NPA Behaviour in the Global Economy

NPA is a vexing problem which has been globally effecting economies for a long time. The mounting NPA levels in banks and financial institutions calls for earnest attention and immediate action as it is a menace to the public. Bank credit motivates economic growth of the country and any obstruction in the undisturbed flow of credit, a significant cause for which is the heightened NPA levels, is detrimental to the health of the economy. The issue of Non-performing assets (NPA), the blatant cause of the current global financial crisis, has been drawing the attention of all and sundry for its rapid manifestation in the present financial structure. The primary objective of this paper is to understand the economic and mathematical models backing the phenomenon of NPAs. In this regard we have utilised the basic Keynesian economics to study behaviour of NPAs at the macroeconomic level and hence make viable conclusions and give policy suggestions regarding the same.

Corporate culture diagnostics in management control:Evidence from Ukraine

(ProQuest: ... denotes formulae omitted.)IntroductionThe modern world is characterized by increasing chaos and uncertainty. As a result, the economy is becoming turbulent, volatile, dynamic and prone to crisis. The current global economic and financial crisis constantly escalates. In this context, Stiglitz stressed [Stiglitz 2012] that after every crisis there was an explanation that contradicted the next crisis or at least it showed that the previous explanation was inadequate. The result is an increase in state outlined risks at the international, country and company levels. Management control of corporate culture can be a powerful tool in stabilizing the chaotic environment [Kuznetsova 2011]. In author's opinion the role of information in the functioning of society, which is always important, has dramatically increased with the development of ICT and their expansion into all areas of life [Żelazny 2015].It is important to form the assessment results not only of its current state, but also of the trends and prospects of development that helps to make the informed management decisions aimed at addressing problematic issues and weaknesses in the corporate culture management and take advantage of the company. Therefore, it is an urgent need to diagnose corporate culture as an object of management control and a subject of profitability and stable growth through the launch of cultural control mechanisms.The research aim is to create a model of corporate culture diagnostics for simulation in management control. This model must provide comprehensive diagnosis of the corporate culture condition by: 1) the 3 structure levels (basic underlying assumptions, espoused beliefs and values, visual artifacts); 2) intensity of display of the functions that define the purpose of corporate culture for the company. The objective of using this model is to increase the efficiency of corporate culture as an additional quality tool of profitability and stability of the company.To answer the research questions described above the paper is organized as follows. In the section 'theoretical background' is described the existing research on corporate culture and includes the literature review of corporate culture diagnostics and the levels and indicators of corporate culture diagnostics. In the next section the research method is selected. This is followed by the description of the model of corporate culture diagnostics defining the levels and indicators of assessment. The most important research results are introduced in the successive part. The key contributions are presented in the concluding section.1. Theoretical backgroundA preliminary study of the literature [Bozeman, Kingsley 1991; Mohan 1993; Levin, Gottieb 2009; Schein 2009; Levy, Lammare, Twining 2010; Cameron, Quinn 2011; Jackson 2011] has helped to define the most fundamental research issues of corporate culture diagnosis in international science including the clinical research method [Schein 2009] and the method of corporate culture diagnosis [Cameron, Quinn 2011]. It is necessary to evaluate these developments critically in terms of their effectiveness under the current conditions of formation of the knowledge-driven economy in the world, information support of society and general instability of the economic system.Schein [2009] proposed to investigate corporate culture with the use of clinical research. While doing so, he draws attention to the fact that only this method can detect group members' deep understanding. According to Schein, effectiveness of culture is determined in accordance with formation of its components as follows: level 1 is the basis of corporate culture which includes the basic underlying assumptions fundamental for external manifestation and determining espoused beliefs and values as well as visual artifacts; level 2 is espoused beliefs and values which are based on the basic underlying assumptions and create visual artifacts; level 3 is visual artifacts: the rules and norms of behavior which are established based on the declared values. …

Why are developing country corporations more susceptible to the vicissitudes of international finance?

AbstractAbout USD7 trillion of quantitative easing funds has flooded emerging markets since 2008. These funds, created to stimulate a recovery in the Organisation for Economic Cooperation and Development and to stabilise financial markets, ended up mostly as emerging markets’ corporate bonds and loans (often after being leveraged into many multiples of their original value). Not for the first time, emerging markets became the financial markets of last resort. These funds were then either mainly invested (Asia) or used (as in Latin America and South Africa) for almost anything except for creating additional productive capacities. Enquiries into these issues, especially how corporations financed their investment, were subjects that fascinated economist Ajit Singh. He was the first to find out that corporations in emerging markets relied much more on external finance than those in the Organisation for Economic Cooperation and Development (where retained profits played a major role). The implication was that they were likely to be more susceptible to the vicissitudes of financial markets, and these have become even more weird since quantitative easing, as Northern ‘investors’, in search for elusive yields, have been happy to take on ever higher risks, leverage and illiquidity in the South. This is a key difference between current global financial fragilities and those at the onset of the current global financial crisis in 2007. The stakes for emerging economies and international financial markets could scarcely be higher, but unfortunately these huge new challenges occur at the worst possible time, as our social imagination has seldom been so barren.

The Trends and Implications of the Global Financial Crisis on the Nigerian Economy

Objective - Crises have been a feature of the financial landscape for decades. The current global financial crisis is triggered by events in the United States, and rapidly engulfing the entire globe. Nigerian financial market being one of the emerging global markets have over the last four years witnessed some significant level of progress and stability in theform of recapitalization and consolidation of its financial institutions. These reforms though commendable, yet could not shield the banks and the entire economy from the global financial crisis. This study identifies the trends and implications of the global financial crisis on the Nigerian economy. Methodology/Technique - Descriptive analysis through secondary sources of data employed.A stratified sampling method adopted to select between the two strata that are the strongest and the weakest in terms of capital based. Four organizations were chosen from each stratum making eight banks and the Nigerian Stock Exchange (NSE) as the sample size of the study. Findings - This study identifies the trends and implications of the global financial crisis on the Nigerian economy. It was observed that Nigerian banks are open to global practices and business relationships with foreign banks that are badly affected by the crisis. While investors lose confidence in the Nigerian markets as stocks and oil fall drastically almost daily. This has almost resulted indrastic cut in the foreign capital inflow for the country. Novelty - Based on the above findings the study recommends that Nigerian government should diversify the economy by improving the state of infrastructure, intensify the war against corruption, propose bailout measures for privatized companies and ensure fair and sincere democracy. Type of Paper - Conceptual Keywords: Global financial crises, Financial institutions, Nigerian economy, Emerging markets, Descriptive analysis, Sampling method.

Dependence and risk management in oil and stock markets. A wavelet-copula analysis

Using wavelets and copulas, we examined the implications for risk management of the oil-stock dependence structure at different time scales. First, using the Haar à trous wavelet we decomposed the signals into frequency components in order to identify the main lead/lag co-movements before and after the onset of the current global financial crisis, with the watershed occurring on 15 September 2008. Second, we characterized average and tail dependence between oil and stock prices across time scales using a wide range of static and time-varying copula functions. Third, we examined potential diversification and downside risk reduction benefits for different mixed oil-stock portfolios at different time scales. Our empirical evidence reveals that oil-stock return dependence, before 15 September 2008, was weak for finer time scales but increased considerably as the time scale lengthened. After this date, dependence increased significantly for all time scales, providing evidence of contagion and interdependence. We also found evidence of asymmetric tail dependence over the long run before 15 September 2008 and of upper and lower tail dependence thereafter. Finally, we found evidence of diversification benefits and downside risk reductions for some mixed oil-stock portfolios over the short run before 15 September 2008, although the corresponding gains were reduced for coarser time scales. After this date, gains considerably decreased, especially over the long run.

Global Financial Crisis: Is There a Remedy

In this paper we seek to assess the stance of Islamic perspective with respect to global financial crises. The paper examines the adopted remedies and actions that deal with the current global financial crisis and evaluates them from the perspective of Islamic finance. The significance of tackling with this issue at this particular time is that there is general agreement among the economists, financial scholars and financial experts about the causes and consequences of global financial crises. However the search for the solution thus has proved to be mission impossible and remains the subject of an international debate. So in this paper efforts have been made to prove that Islamic finance is well endowed to deliver noteworthy contributions towards a more healthy and stable international economy. The paper has argued that an honest implementation of Islamic theory of finance is potentially capable of solving, and in all probability averting, such crises from happening –– simply because most, if not all, of the factors that have caused or contributed to the development and the spread of the crisis are not allowed under the rules and guidance of Shariah.

Lessons from Argentina for a World in Crisis

Rising income inequality in the US and several European countries, particularly since the onset of the current global financial crisis, have triggered an intense political and intellectual debate. Reducing inequality is one of the biggest challenges facing modern capitalistic democracies. Failure to address it can have serious consequences. The economic history of Argentina in the aftermath of the Great Depression shows why. From 1900 until 1930 the country ranked among the world’s most prosperous economies. The inability or unwillingness of the Argentine governing elites to tackle widening income inequality in the aftermath of the Great Depression set the stage for a political reaction that pushed the country into decadence. As a result, today Argentina ranks around 60th or 70th in global GDP per capita rankings.

The Sustainability of Yachting Tourism: A Case Study on Greece

Yachting tourism is an emerging industry in coastal regions, particularly in the Mediterranean countries. The rising success of yachting tourism induces a significant boom in its relevant business segments. As a type of leisure tourism, yachting tourism plays a big role in an experience economy, and its positive impact on coastal regions has meant a substantial contribution to the local economy. Greece has many (potential) advantages to acquire a dominant position in developing a yachting tourism industry, such as authentic local attractions, natural coastal resources, etc. However, since the appearance of the current global financial crisis in 2007, the yachting tourism industry in this country has manifested a clear downturn, while the implementation of some austerity measures have aggravated the economic prospects. Meanwhile, the intense industry competition from some neighboring countries prompt a big challenge on the sustainability of the Greek yachting tourism industry. The main objective of our research is to map out the backgrounds and environments of the unfortunate situation. On the one hand, we compare Greek yachting tourism sector with similar sectors in other competitive Mediterranean countries, in order to identify the problems in strategic policy-making. On the other hand, we conduct extensive field research on yacht users and other stakeholders, in order to model and understand the factors relevant to its sustainable development. For achieving the aforementioned aims, both theoretical research in sustainability and the empirical aspects of the Greek yachting tourism industry will be allowed. The modelling results demonstrate that relevant industry policies have influenced the sustainability of the Greek yachting tourism negatively; our comparative study prospects also new knowledge to guide the sustainable development of the Greek yachting tourism from the perspective of other countries' strategies. Furthermore, the field surveys of yacht users and other stakeholders allow us to identify the relevant factors of sustainability in the Greek yachting tourism industry. In addition, our study sheds also new light on the emerging research field of the yachting tourism economy, and it leads to an enrichment of traditional tourism research. As our empirical research focusses in particular on the Greek yachting tourism industry, our findings provide practical guidance for the development of the Greek yachting industry in a long run.

Financial and Political Factors Motivating the Privatisation of Municipal Water Services

Financial and political factors are widely considered to be an explanatory factor of the privatisation of public services. However, the empirical evidence in this respect is not convincing. This paper considers elements of long-term financial condition and ideological and political strength, together with other socio-economic factors and the effects of the current global financial crisis, to address the financial stress–privatisation relationship, with respect to urban water services, observed during the period 2002–2012 in Spanish municipalities. A discrete time survival model is applied, and the results obtained show that certain elements of financial condition, together with political and ideological factors, are decisive influences in decisions to privatise urban water services. We also highlight the major impact of the Great Recession and its effect on the financial stress–privatisation relationship.

Changing the Rules of the Game: Offshore Financial Centers, Regulatory Competition & Financial Crises

Politicians from New York District Attorney Robert Morgenthau to British Prime Minister Gordon Brown are blaming offshore financial centers (OFCs) for contributing to the current global financial crisis by failing to adequately regulate their financial industries. These criticisms are mistaken for three reasons. First, OFCs offer different rather than less regulation. Since most OFC financial products are aimed at sophisticated and institutional investors, OFC regulators are less concerned with protections for retail investors than are regulators in jurisdictions like the United States. This enables them to adopt less costly regulations that are still effective at preventing fraud and other financial crimes. Second, OFCs play a particularly important role in providing regulatory competition. OFCs have innovated in areas of law from captive insurance to trusts, pushing onshore jurisdictions like the United States to respond. For example, Vermont has innovated in captive insurance in response to competition from Bermuda and the Cayman Islands. Third, OFCs provide an important means for onshore jurisdictions to price discriminate in their taxation. Without OFCs, companies based in high tax jurisdictions like Canada, France, and the United States would find it more difficult to compete internationally with companies from lower tax jurisdictions. Preserving OFC-competition thus benefits onshore jurisdictions.