scholarly journals International Capital Inflows, Domestic Financial Intermediation and Financial Crises under Imperfect Information

10.3386/w7902 ◽  
2000 ◽  
Author(s):  
Menzie Chinn ◽  
Kenneth Kletzer
Keyword(s):  
Financial Crises ◽  
Imperfect Information ◽  
Financial Intermediation ◽  
Capital Inflows ◽  
International Capital

scholarly journals Relationship Between Globalization, International Capital Inflows and Financial Crisis in Emerging Countries and Alternative Fiscal Policies

2010 ◽  
Author(s):  
Ayfer Gedikli
Keyword(s):  
Financial Crises ◽  
Social Life ◽  
Emerging Countries ◽  
Capital Inflows ◽  
Fiscal Policies ◽  
International Capital ◽  
Financial Policies ◽  
The World ◽  
Short Time ◽  
Harmful Effects

Globalization which started to improve since 1980’s, has caused many beneficial and harmful effects and unexpected changes both in the world economy and in economical structures of countries. Globalization affected not only economical structures but also social life, politics, and even cultures. On the other hand, while globalization was presenting “opportunities” to emerging countries, it also brought heavy risks and severe problems to them. Parallel to those improvements, globalization gave rise to international capital inflows. Emerging countries which have poor economical conditions, found international capital as “life ring” since the capital was their greatest problem for the development of their economies. Unfortunately, in a short time, the dream turned into a “nightmare” and finally financial crises came true back to back and they spread all over the world with the domino effect. In this article, relationship between the globalization, international capital inflows and the financial crises which increased a lot parallel to improvement of globalization will be discussed. Beside the destructive effects of financial crises on economies, some financial policies to protect from the crises will be suggested.

Shari'ah-Based Financial Intermediation

2020 ◽  
pp. 834-853
Author(s):  
Abdulazeem Abozaid
Keyword(s):  
Financial Institutions ◽  
Financial Crises ◽  
Financial Intermediation ◽  
Economic Effects ◽  
Islamic Finance ◽  
The Core ◽  
Banking Business ◽  
Institutional Finance ◽  
Economic Risks

Financial intermediation is the core of the banking business, as its role is to mediate between the owners of surplus funds and those in need of finance, sharing the generated profit with the funds' owners. However, financial intermediation does involve some economic risks in terms of concentration of debt in financial institutions and the possibility of the inability of financed clients to repay their debts. When this happens, financial crises are inevitable, as it occurred in 2008. Islamic finance does not differ in this regard from its traditional counterparts, because the concentration of debts also holds on the concept of Islamic institutional finance, and the possibility of collective default is possible as well. The study treats the issue of financial intermediation and its risks from Maqasidi aspect using home finance as a point of comparison between conventional home finance with Islamic home finance in terms of their economic effects. The study eventually proposes a model for home financing that is free of these cautions.

scholarly journals Analysis on the Impact of Short-Term International Capital Flows on Chinese Stock Market on the Basis of VAR Model

2018 ◽  
Vol 10 (8) ◽  
pp. 77
Author(s):  
Ning Wu
Keyword(s):  
Stock Market ◽  
Capital Flows ◽  
Composite Index ◽  
International Capital Flows ◽  
Capital Inflows ◽  
Var Model ◽  
Chinese Stock Market ◽  
International Capital ◽  
Short Term ◽  
The Impact

With the continuous development of global economic integration and financial markets, international capital flows more and more frequently, the frequent flow of international capital will inevitably affect the yield of Chinese stock market. This article uses short-term international capital inflows SS and Shanghai composite index R as research objects. Based on monthly data from January 2002 to October 2017, VAR model was constructed using Eviews8.0 to study the impact of short-term international capital flows on Chinese stock market. Empirical studies have found that short-term international capital flow is the granger cause of changes in the Shanghai composite index yield, while the yield of Chinese stock market will not affect short-term international capital flows. At the end of this paper, relevant suggestions are put forward according to the conclusions.

scholarly journals The Effectiveness and Sustainability of the Sterilization Policy in China

2014 ◽  
Vol 2014 ◽  
pp. 1-14 ◽  
Author(s):  
Chien-Ping Chung ◽  
Jen-Te Hwang ◽  
Chieh-Hsuan Wang
Keyword(s):  
Monetary Policy ◽  
Capital Mobility ◽  
Housing Price ◽  
Monetary Authority ◽  
Capital Inflows ◽  
International Capital ◽  
Foreign Exchange Reserves ◽  
Monetary Authorities ◽  
The Status ◽  
Almost All

The aim of this paper is to examine the sterilization policy in China. First, several indices are used to measure the status of China’s markets and to determine effectiveness and sustainability of the sterilization policy and the possible impacts it may have induced. Second, within a microeconomic framework, we incorporate the housing price variable into the target loss function of the monetary authority to explore its financial capabilities and evaluate the effectiveness and sustainability of China’s sterilization policy. The empirical results show that Chinese monetary authorities sterilize almost all of the effects of international capital inflows and increase foreign exchange reserves on the monetary base. That is, increased capital mobility does not sabotage the independence of the Chinese monetary policy. Nevertheless, analyses of the sustainability of sterilization policy indicate that the sustainability of the monetary sterilization policy has been seriously challenged since March 2008, which suggests that Chinese monetary authority has endured tremendous pressure for unsustainable sterilization.

scholarly journals The Impact of International Capital Flows on Jordan’s Economic Growth

2019 ◽  
pp. 214-220
Author(s):  
Basem M. Lozi ◽  
Mamoun Shakatreh
Keyword(s):  
Economic Growth ◽  
Capital Flows ◽  
Time Series Data ◽  
Developed Countries ◽  
International Capital Flows ◽  
Capital Inflows ◽  
Series Data ◽  
International Capital ◽  
The Government ◽  
The Impact

The aim of this study is to examine the impact of international capital flows on the economic growth in Jordan during the period from 2005 to 2017, The study also examines trends and composition of capital inflows. The study used descriptive analytical research method which was appropriate for the purpose of research. By using time series data, the study found that Foreign Direct Investment (FDI), foreign portfolio investment (FPI), grants (Gr) and Worker remittances (WR) are positively affecting the economic growth direct contribution. Based on the research results, the study came with a several recommendations, the most important recommendation is; the government of Jordan should create and relax the rules and regulations to attract more investors, and also the government should work hand in hand with the developed countries to create economic and employment opportunities, improve the country’s competitiveness, and expand growth within the private sector so that everyone in Jordan has the opportunity to contribute to a brighter future.

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