G8-Action Plan on Local Bond Markets - Missing Follow-Up Documents

Thursday, June 26th, 2008

The overview of G8 Action Plan on Local Bond Markets lists a couple of documents that were mentioned in the implementation report to be published soon, but have not been published since: IMF: "ABS in Emerging Markets: Recent Trends and Policy Implications" Capital Markets Consultative Group (CMCG): Study about the Impediments ...

Contagion - Definition by Worldbank

Thursday, May 8th, 2008

The World Bank has a fairly comprehensive overview over different definitions of contagion and documents related to recent contagious events in the financial markets. Some excerpts: Broad Definition: Contagion is the cross-country transmission of shocks or the general cross-country spillover effects. Restrictive Definition: Contagion is the transmission of shocks to other countries or ...

Contagion - Definition by Calomiris

Thursday, May 8th, 2008

In his article on Global Financial Architecture, Charles Calomiris defines "Contagion": Correlations in asset returns are much higher across emerging market countries during crises than at other times, and even government bond yields move together to an unusual degree during financial crises. There are several explanations for this "contagion." One is ...

Trilemma in financial supervision - Schoenmaker, Oosterloo

Tuesday, April 22nd, 2008

Dirk Schoenmaker and Sander Osterloo from the Dutch Finance Ministry have written an article about Cross-border issues in European financial supervision as part of the book on the Structure of Financial Regulation by David G Mayes and Geoffrey E Wood. At the beginning of their article, they point to the fundamental ...

Intergovernmentalism in Financial Regulation

Tuesday, April 22nd, 2008

Puzzling Complexity The global financial architecture is very complex. Despite increasing liberalization of financial markets, increased system risk and integration of the economies through the financial markets in the last 30 years, there is no single World Financial Authority regulating the financial markets, as Alexander, Eatwell and Dhumale have suggested. Instead what ...

Systemic Risk - Discussion by Alexander, Eatwell, Dhumale

Thursday, April 17th, 2008

In their book "Global Governance of Financial Systems" the authors try to define the various dimensions of Systemic Risk. The CMAP (click on the picture to see the full picture) outlines the main concepts that the authors introduce. Systemic risk is defined as... a negative externality that imposes costs on society ...