The 2008 Financial Crisis and the Lack of Retaliatory Trade Intervention

2020 ◽  
Author(s):  
Chunding Li ◽  
John Whalley ◽  
Chuantian He ◽  
Chuangwei Lin
Keyword(s):  
Financial Crisis ◽  
2008 Financial Crisis ◽  
Jel Codes ◽  
Simulation Methodology ◽  
Equivalent Models ◽  
The Great Depression ◽  
Trade Retaliation ◽  
The 2008 Financial Crisis ◽  
Optimal Tariff ◽  
Model Structures

Abstract The 2008 financial crisis did not precipitate global retaliatory trade intervention, in seeming contrast to the Great Depression in 1930s. This article discusses the influence of model structure in optimal tariff (OT) calculations in explaining this puzzle. We emphasize how earlier literature reports high OTs in numerical calculation (of a hundred percent) but only uses simple trade models. We use numerical general equilibrium (GE) calibration and simulation methodology to calculate OTs both with and without retaliation in a series of observationally equivalent models and explore the influence of model structures on OT levels. We gradually add more realistic features into the basic GE model, and show sharply declined OTs, which suggests that trade retaliation incentives effectively disappear with the deepening of globalization in 2008 compared to 1930. (JEL codes: F11, C63, F13).

International Political Economy, Global Financial Orders and the 2008 Financial Crisis

2013 ◽  
Vol 11 (1) ◽  
pp. 155-166 ◽  
Author(s):  
Daniel W. Drezner ◽  
Kathleen R. McNamara
Keyword(s):  
Political Economy ◽  
Financial Crisis ◽  
Global Economy ◽  
International Political Economy ◽  
Economic Downturn ◽  
Global Finance ◽  
2008 Financial Crisis ◽  
The Great Depression ◽  
The 2008 Financial Crisis ◽  
Social Logics

The 2008 financial crisis triggered the most severe global economic downturn since the Great Depression. The crisis has provoked soul-searching among economists, yet international political economy (IPE) scholars have been relatively sanguine. We argue that IPE has strayed too far away from studying the geopolitical and systemic causes and consequences of the global economy. IPE must explain the generation and transformation ofglobal financial orders.Both the distribution of political power and the content of economic ideas will shape any emergent global financial order. A Kuhnianlife-cycle frameworkof global financial orders permits a systemic approach to global finance that integrates the study of power and social logics into our understanding of markets.

Paved with good intentions: Misdirected idealism in the lead-up to 2008’s GFC

2018 ◽  
Vol 29 (4) ◽  
pp. 394-409
Author(s):  
Anthony M Gould ◽  
Milène R Lokrou
Keyword(s):  
Financial Crisis ◽  
Financial Institutions ◽  
Heart Attack ◽  
Policy Integration ◽  
2008 Financial Crisis ◽  
Jel Codes ◽  
Look Back ◽  
The 2008 Financial Crisis ◽  
Disadvantaged People

Irresponsible lending practices on the part of financial institutions and proliferation of tradable derivatives were key causal agents of the 2008 financial crisis. However, it is less clear why, historically, loose credit arrangements were so widespread. Somewhat misleadingly, much conjecture has laid blame at the feet of financial institutions themselves. While it is true that duplicitous and even corrupt lending practices were consequential antecedents of the crisis, a legacy commitment to certain – laudable – elements of New-Dealism created context for these elements to become established. To understand really what went wrong, it is necessary to look back before the 2000s and appreciate the interaction that was occurring between a long-term policy commitment to neoliberalism and piecemeal/fragmented application of approaches that aimed to assist financially disadvantaged people. Using the analogy of heart-attack pathology to guide some of its analysis, this essay argues for better policy-integration. JEL Codes: G01, G2, F66, H12, J52

Mathematics without Apologies

2017 ◽  
Author(s):  
Michael Harris
Keyword(s):  
Number Theory ◽  
Financial Crisis ◽  
Pop Culture ◽  
First Century ◽  
2008 Financial Crisis ◽  
Dinner Party ◽  
Mathematical Life ◽  
Personal Experiences ◽  
The 2008 Financial Crisis ◽  
Guided Tour

What do pure mathematicians do, and why do they do it? Looking beyond the conventional answers, this book offers an eclectic panorama of the lives and values and hopes and fears of mathematicians in the twenty-first century, assembling material from a startlingly diverse assortment of scholarly, journalistic, and pop culture sources. Drawing on the author's personal experiences as well as the thoughts and opinions of mathematicians from Archimedes and Omar Khayyám to such contemporary giants as Alexander Grothendieck and Robert Langlands, the book reveals the charisma and romance of mathematics as well as its darker side. In this portrait of mathematics as a community united around a set of common intellectual, ethical, and existential challenges, the book touches on a wide variety of questions, such as: Are mathematicians to blame for the 2008 financial crisis? How can we talk about the ideas we were born too soon to understand? And how should you react if you are asked to explain number theory at a dinner party? The book takes readers on an unapologetic guided tour of the mathematical life, from the philosophy and sociology of mathematics to its reflections in film and popular music, with detours through the mathematical and mystical traditions of Russia, India, medieval Islam, the Bronx, and beyond.

Credit Spreads and Regime Shifts: Evidence from the 2008 Financial Crisis

2012 ◽  
Author(s):  
Ivelina Pavlova ◽  
Ann Marie Hibbert ◽  
Joel R. Barber ◽  
Krishnan Dandapani
Keyword(s):  
Financial Crisis ◽  
Regime Shifts ◽  
Credit Spreads ◽  
2008 Financial Crisis ◽  
The 2008 Financial Crisis
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