دانلود کتاب Handbook of Safeguarding Global Financial Stability: Political, Social, Cultural, and Economic Theories and Models

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Front Cover
Handbook of Safeguarding Global Financial Stability: Political, Social, Cultural, and Economic Theories and Models
Copyright
Editor-in-Chief
Section Editors for this volume
Section Editors for related volumes
Contents
Preface
Contributors
Section I: Political Economy of Financial Globalization
Chapter 1: China and Financial Globalization
Introduction
A Brief History of China\'s Financial Opening
China\'s Current Account and Saving Behavior in Cross-Country Context
Explanations for China\'s High Saving
Financial Development and Corporate Finance in China
Household Behavior
Government Saving
Financial Globalization and China\'s High Saving
Conclusion
See also
Acknowledgments
Glossary
Further Reading
Chapter 2: Emerging Markets Politics and Financial Institutions
Introduction
Analytical Framework
Testing the Abiad-Mody Results on a Wider Sample
Differing Influences, Across Types of Countries and Types of Reform
Advanced Versus Nonadvanced Economies
Domestic Financial Reform Versus Opening up the Capital Account
Conclusion
Appendix
References
Chapter 3: The Political Economy of Exchange-Rate Policy
Introduction
Economic Explanations of Exchange-Rate Policy: Important but Insufficient
Preferences: The Demand for Exchange-Rate Policy
Sectors
Policymakers´ Beliefs and Ideas
Extensions to the Sectoral Model
Level of Standardization
Reliance on Imported Inputs
Structure of Firms´ Balance Sheets
Partisan Preferences on Exchange-Rate Policymaking
Voters
Institutions and Exchange-Rate Policy
Democracy
Elections
Electoral System
Number of Veto Players
Central Bank Independence
Conclusion
See also
Glossary
Further Reading
Chapter 4: Financial Institutions, International and Politics
Introduction
Intellectual Background
International Financial Institutions: How Much Autonomy?
International Financial Institutions: Effects
Conclusion
See also
Glossary
Further Reading
Relevant Websites
Chapter 5: Political Economy of Foreign Aid, Bilateral
Political Economy of Aid Disbursement
With a Little Help from My Friends
Empirically Speaking
Does it Matter that Aid Allocation is Political?
Political Economy of Aid Receipt
Capital to the Capitol
Spending Hard-Earned Aid
It\'s the Economy, Stupid
Making Good
Taking the Politics Out of Aid Allocation
Saving Aid from Itself, or, Taking the Politics Out of Aid Receipt and Disbursement
Conclusion
References
Chapter 6: Interest Group Politics
Political Economy Models of Economic Integration
Interest Groups
Domestic Capital (Business Owners)
Labor
Land Owners
Domestic Financial Intermediaries
Distributional Implications of Financial Globalization
The Political Economy of Financial Globalization in Authoritarian Regimes
MNCs as Actors
Conclusion
See also
Glossary
Further Reading
Chapter 7: International Conflicts
International Conflict
Financial Globalization Promotes Peace
Economic freedom
Skeptics of Financial Globalization
Ambiguous Conclusions for Peace/War
The ambiguous consequences of financial upheaval
The Effect of War on Financial Integration and Markets
Civil War and Domestic Conflict
Finance and Peace
Scholarship with Implications for the Study of War and Peace
Conclusion
Further Reading
Chapter 8: The Political Economy of International Monetary Policy Coordination
Introduction
The Potential Gains from International Coordination
The Problem: Exchange Rate Externalities
Exchange Rate Coordination: Motivation and Modalities
Conclusion
See also
Glossary
Further Reading
Section II: Theoretical Perspectives on Financial Globalization
Chapter 9: Theoretical Perspectives, Overview
Introduction
Net Capital Flows and the Current Account
Gross Capital Flows and the Structure of International Balance Sheets
Capital Flows and Crises
Exchange Rates as Asset Prices
Financial Globalization and the Policy Environment
Conclusions
See also
References
Chapter 10: Capital Mobility and Exchange Rate Regimes
Origins and Representation of the Policy Trilemma
Dynamics of Exchange Rate Regimes in the Modern Era
Capital Mobility in the Modern Era
Evidence on the Policy Trilemma
Other Economic Effects of the Exchange Rate Regime
Exchange Rate Regimes and Inflation Performance
Fixed Exchange Rates and Trade
Conclusion
See also
Glossary
References
Chapter 11: Microstructure of Currency Markets
Introduction
Currency Trading Models
Features of the FX Market
The Portfolio Shifts Model
Overview
Equilibrium
Empirical Evidence
From Micro to Macro
A Micro-Based Model
Overview
Equilibrium
Empirical Evidence
Micro Perspectives on Exchange Rate Puzzles
The Disconnect Puzzle
The News Puzzle
Conclusion
Glossary
Further Reading
Chapter 12: Intertemporal Approach to the Current Account
Introduction
Intertemporal Theories
A Simple Theory with Two Periods and No Uncertainty
A Basic Stochastic Case with an Infinite Horizon
More General Theoretical Cases
Empirical Relevance of the Theory and its Implications
Present-Value Tests
Implications for Current Account Experience
Conclusion
See also
Glossary
Further Reading
Chapter 13: Endogenous Portfolios in International Macro Models
Introduction
A Simple Example Model
General Properties of Approximate Solutions
Mathematical Foundations
Applications
Home Bias
Valuation Effects and Current Account Imbalances
Global Imbalances and Emerging Market Portfolios
Monetary Policy and Financial Globalization
Conclusion
See also
Glossary
References
Chapter 14: Financial Contagion
Introduction
Bank Balance Sheet Adjustments as a Channel of Contagion: The International Financial Multiplier
Financial Contagion Through Interbank Linkages
Bank Runs and Self-Fulfilling International Crises
See also
Glossary
Further Reading
Relevant Websites
Chapter 15: Financial Development and Global Imbalances
Introduction
Financial Globalization and Financial Underdevelopment: Stylized Facts
Explaining Global Imbalances: Financial Globalization with Financial Underdevelopment
Mendoza et al. (2009)
Quantitative findings, extensions, and robustness
Cabellero et al. (2008)
Other Contributions with Market Incompleteness
Consequences of Global Imbalances
Welfare
Imbalances as a Source of Crisis
Imbalances as a Mechanism for Amplification and Contagion of Crisis
Global Imbalances with Cross-Country Heterogeneity in Growth
Conclusions
References
Chapter 16: Foreign Currency Debt
Introduction
Risks of Foreign Currency Debt
Reasons for Holding Foreign Currency Debt
Development of Local Bond Markets
Conclusion
References
Chapter 17: International Trade and International Capital Flows
Introduction
Specialization and Capital Flows
The `Composition Effect´
Implications
Trade and Capital Flows with Frictions
Conclusion
Glossary
References
Chapter 18: International Macro-Finance
Introduction
The Workhorse Model
Log-Linear Preferences
Remark 1
Single consumption good
Remark 2
Real exchange rate
Log-Linear Preferences with Demand Shocks
Assumption 1
(Home bias in consumption): aH(1-aF)-aF(1-aH)>0
Next Steps
See also
References
Chapter 19: Monetary Policy and Capital Mobility
Introduction
Growth in International Capital Mobility and Monetary Policy
Measures of Capital Mobility
Global Imbalances
Convergence in Yields
Monetary Policy Responses
Arguments for Improved Monetary Policy Under Increased Capital Mobility
Increased International Asset Substitutability
Increased Wage and Price Flexibility
Reduced Public Pressure for Output Stabilization
Theoretical Arguments for Reduced Monetary Policy Quality
Reduced Policy Effectiveness
Increased Exposure to Global Shocks
Empirical Evidence
Conclusion
See also
Glossary
References
Chapter 20: Theory of Sovereign Debt and Default
Introduction
Why Do Countries Repay Their Debts?
Sovereign Immunity, Legal Sanctions, and Direct Punishments
Restrictions on Financial Market Access
Domestic Costs of Default
Why Do Countries Borrow So Much?
A Benchmark Model
Evaluating and Extending the Benchmark Model
Policy and Welfare
Rollover Risk and Self-Fulfilling Debt Crises
Debt Dilution and the Maturity of Sovereign Debts
Collective Action Problems in Debt Restructuring
Conclusion
See also
Glossary
Further Reading
Chapter 21: Tax Systems and Capital Mobility
Introduction: Implications of Globalization for Tax Systems
National Taxation and International Mobility
Residence-Based Taxation
Destination-Based Taxation
Source-Based Taxation
International Tax Coordination
Summary and Conclusions
Further Reading
Chapter 22: Trade Costs and Home Bias
Introduction
The Equity and Consumption Home Biases: Facts and Figures
The Equity Home Bias
The Consumption Home Bias and the Size of Trade Costs
Equity and Consumption Biases: Are they Empirically Related?
Why Investors Would Hold Different Equity Portfolios?
Home Bias in Equities and the Hedging of Real Exchange Rate Risk
From Partial Equilibrium ...
...To General Equilibrium
Are Equities Empirically a Good Hedge against Real Exchange Rate Fluctuations?
Home Bias in Equities and the Hedging of Nontradable Risk
The International Diversification Puzzle is Worse than we Think...
Or Better Than We Think...
Trade Costs and Portfolio Home Bias: Alternative Stories
The Role of Expropriation/Sovereign Risk
The Role of Information and Behavioral Biases
Conclusion
Acknowledgments
References
Chapter 23: Explaining Deviations from Uncovered Interest Rate Parity
Introduction
Risk Premium with Representative Investors
Limited Participation
Deviations from Rational Expectations
Conclusion
References
Chapter 24: Valuation Effects, Capital Flows and International Adjustment
Introduction
Financial Globalization and Valuation Effects
Stock and Flows in External Accounts
The Drivers of Net Foreign Assets
Yield and Return Differentials
International Portfolio Choice and Adjustment in Theory
Modeling Financial Integration
Portfolio Choice and Capital Flows
Valuation Gains and External Adjustment
Interpretation of the External Accounts
Concluding Remarks
See also
Glossary
Further Reading
Section III: Safeguarding Global Financial Stability
Chapter 25: Safeguarding Global Financial Stability, Overview
Financial Stability
Establishing and Maintaining Financial Stability
Crisis Management and Avoidance
Global Approaches
Other Issues
See also
References
Chapter 26: Resolution of Banking Crises
Introduction
The 2007-09 Global Crisis: A Synopsis
Which Countries Had a Systemic Banking Crisis in 2007-09?
Policy Responses in the 2007-09 Crises: What Is New?
How Costly Are the 2007-09 Systemic Banking Crises?
Concluding Remarks
Appendix
Glossary
Acknowledgment
References
Chapter 27: Advantages and Drawbacks of Bonus Payments in the Financial Sector
Introduction
Principal-Agent Theory: Why Bonuses may be Beneficial
Why Ideal Contracts may well be Unavailable
Implications for Contracts in the Financial Sector
Assessing the Case for Profit-Related Pay
Are Financial Sector Bonuses Actually Deserved?
Arguments Against Restricting Financial Sector Bonuses
Some Technical Difficulties
Some Specific Practical Problems with Bonuses
Implementation
Concluding Comments
References
Chapter 28: Central Banks Role in Financial Stability
Introduction
The Broader Monetary and Financial Framework
Financial Stability: National or International?
Single Country Model of Bailout
Multicountry Model of Bailout
Financial Stability Framework
Assessment
Preventive and Remedial Action
Private sector solutions
Liquidity support measures
Public intervention tools
Winding down
Financial Stability Functions of Central Banks
Financial Stability Boards
Financial Stability Oversight Council
European Systemic Risk Board
But Financial Stability Tools are Needed
Information Challenge
Conclusion
References
Chapter 29: Organization, Supervision and Resolution of Cross-border Banking
Introduction
The Nordea Case
Subsidiary and Branch Organizations in Theory and Practice
Organization of Supervision and Crisis Management: Can National Responsibility Be Effective?
Conclusions: Need for Reform of the Architecture for Supervision and Crisis Management
References
Chapter 30: Dynamic Provisioning to Reduce Procyclicality in Spain
Introduction
The Housing Boom and Bust in Spain
The Introduction of Dynamic Provisions in Spain
How Was the System Expected to Work?
How Did the System Work?
Measures Introduced During the Crisis
Comparison with Other Countries: Peru and Colombia
Conclusions
See also
Glossary
Further Reading
Chapter 31: Varieties of European Crises
Introduction
A Brief Overview of the Varieties of Financial Crises with Illustrations from Europe
Currency Crises
Banking Crises
Sovereign Debt Crises
Different Models of Currency Crises
The Crises of the European Monetary System 1992-93 and Nordic Banking Crises
Nordic Banking and Currency Crisis
Europe in the Global Financial Crisis 2007-09
Financial Crisis 2007-09
Effects on Central and Eastern Europe
Sovereign Debt Crisis 2010
The Inadequacy of the Official Responses to the Crisis
Concluding Remarks; Lessons from European Crises
See also
References
Chapter 32: The Financial Sector Assessment Program
Origins of the International Monetary Fund/World Bank Financial Sector Assessment Program
The Objectives of the FSAP
How is the Program Doing?
The Program\'s First Decade: Milestones and Country Participation
Program Milestones
Country Participation in the FSAP
Areas of Assessment
Indicators of Financial Structure, Soundness and Development (Handbook Chapter 2)
Assessing Financial Stability (Handbook Chapter 3)
Assessing Financial Structure and Financial Development (Handbook Chapter 4)
Evaluating Financial Sector Supervision: Banking, Insurance, and Securities Markets (Handbook Chapter 5)
Assessing the Supervision of Other Financial Intermediaries (Handbook Chapter 6)
Rural and Microfinance Institutions: Regulatory and Supervisory Issues (Handbook Chapter 7)
Assessing the Legal Infrastructure for Financial Systems (Handbook Chapter 9)
Standards Assessments in the FSAP
The Conduct of an Assessment
FSAP Team Composition
Interactions with Country Counterparts
Stress Testing Approaches
Documents of the FSAP and Their Publication
Glossary
Further Reading
Relevant Websites
Chapter 33: Financial Sector Forum/Board
Establishment of the Financial Stability Forum
Initial Work
Establishment of Three Working Groups
Highly Leveraged Institutions (HLIs)
Short-Term Capital Flows
Offshore Financial Centers
International Supervisory and Regulatory Standards
First Decade
Working Model
Expansion of Membership
Main Messages
Financial Crisis in 2007 and Aftermath
Relationship to the IMF
From Financial Stability Forum to Financial Stability Board
Expansion to G-20
Mandate and Structure of the Financial Stability Board
Recent Developments
Key Areas of FSF/FSB Interest
Early Warning Exercise
Evaluation of Role of FSF
Chapter 34: Financial Stability and Inflation Targeting
Introduction
The Separation of Monetary and Financial Policy
Does Price Stability Promote Financial Stability?
Does Price Stability Guarantee Financial Stability?
Does IT Constrain the Response to Financial Crises?
New Directions Following the 2007-09 Crisis
See also
Further Reading
Chapter 35: Financial Supervision in the EU
Introduction
Prudential Supervision
Conduct of Business
Protecting Retail Customers
Market Functioning
Supervisory Structures
New European Financial Supervisory Framework
European Supervisory Authorities
European Systemic Risk Board
Assessment
Conclusions
References
Chapter 36: Groups: G-5, G-7/8, G-10, G-20, and Others
Introduction
A Short History of `G´ Group Cooperation
Existing `G´ Group Scholarship
Why Do Governments Participate in `G´ Groups?
`G´ Group Functions
Conclusions: The G20 and Political Conflict
See also
Glossary
Further Reading
Relevant Websites
Chapter 37: Market Structures and Market Abuse
Introduction
Regulatory Rationale of Market Abuse Laws
Market Developments: Technology and Regulation
United Kingdom\'s Market Abuse Regulation and Markets
Advanced Trading Techniques and Market Abuse
Reforming the EU MAD
Conclusion
Glossary
Further Reading
Chapter 38: Development and Evolution of International Financial Architecture
Introduction
Metallic Standards
What Did Gold Provide?
Interwar
War and Redesign
Bretton Woods
Post-Bretton Woods
Conclusion
See also
Glossary
Further Reading
Chapter 39: On the Role of the Basel Committee, the Basel Rules, and Banks\' Incentives
Introduction
The Evolving Role of the Basel Committee on Banking Supervision
Basel Capital Requirements as Essential but not Sufficient Regulatory Tool
From Basel I to Basel III: What Has Changed?
Basel I: The First Step Toward Banking Regulation
Basel II and Basel III: Does a Flexible and Sophisticated Approach to Banking Regulation Regulate Banks´ Incentives?
What are the Unresolved Flaws of Basel Regulations?
Basel Regulation, Incentives, and Role of Pillars 2 and 3
References
Chapter 40: International Monetary Fund
Introduction
The Fund in June 2011
The Legal Foundation
The Articles of Agreement
Sources of IMF Funds
Voting
Borrowing
Using the Fund\'s Resources
Financing (loans, grants, and debt relief)
Concessional lending and debt relief
The financing process
Conditionality reforms
Loan subsidies
Financing the fund\'s own operations
Other fund activities
Criticisms of the IMF
Financing in Crises
Moral hazard from bailing out private creditors
Bad medicine
Global Imbalances and Surveillance
The mutual assessment process
Freedom of Capital Movements
Governance, Legitimacy, and Accountability
Not Foreseeing and Forestalling Crises
Conclusions and Recommendations
See also
Acknowledgments
Further Reading
Relevant Website
Chapter 41: Innovations in Lender of Last Resort Policy in Europe
Introduction
Underlying Conceptual Issues
LoLR in the Euro Area under `Normal´ Market Conditions
LoLR in the Euro Area during `Exceptional Times´
Providing Liquidity to the Market as a Whole
Money markets and bank funding liquidity
Covered bond markets
Sovereign debt markets
Assessment
ELA to Individual Institutions
Concluding Remarks
See also
References
Chapter 42: Micro and Macro Prudential Regulation
What Is Macroprudential Regulation?
Macroprudential Regulation and the Cycle
The Cycle and the Political Economy of Macroprudential Regulation
Countercyclical charges and buffers
Can the cycle be measured?
Valuation and Mark-to-Funding Accounting
Macroprudential Regulation Beyond the Cycle
Risk Capacity
Too Big to Fail
Complexity: Financial Instruments and Systemic Risk
Incentives and Remuneration
Host- and Home-Country Regulation
Conclusion
Glossary
References
Chapter 43: Role and Scope of Regulation and Supervision
Key Issues
Opening Perspective
Rationale of Regulation and Supervision
Costs of Instability
Objectives of Regulation: Strategic Versus Incremental
Instruments in a Regulatory Regime
Eight Types of Measures
Regulatory Strategy: Two Strategic Approaches
Reducing the Probability of Failures
Structural Regulation
Glass-Steagall Approach
Narrow Banks
Equity Banks
Behavioral Regulation
Connectedness
Intervention
Minimizing the Cost of Bank Failures
Structural Measures
TBTF and the Size Issue
Systemically Important Banks
Taxation and Insurance
Taxation
Insurance
Resolution Arrangements
Living Wills
Summary of the Argument
Further Reading
Chapter 44: Independence and Accountability of Regulatory Agencies
Introduction
Independence and Accountability in Theory
Lack of Independence Worsens Financial Crises
The Example of Central Bank Independence
Four Dimensions of Independence
Critics of Agency Independence
Ensuring Accountability
Independence and Accountability in Practice
Making Regulatory Independence and Accountability Operational
The Importance of the Political Framework
The Institutional Structure of Regulation
Empirical Work on Independence and Accountability
References
Chapter 45: Institutional Structures of Regulation
Introduction
Institutional Structures of Supervision
Institutional Regulation
Functional Regulation
A Mixed System: The United Kingdom Pre-1997
Integrated Regulation
Twin Peaks
The Role of the Central Bank
Macroeconomic Policy and Banking Supervision
Macroprudential Supervision
Crisis Management Arrangements
Concentration of Power, Independence, and Accountability
References
Chapter 46: Organizations of International Co-operation in Standard-Setting and Regulation
International Financial Regulation
International Financial Standards and Standard-Setting Organizations
Policy Direction
Coordination
Financial Stability Forum/Financial Stability Board
Bank for International Settlement
Key Standards for Sound Financial Systems
Process of Standard Setting
International Standard-Setting Organizations
IFIs and Other Formal International Organizations
International Monetary Fund
World Bank
Bank for International Settlements
Organization for Economic Cooperation and Development
International Financial Organizations
Regulatory Standard-Setting Organizations
Basel Committee
International Organization of Securities Commissions
International Association of Insurance Supervisors
Financial Action Taskforce
International Association of Deposit Insurers
International Organization of Pensions Supervisors
Islamic Financial Services Board
OTC Derivatives Regulators\' Forum
Central Bank Organizations: CPSS and Committee on the Global Financial System
Professional Groups: IASB and International Federation of Accountants
Market Associations: International Swaps and Derivatives Association, International Capital Markets Association, Loan Market As
Expert Groups
Legal Groups
Implementation and Monitoring
References
Chapter 47: Prevention of Systemic Crises
How the Financial System should be Structured
How the Financial System should be Regulated
Harmonization
Cooperation
How Prudence can be Encouraged
How Crisis Resolution Tools can Contribute to Prevention
See also
Glossary
Further Reading
Relevant Websites
Chapter 48: Lines of Defense Against Systemic Crises: Resolution
International Efforts to Promote Effective Resolution Regimes
FSB Policy Measures to Reduce Moral Hazard Risks
A New International Standard for Resolution Regimes
Building Cross-Border Cooperation
Corporate Insolvency
National and Regional Initiatives
Objectives of Resolution
Corporate Failures
Financial Failures
Cross-Border Failures
A Special Resolution Regime for Banks and Other Financial Institutions
Resolution Regimes as Key Component of the Financial Safety Net
Features of a Special Resolution Regime: The `FSB Key Attributes´
Scope
Resolution Authority
Resolution Powers
Set-off, Netting, Collateralization, and Segregation of Client Assets
Safeguards
Funding of Firms in Resolution
Legal Framework Conditions for Cross-Border Cooperation
Crisis Management Groups (CMGs)
Institution-Specific Cross-Border Cooperation Agreements
Resolvability Assessments
Recovery and Resolution Planning
Access to Information and Information Sharing
Conclusion
Remaining Challenges
Promoting Effective Implementation of the New International Resolution Standard
Further Reading
Index