This article describes a model of financial crisis and explores its implications for public policy. The framework nests the key features of earlier models but is better able to address international architecture questions in a welfare setting. In particular, this framework is used to assess the welfare costs of creditor coordination failure and several recent public policy proposals on reformin...

This paper calls for a fresh look at industrial policies in the light of recent trends and developments in the global economy. In particular, five new challenges and their implications for industrial policies are discussed. These have been neglected in the debate on industrial policy and include (i) the increasing globalization of the world economy, most pertinently the rise of global productio...

EGINNING WITH THE stock market crash in October 1929, the United States suffered a series of financial crises that mark the Great Depression. In each crisis, the number of bank failures and the declines in bank reserves, the money stock and economic activity were greater than in the preceding episodes. Many researchers investigating the causes of financial crises during the Great Depression hav...

Financial institutions play a key role as credit providers in the economy, and liquidity crises arise when they become credit constrained themselves. In such liquidity crises, financial institutions’ ability to borrow against their securities plays a key role, as Bagehot points out. In the private markets, it can become virtually impossible to borrow against certain illiquid securities, and, mo...

T his study investigates the impact of bank regulation on financial development in the MENA countries for the period 1995-2014. Restrictions on activity, foreign banks, and capital were used as proxies for bank regulation. Also, bank supervisory power, independence, private monitoring, and moral hazard were used as proxies for bank supervision. Liquid liabilities, private credit, and...

The main objective of this paper is to determine whether ecological tax reform paradigm that hitherto is employed by a section of industrialized countries as an instrument of environmental management has possibilities of application in developing countries. This is an imperative consideration because of possibilities of diffusion, the need to approach global environmental issues from a global p...

This paper investigates the interdependence of US dollar exchange rates expressed in other major currencies. Focusing on different phases of the Global financial crisis (GFC) and the Eurozone Sovereign Debt Crisis (ESDC), we adopt a dynamic conditional correlation model into a multivariate Fractionally Integrated Asymmetric Power ARCH (FIAPARCH) framework, during the period 2004–2011. The findi...

In less than a decade, European food institutions have gone through a period of important reform. This reform was intended to address new challenges posed by a succession of food safety crises, the entry into the world markets of novel foods, and general public distrust of the actions of the European Commission. This paper sketches the most salient institutional changes that have occurred in th...

The global financial crisis that erupted in 2008, coupled with food and fuel price volatility, are likely to affect developing countries, and within them the vast majority of the world’s poor population in profound ways. Based on both experiences in previous crises and the information that is available thus far on the current crises, this working brief will examine the channels through which th...