Dependency in the Modern Global Economy: Australia and the Changing Face of Asian Finance

1994 ◽  
Vol 26 (3) ◽  
pp. 415-434 ◽  
Author(s):  
M T Daly ◽  
R J Stimson
Keyword(s):  
Capital Markets ◽  
Global Economy ◽  
Strong Dependence ◽  
External Debt ◽  
Financial System ◽  
Structural Features ◽  
Global System ◽  
Domestic Capital ◽  
Spatial And Temporal Changes ◽  
Major Supplier

Theories which attempt to explain the structural features of spatial and temporal changes in the global system have generally underestimated the recent impacts of the international financial system. Japan and Australia are investigated because they illustrate opposite ends of the spectrum of experiences of these impacts. Beyond 1985 Japan became the world's major creditor nation, but in 1992 was facing a severe crisis in its domestic capital markets. Australia embraced the policy route of deregulating and opening its capital markets, only to be left with a massive external debt and a strong dependence of external capital. Japan became Australia's major supplier of capital, but the sectors and the locations into which this capital was directed created for Australia an extremely fragile dependence.

The Oxford Handbook of the Brazilian Economy

2018 ◽  
Keyword(s):  
Direct Investment ◽  
Global Economy ◽  
Iron Ore ◽  
Structural Features ◽  
Economic Importance ◽  
Closed Economy ◽  
Current Characteristics ◽  
Insight Into ◽  
Contemporary Context ◽  
Over Time

Brazil constitutes a globally vital but troubled economy. It accounts for the largest GDP in Latin America and ranks among the world’s largest exporters of critical commodities including iron ore, soya, coffee, and beef. In recent years Brazil’s global economic importance has been magnified by a surge in both outward and inward foreign direct investment. This has served to further internationalize what has been historically a relatively closed economy. The purpose of this Handbook is to offer real insight into the Brazil’s economic development in contemporary context, understanding its most salient characteristics and analyzing its structural features across various dimensions. At a more granular level, this volume accomplishes the following tasks. First, it provides an understanding of the economy’s evolution over time and the connection of its current characteristics to this evolution. Second, it analyzes Brazil’s broader place in the global economy, and considers the ways in which this role has changed, and is likely to change, over coming years. Third, reflecting contemporary concerns, the volume offers an understanding, not only of how one of the world’s key economies has developed and transformed itself, but also of the ways in which this process has yet to be completed. The volume thus analyzes the current challenges facing the Brazilian economy and the kinds of issues that need to be tackled for these to be addressed.

scholarly journals Internet finance: Digital currencies and alternative finance liberating the capital markets

2015 ◽  
Vol 4 (4) ◽  
pp. 190-201 ◽  
Author(s):  
Kim Wales
Keyword(s):  
Capital Markets ◽  
Financial Services ◽  
Global Economy ◽  
Industrial Revolution ◽  
Peer To Peer ◽  
Agricultural Revolution ◽  
Internet Finance ◽  
P2p Lending ◽  
Conducting Wire ◽  
Alternative Finance

This article discusses how the sudden shift in policy reform and innovation has the potential to liberate the financial markets. The economic potential of internet finance is beginning to take hold across the capital markets as industries like Peer – to – Peer Lending, Equity and Debt based Crowdfunding and virtual currencies and cryptocurrencies which are types of digital currency are quickly transforming the way businesses are being financed. From borrowing and lending, buying and selling securities, to conducting wire transfers internationally, these innovations are creating a new class and generation of investors will source investments opportunities. Helping institutions and governments assess risks and manage performance in order to determine where to deploy capital; and showing signs of lessening the inequality gap. Following the neolithic agricultural revolution and the industrial revolution, this new revolution will enable more people to access financial services in less traditional ways, especially the unbanked world with its huge potential. These new financial opportunities, such as peer – to - peer (P2P) lending, will be discussed and examined, and we will stress how they can allow people to bypass current barriers in the global economy. We conclude by arguing that all these developments, energized by the efforts of innovators and entrepreneurs, have the potential to radically transform the world in which we live, while promoting the core values of industrialized societies including democracy, capital formation, sustainability, and equality without solely relying on tax increases.

Assessing the condition of the financial system of the Russian Federation on the basis of key financial parameters of the national economy

2021 ◽  
Vol 27 (4) ◽  
pp. 724-739
Author(s):  
Aleksei V. LEBEDEV ◽  
Elena A. RAZUMOVSKAYA
Keyword(s):  
Russian Federation ◽  
National Economy ◽  
Commercial Banks ◽  
External Debt ◽  
Financial System ◽  
Federal State ◽  
Fixed Asset ◽  
Monetary Aggregates ◽  
Fixed Assets ◽  
The Russian Federation

Subject. We consider financial parameters of the Russian Federation economy. Objectives. The purpose is to assess the condition of the financial system of the Russian Federation based on the analysis of financial parameters of the national economy. Methods. The study employs analytical and expert methods on the basis of the analysis of data of the Bank of Russia and the Federal State Statistics Service. Results. The paper analyzes certain financial parameters of the Russian national economy, i.e. investments in fixed assets by fixed asset type, the country's external debt, the national currency rate of exchange, in comparison with indicators, characterizing the condition of the financial system, i.e. capitalization of commercial banks, monetary aggregates, the volume of reserves of the Bank of Russia. The analysis shows a better dynamics against that predicted at the beginning of the crisis period. Conclusions. To justify the assessment of the condition of the financial system, it is necessary to rely on a deeper analysis of a wider range of indicators, both economic and financial.

Financial markets as commensurating machines

2019 ◽  
Vol 58 (4) ◽  
pp. 539-565
Author(s):  
Barbara Kuchler
Keyword(s):  
Financial Markets ◽  
Capital Markets ◽  
Capital Market ◽  
Capital Flows ◽  
Financial System ◽  
Financial Assets ◽  
Financial Instruments ◽  
Black Scholes ◽  
Derivatives Markets

Ever since the crisis of 2008, the dynamism and self-referentiality of financial markets have puzzled observers. This article argues that this dynamism is the product of a long process of commensuration, by which ever more heterogeneous financial assets and financial instruments have come to be compared with, substituted for, and valuated relatively to one another, and have thereby been condensed into a highly interconnected financial system. This trajectory can be found both in the long-term historical emergence of financial markets from ancient origins and in the more recent transformations of the financial system since the 1970s, including (i) the rise of derivatives markets, and (ii) the rise of capital markets as against bank-intermediated capital flows. The rise of derivatives markets was triggered by the commensuration of basic securities (such as stock, bond) and derivatives (such as options, futures), established by the Black-Scholes-Merton theory of option pricing. The rise of capital markets was rooted in the commensuration – and hence, competition and substitution – of bank products (such as loans, deposits) and non-bank products (capital market securities).

scholarly journals The rise of domestic capital markets for corporate financing: Lessons from East Asia

2021 ◽  
Vol 122 ◽  
pp. 105987
Author(s):  
Facundo Abraham ◽  
Juan J. Cortina ◽  
Sergio L. Schmukler
Keyword(s):  
East Asia ◽  
Capital Markets ◽  
Corporate Financing ◽  
Domestic Capital

Capitalisms: A Global System

2018 ◽  
Author(s):  
Richard Deeg
Keyword(s):  
Political Economy ◽  
Political Institutions ◽  
Global Economy ◽  
Systems Approach ◽  
Global Financial Crisis ◽  
Social Systems ◽  
Business Systems ◽  
Global System ◽  
Global Political Economy ◽  
Epochal Change

The global political economy is a multilevel system of economic activities and regulation in which the domestic level continues to predominate—in other words, it is a global system comprising national capitalist economies. Nations differ in terms of the regulations and institutions that govern economic activity, an observation that is embodied in the so-called “varieties of capitalism” (VoC) literature. Contemporary VoC approaches highlight the significance of social and political institutions in shaping national economies, in stark contrast to neoclassical economics which generally ignores institutions other than markets or sees them as hindrances to the functioning of free markets. Three analytical premises inform the diverse conceptual frameworks within the VoC literature: the firm-based approach, national business systems approach, and the governance or “social systems of production” approach. The VoC literature offers three important contributions to our understanding of the global political economy. The first is that different sources of competitive advantage for firms and nations are institutionally rooted and not easily changed. The second contribution is that these distinct national arrangements give rise to different interests/preferences in how the global economy is constructed and managed. Finally, the VoC approaches provide a framework for analyzing long-term institutional changes in capitalist systems and the persistence of diverse forms of capitalism, including the global financial crisis of 2008–2009 that may usher in yet another epochal change in the “battle of capitalisms.”

Funding the Welfare State: Globalization and the Taxation of Business in Advanced Market Economies

1998 ◽  
Vol 46 (4) ◽  
pp. 671-692 ◽  
Author(s):  
Duane Swank
Keyword(s):  
Capital Markets ◽  
Capital Mobility ◽  
Global Economy ◽  
Business Taxation ◽  
Alternative View ◽  
Domestic Investment ◽  
Economic Management ◽  
International Capital Mobility ◽  
Mobile Capital ◽  
Government Responsiveness

Theorists assert that international capital mobility creates substantial pressure for all democratically elected governments to decrease tax burdens on business. I explicate and critique the general version of this theory and offer an alternative view. Empirically, I explore whether or not the globalization of capital markets has resulted in decreases in business social security, payroll, and profit taxes. I also investigate whether or not capital mobility has intensified government responsiveness to domestic investment and profitability. Evidence suggests that business tax burdens have not been reduced in the face of rises in capital mobility nor is tax responsiveness to profitability and domestic investment intensified by more open capital markets. To the contrary, analyses indicate that business taxation has become subject to new ‘market conforming’ policy rules that developed in tandem with liberalization of markets. These new policy orientations reduce the economic management roles of business taxation while leaving the revenue-generating roles intact. In conclusion, I discuss the implications of the findings for questions concerning the structural power of internationally mobile capital, redistributive policies, and the autonomy of democratically elected governments in a global economy.

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