Large global financial imbalances need not be the harbinger of a world financial crash as many authors believe. Instead, we show that large and persistent global imbalances can be the outcome of financial integration when countries have different financial markets characteristics. In particular, countries with more advanced financial markets accumulate foreign liabilities vis-a-vis countries wi...

In recent years, people have begun to pay more and more attention to the effect of news on financial instrument markets (i.e., the markets for trading financial instruments). Researchers in the financial domain have conducted many studies demonstrating the effect of different types of news on trade activities in financial instrument markets such as volatility in trade price, trade volume, tradi...

financial literacy of investors reduces uncertainty on future decisions and increases predictability of investment policies in financial markets. thus, the lack of clear information on financial markets is a determining factor in the arrival of domestic and foreign capitals and their quick exit in case of crisis. the lack of transparency and basic knowledge on decisions and failure to provide r...

he virulence of the 1998 turbulence in the mature financial markets took market participants and authorities by surprise , and some have acknowledged that they do not fully understand the rapidly changing structure and dynamics of global financial markets. 1 As last year's International Capital Markets report analyzed, a substantial buildup in derivatives credit exposures and leverage contribut...