This paper studies the effectiveness of Euro Area (EA) fiscal policy, during the recent financial crisis, using an estimated New Keynesian model with a bank. A key dimension of policy in the crisis was massive government support for banks—that dimension has so far received little attention in the macroeconomics literature. We use the estimated model to analyze the effects of bank asset losses, ...

Most analyses of the East Asian financial crisis have focused on its causes and the links between currency and banking crises. However a related question is what happens in the aftermath of a crisis? What factors determine the path of an economy in the post-devaluation phase? Does it swiftly bounce back, with the crisis being followed by a period of economic recovery, or does it face a period o...

Bank crises are usually the result of dramatic swings in the value of assets held by the banking system. When asset values fall relative to liabilities, banks net worth is eroded, resulting in crisis. Minsky (1977) argues that such asset devaluations are a normal feature of the business cycle in market economies. As confidence builds during the business cycle, more and more agents engage in spe...

The global financial crisis has brought to an end a rather unprecedented period of banks’ international expansion. We analyze the effects of the crisis on international banking. Using a detailed dataset on the international assets of all German banks with foreign affiliates for the years 2002-2011, we study bank internationalization before and during the crisis. Our data allow analyzing not onl...

Islamic banking is one the most blossoming doctrine in economic system of the world. The Fast growing awareness about Islamic financial system has brought strong feeling to Muslims to confront the western interest-based economic cycle. The Islamic economic system is emerging as a reliable alternative to the interest based system. This study is proposed to ascertain the motivational factors enco...

The author provides an overview of electronic cash, discussing the technology of this new medium of payment, the financial costs and benefits of moving to electronic cash, and the issue of consumer acceptance. An appendix explores the relationship between counterfeiting and electronic cash. This article explores the root problems that have led to the crisis in Japanese banking and what is being...