Institutionalizing Countercyclical Investment

Author : Bradley Jones
Publisher : International Monetary Fund
Page : 43 pages
File Size : 53,7 Mb
Release : 2016-02-29
Category : Business & Economics
ISBN : 9781513512495

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Institutionalizing Countercyclical Investment by Bradley Jones Pdf

Do portfolio shifts by the world’s largest asset owners respond procyclically to past returns, or countercyclically to valuations? And if countercyclical investment (with both market-stabilizing and return-generating properties) is a public and private good, how might asset owners be empowered to do more of it? These two questions motivate this study. Based on analysis of representative portfolios (totaling $24 trillion) for a range of asset owners (central banks, pension funds, insurers and endowments), portfolio changes typically appear procyclical. In response, I suggest a framework aimed at jointly bolstering long-term returns and financial stability should: (i) embed governance practices to mitigate ‘multi-year return chasing;’ (ii) rebalance to benchmarks with factor exposures best suited to long-term investors; (iii) minimize principal-agent frictions; (iv) calibrate risk management to minimize long-term shortfall risk (not short-term price volatility); and (v) ensure regulatory conventions do not amplify procyclicality at the worst possible times.

Author : Bradley A. Jones
Publisher : Unknown
Page : 44 pages
File Size : 50,8 Mb
Release : 2016
Category : Asset allocation
ISBN : 1513513516

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Institutionalizing Countercyclical Investment by Bradley A. Jones Pdf

Author : Abdullah Al-Hassan,Sue Brake,Mr.Michael G. Papaioannou,Martin Skancke
Publisher : International Monetary Fund
Page : 35 pages
File Size : 40,5 Mb
Release : 2018-02-09
Category : Business & Economics
ISBN : 9781484341018

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Commodity-based Sovereign Wealth Funds by Abdullah Al-Hassan,Sue Brake,Mr.Michael G. Papaioannou,Martin Skancke Pdf

Commodity-based sovereign wealth funds (SWFs) have been at a crossroads following the recent fall in commodity prices. This paper provides a framework for commodity-based SWF management, focusing on stabilization and savings funds, by (i) examining macrofiscal linkages for SWFs; (ii) presenting an integrated sovereign asset and liability management (SALM) approach to SWF management; and (iii) applying this framework to a scenario where assets are being accumulated and to a scenario where the SWF is drawn on to cover a financing gap due to lower commodity prices.

Author : Bradley Jones
Publisher : International Monetary Fund
Page : 59 pages
File Size : 44,6 Mb
Release : 2015-02-11
Category : Business & Economics
ISBN : 9781475576207

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Asset Bubbles by Bradley Jones Pdf

In distilling a vast literature spanning the rational— irrational divide, this paper offers reflections on why asset bubbles continue to threaten economic stability despite financial markets becoming more informationally-efficient, more complete, and more heavily influenced by sophisticated (i.e. presumably rational) institutional investors. Candidate explanations for bubble persistence—such as limits to learning, frictional limits to arbitrage, and behavioral errors—seem unsatisfactory as they are inconsistent with the aforementioned trends impacting global capital markets. In lieu of the short-term nature of the asset owner—manager relationship, and the momentum bias inherent in financial benchmarks, I argue that the business risk of asset managers acts as strong motivation for institutional herding and ‘rational bubble-riding.’ Two key policy implications follow. First, procyclicality could intensify as institutional assets under management continue to grow. Second, remedial policies should extend beyond the standard suite of macroprudential and monetary measures to include time-invariant policies targeted at the cause (not just symptom) of the problem. Prominent among these should be reforms addressing principal-agent contract design and the implementation of financial benchmarks.

Author : Bradley Jones
Publisher : International Monetary Fund
Page : 30 pages
File Size : 46,6 Mb
Release : 2018-02-16
Category : Business & Economics
ISBN : 9781484345719

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Central Bank Reserve Management and International Financial Stability—Some Post-Crisis Reflections by Bradley Jones Pdf

Motivated by the tension first revealed during the global financial crisis between the domestic and international financial stability obligations of central bank reserve managers, this paper offers some reflections along four main lines. First, the paper highlights how official reserve management has evolved to mirror important aspects of private institutional investor behavior over time, and addresses the policy relevance of this convergence. Second, evidence is documented of procyclical portfolio behavior by reserve managers during the crisis, which added to the stabilization burden shouldered by central banks in reserve currency-issuing countries. Third, in appraising the evolution of related vulnerabilities since the crisis, the paper finds grounds for both cautious optimism and lingering concern, the balance of which points to an uncertain future resolution. Fourth, some potential remedies are presented to help dampen the procyclical impulses of reserve managers in future periods of international financial turbulence.

Author : International Monetary Fund. Research Dept.
Publisher : International Monetary Fund
Page : 9 pages
File Size : 51,9 Mb
Release : 2016-06-17
Category : Business & Economics
ISBN : 9781475532821

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IMF Research Bulletin, June 2016 by International Monetary Fund. Research Dept. Pdf

In the June 2016 issue of IMF Research Bulletin, Eugenio Cerutti interviews Lars E.O. Svensson. Lars, a professor at the Stockholm School of Economics, was a Visiting Scholar at the IMF. In the interview, he discusses monetary policy, financial stability, and life at the IMF. The Bulletin also features a listing of recent Working Papers, Staff Discussion Notes, and key IMF publications. The table of contents from the latest issue of IMF Economic Review is also included.

Author : International Monetary Fund. Monetary and Capital Markets Department
Publisher : International Monetary Fund
Page : 26 pages
File Size : 40,9 Mb
Release : 2016-09-29
Category : Business & Economics
ISBN : 9781475542189

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Ireland by International Monetary Fund. Monetary and Capital Markets Department Pdf

This Technical Note discusses the findings and recommendations made in the Financial Sector Assessment Program for Ireland in the areas of asset management and financial stability. Most of the potential avenues for domestic financial instability from Irish-domiciled money market funds and investment funds appear to be contained. The potential for destabilizing spillovers from Irish-domiciled money market and investment funds to the domestic economy appears limited. The Central Bank of Ireland has made important progress in addressing long-standing data gaps as they pertain to the asset management industry. A number of initiatives could be helpful in further strengthening industry oversight.

Author : Gregorio Impavido,Ian Tower
Publisher : International Monetary Fund
Page : 58 pages
File Size : 45,8 Mb
Release : 2009-07
Category : Business & Economics
ISBN : IND:30000111481895

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How the Financial Crisis Affects Pensions and Insurance and Why the Impacts Matter by Gregorio Impavido,Ian Tower Pdf

We use a calibrated multi-sector DSGE model to analyze the likely impact of oil windfalls on the Ghanaian economy, under alternative fiscal and monetary policy responses. We distinguish between the short-run impact, associated with demand-related pressures, and the medium run impact on competitiveness and growth. The impact on inflation and the real exchange rate could be moderate, especially if the fiscal authorities smooth oil-related spending or increase public spending's import content. However, a policy mix that results in both a fiscal expansion and the simultaneous accumulation of the foreign currency proceeds from oil as international reserves to offset the real appreciation would raise demand pressures and crowd-out the private sector. In the medium term, the negative impact on competitiveness resulting from "Dutch Disease" effects could be small, provided public spending increases the stock of productive public capital. These findings highlight the role of different policy responses, and their interaction, for the macroeconomic impact of oil proceeds.

Author : Norman Frumkin
Publisher : Routledge
Page : 426 pages
File Size : 47,9 Mb
Release : 2015-03-26
Category : Business & Economics
ISBN : 9781317453499

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Tracking America's Economy by Norman Frumkin Pdf

This completely revised and updated edition of Norman Frumkin's acclaimed work offers vital information for the urgent growing debate on the state of the nation's economy. Frumkin makes complex ideas and statistical data accessible to people without special training in economics. His goal in this book is to provide a better understanding of the performance of the American economy, and a basis for evaluating proposals intended to influence its future course. Using data current through the first half of 2003, Frumkin focuses on the meaning and use of a wide array of indicators of economic growth, employment, wages, productivity, investment, saving, and finance in assessing the current state of the U.S. economy and forecasting future developments. Equally useful for economists, students, investors, journalists, and anyone concerned with the economy, this totally revised edition includes detailed coverage of many important new topics, such as terrorism's impact on the economy, federal debt and interest rates, job openings and unemployment, government spending and taxes, the 2001 recession, and more.

Author : Peter Belohlavek
Publisher : Blue Eagle Group
Page : 322 pages
File Size : 55,5 Mb
Release : 2011-07
Category : Business & Economics
ISBN : 9789876510448

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Unicist Business Strategy by Peter Belohlavek Pdf

These books were written as consultation books to be used to solve problems. They are essentially analogous to medical books for individuals who decided to manage the concepts and fundamentals of things in order to manage the root causes of problems. The purpose of a business strategy is to influence the market and the environment to achieve business goals. The unicist approach defines that a strategic approach includes both a “maximal strategy” and a “minimum strategy” to adapt to the market and the environment.

Author : Mr.Andreas A. Jobst,Mr.Dale F. Gray
Publisher : International Monetary Fund
Page : 93 pages
File Size : 42,6 Mb
Release : 2013-02-27
Category : Business & Economics
ISBN : 9781475557534

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Systemic Contingent Claims Analysis by Mr.Andreas A. Jobst,Mr.Dale F. Gray Pdf

The recent global financial crisis has forced a re-examination of risk transmission in the financial sector and how it affects financial stability. Current macroprudential policy and surveillance (MPS) efforts are aimed establishing a regulatory framework that helps mitigate the risk from systemic linkages with a view towards enhancing the resilience of the financial sector. This paper presents a forward-looking framework ("Systemic CCA") to measure systemic solvency risk based on market-implied expected losses of financial institutions with practical applications for the financial sector risk management and the system-wide capital assessment in top-down stress testing. The suggested approach uses advanced contingent claims analysis (CCA) to generate aggregate estimates of the joint default risk of multiple institutions as a conditional tail expectation using multivariate extreme value theory (EVT). In addition, the framework also helps quantify the individual contributions to systemic risk and contingent liabilities of the financial sector during times of stress.

Author : Kyla Tienhaara,Joanna Robinson
Publisher : Taylor & Francis
Page : 491 pages
File Size : 40,8 Mb
Release : 2022-08-26
Category : Business & Economics
ISBN : 9781000640113

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Routledge Handbook on the Green New Deal by Kyla Tienhaara,Joanna Robinson Pdf

In recent years, the Green New Deal has moved from relative obscurity to front and centre of policy discussions and public debates about how to respond to the climate crisis. It has been credited with radically changing the nature of the conversation on climate change and with re-energizing the environmental movement at a critical time. All Green New Deal proposals share an emphasis on the need for governments (rather than markets) to lead the energy transition. However, they differ in other respects. This Handbook analyses the fundamentals underlying all Green New Deals as well as exploring national and regional variations. It is divided into three parts. The first part examines the political economy of the Green New Deal focussing not just on how proposals will be costed but also on opportunities for a fundamental transformation of both national economies and the global economic system. The second part explores issues of justice, which are central to many Green New Deal proposals, including Indigenous rights, racial and gender equity, and justice for the Global South. In the third part, authors detail case studies of Green New Deal proposals and plans at the local, national, and regional level. This book will be an invaluable research and reference volume for students and scholars in economics, politics, sociology, geography, and environmental studies. It should also be of interest to those actively involved in climate and environmental policymaking.

Author : Liisa L. North,Timothy D. Clark
Publisher : Springer
Page : 254 pages
File Size : 43,9 Mb
Release : 2017-08-18
Category : Political Science
ISBN : 9783319532554

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Dominant Elites in Latin America by Liisa L. North,Timothy D. Clark Pdf

This volume examines the ways in which the socio-economic elites of the region have transformed and expanded the material bases of their power from the inception of neo-liberal policies in the 1970s through to the so-called progressive ‘pink tide’ governments of the past two decades. The six case study chapters—on Chile, Brazil, Ecuador, Colombia, El Salvador, and Guatemala—variously explore how state policies and even United Nations peace-keeping missions have enhanced elite control of land and agricultural exports, banks and insurance companies, wholesale and import commerce, industrial activities, and alliances with foreign capital. Chapters also pay attention to the ways in which violence has been deployed to maintain elite power, and how international forces feed into sustaining historic and contemporary configurations of power.

Author : United States. Congress. Joint Economic Committee
Publisher : Unknown
Page : 340 pages
File Size : 45,6 Mb
Release : 1964
Category : Taxation
ISBN : UOM:39015035124760

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The Federal Tax System by United States. Congress. Joint Economic Committee Pdf

Author : United States. Congress. Joint Economic Committee
Publisher : Unknown
Page : 1592 pages
File Size : 47,5 Mb
Release : 1964
Category : Legislative hearings
ISBN : UCAL:B3555692

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Hearings, Reports and Prints of the Joint Economic Committee by United States. Congress. Joint Economic Committee Pdf