A situation in economics that is little short of scandalous is the almost total neglect by mainstream economics of the importance of power in economic affairs. Power in this context means the ability to bend market forces in one's favor, influencing and shaping key economic variables such as prices, wages, and other income determinants. As John Kenneth Galbraith as tutely observes: a dominant fact in economic life is the desire of people everywhere and in all circumstances to get control over their personal lives and their incomes-to escape from the "tyranny of the market. " Power is the means to this end. Ever since Adam Smith, economists have been fascinated by and lavish in their praise for the workings of the market. All modern textbooks are built around Smithian ideas about markets and the way the "invisible hand" works through competition for society's better ment. Yet one can search nearly in vain through leading texts, under graduate and graduate alike, for any reference to market or economic power. This is the situation in spite of the fact that the drive for power, the urge to get control over one's income, permeates the economy as much as does competition. This is a scandal For a discipline that claims for itself the mantle of a science-one which wants to be accorded the same respect given the natural sciences-it is almost incomprehensible that it should ignore a major force at work in the real economic world."

A thoroughly updated and expanded edition of the xVA challenge The period since the global financial crisis has seen a major re-appraisal of derivatives valuation, generally expressed in the form of valuation adjustments ('xVAs'). The quantification of xVA is now seen as fundamental to derivatives pricing and valuation. The xVA topic has been complicated and further broadened by accounting standards and regulation. All users of derivatives need to have a good understanding of the implications of xVA. The pricing and valuation of the different xVA terms has become a much studied topic and many aspects are in constant debate both in industry and academia. Discussing counterparty credit risk in detail, including the many risk mitigants, and how this leads to the different xVA terms Explains why banks have undertaken a dramatic reappraisal of the assumptions they make when pricing, valuing and managing derivatives Covers what the industry generally means by xVA and how it is used by banks, financial institutions and end-users of derivatives Explains all of the underlying regulatory capital (e.g. SA-CCR, SA-CVA) and liquidity requirements (NSFR and LCR) and their impact on xVA Underscores why banks have realised the significant impact that funding costs, collateral effects and capital charges have on valuation Explains how the evolution of accounting standards to cover CVA, DVA, FVA and potentially other valuation adjustments Explains all of the valuation adjustments - CVA, DVA, FVA, ColVA, MVA and KVA - in detail and how they fit together Covers quantification of xVA terms by discussing modelling and implementation aspects. Taking into account the nature of the underlying market dynamics and new regulatory environment, this book brings readers up to speed on the latest developments on the topic.

The book offers a horizontal legal analysis on the problematic of risk sharing, which arises inevitably in an economic and political integration process, such as in the European Union, and even more so in the euro area. The question is how the burden of adverse economic developments is spread across the integration area, in this case the euro area, whether risk is distributed evenly and what risk sharing mechanisms apply. The book looks at the legal basis and the concrete stage of development of such mechanisms in European law, as well as at divergences among national legal orders and practices as a source for risk asymmetries. Individual contributions refer in particular to the areas of banking, capital markets and unemployment insurance. The point of view adopted in the book is important for everyone who wants to develop a robust understanding of the practical functioning of the complex integration process regulated by EU law.

To have a clear picture of developments in public financial management, a multidimensional perspective of the field is needed, since governments--unlike for-profit organizations-- serve multiple and often conflicting interests. This book provides this dynamic approach by integrating insights from economics, business, and political science. Written by some of the leading scholars in the field, this collection presents eleven chapters that run the gamut of public financial management issues. Topics include: Transaction costs in contractual relationships; Uncertain conditions and probability assessment in the bond market; Rational choice and the institutional framework in public investment decision; E-Government financial management models; Budget balance as the building block of public financial strategy. Together the contributors present a robust framework for understanding and analyzing financial decision making in the public sector.

Crowdfunding for SMEs: A European Perspective provides a valuable insight into this new source of capital. In particular, the authors focus on financial return crowdfunding, which repays the crowd either through debt or equity. This source of capital might play a significant role in the future becoming an alternative or a complement to traditional funding sources. It is therefore of the uttermost importance to understand what has boosted its exponential growth in recent years, as well as the key drivers of success of P2P lending and equity crowdfunding campaigns on both the funders and the fundraisers side. Due to the financial nature of the return provided to the crowd, financial return crowdfunding has been the object of recent waves of regulation, although the European Union still lacks a set of common rules. The aim of regulation should be twofold, to protect investors and, at the same time, to favor the financing for SMEs. In this book, the authors explore such issues and the regulatory policies, while looking to the future of financial return crowdfunding as an evolving source of capital.

This book examines the dynamics of terrorist financing, including a discussion about the importance of money from both the terrorist and the counter-terrorist perspective. Targeting Terrorist Financing argues that it is not the institutions that have failed the war on terrorist financing; rather it is the states that have failed the institutions. The measures contemplated by the world community to interdict terrorists and their financial infrastructures are sufficient to debilitate the terrorists both militarily and financially. However, what has been increasingly lacking is political will among the states, and this has overwhelmed the spirit of cooperation in this very critical front against terrorism. This volume assesses the need for international cooperation and the role of institutions and regimes in targeting terrorist financing. After the 9/11 attacks, there was an expression of global willingness to target terrorism generally, and terrorist financing in particular. The institutional mechanisms that grew out of this are explored in detail here, with a critical examination of the progress made by the international community. The impact of these measures is considered with respect to changes in the nature of the terrorist threat, money confiscated, adoption of international conventions, and global standards by states, and levels of compliance, among others. This book will be of great interest to students of terrorism, international organisations, international security, and IR in general. Arabinda Acharya is Research Fellow, Manager of Strategic Projects and Head of the Terrorist Financing Response Project at the International Centre for Political Violence and Terrorism Research in the S. Rajaratnam School of International Studies, Nanyang Technological University, Singapore.

Modern Financial Markets and Institutions provides a comprehensive and authoritative introduction to the workings of modern financial systems, the efficiency of money markets and the role of investment bankers, illustrating how they impact our everyday lives. By drawing on numerous real-world examples, this text is essential reading for students of banking, finance, investment, business studies and economics. It will be invaluable for those looking to entering banking, insurance, fund management and other financial services industries. "The practical perspective is perfect for business students wishing to understand the financial sector and how it works. Arnold again, as with his other books, has done a great job here. This is a book I have been waiting for some time." Mr Jim Keane - Gloucester Business School University of Gloucestershire, Cheltenham, UK "Excellent analysis and clear explanations." Ms. Nirmala Lee - Dept Of Accounting/Finance LondonMet (Guild) University, London, UK

You've successfully started your own business and have created a comfortable lifestyle. What's next? How do you get there? In Show Me the Money, author Chia-Li Chien shows you how to strategically innovate your business foundation and enable you to position your company to get the value you deserve.

Show Me the Money illustrates why you should expect a return on your investment after the years of sweat equity and stress involved in being a business owner. Step by step, Chien demonstrates how to spend more time working on your business and not just in it. This book:

$ Empowers you to concentrate on your business
$ Shows you how to become an investor of your business
$ Prepares you to proactively select the right exit channels and recognize the right window of opportunity to cash out
$ Guides you in strategically safeguarding your return on investment
$ Teaches you business value drivers-driving the right future investors to you
$ Enables you to achieve financial independence and continue to be part of the virtual business cycle

Show Me the Money will help you avoid being the one-third of all businesses that close without the owners receiving their deserved cash and value.

Let me introduce what I call the G.U.P., my unofficial secret formula for success.

G.U.P. consists of three sets of variables that all of us must discover and use in order to obtain the successful status that represents a successful life - by one's own definition. That includes building a successful business and completing a successful exit from your business to realize your dream. This is the full cycle an entrepreneur goes through. G.U.P. helps you use your internal North Star or road map to get there. Read on to learn how to be successful and realize your dream of financial independence.

For centuries, the Chinese have believed that success hinges on three variables. All three variables must line up, just like a slot machine at a casino. When that happens, you've hit the jackpot and, in layman's terms, you're successful. This could be in any profession, any career, or anything in general that people describe as success. That is, you have to be in the right place at the right time, with the right people

This book considers the impact of incomplete information and heterogeneous beliefs on investor's optimal portfolio and consumption behavior and equilibrium asset prices. After a brief review of the existing incomplete information literature, the effect of incomplete information on investors' exptected utility, risky asset prices, and interest rates is described. It is demonstrated that increasing the quality of investors' information need not increase their expected utility and the prices of risky assets. The impact of heterogeneous beliefs on investors' portfolio and consumption behavior and equilibrium asset prices is shown to be non-trivial. Heterogeneous beliefs can explain a number of observed phenomena, such as the fact that equilibrium state-price densities are not log-normal, the "smile" in option implied volatility, and the patterns of implied risk aversion reported recently in the literature. It is also demonstrated that financial markets in general do not aggregate information efficiently, a fact that can explain the equity premium puzzle.

Experiences with Financial Liberalization provides a broad spectrum of policy experiences relating to financial liberalization around the globe since the 1960s. There is a sizable body of theoretical and aggregative empirical literature in this area, but there is little work documenting and analyzing the experiences of individual countries and/or sets of countries. This book is divided into four parts by geographical region - Africa, Asia and Latin America, Central and Eastern Europe, and the Middle East. Aggregative econometric studies cannot substitute for country-wide studies in allowing the researcher to draw lessons for the future, and this volume adds to this relatively small body of literature.

During the last several years, new techniques have emerged to improve treasury management, particularly in the area of interest rate risk. This timely book covers the principles of interest rate management and its accounting, tax, and administrative implications. Particularly valuable explanations are given of the more sophisticated techniques of interest rate swap guarantees, forward rate agreements, and interest rate swap options, with examples of each.

Economists broadly define financial asset price bubbles as episodes in which prices rise with notable rapidity and depart from historically established asset valuation multiples and relationships. Financial economists have for decades attempted to study and interpret bubbles through the prisms of rational expectations, efficient markets, equilibrium, arbitrage, and capital asset pricing models, but they have not made much if any progress toward a consistent and reliable theory that explains how and why bubbles (and crashes) evolve and are defined, measured, and compared. This book develops a new and different approach that is based on the central notion that bubbles and crashes reflect urgent short-side rationing, which means that, as such extreme conditions unfold, considerations of quantities owned or not owned begin to displace considerations of price.

In the recent past, Islamic finance has made an impressive case on the banking scene by becoming an alternative to the popular conventional financial systems, spurring a lively academic debate on how the Islamic finance industry can expand its services to cover the poor. Several propositions have been aired which suggest that the Islamic finance industry should consider developing an efficient Shari?a compliant microfinance model.

This book brings together original contributions from leading authorities on the subject of Shari?a Compliant Microfinance (Islamic Microfinance) to propose innovative solutions and models by carefully studying experiments conducted in various countries. Where critiques of the current microfinance concepts, methods, regulatory measures and practices have often revolved around its practice of charging very high interest, this book discusses the several models that draw on both theory and case studies to provide a sustainable Shari?a compliant alternative. Arguing that while Islamic finance might have made a remarkable contribution in the financial markets, there remains a big question with regards to its social relevance, the book provides new perspectives and innovative solutions to issues facing the Islamic microfinance industry.

A comprehensive reference book for anyone wanting to learn more about Shari?a Compliant Microfinance, this book will also be of use to students and scholars of microfinance, Islamic finance, and to anyone interested in learning about ethical and socially responsible businesses.

This impressive Handbook presents the quantitative techniques that are commonly employed in empirical finance research together with real-world, state-of-the-art research examples.Written by international experts in their field, the unique approach describes a question or issue in finance and then demonstrates the methodologies that may be used to solve it. All of the techniques described are used to address real problems rather than being presented for their own sake, and the areas of application have been carefully selected so that a broad range of methodological approaches can be covered. The Handbook is aimed primarily at doctoral researchers and academics who are engaged in conducting original empirical research in finance. In addition, the book will be useful to researchers in the financial markets and also advanced Masters-level students who are writing dissertations. Contributors: E.I. Altman, M. Ammann, K. Anderson, A.R. Bell, C. Brooks, D.A. Carter, G. Cerqueiro, K. Chen, H. Degryse, D. Erdemlioglu, A. Golubov, M. Guidolin, O.T. Henry, T. Johann, A. Katsaris, S. Laurent, Y. Lee, W.S. Leung, H. Liu, P. Molyneux, C.J. Neely, D. Oesch, N. Olekalns, S. Ongena, D. Petmezas, S.-H. Poon, M. Prokopczuk, D.A. Rogers, M. Schmid, K.K. Shields, B.J. Simkins, S. Stanescu, L. Stentoft, N. Taylor, E. Theissen, N.G. Travlos, S.D. Treanor, R. Tunaru, J.O.S. Wilson, Y. Wu, W.T. Ziemba

Asset price bubbles have been and continue to be an area of major public policy concern in many countries. But while we know that the bursting of such bubbles is exceedingly painful and destructive to the economy, little is known of their causes. Indeed, there is little agreement even on the definition of a bubble and whether, whatever it is, is economically rational or irrational and reflect temporary excessive exuberance. Can bubbles be identified ex-ante before they burst? Often, one person's perceived bubble is another's perceived equilibrium price path. How and when is a bubble recognized? Should asset prices be a concern for monetary or fiscal policy makers and, if so how and when should policy-makers act? Should monetary policy attempt to target and stabilize asset prices the same as product prices? Should monetary policy act quickly at the beginning of the bubble or wait until the perceived bubble has been underway for some time? For how long? Will bubble restraining policies burst a bubble? Would it have burst on it's own? How can the damage done after bubbles be minimized? Does the experience of the U.S. in the 1920s and of Japan in the 1990s provide any lessons and guidelines for these and other countries in the 2000s?

The papers in this volume examine these and other aspects of asset price bubbles from the perspective of different times and different countries. The authors are experts who represent different countries, different economic philosophies, and different backgrounds - academic, government, bank regulatory agency and private. As a result, the papers add greatly to our storehouse of knowledge about asset price bubbles and hopefully will continue to moresuccessful public and private policies for restraining both the bubbles and their consequences and improving economic welfare.

The rapidly changing structure of financial markets is leading to a radical shift in the way in which privates sector financial institutions and firms, and public regulators, are coping with risk. With markets displaying a high degree of innovation and volatility, the responsibility for risk management is being placed increasingly on private sector operators. Following assessments of the extent of market volatility and risk financial markets, this volume presents examples of how private institutions are developing new risk management techniques and case studies from specific markets including securities markets and retail banking. In addition, senior central bankers discuss their changing attitude to risk and regulation and the implications for exchange rate and monetary policies. The papers are written by authors from many countries covering a wide range of country experiences: by players in leading banks and companies; by public officials; and by academics, providing three differing perspectives on the financial markets of the 1990s. The four main sections address central bank perspectives, volatility and risk, institutional issues and practices, and the policy implications. The volume includes the 1995 Prix Marjolin essay and concludes with the 1995 Marjolin Lecture, given at the 19th Colloquium of the Societe Universitaire Europeenne de Recherches Financieres (SUERF) in Thun, Switzerland, from which the papers are selected. The contributions will be of considerable interest to those in banks, securities houses, company treasuries, central banks and regulatory bodies as well as to academics.

Enjoying retirement in the face of today's uncertainty can be a difficult task. Now, investors have a step-by-step guide to help them properly manage their hard-earned retirement assets in and leading up to retirement - "Retire Like a Dairy Farmer." Proper retirement income planning and basic investment strategies will help any retiree create a retirement income that can't be outlived regardless of the market's ups and downs.

In recent decades, the financial markets have experienced various crises, shocks and disruptive events, driving high levels of volatility. This volatility is too strong to be fully justified simply by changes in fundamentals. This volume discusses these highly relevant issues with special focus on asset pricing and behavioral finance. Financial price assets of the 2020s appear to be driven by various attractors in addition to fundamentals, and there is no doubt that investor emotions, market sentiment, the news, and external factors such as uncertainty all play a key role. This has been clearly observed in recent years, especially during the ongoing coronavirus pandemic that has changed the common perception of the way financial markets work.

From Nobel Prize-winning economist and New York Times bestselling author Robert Shiller, a groundbreaking account of how stories help drive economic events-and why financial panics can spread like epidemic viruses Stories people tell-about financial confidence or panic, housing booms, or Bitcoin-can go viral and powerfully affect economies, but such narratives have traditionally been ignored in economics and finance because they seem anecdotal and unscientific. In this groundbreaking book, Robert Shiller explains why we ignore these stories at our peril-and how we can begin to take them seriously. Using a rich array of examples and data, Shiller argues that studying popular stories that influence individual and collective economic behavior-what he calls "narrative economics"-may vastly improve our ability to predict, prepare for, and lessen the damage of financial crises and other major economic events. The result is nothing less than a new way to think about the economy, economic change, and economics. In a new preface, Shiller reflects on some of the challenges facing narrative economics, discusses the connection between disease epidemics and economic epidemics, and suggests why epidemiology may hold lessons for fighting economic contagions.

Innovation in banking should be directed at improving the infrastructure that fosters efficient financial services and international trade. In this work, innovation theory is used to show how modern payment systems have transformed the technology of banking and facilitated changes in the strategy and structure of financial services organisations. Design, implementation and dissemination of payment systems are described and the analysis of their costs and benefits is combined with case studies of banks undergoing change. By studying firm capabilities, competencies, and resources, the approach is extended to services in general and linked to the ability of firms to compete and promote national economies. Payment systems vary and advanced and developing economies face obstacles in their legal and technical infrastructure, and maturity of banks. By adopting an international perspective, the book offers a unique comparative analysis that shows what kind of investments are likely to be effective.

The main purpose of this book is to discuss the issues in globalization and financial system from an international political economic perspective. This book also covers the manuscripts closely related to the current instruments and actors in the global financial system. The novelty of the book is to discuss the managerial and financial issues on the global financial strategies. Thecontributions in this volumeare peer-reviewed by the society for study of business andfinance.

Offshore finance has transformed many small jurisdictions into high income economies and has facilitated the growth of global financial markets, deregulation and the convergence of economic policies worldwide. However, the volatility and fickle nature of global capital has also become apparent. This major new multi-disciplinary and international collection explores the development of offshore finance and is an extremely valuable resource for all those considering the issues involved in this important area.

This second and final book in the exploration of the pioneers of financial economics examines the development of the discipline during the twentieth century. Specially commissioned essays discuss scholars from the early part of the century to the Nobel Prize winners of the last decade including: Irving Fisher, Frederick Macaulay, Harry Markowitz and Fischer Black. Discussions of less familiar, though no less important, historical figures are also included. The essays situate the emergence of modern financial economics - commonly referred to as modern finance - within the broader context of the intellectual development of economic science. The book begins by exploring contributions from the early part of the century. Succeeding chapters present the views of modern finance insiders and consider alternative perspectives, with sociological interpretations of the rise of modern financial economics. An outstanding volume of original analysis, Pioneers of Financial Economics: Volume 2 is an essential reference source of seminal contributions on the history of financial economics. Students and scholars of finance, economics, sociology and intellectual history will find this comprehensive volume an invaluable addition to their library. The relatively non-technical nature of the book makes it accessible to professionals in the fields of finance and economics.

Written in honor of Emeritus Professor Georges Prat (University of Paris Nanterre, France), this book includes contributions from eminent authors on a range of topics that are of interest to researchers and graduates, as well as investors and portfolio managers. The topics discussed include the effects of information and transaction costs on informational and allocative market efficiency, bubbles and stock price dynamics, paradox of rational expectations and the principle of limited information, uncertainty and expectation hypotheses, oil price dynamics, and nonlinearity in asset price dynamics.