Cambridge University: Recent submissions
Now showing items 701-720 of 1268
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On strategic default and liquidity risk
(CFAP, Cambridge Judge Business School, University of Cambridge, 2002)How does the uncertain provision of external finance affect investment projects' default probability and liquidity risk? In this paper, I study the strategic interaction between many creditors and a single borrower in the ...
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The supervisory approach: a critique
(CFAP, Cambridge Judge Business School, University of Cambridge, 2002)Rules suffer from two serious defects. The world is complex, and so the creation and application of rules is difficult; and it changes, so that rules become obsolete. In recent years, the conventional wisdom on financial ...
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Depreciation bias, financial-sector fragility and currency risk
(CFAP, Cambridge Judge Business School, University of Cambridge, 2002)Do expected future exchange rate fluctuations affect current social welfare? In the third-generation approach to currency crises, financial fragility can trigger devaluation and default. Expected future depreciation is ...
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Establishing a European securities regulator: is the European Union an optimal economic area for a single securities regulator?
(CFAP, Cambridge Judge Business School, University of Cambridge, 2002)The paper’s purpose is to address the economic, institutional, and legal issues confronting the establishment of a more centralised approach to EU securities regulation and to suggest that the theory of optimum currency ...
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The World Trade Organization and financial stability: the balance between liberalisation and regulation in the GATs
(CFAP, Cambridge Judge Business School, University of Cambridge, 2003)The WTO General Agreement on Trade in Services and its Annex on Financial Services provide the international legal framework for the regulation of cross-border trade in financial services. This paper analyses some of the ...
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The new Basel accord and developing countries: problems and alternatives
(CFAP, Cambridge Judge Business School, University of Cambridge, 2002)The new Basel Accord framework relies on markets and supervisors to discipline banks. Yet both markets and supervisors fail, and more so in developing countries than in high-income countries. Therefore, the new Accord is ...
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Economic slowdown in the US, rehabilitation of fiscal policy and the case for a co-ordinated global reflation
(CFAP, Cambridge Judge Business School, University of Cambridge, 2003)
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International financial contagion: what do we know?
(CFAP, Cambridge Judge Business School, University of Cambridge, 2003-07)This paper attempts a synthesis of theoretical and empirical work on international financial contagion. Although a professional consensus on the appropriate definitions of contagion has yet to emerge, we document substantial ...
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Two-country stock-flow-consistent macroeconomics using a closed model within a dollar exchange regime
(CFAP, Cambridge Judge Business School, University of Cambridge, 2003)
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Empirical modelling of contagion: a review of methodologies
(CFAP, Cambridge Judge Business School, University of Cambridge, 2003-10)The existing literature promotes a number of alternative methods to test for the presence of contagion during financial market crises. This paper reviews those methods and shows how they are related in a unified framework. ...
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Regulating financial conglomerates
(CFAP, Cambridge Judge Business School, University of Cambridge, 2005)We investigate the optimal regulation of financial conglomerates which combine a bank and a non-bank financial institution. The conglomerate’s risk-taking incentives depend upon the level of market discipline it faces, ...
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Testing for changing persistence in US treasury on/off spreads under weighted-symmetric estimation
(CFAP, Cambridge Judge Business School, University of Cambridge, 2010)We extend the recursive break test procedure of Leybourn et al. by using weighted-symmetric estimation to detect a single change in time series persistence. An application to U.S. Treasury bond on/off spreads finds a ...
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Features of a realistic banking system within a post-Keynesian stock-flow consistent model
(CFAP, Cambridge Judge Business School, University of Cambridge, 2004)
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Simple open economy macro with comprehensive accounting a radical alternative to the Mundell Fleming model
(CFAP, Cambridge Judge Business School, University of Cambridge, 2004-04)This paper presents a stock flow model of two economies (together comprising the whole world) which trade goods and financial assets with one another. The accounting framework, though comprehensive in its own terms, is ...
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Credit risk transfer and financial sector performance
(CFAP, Cambridge Judge Business School, University of Cambridge, 2004)In this paper we study the impact of credit risk transfer (CRT) on the stability and the efficiency of a financial system in a model with endogenous intermediation and production. Our analysis suggests that with respect ...
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Aggregate liquidity shortages, idiosyncracic liquidity smoothing and banking regulation
(CFAP, Cambridge Judge Business School, University of Cambridge, 2005)This paper develops a model of banking fragility driven by aggregate liquidity shortages. Inefficiencies arise because liquidity smoothing across banks breaks down when there is such a shortage, causing unnecessary and ...
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Finance and technical change: a neo-Schumpeterian perspective
(CFAP, Cambridge Judge Business School, University of Cambridge, 2004)
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Corporate governance and banking regulation
(CFAP, Cambridge Judge Business School, University of Cambridge, 2004-06)The globalisation of banking markets has raised important issues regarding corporate governance regulation for banking institutions. This research paper addresses some of the major issues of corporate governance as it ...
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Towards a reconstruction of macroeconomics using a stock flow consistent (SFC) model
(CFAP, Cambridge Judge Business School, University of Cambridge, 2004-05)This paper aims to rehabilitate “stock flow consistent” (SFC) macroeconomics as a radical alternative to the neo-classical approach which has dominated the subject during the last thirty years. Commercial banks are reckoned ...
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Simple open economy macro with comprehensive accounting: a two country model
(CFAP, Cambridge Judge Business School, University of Cambridge, 2005-02)This paper presents a stock flow model of two economies (together comprising the whole world) which trade goods and financial assets with one another. The accounting framework, though comprehensive in its own terms, is ...