Does the Anglo-American approach to the relationship between banks and firms have a significant weakness compared to the German and Japanese approach? This book addresses issues on corporate finance using historical evidence. In particular it looks at the role of universal banks in relaxing the credit constraints of firms, supervising managers and stabilizing share prices. The key issue is whether the Anglo-American asset based financing is more effective than the main-bank approach used in Germany and Japan. Earlier studies have found that firms with a close relationship with a major bank have high market value compared to book value, although it is difficult to determine whether this is cause or effect. The case of the "Credit Mobilier" - the first universal bank - is interesting because the bank failed. If it was the links with the bank that caused high and stable share prices or relaxed customer constraints, the bank's bankruptcy should have precipitated the loss of these benefits. In fact the bankruptcy had almost no effect on the share prices or the investment behaviour of the relevant firms, casting doubts on the benefits of powerful banks.

This volume examines the future of European financial centres in the context of economic and monetary union (EMU). Based on original empirical research, it investigates the relative competitiveness of European financial centres, with special reference to London and Frankfurt, in the context of the single currency debate. Issues covered include:
* the evolution of financial centres
* optimal design of an international financial centre
* financial services regulation and EMU
* the competitiveness of world financial centres

This book presents Martin Shubik's important contribution to the development of game theory, and shows how game theory methods can be used in the study of prices, money and financial institutions. After introducing the reader to his career and the influences which developed his research, Professor Martin Shubik addresses the price system considering issues such as competitive equilibrium, economic exchange and production. He explores the competitive price system and the emergence of money and financial systems to develop a theory of monetary and financial institutions. Specifically, he examines the role of money in the economy using both cooperative and non-cooperative solutions in game theory. Throughout the book Martin Shubik stresses that the value of games, which can be both played and analysed, provides an important link between theory and process and institutional studies. This book will be welcomed by economists, especially those interested in game theory, as well as by money and banking professionals.

Does Financial Deregulation Work? studies the process of financial deregulation in the United States. It exposes the basic flaws in the deregulationist approach and advances a new framework for effective financial regulation. Bruce Coggins provides a detailed and comprehensive critique of the reasoning behind deregulation, including marginal analysis and Friedman's monetarism. He challenges this thinking and proposes an alternative set of assumptions drawn from the historical and institutional approach to industrial organization and post Keynesian monetary theory. The author concludes that stability in financial systems is dependent upon a regulatory regime which focuses on limiting competition and encouraging productive over speculative investment. This book will prove invaluable to financial economists and analysts interested in the controversy over bank deregulation. It will also be of interest to those using post Keynesian, institutionalist and industrial organization approaches to economic analysis as well as to students and professors of law and regulation and those interested in problems of financial instability.

This book describes and evaluates the literature on exchange rate economics. It provides a wide-ranging survey of the different theories that attempt to explain the behavior of exchange rates, and outlines the salient institutional characteristics of the modern foreign exchange market in the context of an evolving international monetary system. An important feature of the book is its emphasis throughout on the main policy issues relating to the stabilization of exchange rates. The level of exposition is relatively nontechnical, and will be intelligible to undergraduate students.

In response to the credit crunch during the global financial crisis of 2007-2008, many have called for the re-establishment of regional banks in the UK and elsewhere. In this context, Germany's regional banking system, with its more than 1,400 small and regional savings banks and cooperative banks, is viewed as a role model in the financing of small and medium-sized enterprises (SMEs). However, in line with the 'death of distance' debate, the universal application of ICT-based scoring and rating systems potentially obviates the necessity for proximity to reduce information asymmetries between banks and SMEs, calling into question the key advantage of regional banks. Utilising novel ethnographic findings from full-time participant observation and interviews, this book presents intimate insights into regional savings banks and compares their SME lending practices with large, nationwide-operating commercial banks in Germany. The ethnographic insights are contextualised by concise description of the three-pillar German banking system, covering bank regulation, structural and geographical developments, and enterprise finance. Furthermore, the book advances an original theoretical approach that combines classical banking theories with insights from social studies of finance on the (ontological) foundation of new realism. Ethnographic findings reveal varying distances of credit granting depending on the rating results, i.e. large banks allocate considerable credit-granting authority to local staff and therefore challenge the proximity advantages of regional banks. Nevertheless, by presenting case studies of lending to SMEs, the book demonstrates the ability of regional banks to capitalise on proximity when screening and monitoring financially distressed SMEs and explains why the suggestion that ICT can substitute for proximity in SME lending has to be rejected.

This volume provides a critical assessment of the "Neoclassical Synthesis", long regarded as the standard interpretation of Keynes. Taking issue with this orthodoxy, the author offers an interpretation of the foundation of modern macroeconomics, arguing that the subject derives from the conflict between two research programmes inspired by different paradigms in physics: the "Newtonian" programme of Hicks and the "Einsteinian" approach of Keynes. Part I compares Hick's Newtonian programme with the Einsteinian programme underlying the "General Theory", and argues that only the latter challenges atomism and accounts for time in an essential way. Part II reconstructs the development of the Neoclassical Synthesis and underlines that some of its key products represent pragmatic deviations from Hick's "pure" Newtonian programme. Part III examines microfoundations approaches that seek to remedy the flaws of the Neoclassical Synthesis and concludes that they are fatally undermined by their inability to grasp the Einsteinian foundations of Keynes's approach. This text not only offers a fresh interpretation of Keynes but makes an important contribution to debates within post-Keynesian economi

Research on the development of human infants has revealed remarkable capacities in recent years. Instead of stressing the limitations of the newborn, the modern approach is now more optimistically based on an assessment of the adaptive capabilities of the infant. Innate endowment, coupled with interaction with the physical and social environment, enables a developmental transition from processes deeply rooted in early perception and action to the cognitive and language abilities typical of the toddler.; This book reviews a number of issues in early human development. It includes a reconceptualization of the role of perception at the origins of development, a reconciliation of psychophysical and ecological approaches to early face perception, and building bridges between biological and psychological aspects of development in terms of brain structure and function. Topics covered include basic exploratory processes of early visual systems in early perception and action; face perception in newborns, species typical aspects of human communication, imitation, perception of the phonetic structure of speech, origins of the pointing gesture, handedness origins and development, theoretical contributions on perception and cognition, implicit and explicit knowledge in babies; sensory-motor coordination and cognition, information processing and cognition, perception, habituation and the development of intelligence from infancy.

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Keynes, Money and the Open Economy is the first of three volumes celebrating Paul Davidson's path-breaking achievements and his seminal role in the foundation and development of post Keynesian economics. The book presents state-of-the-art contributions by leading economists which draw on Davidson's pioneering work in the fields of macroeconomic and monetary theory and policy, employment and income distribution, history of economic thought, methodology and international economics.

There's no question, compared to the advanced economies China's economic growth rates have been spectacular, but in most instances the economic analysts tend to forget that a large part of China's growth has been dictated by government industrial subsidies. How did China go from a bit player overnight to the largest exporter in the world in capital-intensive industries? This book shows that government subsidies play a big part in China's success. Government subsidies include those to basic industries: energy (coal, electricity, natural gas and heavy oil), steel, glass, paper, auto parts, solar and more. A lot has been written about China's trade practices with the West, but none of this work addresses the real unsustainable dilemma. Much of the current literature discusses the problems but doesn't explain the root cause of China's lopsided trade practices with the West or explain in detail how China finances its government subsidies, with nothing written that explains that China's subsidized exports to the United States and European Union are basically self-funded by its enormous trade surplus with the West. A trade surplus represents a net inflow of domestic currency from foreign markets and is the opposite of a trade deficit, which would represent a net outflow. Moreover, this is the only book that describes China's current trade practices with the West as a zero sum game at the expense of the West. This book provides two solutions to this endless quagmire: an increase in Western exports to China so that China and the West have more of an equal trade balance, or a very steep reduction of China's exports to the West.

This book is an accessible introduction to European monetary integration which provides a historical background to current debates, as well as an analysis of future developments. Further features of this book include:
* a chronology of economic and monetary unification from 1958-1999
* clear non-technical presentation of the economic issues regarding the costs and benefits of creating a monetary union
* detailed presentation of the economic and legal framework for the changeover to a single European economy
* evaluation of the Maastricht Treaty's plan for monetary union
* an overview of the debate between the federalist approach and the inter-governmental co-operation approach towards economic and political integration of Europe
* a set of questions and exercises illuminating the more technical parts of the book
European Monetary Integration 1958-2002 is an excellent resource for all those who want to discover the facts about European monetary integration which lie behind the heated political rhetoric.

This title was first published in 2001: Bringing together geographers, planners, political scientists, economists, rural development specialists, bankers, public administrators and other development experts, this volume questions the benefits of Structural Adjustment Programmes (SAPs). It critically assesses the impact of SAPs from a wider perspective than a purely economic one, highlighting concerns about impacts of adjustments on the more vulnerable elements of society such as social welfare, the environment, labour, gender and agriculture. Revealing both the costs and benefits of the economic restructuring programme, the book also suggests alternatives to current development models, and how SAPs can be made more sustainable. An original and comprehensive addition to the collections of both students and practitioners of development.

This title was first published in 2002: Why do endogenous cycles persist in Spain? Manuel Roman demonstrates a highly novel approach to the study of finance and the persistence of endogenous growth cycles, providing a balanced account of the Post Keynesian, Classical and Neo-classical political economy approaches. Finding key propositions from a representative set of heterodox cycles' models, he rigorously tests their chief claims, grounding his research in empirical data. The endogenous forces behind persistent fluctuations in the Spanish economy are also identified and explored in this theoretically rich text, the first of its kind to examine the Spanish economy in such great detail.

Contents:
INTRODUCTION; MARKET HISTORY, Early beginning of money in Japan; Meiji Restoration and the birth of Yen; Post-war developments; Market liberalisation; In the aftermath of the bubble; GENERAL CHARACTERISTICS, Market participants; Foreign exchange banks and brokers; Customers, Market segments and transactions; Spot and forward markets; The role of foreign exchange swaps, Futures and options; Attitudes towards risks; Covering and Hedging; Position taking and arbitrage, Trading Techniques; Accounting; THE RISKS; Market risks; Measures of variability; Some stylised facts; Limits to forecastibility; Derivatives; Asymmetries and Nonlinearities; Risk management practices; Market linkages and operational risks; Payment system risks, Major payment systems; Private sector initiatives; POLICY ISSUES; Market regulation; Principles of bank regulation; Exchange restrictions; Risk monitoring and risk provision; Exchange rate stabilisation; Central bank interventions; International policy co-operation; CONCLUSION; Bibliogrpahy

This book is an accessible introduction to European monetary integration which provides a historical background to current debates, as well as an analysis of future developments. Further features of this book include:
* a chronology of economic and monetary unification from 1958-1999
* clear non-technical presentation of the economic issues regarding the costs and benefits of creating a monetary union
* detailed presentation of the economic and legal framework for the changeover to a single European economy
* evaluation of the Maastricht Treaty's plan for monetary union
* an overview of the debate between the federalist approach and the inter-governmental co-operation approach towards economic and political integration of Europe
* a set of questions and exercises illuminating the more technical parts of the book
European Monetary Integration 1958-2002 is an excellent resource for all those who want to discover the facts about European monetary integration which lie behind the heated political rhetoric.

A detailed analysis of the economic effects of the changeover to a unified European currency and the pressures caused by a dual-currency system over the transition period to the Euro. Subjects discussed include:
* fiscal transfer payments: the implications of the US structure for the EMU
* consequences of parallel currency 1999-2002
* feasibility of a single currency without the exchange rate mechanism
* the relationship between the UK and Europe
* accounts of moves towards monetary union in Austria, Portugal and Finland.

The object of this work, first published in 1977, is to examine the history of the economic and monetary union (EMU) in the European Community, the policies of the parties involved and the conflicts of interest created in the political and economic environment within which all this has taken place. This title will be of interest to students of monetary economics and finance.

This book analyzes the competitive forces which dominate this major sector, and traces how the nature of competition has evolved during the last two hundred years. Through an analysis of key factors, including demand, related and supporting industries, firm strategy, structure and national rivalry, chance and government policy, the author explains how and why the locus of competitive advantage in textiles and apparel has moved from country to country, particularly in the period since 1945.

This volume takes a unique and challenging look at how money has operated in Islamic society and at how Islamic theoretical frameworks have influenced perceptions of money.
The author draws upon historical, data and policy analysis to present a comparative study of monetary theories, including recent treatment of money by Islamic economists. Discussion also covers the nature of joint venture, stock markets, banks and financial intermediaries, price stability and international trade. This work sheds pioneering light in this area, and will be of interest to academics, graduates and researchers internationally.

The crisis in the euro area is a defining moment in the history of European integration. It has revealed major flaws in the architecture of the European Union; it has challenged European institutions to shape an appropriate response; and it has tested the patience of a European public that is eager to see their economic prospects improve again. This volume brings together some of the world's top economists and policymakers to explain how this crisis came about and what is to be done. The policy agenda these chapters establish is going to be difficult to implement, not least because of popular misunderstanding and political opposition. This book argues, that it is essential that European policymakers push forward this agenda or they run the risk of seeing Europe's economies fall back into crisis. This book was previously published as a special issue of the Journal of European Integration.

This book, first published in 1949, is the original and key survey of the stages which preceded the use of coins as the medium of exchange, and of the objects that coins displaced, objects which for want of a better name are here called primitive money. It examines in detail the primitive monies of the world, monies from far in the distant past, and monies still in use today. It is the essential reference source on the many different objects used as currency.

In this volume an international team of monetary historians examine the historical experience of exchange rate behaviour under different monetary regimes. The main focus is on metallic standards and fixed exchange rates, such as the gold standard. With its combination of thematic overviews and case studies of key countries and periods, this book provides enhanced understanding of past monetary systems. The volume is divided into three parts. Part I evaluates the various monetary systems. The performance of metallic regimes is compared with the other monetary systems of human history, using criteria such as growth, inflation and general economic stability. Part II is concerned with the detailed behaviour of exchange rates under historical metallic regimes. Much attention is paid to the bimetallic standard of both gold and silver. Part III examines the different behaviour of metallic standards in the centre countries and at the periphery. This book should be of interest to economic historians and general historians with an interest in monetary history, and to scholars of macroeconomics and international economics.

Published in association with the Bank of England, this text assesses the damaging effects of financing government deficits through inflationary finance, financial repression and excessive foreign borrowing. This is supported by a practical guide to developing voluntary domestic markets for government debts. Much of the material in this last section of the book is based upon the response to questionnaires sent to central banks in Ghana, Indiam Malaysia, Mexicom New Zealand, Sri Lanka and Zimbabwe.

Published in association with the Bank of England, this text assesses the damaging effects of financing government deficits through inflationary finance, financial repression and excessive foreign borrowing. This is supported by a practical guide to developing voluntary domestic markets for government debts. Much of the material in this last section of the book is based upon the response to questionnaires sent to central banks in Ghana, Indiam Malaysia, Mexicom New Zealand, Sri Lanka and Zimbabwe.