The current international financial crisis: how much is new?

Article Abstract:

The current financial crisis affecting Asia was compared to the debt crisis of the 1980s and the Mexican financial crisis of 1994-95 and analyzed by examining various economic data for the years in which the crises occurred. While the two previous crises were due to problems in the finances of the public sector, the current crisis seems to be caused by financial imbalances in the private sector. The economic factors examined were exchange rates, industrial output, current accounts and banking sector problems. It is concluded that the current crisis has many similarities with the two previous crises than is commonly assumed.

Research, Analysis, Financial markets, East Asia, International finance, Depressions, Economic depressions

---

Testing a present-value model of the current account: evidence from US and Canadian time series

Article Abstract:

A simple model of current account determination based on the permanent-income hypothesis of private consumption is presented. It assumes a forward-looking representative national agent who can borrow and lend at a fixed world interest rate. The implications of a discrete time present-value model of the current account are tested on US and Canadian post-war figures using the framework devised by J.Y. Campbell and R.J. Shiller. The results show that the formal restrictions implied by the present-value relationship for the current account are strongly rejected by data from both countries.

Methods, Present value analysis

---

Consumption, external assets and the real interest rate

Article Abstract:

The long-term nature of external asset accumulation and consumption were examined in an intertemporal model of an economy with numerous and similar households. The model was used to study the interrelationships among consumption, income and net external assets using a maximum likelihood approach. The model gave credible results when applied to the US and Germany but not on Japan. For small economies, unsatisfactory results were attained when external assets are valued in local currencies. Satisfactory results were arrived at when assets were valued in US dollars.

Models, Usage, Interest rates, Consumption (Economics), Maximum likelihood estimates (Statistics), Maximum likelihood (Statistics)

Similar abstracts:

• Abstracts: The endogeneity of the optimum currency area criteria. Reforming the international financial system
• Abstracts: The use of knowledge in firms. Performance monitoring and financial disclosure choice. Performance measurement in multi-period agencies
• Abstracts: Learning from the Reagan deficits. Deficits: which, how much, and so what? A New View of the Federal Debt and Budget Deficits
• Abstracts: The structure of financial strategy: patterns in financial decision making. Graphical analysis and financial classification: a case study
• Abstracts: The measurement of the gains or losses to an enterprise through relative price changes: the terms-of-trade effect and real income

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.