This book addresses the financing of government budgets with non-debt-creating flows through risk-sharing capital market instruments. It offers a comparative analysis with conventional finance to demonstrate the ability of Islamic capital market instruments to create an impetus for economic stability and growth. Rizvi, Bacha, and Mirakhor guide readers chronologically through the unfolding effects of macroeconomic policy implemented to reduce crippling sovereign debt, increase government financing, and guide governments to the path of economic progress.

The behavior of fiscal authorities and its interplay with budgetary institutions is a recent and increasingly important area of economic research, heightened by the move to single currency in Europe. This volume provides a systematic analysis of issues including the determinants of fiscal retrenchment strategies, the role of numerical and procedural rules, the composition of the adjustment, the (dis)similarity of fiscal behavior across countries, the interactions between fiscal and monetary authorities, and the long run factors shaping fiscal behavior and sustainability.

With the concessional lending operations of the World Bank and IMF having expanded dramatically in the aftermath of the Global Financial Crisis, Liam Clegg provides a timely analysis of the institutional dynamics shaping this aspect of the institutions' operations. Drawn from staffs' own understandings of their operational environments, the volume explores the dynamics of power surrounding these activities. As shareholder states continue to push the institutions to demonstrate their effective contribution to global poverty reduction, they alter the opportunities available for a range of stakeholders to shape operational practice in these key arenas of global economic governance. By demonstrating that current developments are serving to tilt the balance in the 'asymmetric accommodation' between shareholders and stakeholders towards the former, the author highlights some of the most controversial areas of World Bank and IMF operations.

Here is a microeconomic model of joint ventures in Yugoslavia between multinational corporations and Yugoslav labor-managed enterprises. This book focuses on Yugoslavia's unique socio-economic system with its labor-managed enterprises playing host to direct foreign investment. The analysis turns toward multinational corporations as vehicles of direct foreign investment, then proceeds to an examination of Yugoslavian joint-venture agreements between these two partners of diverging interests.

This volume makes a unique contribution to the finance and investment literature by bringing together in one place insightful analyses of three major issues affecting world financial markets. Written by a distinguished group of academics, policymakers, and financial executives, the chapters collected here cover international imbalances and international policy coordination, the international debt crisis, and global financial markets. Although the contributors express a variety of approaches and viewpoints, they are united in emphasizing the growing importance of financial markets in the international economy.

In Part I, the contributors deal with the long-standing question of how to deal with international trade imbalances. Their works take dramatically different positions regarding the causes and cures of the U.S trade deficit and the associated fiscal deficit but highlight the increasingly recognized role of financial flows. Among the other issues discussed are exchange rate variations, future challenges to the international monetary system, the foreign exchange market, and central banking. The second section includes six essays which examine aspects of the international debt crisis. The contributors show that the debt crisis is complicated by the greater role of private international financial flows to developing countries than was the case twenty years ago. Separate chapters present an overview of the international debt crisis, look at the debtor position, review the history of the LDC debt crisis, and explore current developments. Part III examines developments in the structure and functioning of global financial markets and contains separate discussions of futures and options markets, Japanese financial markets, international equity market links, implications for investors, and more. Must reading for policymakers and students of international finance, this book is also an ideal set of readings for courses in international economics.

This book provides new ways of analyzing the key issues in international finance and open economy macroeconomics. The topics covered include: financial globalization and the evolution of the international financial system; international macroeconomic accounting and measurement; early balance of payments approaches; the intertemporal model of international borrowing and lending; the significance of external deficits; the determinants of interest rate differentials and exchange rates; the effectiveness of monetary and fiscal policies; capital mobility and economic growth; and the causes of financial crisis in emerging economies.

This book will be of particular relevance for readers interested in a thorough analysis of international capital flows, their determinants and their macroeconomic implications. It also provides information about the origines of international financial crisis and assess proposals to overcome and avoid financial crisis in the future.The book is an outcome of a conference held at the Kiel Institute of World Economics. The papers cover the track record of financial integration, the changing structure of financial markets and the implications for macroeconomics and growth. Particular emphasis is placed on the various financial crises of the 1990s and on proposals for a reform of the international financial system.

"Euro on Trial looks back - to the aspirations of the founders - and forward - to the possibility of reform or splitting up. After five years of experience with the new currency, new insights are possible into the old arguments for and against union. Monetary union is reversible in part or in whole and this book assesses the costs and benefits. Brown examines several mainstream scenarios for the future of the euro in these essential readings for market practitioners as well as academics. For example, how long will the euro survive? The author shows that the answer depends principally on Germany. Any of the small or medium-sized economies could leave monetary union without threatening its existence. But were Germany to pull out it is highly doubtful whether there would be a core of countries that would perserve inside. Germany's membership so far has brought much disappointment. How many more years of disillusion are required before the question of EMU reform or break-up enters the mainstream of German political debate?

Fatemi's edited volume is a refreshing contribution to the already voluminous literature on US-Mexican economic relation. . . . This list is broad enough to provide an introduction to US-Mexican economic relations for the novice reader, while US-Mexico specialists will benefit from the analysis of current data and new perspectives on familiar issues. In short, a valuable addition to both academic and public library collections. "Choice"

This volume examines the major issues facing the United States and Mexico as the two countries atempt to forge mutually acceptable economic relations. As Fatemi notes in his introduction, a great deal of interdependency--an invisible integration'--does exist between the United States and Mexico. He adds that these relations are destined to expand in coming years, thus necessitating the satisfaction of economic, social, and political needs of each partner. These essays initiate this process via a balanced articulation of the diverse issues involved.

In Foreign Direct Investment, Imad A. Moosa presents a survey of the vast body of literature and ideas relating to foreign direct investment that will be invaluable as a reference work for all these groups. He provides concise definition and analysis of the theories behind foreign direct investment, and considers factors affecting its implementation. The impact of foreign direct investment on economic development, host countries and the growth of multinationals, together with methods for evaluating foreign direct investment projects are discussed.

In the late 1980s, as the empirical appeal of macro-economic exchange rate models began to fade, a few people including Professor Charles Goodhart at the London School of Economics and researchers at Olsen & Associates in Zurich, started to collect intra-daily exchange rate data. The resulting database provides new insight into the foreign exchange markets and thereby opens up previously unexplored avenues of research. Intra-Daily Exchange Rate Movements presents an extensive study of the Olsen & Associates database and is one of the first monographs in this exciting new area. This book aims to provide a systematic study of the characteristics of intra-daily exchange rate data as well as an empirical investigation into different approaches of modelling the exchange rate movements. First, the author describes empirical insights, which range from the distributional issues of exchange rate data to the impact of macroeconomic fundamentals and institutional characteristics. This leads to a survey of the main stylized facts. Using the O&A database, Guillaume then presents a systematic investigation of the empirical performance of three broad categories of models: macro-economic models using an extension of chaos theory, stochastic models including the GARCH and time-deformation models, and technical analysis. The book shows how these approaches can be used to model intra-daily exchange rate movements and highlights some of the pitfalls inherent in such an exercise. In an area where literature remains controversial, this book hopes to trigger further inquiries into the suitability of these different approaches to modelling.

The Asian crisis triggered ongoing controversy over the IMF's role in a 'new international financial architecture'. This book argues for a political approach to crisis and reform, placing current debates in the context of the politics of financial regulation since Bretton Woods. It explores links between domestic political controversy over IMF policy in Indonesia, Korea, Malaysia and the United States and the broader politics of IMF decision-making. It argues that, unless political arrangements are reformed, the IMF will face further political challenges.

Since the creation of a liberalised financial market in mid-1990, much concern exists in the EU about differences in company tax rates, exchange rate changes as well as inflation differentials. This book states that an active policy in the area of taxation is desirable with close monitoring of the EU tax configuration.

A collection in four volumes of writings on international financial centres, suitable for financial practitioners and students. It encompasses the moves to European financial integration, the dynamic rise of new centres, particularly in Asia and the Pacific, and challenges to existing centres. Included are essays on the conceptual classification of financial centres, comparative and historical perspectives, and technological and international financial market developments affecting their operations and prospects. This volume deals with concepts, developments and dynamics in international financial centres.

1. Backdrop to the payments constraint.- 2. Consensual transition policies.- 3. Regional cooperation and economic reform.- 4. Backdrop to the proposal to create a payments union.- 5. Toward convertibility through a payments union.- 6. Organization.- 1. The prevailing socioeconomic situation.- 1. Problems of changing Eastern European societies.- 2. The current socioeconomic situation in Eastern Europe.- 3. The drift of the reform debate.- 4. The nature of the payments problem.- 5. Shocks of mutating trade and payment regimes.- 6. Western assistance to combat liquidity shortage.- 2. The collapse and dissolution of the CMEA.- 1. The CMEA's demise.- 2. CMEA reform discussions.- 3. Salient obstacles to buoyant intragroup interactions.- 4. Reforming the trade and payment regimes.- 5. Balance-of-payments constraints and a payments union.- 3. Economic union in Eastern Europe.- 1. The outlook for economic union at this juncture.- 2. The desirability of economic union.- 3. Theoretical merits of a customs union.- 4. Practical problems and economic union.- 5. Linking a payments facility with an economic union.- 6. Key features of a payments union.- 4. Paths to convertibility.- 1. The global economy at Bretton Woods.- 2. On currency convertibility.- 3. Possible roads to convertibility.- 4. Western Europe's return to convertibility.- 5. Marketization, transition, and convertibility.- 1. The national trade and payment regimes.- 2. The CMEA trade and payment regimes.- 3. Marketization and convertibility.- 4. Exchange rates.- 6. Toward a payments union for Eastern Europe?.- 5. Technical aspects of a payments union.- 1. Overall conceptualization of the CEPU.- 2. Payments problems and a regional payments unions.- 3. Technical issues of a payments union.- 1. The clearing agent.- 2. Techniques of accounting.- 3. Prior imbalances and loans.- 4. Publicity.- 5. The question of asymmetry.- 6. Quotas and access to credits.- 7. Adjustment rules.- 8. Macroeconomic surveillance.- 9. Interest-rate policies.- 10. Capital cost.- 11. Duration.- 4. A hypothetical capital fund.- 5. A payments union with the Soviet Union?.- 6. Macroeconomic surveillance and the transition.- 1. Macroeconomic responses in a payments union.- 2. Adjustment under traditional and modified planning.- 1. Adjustment in the traditional CPE.- 2. Adjustment in an MPE.- 3. Standard adjustment policies and the PETs.- 4. Fund-type adjustment programs and the PETs.- 5. CEPU adjustment, commercial policy, and diplomacy.- 6. Other issues of managing a payments union.- 7. Downside risks of a CEPU.- 1. Backdrop to the debate.- 2. The rump order of priority.- 3. General arguments against payments unions.- 1. Key aspects of a payments union.- 2. The starting conditions of potential participants.- 3. Directions of desirable progress.- 4. Comments on the CEPU and their merits.- 5. An evalution of the criticisms.- 1. Emotional and political objections.- 2. Immediate full convertibility and global integration.- 3. A CEPU is too small and a CEEU wrong.- 4. Inappropriateness of present trade patterns.- 5. Too expensive, undesired, and too slow.- 8. Enlarging the European economic space.- 1. The basic preoccupations of European integration.- 2. What needs to be bridged?.- 3. On the transition to ME status.- 1. Creating markets with genuine prices.- 2. Fostering competition.- 3. Privatization and capital markets.- 4. Trade and foreign-exchange reforms.- 5. Banking infrastructure and capital markets.- 6. Macroeconomic policy.- 7. Labor market.- 8. The social safety net.- 9. Institutions of the market.- 4. On the sequencing of reforms.- 5. Economic transition and east-west assistance.- Conclusions.

Review: 'Fiat currency central banks claim to fight the inflation they cause, and likewise to offset the financial instability and systemic risk they create. The depreciation of the currencies they issue at will often cause falls in foreign exchange value, goods and services inflation, or asset price inflations. Of these, asset price inflations are the most insidious, for while they last they are highly popular, leading people to think they are growing rich and to run up their debt. When the asset inflations collapse, the central banks can come as the fire department to the fire they stoked. Nobody is better at diagnosing and dissecting these central bank games than Brendan Brown, whether it is the Federal Reserve (The Global Curse of the Federal Reserve) or the European Central Bank - this book, Euro Crash. It will give you a healthy boost in your scepticism about those who pretend to be the Platonic guardians of the financial system.' - Alex J. Pollock, Resident Fellow, American Enterprise Institute, Washington, DC; former president and chief executive officer, Federal Home Loan Bank of Chicago.

The idea that each country should have one currency is so deeply rooted in people's minds that the possibility of multiple and concurrent currencies seems unthinkable. Monetary systems contribute to problems of high unemployment and social distress during financial and economic crisis, so reforms to increase the responsiveness and flexibility of the monetary system can be part of the solution. This book discusses 'monetary plurality', which is the circulation of several currencies at the same time and space. It addresses how multiple currency circuits work together and transform socio-economic systems, particularly by supporting economies at the local level of regions and cities. The book shows that monetary plurality has been ubiquitous throughout history and persists at present because the existence of several currency circuits facilitates small-scale production and trade in a way that no single currency can accomplish on its own. Monetary plurality can improve resilience, access to livelihoods and economic sustainability. At the same time, it introduces new risks in terms of economic governance, so it needs to be properly understood. The book analyses experiences of monetary plurality in Europe, Japan, and North and South America, written by researchers from East and West and from the global North and South. Replete with case studies, this book will prove a valuable addition to any student or practitioner's bookshelf.

"This book focuses on the relationship between FDI and FS liberalization in the context of the WTO. By conducting an economic assessment on the extent of GATS liberalization in one type of FS --commercial banking -- it seeks to empirically clarify if the multilateral liberalization efforts under the WTO promote FDI"--

This book deals with the models and applications of exchange rate forecasting. It is written primarily for professionals with the objective of providing a concise survey of the techniques of forecasting. The book considers the business decisions requiring exchange rate forecasting and some related issues such as market efficiency and trading rules.

This collection addresses the many issues in international finance and trade facing North American governments and industries. In his introduction, the editor challenges prevailing theories which maintain that the dollar's fall will alleviate America's balance of trade deficit. He also argues that the correlation between the value of the dollar and U.S. trade deficit with many countries is statistically insignificant and at any rate much weaker than existing theories maintain. Divided into eight parts analyzing the principal problems in international trade that will be faced in the 1990s, the work includes articles on currency markets and fluctuations; the international debt crisis; external borrowing; multi-national corporations; foreign direct investment in North America; and the North American Common Market.

This book provides a detailed and comprehensive synthesis of the literature on growth-linked securities, which are an equity-like method of financing for sovereigns. Based on an idea introduced by Shiller (1993), these securities enjoy growing intellectual support. Momentum in favour of them in policy circles has increased since the global financial crisis of 2007-9 and the subsequent debt crisis in Europe in 2010. This book covers many issues on the topic. After surveying the history of the idea and past experiences of countries that issued growth-linked warrants, chapters examine the pros and cons of this financial instrument from the point of view of issuers and investors. The book also discusses technical issues preventing the broad issuance of growth-linked securities and provides solutions to foster their acceptance by market participants.

In this book, the author describes that the relationship based shareholding was the hidden key factor to explain Japan's miraculous economic success after WWII. The stock market which valued the low profitability Japanese companies highly enabled them to provide 'better and cheaper' manufactured goods in the export markets, leading resource poor Japan to a leading exporter and economic and financial superpower. The book also casts critical eyes to the weakness of the traditional Japanese financial system as a catch-up model, in comparison with the open US system.

"Carvounis reviews the debt-servicing problems of developing countries, focusing on the experience of nine cases, mostly in Latin America. He stresses the adverse impact on the development prospects of these countries resulting from the adjustment policies that they have been required to pursue. Carvounis criticizes the current austerity-oriented approach to restoring orderly debt-servicing, maintaining that his emphasis is leading to severe economic, political, and social problems within these countries. He argues that the economic capacity and political will of borrowing countries to continue this route is dissipating." Choice