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2541. The Inefficiency of Clearing Mandates

Author:
Craig Pirrong
Publication Date:
07-2010
Content Type:
Working Paper
Institution:
The Cato Institute
Abstract:
In the aftermath of the financial crisis, attention has turned to reducing systemic risk in the derivatives markets. Much of this attention has focused on counterparty risk in the over-the counter market, where trades are bilaterally executed between dealers and derivative purchasers. One proposal for addressing such counterparty risk is to mandate the trading of derivatives over a centralized clearinghouse. This paper lays out the advantages and risks to a mandated clearing requirement, showing how, in some instances, such a mandate can actually increase systemic risk and result in more financial bailouts.
Topic:
Economics, International Trade and Finance, Markets, and Financial Crisis

2542. Beyond Flexibility and Security: A composite indicator of flexicurity

Author:
Ilaria Maselli
Publication Date:
05-2010
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
'Flexicurity' might be defined as a mix of flexible contractual arrangements, income support measures, active labour market policies and lifelong learning. The successful shift in approach of the Danish and Dutch labour markets from passive to active labour market policies, and to flexicurity, has attracted considerable attention among academics and policy-makers. The objective of this Working Document is to contribute to the debate with the creation of a composite indicator to measure flexicurity, based on the definition provided in the European Commission's Communication on Flexicurity (COM(2007)359). Our indicator confirms that preferences in the balance of flexibility and security are highly heterogeneous among countries; a finding that supports the 'pathway' approach as proposed by the European Commission. A second important conclusion is that the idea of flexibility being in favour of employers and security being in favour of employees needs to be overcome. Flexicurity is 'both for both', although it does not apply uniformly to all age groups but is two and three times greater for older and younger workers respectively.
Topic:
Economics, International Trade and Finance, and Labor Issues
Political Geography:
Europe

2543. From National to European Regulation: Towards European Financial Supervisory Authorities

Author:
H. Onno Ruding
Publication Date:
05-2010
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
Financial reform is needed now in the EU not only to reduce the likelihood of another financial crisis in the coming years but also to reinforce the internal market. A primary financial as well as political goal should be to create a truly single market in Europe for financial services and institutions. The current state of affairs is, however, still too far removed from this goal.
Topic:
Economics, Markets, and Financial Crisis
Political Geography:
Europe

2544. Towards a Euro(pean) Monetary Fund

Author:
Daniel Gros and Thomas Mayer
Publication Date:
05-2010
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
The case of Greece has ushered in the second phase of the financial crisis, namely that of sovereign default. Members of the euro area were supposed to be shielded from a financial market meltdown. But, after excess spending during the period of easy credit, several euro area members are now grappling with the implosion of credit-financed construction and consumption booms. Greece is the weakest of the weak links, given its high public debt (around 120% of GDP), compounded by a government budget deficit of almost 13% of GDP, a huge external deficit of 11% of GDP and the loss of credibility from its repeated cheating on budget reports.
Topic:
Economics, Monetary Policy, and Financial Crisis
Political Geography:
Europe

2545. Marché, bureaucratie, formes de la domination politique: Une économie politique weberienne

Author:
François Bafoil
Publication Date:
04-2010
Content Type:
Working Paper
Institution:
Centre d'Etudes et de Recherches Internationales
Abstract:
From a broad perspective, political economy analyses economic and political exchanges proper to some social groups, embedded in particular historical periods. The great innovation of Max Weber's analysis is to highlight the intersubjective orientations that support these exchanges and characterize a particular period of history. This study firstly compares different features between free market economy and the soviet-type economy. Secondly, it measures their difference in accordance to the "ideal type" of "market", bureaucracy" and "forms of domination". Finally, it insists on the particular "hybrid" figures of "charisma" and "patrimonial bureaucracy".
Topic:
Economics, Markets, Political Economy, and Political Theory
Political Geography:
Russia and Europe

2546. The G20 Framework for Strong, Sustainable And Balanced Growth: A Study in Credible Cooperation

Author:
Daniel Schwanen
Publication Date:
06-2010
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
The G20 has launched far-ranging reforms of economic governance institutions and the manner in which key economies should cooperate in the future. Its ambitious aim is not only to stabilize the world economy following the economic crisis of 2007-09, but also to anticipate and, as far as possible, prevent future crises and foster sustainable growth going forward. A central element of the promised reform is the “Framework for Strong, Sustainable and Balanced Growth,” introduced at the 2009 summit in Pittsburgh, in which the G20 agreed to accept joint and individual responsibility for the health of the global economy. By specifying the key elements of growth, agreeing to assess their policies mutually with the help of the International Monetary Fund (IMF) and other institutions and agreeing to discuss actions required in light of these assessments, the G20 leaders have launched a potentially effective vehicle for delivering on their promises.
Topic:
Economics, International Cooperation, International Organization, Monetary Policy, and Financial Crisis

2547. Improving Regional Cooperation on Water: Meeting Report of the Third Session of the Parliamentarians Network for Conflict Prevention and Human Security

Publication Date:
03-2010
Content Type:
Working Paper
Institution:
EastWest Institute
Abstract:
Climate change, economic development and population growth are changing perceptions of water and raising awareness of the growing stresses placed on the world's freshwater resources. The limited availability of water is particularly acute in regions such as the Middle East where demand already outweighs supply and neighboring states must share their main freshwater resources. Competition over dwindling and ill-managed water resources will likely increase, potentially threatening food security, health, economic development and peace in a region already struggling with ongoing conflict.
Topic:
Climate Change, Economics, Natural Resources, and Water
Political Geography:
Middle East

2548. Aligning the maritime industry towards realizing the New Economic Model aspirations

Author:
Nazery Khalid
Publication Date:
04-2010
Content Type:
Policy Brief
Institution:
Maritime Institute of Malaysia
Abstract:
Malaysia is at a crossroad. It has done well to boost economic growth, thanks to sound economic strategies and management. From being a developing nation dependent upon commodities and agriculture to power its economic growth, Malaysia is now one of the top 20 trading nations. However, it has found itself 'stuck' in so-called 'middle income trap'. The economy, while more diversified today compared to three decades ago, is still reliant upon labor intensive activities and, inevitably, cheap labor. Malaysia's vulnerability to external shocks, as seen during the recession and credit crunch, underscores the urgent need for the nation's economic planners and policymakers to take drastic actions to make the economy more robust and move it up the value chain.
Topic:
Economics, International Trade and Finance, and Maritime Commerce
Political Geography:
Malaysia and Southeast Asia

2549. The Design and Effects of Monetary Policy in Sub-Saharan African Countries

Author:
Mohsin S. Khan
Publication Date:
07-2010
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Since the 1990s there have been a number of major changes in the design and conduct of monetary policy. In a globalized environment, there is less time to adjust to shocks and greater need to achieve closer convergence of economic performance among trading partners. As a result, a number of developing countries have adopted exchange rate regimes with more flexibility, and thereby greater scope for monetary policy. Notable examples include a number of sub-Saharan African countries moving from fixed exchange-rate regimes to more flexible regimes and the adoption of formal or informal inflation targeting regimes by some of these countries. These changes have triggered considerable debate on how monetary policy should be conducted and the effects it has on the real economy.
Topic:
Economics and Monetary Policy
Political Geography:
Africa

2550. Wholesalers and Retailers in US Trade

Author:
J. Bradford Jensen, Andrew B. Bernard, Peter K. Schott, and Stephen J. Redding
Publication Date:
06-2010
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
International trade models typically assume that producers in one country trade directly with final consumers in another. In reality, of course, trade can involve long chains of potentially independent actors who move goods through wholesale and retail distribution networks. These networks likely affect the magnitude and nature of trade frictions and hence both the pattern of trade and its welfare gains. To promote further understanding of the means by which goods move across borders, this paper examines the extent to which US exports and imports flow through wholesalers and retailers versus producing and consuming firms.
Topic:
Economics, International Trade and Finance, and Markets
Political Geography:
United States