On the hysteresis of financial crises in the US: Evidence from S&P 500

2021 ◽  
Vol 565 ◽  
pp. 125583
Author(s):  
Sónia R. Bentes
Keyword(s):  
Financial Crises ◽  
The Us

Rethinking public ownership as economic democracy

2017 ◽  
Author(s):  
Andrew Cumbers
Keyword(s):  
Financial Crises ◽  
Policy Discourse ◽  
Public Ownership ◽  
Economic Democracy ◽  
Progressive Politics ◽  
Corporate Scandals ◽  
Institutional Structures ◽  
The Us ◽  
Economic Elites ◽  
Neoliberal Policies

Despite the spectacular failure of market fundamentalism in Europe and the US, with a seemingly never-ending spate of corporate scandals and financial crises, the grip of a neoliberal economic policy discourse among political and economic elites seems unshakeable. If anything, neoliberal policies of privatisation, labour market deregulation and state and welfare retrenchment seem to have been ratcheted up since the 2008-9 financial crisis. How can a left and more progressive politics– even in the form of a moderate eco-Keynesianism – be reasserted in these circumstances? This chapter argues that there has, until recently, been a serious vacuum in left and progressive circles about alternative economic models that might challenge the mainstream consensus. Cumbers uses the lens of public ownership, and examples from recent research in Denmark and Germany, to argue for the need to remake and re-scale institutional structures and practices on the left to successfully contest neoliberalism and construct more progressive, egalitarian and sustainable economies and societies.

scholarly journals Accountants’ perceptions of tax amnesty: A survey during the COVID-19 pandemic in Greece

2021 ◽  
Author(s):  
Stergios Tasios ◽  
Evangelos Chytis ◽  
Stefanos Gousias
Keyword(s):  
United States ◽  
Stock Markets ◽  
Economic Activity ◽  
Financial Crises ◽  
The United States ◽  
Tidal Wave ◽  
Adverse Impact ◽  
Tax Amnesty ◽  
The Us ◽  
Restrictive Measures

Although humanity has faced many plaques and epidemics from antiquity, the COVID-19 came as a tidal wave, overwhelming nations and governments. Restrictive measures, social distancing and ultimately lockdown and quarantine, emerged as a response to decelerate the spread of the disease and save human lives. These measures may have decreased COVID-19 cases, they had, however, an adverse impact on economic activity and stock markets (Ashraf, 2020). Research shows that the pandemic has already influenced the United States (the US), Germany, and Italy‘s stock markets more than the global financial crises (Shehzad, Xiaoxing, & Kazouz 2020)

scholarly journals Is There a Connection between Sovereign CDS Spreads and the Stock Market? Evidence for European and US Returns and Volatilities

Mathematics ◽  
2020 ◽  
Vol 8 (10) ◽  
pp. 1667
Author(s):  
Laura Ballester ◽  
Ana González-Urteaga
Keyword(s):  
Stock Market ◽  
Financial Crises ◽  
Credit Default Swap ◽  
Equity Returns ◽  
Stock Market Volatility ◽  
Market Returns ◽  
Stock Market Returns ◽  
Credit Default ◽  
The Us ◽  
The Relationship

This study complements the current literature, providing a thorough investigation of the lead–lag connection between stock indices and sovereign credit default swap (CDS) returns for 14 European countries and the US over the period 2004–2016. We use a rolling VAR framework that enables us to analyse the connection process over time covering both crisis and non-crisis periods. In addition, we analyse the relationship between stock market volatility and CDS returns. We find that the connection between the credit and equity markets does exist and that it is time variable and seems to be related to financial crises. We also observe that stock market returns anticipate sovereign CDS returns, and sovereign CDSs anticipate the conditional volatility of equity returns, closing a connectedness circle between markets. Contribution percentages in terms of returns are more intense in the US than in Europe and the opposite result is found with respect to volatilities. Within Europe, a greater impact in Eurozone countries compared to non-Eurozone countries is observed. Finally, an additional analysis is also carried out for the financial sector, obtaining results largely consistent with those found using sovereign data.

The Liquidity Approach to Financial Crises1

2016 ◽  
Author(s):  
Guillermo Calvo
Keyword(s):  
Money Demand ◽  
Financial Crises ◽  
Emerging Market ◽  
Bank Runs ◽  
Emerging Market Economies ◽  
Price Theory ◽  
Liquidity Trap ◽  
The Us ◽  
Us Dollar ◽  
The Moment

The chapter focuses sharply on liquid assets, and is the heart of the book. It distinguishes between intrinsic and extrinsic liquidity, centering on the latter. Extrinsic liquidity may break down on the spur of the moment and generate socially costly Liquidity Crunch. A substantive part of the chapter is devoted to discussing relative resilience of liquid assets, and focuses on Keynes's Price Theory of Money, the resilience of the US dollar, the weakness of bonds denominated in that currency, and of currencies of emerging-market economies. The chapter claims that recent financial crises can realistically be modeled as old-fashioned bank runs, and that assets' liquidity may be a function of policy. Special attention is paid to a phenomenon called Liquidity Deflation, which helps to rationalize Liquidity Trap as a consequence of loss of money liquidity rather than on the conventional explanation based on the infinite interest elasticity of money demand.

Making Capitalism Respectable

2021 ◽  
pp. 131-164
Author(s):  
Jeffrey Fear ◽  
Christopher Kobrak
Keyword(s):  
Financial Crises ◽  
Institutional Design ◽  
Regulatory Reform ◽  
Financial Policy ◽  
The Us ◽  
Damage Limitation

While the effect of financial crises on forming financial policy is well studied, less attention has been paid to how they produce ‘game changing’ turns that reinvent the context for regulatory reform, institutional design, and legitimate future conduct. The aftermath of crisis becomes an exercise in damage-limitation, but based on interpretation, debate, and narrative-building that creates a lasting memory of the crisis. We examine the contemporary perception and memory of the ‘Panic’ or ‘Founders Crisis’ of 1873 in the US and Germany, which had many common transatlantic origins. Yet the solutions could not have been more different because contemporaries created different narratives about this crisis. We highlight how the different language of legitimacy following the 1873 crisis reshaped long-term regulatory norms that discredited insiders in the US, yet encouraged committed, responsible insiders in Germany.

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