International Lenders’ and Investors’ Behaviour: What the Markets Tell Us We Didn’t Know

Do We Know What We Do not Know? A Response to Celine Bonnet

Embracing Change with Extreme Programming

0018-9162/99/$10.00 © 1999 IEEE 70 Computer I n the beginning was the waterfall (Figure 1a). We would get the users to tell us once and for all exactly what they wanted. We would design the system that would deliver those features. We would code it. We would test to make sure the features were delivered. All would be well. All was not well. The users didn’t tell us once and for all exactly what...

What Macroeconomic Risks Are (not) Shared by International Investors?

Adopting an asset-market view of international risk sharing, we identify various sources of macroeconomic risk faced by international investors using a structural Vector Autoregression model. We find that most of the risk of exogenous financial market shocks are shared by international investors through the existing asset markets. However, other macroeconomic risks such as those associated with...

The Effect of Derivative Instruments on the Contagion of Stock Markets in Developing Countries

The 2008 Great Financial Crisis increased the fluctuations in the stock market in the US and other countries that were linked together through various channels. In this regard, derivative instruments, as one of the main elements of the world's financial markets, had an essential role in reducing the stock market fluctuations and contagion of the crisis. The primary purpose of this study is to e...

Global private information in international equity markets

This paper studies international equity markets when some investors have private information that is valuable for trading in many countries simultaneously. We use a dynamic model of equity trading to show that global private information helps explain US investors’ trading behavior and performance. In particular, the model predicts global return chasing (positive co-movement of US investors’ net...