Outbreak Of Crisis Research Articles

On mergers and acquisitions in Greece - before and after the onslaught of the economic crisis

This study examines the impact of mergers and acquisitions (M&As) on the post-merger performance of Greek listed firms using accounting variables (profitability ratios). We examine firm profitability for the first years after M&As and in the long-run (before and after the onslaught of the economic crisis). For the purpose of the study, a set of five profitability ratios is employed for the examination of fifty mergers, in order to measure firms' post-merger performance and to compare pre- and post-merger firm profitability before and after the M&As announcements. To delve deeper, we analyze with nonparametric tests seven qualitative variables as strategic choices of the sample firms in M&As' past decisions: selection of merger or acquisition, hostile takeovers or friendly M&As, legal form and valuation of the target firm, method of payment, decision for an international merger or not and the type of the target's production line. We find these ratios to be statistically insignificant indicating firms do not experience a post-merger improvement in accounting performance the first years after M&As (before the outbreak of the economic crisis in Greece), but there is a partial deterioration of the post-merger performance in the long-run (during the economic crisis). In contrary, regarding the strategic choices during the first years after M&As, we provide evidence that the selection of acquisitions than mergers, as well as hostile takeovers than friendly M&As, affect positively firm profitability. Similar positive effects we have found concerning legal form of the target firm and method of the target valuation. We found no change in other examined strategic choices as method of payment, international merger or not, target's production line. The present study could be useful to several interested parties as a recent empirical result. Firstly, to business executives, consultants or potential investors that want to proceed on a possible investment through mergers or acquisitions in Greece, as several business characteristics for successful business strategies have been proposed. Secondly, for policy makers, tax and other state authorities paints a recent picture for M&As activities in Greece before and after the outbreak of economic crisis.

ALMANYA'DA POPÜLİST ALTERNATİF: DIE LINKE ÖRNEĞİ

2007 – 2008 finansallaşmış kapitalist krizin patlak vermesinin ardından Avrupa’da ulusal hükümetlerin kemer sıkmaya yönelmesi, ağır sosyal sonuçlara yol açmıştır. Bu durum, birçok ülkede siyasi memnuniyetsizliği tetikleyerek güçlü radikal partilerin ortaya çıkmasına zemin hazırlamıştır. Ne var ki kemer sıkma çağında radikal aktörlerin eş zamanlı yükselişine rağmen siyasal partiler çalışmalarında radikal sol partilerin atılımı büyük oranda göz ardı edilmektedir. Bu boşluğun doldurulması için makalede, Almanya’da Die Linke örneklemi üzerinden radikal solun evrimi, yapısal politik ekonomik ve politik kurumsal koşullar, toplumsal protesto dinamikleri ve toplumsal hareketlilik açısından analiz edilmektedir. Die Linke’nin yükselişinde ülkede sosyal adalet talebinin temel temsilcisi haline gelerek parti sisteminde SPD’nin geleneksel olarak işgal ettiği yere kaymasının kritik bir rol oynadığı savunulmaktadır. Bununla birlikte 2013 sonrasında radikal sağ AfD’nin kamusal söylemi ve parti rekabetini belirleyen konuları tayin etmesiyle birlikte radikal solun atılım dönemi sona ermiştir

Credit supply conditions and business cycles: New evidence from bank lending survey data

In this study, we utilize an Autoregressive Distributed Lag (ARDL) model in order to investigate the impact of changing lending standards on aggregate economic activity, considering the period 2000–2017 and five major economies, that is, Canada, Germany, Japan, the UK, and the US. We capture lending conditions using bank lending survey data that help extract the credit-supply side of the shock and, thus, direct the focus onto loan supply-factors. The main findings document that shocks associated with changes in lending standards play a substantial role in determining changes in real economic activity within each country. It should also be noted that these results remain robust even when we consider a structural break in our data and investigate these effects separately for the period immediately after the outbreak of the Global Financial Crisis of 2007−09. Overall, the findings suggest that bank lending survey data provide important informational content and deepen our understanding regarding changes in real economic activity. On a final note, we provide further insights regarding the relationship of both price and non-price elements of bank lending, particularly considering the risk-taking channel of monetary policy.

Incidence Network, Risk Spillover and Systemic Risk of Financial Institutions

Systemic risk is closely related to the risk contagion of financial institutions. The risk of a single financial institution will spread among financial systems through the complex incidence network among financial institutions, and lead to the outbreak of crisis. However, the risk contagion paths of different financial institutions are different, and the degree of impact is significantly different. The research of using the reduced-form approach mostly focuses on measuring the risk level of a single institution in the system, but there is relatively little literature on the measurement of risk spillover level among financial institutions and different types of financial sectors. The existing research for complex network model analysis is still focused on the construction of multiple symmetric correlation matrix, and the analysis of financial institutions through the construction of asymmetric correlation matrix is still a small number. Based on the classification of commercial banks, securities companies, insurance institutions and other types of financial institutions, this paper measures the impact of specific financial institutions on systemic risk from the perspective of risk spillover degree of financial institutions. Then, according to the nonparametric Granger causality test, the incidence matrix of financial institutions is constructed, and the financial institutions are used as nodes to depict and describe the incidence network indicators and network center properties of financial institutions. At the same time, the risk area is divided by combining the risk spillover index and the input/output value of financial institutions, so as to clearly identify the vulnerability of risk tolerance and the infectivity of risk transmission of financial institutions, in order to judge the risk prevention core and the key of targeted measures. The empirical results show that banking financial institutions are the core of China’s financial incidence network, and they have high stability. Securities financial institutions are at a high level in the level of systemic risk spillover and the degree of financial network connection, and they are the key sectors for China’s systemic risk prevention. The vulnerability and infectivity of different financial institutions are different, and the vulnerability and infectivity of the same financial institution are also different. The increase of capital scale does not mean the increase of risk contagion and vulnerability. Therefore, the risk identification of financial institutions should be comprehensive, not limited to a single standard. On the basis of focusing on the scale of financial institutions, combined with the direction, path and degree of risk impact of specific financial institutions, the risk prevention core is determined. At the same time, according to the different characteristics of risk vulnerability and risk contagion of financial institutions, we should implement targeted regulatory measures.

The impact of poverty cycles on economic research: evidence from econometric analysis

Poverty is a global problem, and fighting it is a historical task faced by humanity. The outbreak of poverty crises has a certain cyclicality, and the development of economic research may react to poverty cycles. To validate this view, we take the United States as an empirical example and establish a quantitative research architecture based on the bibliometrics and econometrics. In the first place, we conduct a bibliometric analysis of selected search terms relevant to poverty cycles. After that, the time-series data in the actual economy are collected for reflecting the trends and fluctuations in economic activity affected by poverty cycles. Meanwhile, with both bibliometric and economic data, a detrending measure via the band-pass (BP) filter is performed to estimate cycles. Finally, the Granger causality tests are implemented to explore the interaction between poverty cycles and economic research directly. As a supplement, this paper also provides a quantitative evaluation analysis, namely impulse-response functions, to investigate the influence of economic variables on bibliometric ones. The final results show there indeed exists an impact of poverty cycles in economic activity on relevant discussions in the scientific literature.

Central Europe between the West and East: Independent Region, the Bridge, Buffer Zone or ‘eternal’ Semi-Periphery?

Abstract The development of new East-Central European (ECE) democracies after 1989 might be separated into two different parts regarding the external, but in many ways also the internal evaluation. While the first fifteen years, crowned the ‘big bang’ EU-enlargement in 2004, might be evaluated generally as a successful story of socialisation into the Western structures, i.e. democratisation and Europeanisation, the next fifteen years are often evaluated as the period of getting sober. Paradoxically, instead of a continuation of the Europeanisation of values, memory and identity in many ECE nations we can observe the strengthening of anti-EU and anti-European attitudes. As Ágh stressed in his latest works, as early as the 2008 financial crisis outbreak we have had to deal with the polycrisis situation accompanied with de-Europeanisation, failure in the catching up process, the strengthening of the Core-Periphery divide in the EU/ Europe and the decline of democracy in East-Central Europe. Even the migration crisis in 2015 and beyond strengthened the mental gaps between so-called ‘old’ and ‘new’ Europe. In the article I focus on reasons for the semi-peripheral position of ECE, long durée processes in the creation of European macro-regions, and specific features of ECE nations’ identity. I reject the black-and-white division of Europe into two regions, stressing the positive examples from ECE as well as many problems of democratic governance the EU – including the ‘West’ – faces.

THE COVID-19 CRISIS, RISK COMPLIANCE AND ITS AFTERMATH ON PROFESSIONAL ACCOUNTANTS

The accounting profession has always assisted to support and shape private and public businesses. But the fast pace at which the outbreak of covid-19 crisis has broad changes in the use of digital technology in businesses, post a great challenges to the accountants and their firms. To overcome the risk and challenges, accountants must add value by embracing digital technology to meet the current and future challenges. The paper is aim at exposing accountants to the risk compliance and aftermath of covid-19 in the way they deliver their services. The method used in data collection was secondary sources. Areas trashed by the paper includes risk and compliance challenge, risk management to be considered during crisis, the need for effective crisis management by the accountant, accountants toolkit for managing covid-19,and technology a must have. The study concludes that digital technology is a must have for professional accountants if really they want to be relevant and stay in business in this period of pandemic and in the future.

استراتیجیات اتصالات المخاطر الصحیة عبر مواقع التواصل الاجتماعی إزاء جائحة کورونا (دراسة تحلیلیة على الصفحات الرسمیة لوزارة الصحة المصریة)

تتحدد مشکلة الدراسة في التعرف على أهم استراتيجيات اتصال المخاطر، التي استخدمتها وزارة الصحة والسکان المصرية في الاتصال بالجمهور المصري عبر موقع الفيس بوک أثناء جائحة کورونا في المراحل المختلفة للأزمة، واعتمـدت الدراسـة على مدخــل نمـوذج اتصــال المخـاطـر للطــوارئ والأزمــات، وتوصلت الدراسة إلى مجموعة من النتائج أبرزها: - تم استخدام استراتيجية توضيح الإجراءات الحکومية في غالبية المنشورات في مرحلة ما قبل الأزمة بهدف توضيح إجراءات الاستعداد للتعامل مع الأزمة، تلاها استراتيجية الطمأنة للتأکيد على عدم رصد أي حالات مصابة بمصر، ثم استراتيجية التحذيرات من المخاطر. - احتلت استراتيجية توضيح الإجراءات الحکومية المرتبة الأولى في مرحلة الأحداث الأولية للأزمة، تلاها استراتيجية تخفيض الغموض، ثم استراتيجية ترويج السلوکيات الفعالة، تلا ذلک استراتيجية الطمأنة، کما تم استخدام استراتيجية تصحيح الشائعات وسوء الفهم في هذه المرحلة وما قبل الأزمة بنسبة أکبر من مرحلة الأزمة؛ وهو ما يشير إلى زيادة الشائعات نتيجة الغموض مع اندلاع الأزمة. - أما في مرحلة الأزمة، فقد غلب استخدام استراتيجية تخفيض الغموض؛ حيث احتلت المرتبة الأولى من خلال نشر تقارير الحالات اليومية بانتظام بأعداد حالات الإصابة والوفاة والشفاء، وتعريف الجمهور بمصادر المعلومات الرسمية، ودعوة الجمهور لطرح استفساراتهم، تلاها استراتيجية ترويج السلوکيات الفعالة في المرکز الثاني، وهو ما يشير إلى أن توعية الجمهور بالسلوکيات الفعالة التي يجب الالتزام بها للوقاية من الوباء وعدم الإضرار بالآخرين تعد هدفا أساسيا أثناء مرحلة الأزمة، تلاها استراتيجية تقديم النصائح. Health Risk Communication Strategies on Social Media Towards Covid-19 Pandemic (Analytical study on Egyptian Ministry of Health official pages) Research problem is to identify key risk communication strategies utilized by the Egyptian Ministry of Health and Population to communicate with the Egyptian public on Facebook during various stages of Corona pandemic crisis. The study uses the Crisis and Emergency Risk Communication Model (CERC). The most prominent results of the study are: - Clarification of government measures Strategy was used to in the majority of posts in the pre-crisis phase in order to clarify the procedures for preparation to deal with the crisis, followed by a reassurance strategy to ensure that no infected cases were recorded in Egypt and then the warnings strategy. - Clarification of government measures Strategy was ranked first in the initial events phase of the crisis, followed by the uncertainty reduction strategy, then the efficacy strategy, followed by the reassurance strategy. The strategy of Correcting Misunderstanding and Rumors was used more often during this phase and pre-crisis phase than in crisis phase, which indicates an increase in rumors due to ambiguity as crisis outbreak. - As crisis phase started, the use of uncertainty reduction strategy prevailed, it was ranked first through publishing daily case reports regularly with numbers of cases, death and recovery, informing public of official information sources, and inviting them to present their inquiries. Efficacy strategy came in the second rank, which indicates that Educating public about effective behaviors to prevent the spread of the disease; and avoid harming others was a primary goal during crisis phase, followed by Providing Recommendations strategy

Are crises sentimental?

AbstractThis paper examines the role of investor sentiment in signalling the onset of equity crises in a panel of over 50 countries. We find that although poor economic fundamentals are significant determinants of the vulnerability of countries, a shift from bullish to bearish investor sentiment acts as the final trigger. Bearish investor sentiment in regional and local markets exhibits significant predictive power for the outbreak of equity crises in the subsequent one to eight quarters, beyond that forecasted by pure economic fundamentals. The results remain broadly unchanged even after we orthogonalize the sentiment indices to information about economic fundamentals.

Going universal? The problem of the uninsured in Europe and in OECD countries

The aim of this article is to address the following questions: (1) Which OECD (The Organization for Economic Co-operation and Development) and EU countries guarantee health insurance coverage to the entire population and which, conversely, leave part of the resident population without coverage?, (2) How many people do not have health coverage, and what are their characteristics? and (3) Within the OECD and the EU, is there actually a trend toward universal population coverage? Approximately one third of OECD and European Union countries do not ensure health insurance coverage to the entire population. At present, the uninsured in European Union countries totals more than seven million people. Considering all 36 OECD countries, the uninsured reach almost 48 million. The diachronic analysis shows that, from the 1970s to present day, the percentage of the uninsured in OECD member countries has gradually decreased. Conversely, in EU countries, the tendency toward universalism shows a fluctuating trend. Until the mid-90s, the number of uninsured decreased. However, a trend reversal took place and the number of uninsured started to rise again from the second half of the 1990s. The number of individuals without insurance coverage is currently 2-fold higher than the figure recorded before the outbreak of the great financial crisis.

Experimental Analysis on Effect of Temperature on Performance Testing for Heat Exchangers

Heat exchangers are utilized to transfer or recover thermal energy in different industrial, domestic and commercial uses. With the outbreak of oil crisis, new type heat exchangers and heat transfer enhancement technology have gained more and more attention. Performance testing is the only approach to get heat transfer and flow resistance characteristics. Compared with testing standard GB/T 27698-2011, the qualitative temperatures of hot and cold fluid in TSG R0010-2019 are set as 60±1°C and 30±1°C. In this paper, the effect of qualitative temperature on performance testing for heat exchangers was investigated experimentally. The heat transfer and flow resistance correlations were obtained using Wilson plot method when the qualitative temperatures of hot water were 60°C and 70°C. And these two correlations were also developed by equal flowing velocity method at the qualitative temperatures of 50°C and 60°C. The results showed that qualitative temperature had scarcely any effect on fitting heat transfer and flow resistance correlations. The research results will provide a foundation for the actual performance testing and standard revision for heat exchangers.

The impact of COVID-19 on food prices in China: evidence of four major food products from Beijing, Shandong and Hubei Provinces

PurposeThe purpose of this paper is to empirically study the impact of the coronavirus disease 2019 (COVID-19) on food prices in China and provides policy implications for crisis management for other countries who are still under the crisis of COVID-19 and for the future in China and beyond as well.Design/methodology/approachThis paper first designed a theoretical model of market equilibrium, which shows that the impact of COVID-19 on food prices is linked to the impact difference on demand and supply in response to the COVID-19 crisis. Then we collected the representative prices data for four major food products (rice, wheat flour, pork and Chinese cabbages) from three provinces (Shandong as a producing base, Beijing as a consumption base and Hubei as the epicenter), and set up an iGARCH model.Findings(1) No significant impact on rice and wheat flour prices, (2) significantly positive impact on cabbages prices and (3) various impact on pork prices. Note that the outbreak and the severity of COVID-19 have different impacts. The outbreak itself may have a relatively large impact on pork and cabbage prices, which may result from social panic, while the magnitude of the impact of severity is relatively small, and some are negative, perhaps due to more reduced demand during the quarantine.Practical implicationsChina always puts food security in its prior position of policy agenda and has been preparing for the worst scenario of the food security crisis. In the anti-COVID-19 campaign, China's local governments developed many measures to ensure food provision for each consumer. Hence, the impact of COVID-19 on food prices is minor. However, the outbreak of COVID-19 crisis could cause social panic in some scenarios where consumers may hoard food. Eventually, it may form a vicious cycle to push up food prices. This will be a challenging policy issue in crisis management for almost all governments.Originality/valueThis paper provides empirical evidence on the impact of COVID-19 on food prices in China. China has basically contained the COVID-19 in the whole country, and no major food crisis occurred during this process. The results will provide information on crisis management for other countries that are still under the COVID-19 crisis, and for future China and beyond.

DECOMPOSITION OF GROWTH FACTORS IN HIGH-TECH INDUSTRIES AND CO2 EMISSIONS: AFTER THE WORLD FINANCIAL CRISIS IN 2008

Taiwan's economic development faces two problems, one is the imbalance of the economic structure, and the other is that the industrial structure must be upgraded. This is a problem that has existed since the 1990s, but it has not been solved for a long time. The outbreak of the world financial crisis in 2008 severely damaged the international economy and finance, and Taiwan suffered a huge economic shock. In the face of an economic predicament, Taiwan attempts to transform the unbalanced economic system through technological innovation through public investment and the updating of corporate equipment, and sets the goal of sustainable development, of which high-tech industries have become the focus of economic development. This paper takes the financial crisis as the research period, analyzes the growth of the industries and their causes through the economic growth decomposition model, and estimates the CO 2 emissions generated, which will help understand Taiwan's future economic development. The research results show that the growth of high-tech industries after the financial crisis is dominated by semiconductors and power equipment-related industries. The growth factor is innovation of input technology and the improvement of self-sufficiency. At the same time, CO 2 emissions are mainly caused by these two factors. Keywords: high-tech industries, CO 2 emissions, input technology, growth decomposition model. JEL Classifications: Q43, C6, E2, E210 DOI: https://doi.org/10.32479/ijeep.9411

Regional Risks In the New Crisis For Employment and Regions' Budgets

Three previous crises in Russia were different, the crisis outbreak also has its sectoral and spatial features. Employment risks are the highest in the sectors of market related services (over 10 million employees). High risks in unemployment are immanent to federal cities and regions with multi-million-strong cities as well as fringe areas of the federal cities’ urban agglomerations, and southern recreational areas. Analysis of the structure of the regions’ budgets has demonstrated that by contrast with the previous crises the highest reduction of revenues can come from PIT returns and from total tax returns which are paid by small business. Measures aimed at supporting employment in the sectors of market related services should be provided at the federal level but their focus on support of SME will allow to aid the sector of market related services primarily in large cities. Regions’ budgets potential to support employment and business are highly limited; a significant growth of the federal budget fiscal transfers is required taking on the back of spatial risks.

Hard times for governing parties: the 2019 federal elections in Belgium

On 26 May 2019, European, federal and regional elections in Belgium were held. The main electoral results showed the decline of ruling parties (N-VA, MR, Open VLD, CD&V) and the rise of radical parties on the right (Vlaams Belang) and left (PVDA-PTB). These results have opened a period of deep government instability with very long negotiations to form coalitions at the regional level, and even more so at the federal level. It eventually took the COVID-19 crisis outbreak for a new government to be formed. However, the new minority government obtained external support from six parties for a period of six months only. Over the last decade, forming a coalition has proven itself to be more and more difficult in Belgium. The rise of extreme parties and the decline of mainstream parties are making it even harder. If the trend holds, one might have to question the future capacity of Belgium to form sustainable coalitions.

Leverage effects of financial markets in financial crisis

We have investigated the leverage effects of three major financial markets within a time frame from 2000 to 2012 throughout the 2008 financial crisis. First, dividing the considered time into four consecutive periods, we find the leverage effects of markets exhibiting similar pattern at various periods. Second, splitting the yield data into the positive-return and negative-return series, we find these two series always show anti-leverage effect. The anti-leverage effect of negative-return series usually dominates over the positive one, reflecting people at most times are more sensitive to bad news. However, we observe anomalous behavior in approaching the outbreak of crisis, where the positive-return series shows stronger anti-leverage effect, i.e. people become more sensitive to good news instead. Such phenomenology can persist till after the crisis for an immature market, as opposed to a mature market where it disappears before the end of crisis without external intervene. Our results afford insight into the micro-emotion of various financial markets swept through by the financial crisis.

Experimental investigation on heat transfer performance of corrugated low finned tubes

With the outbreak of oil crisis, heat exchangers as the energy-saving devices have gained more and more attentions. The heat transfer enhancement techniques have been developed to the third generation. Corrugated low finned tube is a kind of helically corrugated tube with trapezoidal shape groove. In this paper, the performance of convective heat transfer inside corrugated low finned tubes was studied experimentally. The results showed that the heat transfer performance could be intensified compared with the smooth tube. The reason was that helical rib generated the secondary flow and longitudinal vortex, reducing the synergy angle between velocity vector and temperature gradient. Moreover, the effects of tube structural parameter and fluid Reynolds number were analyzed. Finally, all the experimental data were fitted as the function of Reynolds number, Prandtl number, tube pitch and rib height. The research results can provide a foundation for designing heat exchangers using this enhancement technique.

Revisiting the Nexus Between Inflation Targeting and the Build-Up of the Financial Imbalances

The outbreak of the recent global financial crisis in 2007-2008 of the most developed economies, has spurred criticism that inflation targeting central banks may have neglected the build-up of financial imbalances. In other words the global financial and economic crisis highlights that central banks should be more effective in mastering financial instability, and should achieve an explicit goal of financial stability beyond their traditional emphasis on low inflation. In this paper, we aim to assess whether inflation targeting (IT) actually mattered as regards financial stability. Our empirical evidence has been conducted on a group of 41 emerging economies from which 20 economies adopt Inflation Targeting policy and 21 non Inflation Targeting economies as a group of control, over the period 2000-2017. To do this, we evaluate the time varying treatment effect of the IT's adoption on the banking system stability. Additionally using a variety of propensity score matching methods, we show that, on average inflation targeting has an insignificant effect on lowering banking system instability.

Empirical Credit Spread Components of Banks and their Coverage in Structural Models – An Integrated Analysis

During the global financial crisis and euro crisis, credit spreads of European banks have increased sharply, which has not only been attributed to default risk. Credit spreads can be estimated empirically or using structural models. In the KMV model, a firm defaults if the market value of assets falls below the Default Point (DP) based on liabilities. The Distance-to-Default (DD) measures how many standard deviations the asset value is away from DP. Based on DD, Moody's Analytics calculates a physical probability of default, the Expected Default Frequency (EDF). The paper analyzes the relation between the KMV structural model and empirical credit spread components. In addition to default risk, empirical credit default swap (CDS) spreads compensate risk-averse investors for liquidity risk and common spread risk. Default risk can generally be divided into a diffusion and jump component. Fundamental structural models cover default by a continuous decrease in the asset value below the default barrier, while unexpected jumps or (liquidity) shocks – such as bank runs – are not captured. Comparing model-based bank EDFs and empirical CDS-implied default probabilities, with a special focus on financial market and liquidity crises, the residual risks are derived. In contrast, previous studies primarily consider non-financial firms and phases of low financial market volatility. The present empirical study is the first integrated analysis of the determinants of one-year CDS spreads and the EDF of European banks from 2004 to mid-2015. Using a panel regression with time fixed effects, the residual impact on the logarithmized CDS-implied default probability, that cannot be explained by the logarithmized EDF, is decomposed into a systematic and idiosyncratic component. Since the global financial crisis and especially during the euro crisis, the EDF structural model assesses the default probabilities of European banks to be lower than the CDS market does – due to market-wide risks. The systematic residual impact increases substantially at the outbreak of both financial market and liquidity crises. At the onset of the global financial crisis and euro crisis, in particular market-wide liquidity risks imply a stronger increase in CDS spreads compared to EDFs. Combining market-based signals from European bank CDS spreads with model-based signals in an integrated analysis, the risk of a financial market crisis is derived. Market-wide indicators of funding and liquidity risk provide a statistically significant and economically important explanatory power for the systematic residual impact. Moreover, the risk premium is an essential determinant. Compared to alternative crisis indicators, the systematic residual impact achieves an equally good and during the euro crisis even better performance.

Global imbalances from the flow and stock perspective

The objective of the paper is to identify global payment imbalances from the flow and stock perspective in the years of 2000-2017 as well as to define the causes of differences in the development of global imbalances in both of the analysed aspects. In order to achieve the objective, current account balances and international investment positions that are systemically significant to economies were analysed with the use of descriptive statistics techniques and specific analytical indicators. From the conducted studies it arises that after the outbreak of the global financial crisis, the global flow imbalance declined, whereas the global stock imbalance rose significantly. The demonstrated divergence was caused by insufficient changes in current account balances (flow imbalances) in order to cause a decrease in net international investment positions (stock imbalances) systematically significant to economies and by a weakened impact of the transactions registered in the balance of payment (flows) on the change of an international investment position (stock).