European global banks intermediating US dollar funds are important in influencing credit conditio... more European global banks intermediating US dollar funds are important in influencing credit conditions in the United States. US dollar-denominated assets of banks outside the US are comparable in size to the total assets of the US commercial bank sector, but the large gross cross-border positions are masked by the netting out of the gross assets and liabilities. As a consequence, current account imbalances do not reflect the influence of gross capital flows on US financial conditions. This paper pieces together evidence from a global flow of funds analysis, and develops a theoretical model linking global banks and US loan risk premiums. The culprit for the easy credit conditions in the United States up to 2007 may have been the "Global Banking Glut" rather than the "Global Savings Glut".
I want to thank Doug Evanoff for the kind invitation to this Conference, but apologize that I can... more I want to thank Doug Evanoff for the kind invitation to this Conference, but apologize that I cannot physically attend. As is the usual caveat, all opinions and errors and opinions expressed today are solely my own and not related to any organization that I am affiliated or associated with.This note supplements the remarks that I have made on tape, with various data analysis/rationale on why I think the shadow banking risks in China are manageable…
I am very honoured and privileged to be invited by the San Francisco Fed to join this prestigious... more I am very honoured and privileged to be invited by the San Francisco Fed to join this prestigious Conference and to provide comments on the Asian financial experience by former IMF Deputy Managing Director Anne Krueger. Ms Krueger has provided us with an authoritative analysis of the Asian experience, particularly focusing on the Korean and Japanese experience that are common to Asian and the current global crisis. She has drawn on a wealth of recent papers and drawn important common lessons, divided into four major parts – the relevance of rapid growth leading up to crisis and importance of a well-functioning financial system; a second set of lessons relevant mainly for emerging markets; key financial sector issues from Japan and Korea that are relevant to the crisis economies in Asia and today and fourthly, crisis and post-crisis management issues. Ms Krueger’s analysis stems from the mainstream of economic analysis, which has focused attention on the importance of well-functionin...
After a brief recent empirical sketch of Islamic finance, the paper turns to its main theoretical... more After a brief recent empirical sketch of Islamic finance, the paper turns to its main theoretical and conceptual purpose. It seeks to relate the concepts of Islamic and conventional finance, and to examine certain important questions which arise from the interaction between these systems. The paper is written from the perspective of conventional modern economics, as the authors are students of the latter.The paper discusses the main tenets of Islamic finance, as well as those of modern economics, including the implications of zero interest rates and those of Modigliani and Miller theorems. The most notable finding of this paper is that John Maynard Keynes' analysis of employment, interest and money provides, inadvertently, the best rationale for some of the basic precepts of Islamic finance. The paper concludes that there is no inevitable conflict between the two systems and cooperation between them is eminently desirable and feasible.
World Scientific Studies in International Economics, Nov 4, 2015
I want to thank Doug Evanoff for the kind invitation to this Conference, but apologize that I can... more I want to thank Doug Evanoff for the kind invitation to this Conference, but apologize that I cannot physically attend. As is the usual caveat, all opinions and errors and opinions expressed today are solely my own and not related to any organization that I am affiliated or associated with.This note supplements the remarks that I have made on tape, with various data analysis/rationale on why I think the shadow banking risks in China are manageable…
European global banks intermediating US dollar funds are important in influencing credit conditio... more European global banks intermediating US dollar funds are important in influencing credit conditions in the United States. US dollar-denominated assets of banks outside the US are comparable in size to the total assets of the US commercial bank sector, but the large gross cross-border positions are masked by the netting out of the gross assets and liabilities. As a consequence, current account imbalances do not reflect the influence of gross capital flows on US financial conditions. This paper pieces together evidence from a global flow of funds analysis, and develops a theoretical model linking global banks and US loan risk premiums. The culprit for the easy credit conditions in the United States up to 2007 may have been the "Global Banking Glut" rather than the "Global Savings Glut".
I want to thank Doug Evanoff for the kind invitation to this Conference, but apologize that I can... more I want to thank Doug Evanoff for the kind invitation to this Conference, but apologize that I cannot physically attend. As is the usual caveat, all opinions and errors and opinions expressed today are solely my own and not related to any organization that I am affiliated or associated with.This note supplements the remarks that I have made on tape, with various data analysis/rationale on why I think the shadow banking risks in China are manageable…
I am very honoured and privileged to be invited by the San Francisco Fed to join this prestigious... more I am very honoured and privileged to be invited by the San Francisco Fed to join this prestigious Conference and to provide comments on the Asian financial experience by former IMF Deputy Managing Director Anne Krueger. Ms Krueger has provided us with an authoritative analysis of the Asian experience, particularly focusing on the Korean and Japanese experience that are common to Asian and the current global crisis. She has drawn on a wealth of recent papers and drawn important common lessons, divided into four major parts – the relevance of rapid growth leading up to crisis and importance of a well-functioning financial system; a second set of lessons relevant mainly for emerging markets; key financial sector issues from Japan and Korea that are relevant to the crisis economies in Asia and today and fourthly, crisis and post-crisis management issues. Ms Krueger’s analysis stems from the mainstream of economic analysis, which has focused attention on the importance of well-functionin...
After a brief recent empirical sketch of Islamic finance, the paper turns to its main theoretical... more After a brief recent empirical sketch of Islamic finance, the paper turns to its main theoretical and conceptual purpose. It seeks to relate the concepts of Islamic and conventional finance, and to examine certain important questions which arise from the interaction between these systems. The paper is written from the perspective of conventional modern economics, as the authors are students of the latter.The paper discusses the main tenets of Islamic finance, as well as those of modern economics, including the implications of zero interest rates and those of Modigliani and Miller theorems. The most notable finding of this paper is that John Maynard Keynes' analysis of employment, interest and money provides, inadvertently, the best rationale for some of the basic precepts of Islamic finance. The paper concludes that there is no inevitable conflict between the two systems and cooperation between them is eminently desirable and feasible.
World Scientific Studies in International Economics, Nov 4, 2015
I want to thank Doug Evanoff for the kind invitation to this Conference, but apologize that I can... more I want to thank Doug Evanoff for the kind invitation to this Conference, but apologize that I cannot physically attend. As is the usual caveat, all opinions and errors and opinions expressed today are solely my own and not related to any organization that I am affiliated or associated with.This note supplements the remarks that I have made on tape, with various data analysis/rationale on why I think the shadow banking risks in China are manageable…
Uploads
Papers by Andrew Sheng