Found 170 article(s) for author 'Financial Crisis'

Jordan: The Elements of a Growth Strategy

Jordan: The Elements of a Growth Strategy. Ricardo Hausmann, Tim O’Brien, Miguel Angel Santos,  2019, Paper, “In the decade prior to the global financial crisis of 2008-2009, Jordan enjoyed a period of impressive macroeconomic performance. The prolonged expansion was export-led, with total exports of goods and services tripling over that period. The boom was not only due to better prices for Jordan’s exports, as there were also significant gains in global market share of Jordan’s garment, agriculture and chemical exports. Throughout these years, the country ran large current account deficits that were largely financed by massive inflows of foreign direct investment (FDI) coming from the United Arab Emirates, United States, India, Bahrain and Saudi Arabia. By 2009, the size of total public debt was moderate, at 55% of the size of the economy. The Global Financial Crisis of 2008-2009 and a series of subsequent negative external shocks affected Jordan in significant ways, throwing its economy out of balance. Conflict in neighboring countries led to reduced demand from key export markets and cut off important trade routes. FDI, which averaged 12.7% of gross domestic product (GDP) over the period 2003-2009, fell to 5.1% of GDP over the period of 2010-2017. At the same time, they brought a massive wave of migrants and refugees, resulting in a net population increase of 50.4% between 2008 and 2017.Link

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Behind the Scenes with Harvard’s Martin Feldstein

Behind the Scenes with Harvard’s Martin Feldstein. Martin Feldstein, February 27, 2019, Audio, “Bloomberg Surveillance’s Tom Keene sits down with Harvard University George F. Baker Professor of Economics Martin Feldstein to discuss his work in Washington with President Reagan, the importance of introductory economics courses, and his time as an undergraduate at Harvard University.Link

 

 

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What Green New Deal advocates can learn from the 2009 economic stimulus act

What Green New Deal advocates can learn from the 2009 economic stimulus act. Joseph Aldy, February 15, 2019, Opinion, “Congressional Democrats have introduced a “Green New Deal” proposal that calls for a 10-year national mobilization to curb climate change by shifting the U.S. economy away from fossil fuels. Many progressives support this idea, while skeptics argue that a decade is not long enough to remake our nation’s energy system.Link

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Financial Stability in Abnormal Times

Financial Stability in Abnormal Times. Kenneth Rogoff, February 5, 2019, Opinion, “Despite improvements in the financial system since the 2008 crisis, the piecemeal reforms that have been enacted fall far short of what is needed. And an inexorably growing financial system, combined with an increasingly toxic political environment, means that the next major financial crisis may come sooner than you think.Link

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The next financial crisis may come soon – are we all that safe?

The next financial crisis may come soon – are we all that safe? Kenneth Rogoff, February 5, 2019, Opinion, “A decade on from the 2008 global financial crisis, policymakers constantly assure us that the system is much safer today. The giant banks at the core of the meltdown have scaled back their risky bets, and everyone – investors, consumers, and central bankers – is still on high alert. Regulators have worked hard to ensure greater transparency and accountability in the banking industry. But are we really all that safe?Link

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Corporate Debt, Firm Size and Financial Fragility in Emerging Markets

Corporate Debt, Firm Size and Financial Fragility in Emerging Markets. Laura Alfaro, January 2019, Paper, “The post-Global Financial Crisis period shows a surge in corporate leverage in emerging markets and a number of countries with deteriorated corporate financial fragility indicators (Altman’s Z-score). Firm size plays a critical role in the relationship between leverage, firm fragility and exchange rate movements in emerging markets. While the relationship between firm-leverage and distress scores varies over time, the relationship between firm size and corporate vulnerability is relatively time-invariant. All else equal, large firms in emerging markets are more financially vulnerable and also systemically important. Consistent with the granular origins of aggregate fluctuations in Gabaix (2011), idiosyncratic shocks to the sales growth of large firms are positively and significantly correlated with GDP growth in our emerging markets sample. Relatedly, the negative impact of exchange rate shocks has a more acute impact on the sales growth of the more highly levered large firms.Link

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Rogoff Says World Lacks an `A-Team’ to Deal With a New Financial Crisis

Rogoff Says World Lacks an `A-Team’ to Deal With a New Financial Crisis. Kenneth Rogoff, January 23, 2019, Video, “Harvard Professor Kenneth Rogoff discusses the U.S. government shutdown and the global financial industry’s preparedness for a crisis. He also discusses Brexit and China’s slowdown at the World Economic Forum’s annual meeting in Davos, Switzerland, on “Bloomberg Surveillance.” Link

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Stock Market Short-Termism’s Impact

Stock Market Short-Termism’s Impact. Mark Roe, December 2018, Paper, “Stock-market–driven short-termism is crippling the American economy, according to legal, judicial, and media analyses. Firms forgo the R&D they need, cut capital spending, and buy back their own stock so feverishly that they starve themselves of cash. The stock market is the primary cause: directors and executives cannot manage for the long term when their shareholders furiously trade their company’s stock, they cannot make long-term investments when stockholders demand to see profits on this quarter’s financial statements, they cannot even strategize about the long term when shareholder activists demand immediate results, and they cannot keep the cash to invest in their future when stock market pressure drains away that cash in stock buybacks. This doomsday version of the stock-market–driven short-termism argument entails economy-wide predictions that have not been well-examined for their severity and accuracy.Link

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Europe in ‘more trouble’ than the U.S. 10 years after great recession

Europe in ‘more trouble’ than the U.S. 10 years after great recession. Andrei Shleifer, December 4, 2018, Video, “There are signs of fragility in the economy, but Harvard Professor Andrei Shleifer the U.S. is better off today than it was in 2008. He spoke with Yahoo Finance’s Alexis Christoforous about his new book, ‘A Crisis of Beliefs: Investor Psychology and Financial Fragility’Link

 

 

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