scholarly journals Household Debt Revaluation and the Real Economy: Evidence from a Foreign Currency Debt Crisis

2018 ◽  
Author(s):  
Emil Verner ◽  
Gyozo Gyongyosi
Keyword(s):  
Foreign Currency ◽  
Debt Crisis ◽  
Household Debt ◽  
Real Economy ◽  
The Real ◽  
Foreign Currency Debt

scholarly journals Household Debt Revaluation and the Real Economy: Evidence from a Foreign Currency Debt Crisis

2020 ◽  
Vol 110 (9) ◽  
pp. 2667-2702 ◽  
Author(s):  
Emil Verner ◽  
Győző Gyöngyösi
Keyword(s):  
Foreign Currency ◽  
Debt Crisis ◽  
Spillover Effects ◽  
Household Debt ◽  
Sudden Increase ◽  
Real Economy ◽  
Balance Sheets ◽  
Default Rates ◽  
Foreign Currency Debt ◽  
The Impact

We examine the consequences of a sudden increase in household debt burdens by exploiting variation in exposure to household foreign currency debt during Hungary’s late-2008 currency crisis. The revaluation of debt burdens causes higher default rates and a collapse in spending. These responses lead to a worse local recession, driven by a decline in local demand, and negative spillover effects on nearby borrowers without foreign currency debt. The estimates translate into an output multiplier on higher debt service of 1.67. The impact of debt revaluation is particularly severe when foreign currency debt is concentrated on household, rather than firm, balance sheets. (JEL E21, E32, F34, G51)

Lending to the real sector of the region’s economy: state, problems, prospects

2020 ◽  
pp. 42-49
Author(s):  
Iryna Pasinovych ◽  
Viktoriya Dmytruk
Keyword(s):  
Interest Rates ◽  
Capital Investment ◽  
Banking Sector ◽  
Foreign Currency ◽  
Point Of View ◽  
Real Sector ◽  
Real Economy ◽  
Labor Costs ◽  
The Real

Approaches to the essence and constituent elements of the real economy sector are analyzed, its optimal structure is determined. It is focused on servicing and infrastructural role of banks in relation to the entities of the real sector. The dynamics of the lending to the real sector of the economy and the level of its penetration is analyzed. The paper reveals that the growth of lending in this sector was restored only last year, but the level of penetration continues to decline. The banking sector is analyzed. The paper argues that it has become profitable for the first time since the crisis, but mainly due to reduction of deductions to reserves. The financial situation of enterprises of the real sector of the Ukrainian economy is estimated. After an increase in profitability, it was again observed to have fallen due to the growth of competition and labor costs. Production are found to have increased in the real sector, but the role of loans in its development is insignificant. The emphasis is placed on the leading role of banks in the region for business development. The regional features of lending to the real economy sector in the Lviv region are outlined. The paper determines that in this region the growth of industrial products is much higher than the average in Ukraine, while the share of balances on loans granted is one of the lowest. There are the tendencies towards the decrease of the number of banks in the given region, increase of balances of banks' claims on loans in absolute value, prevalence of long-term loans and foreign currency loans. By the share of received loans the processing industry is in second place, agriculture is in the third place. Low level of the share of unemployed loans, higher than the average in Ukraine indicator of the proportion of loans in capital investment, as well as higher interest rates on loans are the features of regional lending in the Lviv region. The factors limiting the obtaining of loans from the point of view of management entities of the studied region are outlined. Certain NBU branches are dominant in the Lviv region as for lending. The changes in the regulatory environment at the macroeconomic level that are directly related to lending are analyzed. The regulator's policy to revive lending to the real sector should be extremely cautious and systematic, aimed at limiting the concentration of risks, preventing excessive lending growth, increasing the stability of financial infrastructure and reducing the dollarization of the banking sector. Measures to increase lending in the Lviv region are outlined. The involvement of banks in the Lviv educational-industrial hub is proposed.

Critical Success Factors in Russian R&D Projects in the Real Economy

2010 ◽  
pp. 41-61
Author(s):  
V. Andreev
Keyword(s):  
Empirical Research ◽  
Critical Success Factors ◽  
Success Factors ◽  
Innovation Process ◽  
Real Economy ◽  
Key Factors ◽  
Industrial Products ◽  
Successful Development ◽  
The Real ◽  
Critical Success

The article discusses the concept of "success" in relation to innovative business and its performance. The quantity of innovative projects that can consistently overcome the stages of the innovation process to achieve the desired result is defined. The author presents the results of empirical research of successful and unsuccessful projects of leading Russian innovative companies in various industries, identifies key factors of successful development of new industrial products.

Global Financial Crisis and Its Impact on Russia

2009 ◽  
pp. 9-27 ◽  
Author(s):  
A. Kudrin
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Central Bank ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Real Economy ◽  
Energy Prices ◽  
Russian Government ◽  
The Real

The article examines the causes of origin and manifestation of the current global financial crisis and the policies adopted in developed countries in 2007—2008 to deal with it. It considers the effects of the financial crisis on Russia’s economy and monetary policy of the Central Bank in the current conditions as well as the main guidelines for the fiscal policy under different energy prices. The measures for fighting the crisis that the Russian government and the Central Bank use to support the real economy are described.

U.S. Financial Markets Growth and the Real Economy

2013 ◽  
Author(s):  
Claire Y. C. Liang ◽  
David McLean ◽  
Mengxin Zhao
Keyword(s):  
Financial Markets ◽  
Real Economy ◽  
The Real

Quantitative Easing, Structured Finance and Support to the Real Economy Proposals on ABS

2014 ◽  
Author(s):  
Franco Bassanini ◽  
Gino Del Bufalo ◽  
Rainer Masera ◽  
Marcello Minenna ◽  
Edoardo Reviglio ◽  
...  
Keyword(s):  
Quantitative Easing ◽  
Real Economy ◽  
Structured Finance ◽  
The Real
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