India is much more integrated with the world economy. Both current and capital accounts are complementing to each other. The economic slowdown that appears to have begun in the USA in September, 2008 has some negative impact on Indian economy. The most immediate and adverse effect of this global financial crisis on India is an out flow of Foreign Institutional Investment (FII) from the capital ...

A migraine attack, a banking crisis or the point of no return for climate change; all these seemingly different phenomena have at least one important thing in common. They suppose the transition from one stable state to another. The climate or the banking system may seem stable and capable of withstanding small or large crises. However, they can deteriorate progressively until reaching a point ...

The recent global financial tsunami (2007 – present) has swiped the whole world with disastrous consequences, leading to the bankruptcy of major banks, trillions of dollars in economic rescues, and major national economic failures. Unlike previous financial crisis, one major driver of this crisis is the contagious failures of banks through a network of interbank payments and correlated bank por...

one of the necessary preconditions to the establishment and stability of optimal currency area is the homogeneity of the economic structure in member states. but place with eurozone currency crisis, the question arises whether the economic structure of the eurozone countries were homogeneous? accordingly, this study by using an econometrics model and estimating it by panel data method, has been...

The potential fraud problems, international economic crisis and the crisis of trust in markets have affected financial institutions, which have tried to maintain customer trust in many different ways. To maintain these levels of trust they have been forced to make significant adjustments to economic structures, in efforts to recoup their investments and maintain the loyalty of their customers. ...

The crisis recovery program in Indonesia has failed badly in relation to the two key objectives of development economics policy-making: efficiency and equity. The economy went into a very severe recession within a few months of the IMF appearing on the scene, and five years later output was still only at approximately the pre-crisis level. The collapse of the banking system and the associated b...

Threats on the stability of a financial system may severely affect the functioning of the entire economy, and thus considerable emphasis is placed on the analyzing the cause and effect of such threats. The financial crisis in the current and past decade has shown that one important cause of instability in global markets is the so-called financial contagion, namely the spreadings of instabilitie...

Turkish economy experienced collapse of the banking sector. as that collapse, the reasons behind it have never been explored. Hence, this paper attempts to analyze the deeper aspects of the developments that failure of the financial sector. In this respect, the main claim of the study is that the 2001 Crisis has its tap policies led particularly to corruption in private banks as well as public ...

The Interactions between Debt and Currency Crises – Common Causes or Contagion? In contrast to the well-known twin currency and banking crises the literature has so far neglected a second type of twin crises, the simultaneous occurrence of currency and debt crises. The decision of a government to devalue and/or to default is closely interlinked through the government’s intertemporal budget cons...

In this paper I add heterogeneous agents and risk-sharing opportunities to a coordination game which represents deposit withdrawals from the banking system. I find that heterogeneity in risk aversion within the population amplifies the effect of the business cycle on the probability of a bank run. In particular, risk-sharing enhances the likelihood of bank runs during bad times. The novel insig...