The need for effective safety nets and social security has been highlighted by the recent crisis in East-Asia. In other parts of the developing world or in transition economies, the large economic fluctuations, climatic shocks and natural disasters also demand further development of support systems during crises. In this paper, we discuss the role played by self-insurance (via savings) in the p...

The market forces, governance shortfalls, and a crisis of values that have led to the global financial collapse in 2009 have a frighteningly similar pattern to the collapse of hospital quality that has led to a crisis in patient care. We have stated that you cannot defy the business laws of gravityVthat quality, cost, value, speed, and trust are intrinsically interlocked and tightly coupled. Pe...

This paper provides a unified analysis for the onset of the 1998 financial crisis and the strong economic recovery afterward in Russia and other former Soviet Union countries. Before the crisis a banking failure arose owing to the coexistence of a lemons credit market and high government borrowing. In a lemons credit market low credit risk firms switched from bank to nonbank finance, including ...

The crisis originated in the bursting of a house price bubble driven by an excessive credit expansion in the US, which eventually pushed the global financial system to the brink of collapse. In some countries, such as Spain or Ireland, the crisis was further compounded by the bursting of their own housing bubbles. In this regard, the current crisis is an excellent example. Historical evidence s...

The TAF and other lending facilities established during the crisis were an experiment that proved effective in addressing severe financial turbulence. In the second half of 2007, financial turmoil swept over the U.s. and other major economies. Triggered by a subprime mortgage meltdown, the crisis quickly spread to other major financial markets and precipitated the worst economic downturn since ...

A financial crisis is typically a rare kind of an event, but it hurts sustainable economic development when it occurs. This study proposes a multiscale neural network learning paradigm to predict financial crisis events for early-warning purposes. In the proposed multiscale neural network learning paradigm, currency exchange rate, a typical financial indicator that usually reflects economic flu...

This paper deals with heterogeneous autoregressive models of realized volatility (HAR-RV models) on high-frequency data of stock indices in the USA. Its aim is to capture the behavior of three groups of market participants trading on a daily, weekly and monthly basis and assess their role in predicting the daily realized volatility. The benefits of this work lies mainly in the application of he...

International capital flows expanded strongly before the global financial crisis, and current account imbalances accumulated in key economies. The crisis triggered a contraction in capital flows, which often forced a painful adjustment on countries running high external deficits. This special issue of the Journal of International Money and Finance consists of seven papers that offer novel empir...

We present four methods of assessing the diversification potential within a stock market, and two of these are based on principal component analysis. They were applied to the Australian stock exchange for the years 2000 to 2014 and all show a consistent picture. The potential for diversification declined almost monotonically in the three years prior to the 2008 financial crisis, leaving investo...

Using one minute high-frequency data of the Shanghai Composite Index (SHCI) and the Shenzhen Composite Index (SZCI) (2007–2008), we employ the detrended fluctuation analysis (DFA) and the detrended cross correlation analysis (DCCA) with rolling window approach to observe the evolution of market efficiency and cross-correlation in pre-crisis and crisis period. Considering the fat-tail distributi...