International Finance

There are more types of borders today than ever before in history. Borders of all kinds define every aspect of social life in the twenty-first century. From the biometric data that divides the smallest aspects of our bodies to the aerial drones that patrol the immense expanse of our domestic and international airspace, we are defined by borders. They can no longer simply be understood as the geographical divisions between nation-states. Today, their form and function has become too complex, too hybrid. What we need now is a theory of the border that can make sense of this hybridity across multiple domains of social life.

Rather than viewing borders as the result or outcome of pre-established social entities like states, Thomas Nail reinterprets social history from the perspective of the continual and constitutive movement of the borders that organize and divide society in the first place. Societies and states are the products of bordering, Nail argues, not the other way around. Applying his original movement-oriented theoretical framework "kinopolitics" to several major historical border regimes (fences, walls, cells, and checkpoints), Theory of the Border pioneers a new methodology of "critical limology," that provides fresh tools for the analysis of contemporary border politics.

Abstract:
Capital flows have emerged during the past two decades as one of the new
economic phenomena in the economic performance of the countries. The foreign
direct investment (FDI) one of the most important forms of capital flows, which
occupied a large place in theoretical explanations. This role of foreign direct
investment was reflected in increased economic growth, creation of employment
opportunities, technology transfer, and increase competitive strength.
The test of this paper the relationship between foreign direct investment and
economic growth, using the curriculum standard, and the study found that foreign
direct investment has effect positive and significant economic growth in Egypt,
and study highlighted the importance of attention to the element of human capital
and increase process export, and seek to attract more investment flows foreign
Direct to Egypt and especially productive, and remove all the obstacles that lie
ahead.

TOPIC:
REASONS ACCOUNTING FOR THE INCREASE IN THE PRODUCTION OF READY TO WEAR GARMENTS IN GHANA

ABSTRACT
This paper examined the role of perception, personality and price on consumer preference for “ready to wear” garments as well as their assessment of locally made wears. The study was however restricted to working class consumer in Accra metropolis. Data were collected through the use of questionnaire and analysed using t- statistics. It was discovered that most consumer attributed their inability to patronise locally made garments to their social status, low quality and durability of the wears.  Also, the prices of the wears have great influence on them.  It was, therefore, recommended that local manufacturers should improve on the quality of their products.  Government should as well enforce laws intended to reduce the exploitation of consumers by producers in the areas of product quality and price.  In addition, government should ensure that high quality long fibre cotton is grown locally by providing farmers with high quality seeds at subsidized rates.  Finally, consumer should also have a change of attitude towards Ghanaian “ready to wear” garments.

Most research on international climate finance and the private sector has focused on tracking the private sector’s contribution the ‘100 billion USD goal’ within the UNFCCC context. In recent years, it has become evident that the range of actual and potential contributions of private actors from developed countries to support developing countries is far broader than ‘publicly mobilized’ private climate finance. The research presented here takes a north-south scope focusing on Belgium. In this study, after a brief theoretical framework, we offer qualitative data from interviews assessing the involvement of Belgian-based private entities in climate-relevant activities in developing countries. With an actors-based perspective we first observed some perceived opportunities, and several barriers, such as particular finance access issues for small project developers. Then we found that in both mitigation and adaptation a wide range of private actors in Belgium – from households to small and large companies through the financial sector - already contribute with varying degrees to International Private Climate Finance (IPCF) in different sectors. Hence, they participate to address climate-related investment needs in developing countries.

This Paper explores and summarises the Director's Duties of the UK Companies Act 2006 with emphasis on "the duty to promote the success of the company.

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This paper examines the asymmetrical relationship between exchange rate and consumer prices in 40 Sub-Saharan African (SSA) countries from 1990q1 to 2017q4. The exchange rate pass-through (ERPT) to consumer prices is estimated for each country by using the nonlinear autoregressive distributed lags (NARDL) framework and dynamic panel estimators robust to cross-sectionally correlated errors. Firstly, our findings suggest an asymmetrical ERPT in the SSA region during the short-term, whereas there are mixed results across sub-regions in the long-term. Next, we find incomplete and significant ERPT to consumer prices in the entire SSA region which is higher during the depreciation of the local currency than after appreciations. Third, we find nonlinear ERPT with respect to the size of the exchange rate. The pass-through is higher during large exchange rate changes than after small changes.  Finally, we find that the pass-through is greater in the countries with fixed exchange rate re...

The main purpose of this research paper is to explore and understand the nature of association and the possible existence of a short run and long run relationship between US Dollar, EURO, British Pound and Japanese Yen. To find out the relationship among currencies USD/INR, EUR/INR, GBP/INR and JPY/INR pairs are considered. The main idea is to know how these selected indicators are related to each other. The daily basis 2781 observations for all four variables from year 2007 to 2018 are taken into consideration. Data are collected from website of Reserve Bank of India. The stationarity of time series is checked and differentiated as per requirement. Johansen co-integration test to know the long run relationship between variables is used. The result shows that there is no co-integration equation among the variables. The short run relationship is examined with help of Vector Auto-regression (VAR) model and the short run relationship within different lags of variables has been identifi...

Since fiscal rules are not a panacea, and all of the economic, political, and financial forces that impact on sovereign creditworthiness cannot possibly be controlled, chances are that some governments will encounter debt-servicing difficulties when they least expect it. Certainly, to the extent that nations adhere to market-friendly policies that foster investor confidence and prosperity, and generate the budgetary revenues, export earnings, and capital inflows necessary to keep servicing debt obligations, their fiscal resilience will be enhanced. Sound liability-management practices can also make a major contribution to creditworthiness, because when the public debt exhibits a risk-averse currency, interest rate, and maturity structure, it should be able to withstand the temporary harm done by a natural disaster, or a sudden deterioration in financial market conditions or the terms of foreign trade. And last, but not least, prudential regulations, and sensible monetary and exchange rate policies, can make a major difference in terms of minimizing contingent liabilities arising out of the banking system, state-owned enterprises, and other risk pockets in the economy, thereby preventing a destabilizing jump in the public debt. These are the lessons from painful experience.

The currency of Pakistan (Rupee) has been in circulation in the eastern and southeastern markets of Afghanistan. after the civil war intensified in Afghanistan in late 1992 and onwards, the Taliban militants took over control of the country's agencies and eventually the whole government, as a result they laid off the contract with Russian firms to put out printing the Afghani notes they claimed were worthless. Besides, macro factors (e.g. political instability and foreign interference) have caused the country's economy to steep, therefore the Afghani lost its value both in the regional and international markets. different Warlords in Afghanistan used to print their own introduced currencies without any formal approval and standard procedure of the state's central bank (i.e. Da Afghanistan Bank). Therefore, people who were living across the Durand line were forced to start their daily transactions using Rupee which has caused Afghanistan to be financially, economically and politically relied on Pakistan. Ever since Rupee has dominated the Afghani in the eastern and southeastern markets of Afghanistan. A survey was carried out to collect the required data in the city of Jalalabad using both primary and secondary sources, the secondary data was collected through already Published articles using google scholars as search engine. Findings of the research indicate that the financial performance/profit making of the local businesses has been negatively affected by the devaluation in the rate of Rupee, vendors have had two alternatives; (1) retention of customers and (2) increasing the profitability of the business, given the inflation caused by Rupee devaluation, the vendors have chosen to adopt customer retention which is indeed a lucrative strategy, therefore the financial performance of the local businesses in terms of enhancing profitability have deteriorated. As Pakistan's current account deficit has faced downslides and having been estimated to bear further crises, which will lower the value of Rupee, and ultimately will affect both the rate of Afghani and the performance of the local businesses in Afghanistan. The research; based on the results drawn from the findings and analysis suggests some corrective measures required to be taken to intercept the risks caused by the currency devaluation.

Emerging market policy makers have been concerned about the financial stability implications of financial globalisation. These concerns are focused on behaviour under stressed conditions. Do tail events in the home country trigger off extreme responses by foreign investors -are foreign investors `fair weather friends'? In this, is there asymmetry between the response of foreign investors to very good versus very bad days? Do foreign investors have a major impact on domestic markets through large inflows or outflows -are they 'big fish in a small pond'? Do extreme events in world markets induce extreme behaviour by foreign investors, thus making them vectors of crisis transmission? We propose a modified event study methodology focused on tail events, which yields evidence on these questions. The results, for India, do not suggest that financial globalisation has induced instability on the equity market.

The paper represents the research of matching Hurst exponent to Elliott wave models for financial time series. It illustrates that there are some values of Hurst exponent which match the most efficient using of Elliot Wave Principle for time series prediction.
Keywords: wave models, Hurst exponent, financial time series, stock market, R/S-analysis

The foreign exchange market, or currency market, is the largest financial market in the world by volume of trade and investors from all over the globe try to gain opportunities related to that market. One of the most common strategies that investors use to make profits

Developing a moral critique of fractional reserve banking, this survey attempts to synthesize a wide range of existing ethical arguments concerning the monetary system in the United States. Starting with a history of the church’s response to economic developments, a moral argument sets the stage for five distinct areas of analysis. The purpose of the moral argument is to identify individual responsibility for systematic injustices and to provide a framework for the discussion of moral hazard, inflation, misallocation of resources, unequal distribution and private property violation that follow.
A short history of fractional reserve banking prepares the average reader to encounter the ideas presented in the later parts of the paper. A critique of government involvement is followed by an overview of moral hazard and the principal agent problem that it causes. Inflation can be linked directly to the expansion of the money supply and leads to misallocation of resources and unequal distribution. The injustice of the latter two points is compounded by their anti-capitalist nature. Finally, the last section demonstrates how fractional reserve banking violates the private property rights of the individual. In the course of research, no sources appeared to support the morality of fractional reserve banking.
Keywords: fractional reserve banking, inflation, morality, justice, capitalism, property

Class participation (10%): You should complete the assigned readings and actively participate in discussion sections. This portion of your grade is based on both quantity (how often you discuss the readings, ask questions, etc.) and quality (comments based on a careful reading of the material vs. unsubstantiated opinions). Your participation in discussion sections is mandatory, and to this end TAs will keep track of attendance starting on week 2. You will lose one point (out of a total of 10) for every unjustified absence. If you know you will not be able to attend your weekly section due to a justified reason, you must inform/email your TA in advance.

Prior to the Asian financial crisis, most Asian exchange rates were de facto pegged to the US Dollar. In the crisis, many economies experienced a brief period of extreme flexibility. A 'fear of floating' gave reduced flexibility when the crisis subsided, but flexibility after the crisis was greater than that seen prior to the crisis. Contrary to the idea of a durable Bretton Woods II arrangement, Asia then went on to slowly raise flexibility and reduce the role for the US Dollar. When the period from

A B ST R A C T The Urban Cooperative Banking (UCB) system has come a long way since 1904 when the first UCB was started at Kancheepuram in Tamil Nadu. UCBs remain not-for-profit, owned and controlled by the members who use their services. With the tightening of prudential norms, the banking sector has been consistently conforming to and adopting international prudential norms and accounting practices. Such strengthening of prudential norms have resulted in increased levels of Non-Performing Assets (NPAs) for the Urban Cooperative Banking Sector. This study is an attempt to analyze the asset quality of UCBs in India. This paper also traces the return on assets of UCBs in India along with pattern of financing to different sectors.

This paper proposes a brief theoretical analysis of the relationship between international capital mobility and economic growth, seen in the perspective of demand-led growth. The study presents the central propositions that constitute the so-called demand-led growth perspective. It reviews the balance-of-payments constrained growth model, as originally proposed by Thirlwall (1979), as well as subsequent efforts to incorporate capital flows into this analytical framework. Building on this theoretical structure, a model is proposed in order to study the connections between balance-of-payments constrained growth and capital controls, which is formally introduced as a macroeconomic policy variable.

This paper uses the relatively new procedures of cointegration and error-correction modeling to examine the import demand function of three developing economies. The empirical results suggest that the errorcorrection model performs well and that the poor results of previous studies are attributable to the inappropriate use of the Cochrane-Orcutt procedure and the complete absence of diagnostic testing, especially with respect to parameters stability, autocorrelation, and variable omission.

The economy of Japan is the third largest in the world by nominal GDP, the fourth largest by purchasing power parity and is the world's second largest developed economy. According to the International Monetary Fund, the country's per capita GDP (PPP) was at $36,899, the 22nd-highest in 2013. Japan is the world's largest creditor nation, generally running an annual trade surplus and having a considerable net international investment surplus. Facing increasing competition from China and South Korea, manufacturing in Japan today now focuses primarily on high-tech and precision goods, such as optical instruments, hybrid vehicles, and robotics. Besides the Kantō region, the Kansai region is one of the leading industrial clusters and manufacturing centers for the Japanese economy.

Many scholars have contributed to ongoing debates about the competition between the dollar and the euro for global monetary dominance. Few have added as much value as Miguel Otero-Iglesias with his systematic and original survey of the views of financial elites in major emerging market economies. Where conventional interpretations emphasize material "reality," Otero-Iglesias's ideational analysis clearly demonstrates how important it is to consider as well how "reality" is perceived and framed by key actors. The euro may be structurally weak, limiting its "hard" power. But at the cognitive level of "soft" power, Otero-Iglesias suggests, Europe's money poses a significant challenge to America's greenback. This is an argument to be taken seriously.

Benjamin J. Cohen, Louis G. Lancaster Professor of International Political Economy University of California, Santa Barbara, USA.

This paper solves, with the use of the Markowitz algorithm for diversification, an exercise in banking, which is the management of the forein exchange rate exposure. Naïve diversification is defined as putting the same share of wealth in each currency, getting by that the naïve return. This return can be obtained with a lower risk level by optimal currency diversification. This lower risk applies both when an amount of capital is allocated and when no capital on net is invested. Removing serial correlation and disregarding the oulier in the sample, which is the Hong Kong dollar, do not materially affect the results. What is remarkable is that the risk of an open position, with positive net wealth, is statistically insignificantly different from the risk with no net capital. This means that banks can earn the naïve return, not only without earmarking any wealth to the investment, but also by assuming a lower risk level. However the finding of unexploited arbitrage opportunities is a financial anomaly that swells the ranks of other financial anomalies in the finance literature. Hence, in addition to a home bias in international diversification, there is an inherent foreign exchange rate bias. JEL Classification: C61; E44; F31; G11; G21.

The World Commission on Dams (WCD) report focused attention on the question of how those displaced by large dams can be adequately compensated and properly resettled. An important debate from the Dams and Development Forum concerned the appropriate roles of different stakeholders, and the question as to how governments and 'external stakeholders' such as international institutions, financial investors and nongovernment organisations (NGOs) can be encouraged to implement the WCD recommendations and international standards on resettlement and environmental protection. This article analyses the actions of three European Export Credit Agencies (ECAs) aimed at improving the outcomes of the Ilisu Dam and hydroelectric power project in Kurdish-populated southeast of Turkey. It also explores the role of NGOs within the process of achieving best practice and preventing poor outcomes. Even though the ECAs' efforts to meet World Bank project standards were unsuccessful and ended in July 2009 with their withdrawal, this was the first case in history where ECAs tried to implement specified social and environmental project conditions. This article aims ultimately to analyse the reasons for the failure to meet the ECAs' conditions, and the lessons to be learned from this process.

The paper has provided theoretical extensions to the computations of nominal effective exchange rate and the real effective exchange rate over time. The extension took cognizance of the common base currency (USD) to which all currencies of the world is usually converted.  The paper compared its computations with that of the CBN computations in attempt to provide a litmus test on the extensions. It was observed that the two computations were of preserving order with a very high correlation coefficient between the two computations. However, it was observed that the extensions perform better as it’s reflects more of changes in exchange rate of Nigerian economy. The difference was attributed to the increased in the number of trading partners that was involved in the latter. At the end from the result obtained, the paper recommends that the extension should always be taken into considerations in the computations of effective exchange rate especially for the developing nations like Nigeria; also, Central banks of these countries should endeavour to include as many trading partners as possible into their computations. The paper believes that until this done, their effective rates computations may not reflect the actual changes in the exchange rate of their respective countries.

Until the General Agreement on Trade in Services (GATS) was born (January 1, 1995) the rules of the trading system pertained to trade in goods, not services. Where as tariffs are the principal barriers to trade in goods, domestic laws and regulations are the barriers to trade in services.

The scope of GATS in breathtaking. It applies to any measure (e.g., law, regulation) take by government at any level, from central to-local, which affects specified services. At present, the GATS is one of the several agreements being negotiated in the current (2000 to 2005) round of World Trade Organization (WTO) negotiations.

The GATS expands the rights and protections of corporate investors. By expanding the reach of global institutions with legally binding authority over national policy decisions, transnational corporations seek to replace the complex role of the state with a single goal: pursuit of profit. The European Commission acknowledged that GATS is "first and foremost an instrument for the benefits of business, and not only for business in general, but for individual service companies wishing to export services or to invest and operate abroad."

WTO member governments must be persuaded to take -- "carve out" -- essential services from the negotiations. State or provincial and local governments should be clearly exempted from the jurisdiction of the GATS. Governments should insist on safeguards that enable them to measure negative social impacts from liberalization, specify a "trigger level" for applying safeguards, and respond with regulatory and subsidy actions that may not be WTO-consistent.

This Article, a sequel to earlier articles by the author on financial regulation and global finance, retrieves and updates J. M. Keynes’s original International Clearing Union plan for what ultimately became the International Monetary Fund (“IMF,” “Fund”). Its motives are not antiquarian. The Article argues that our current domestic and global financial troubles alike are best viewed as products of our not having gone something more like that original Keynesian route with the Fund. Part I tells the tale of Keynes’s original Clearing Union plan for what was to become the IMF. It emphasizes the plan’s basic structure and motivations, as decisively rooted in Keynes’s financially oriented re-conception of what subsequently came to be known as “macroeconomic” theory. It highlights in particular the Clearing Union’s projected role as an institutional lever through which trading nations could jointly prevent financial-stability-imperiling global imbalances in the form of persistent trade s...

The main purpose of this study is to examine the effects of the exchange rates, international prices, and the demand shocks on inflation in Fiji Island. The study covered the annual data from 1975 to 2010.The variables are found to be following unit root process at the level form and stationary at the difference form, and the multi variate cointegration tests showed that there is one cointegratng vector between the Fiji consumer price index, Australian consumer price index, domestic demand shocks, Exchange rate Australian dollars /unit Fiji dollar, and devaluation years dummies. Further, Vector Error Correction (VEC)model shows that the changes in Fiji consumer price index is Granger caused by the long term trends in all other variables afore mentioned, especially when the Consumer Price Index in Australia , and devaluation dummy years are ,put as exogenous variables in the VEC model, with the with the changes in exchange rate, and changes in demand shocks as independent variables but endogenous in the VEC model. The impulse response function also shows that due to the exchange rate depreciation, inflation increases for many years in Fiji. Due to one standard deviation shock in demand shocks, though Fiji inflation declines initially, it subsequently increases for many years. One standard deviation shock in inflation also increases demand shocks in Fiji for many years. Impulse response function appears to show that the devaluation is contractionary in the long run for Fiji. The Variance Decomposition results also that a major part of the variations in inflation is explained by the Fiji dollar exchange rate movements. The Policy implication of our study is that as a monetary policy instrument the flexibility of the exchange rate policy is indispensable for Fiji to absorb appropriately the international supply and price shocks

This project examines recent and ongoing misconduct in the financial sector and implications for corporate governance and accountability. The misconduct ranges from abusive mortgage trades and misreporting on derivatives losses to manipulation of commodity markets. Major corporations, such as JPMorgan Chase and Morgan Stanley, have paid billions of dollars to regulators in penalties. The research project reviews the events from the perspectives of corporate governance, specifically whether shareholders are penalized for wrongdoing of corporate managers, and how far the regulatory practice of making settlements with the companies promotes accountability and corporate governance. The penalties diminish shareholder wealth and the question is whether shareholders end up as “helpless victims.” The research herein has combined theoretical and empirical methods. The theory part of research includes discussion of various regulatory methods and their efficacy, the justification for the settlements concluded by the corporations with governments, grounds for proposed personal liability against executives, and possible class action lawsuits in the future. The empirical element consists of review of investigative reports, disclosures by the companies, and settlement orders made by regulatory agencies. This helps form an opinion on the culpability of executives and the related issue about whether the costs of misconduct in the form of penalties are passed on to shareholders.

The main contribution of the paper is to present hard evidence on risk exposure, hedging strategies, and agency problems resulting in speculation with derivatives, by focusing on the case of Aracruz Celulose. It highlights the failure of risk management systems in non-financial firms in the face of extreme events like the financial crisis of 2008. The company posted financial losses of U$2.1 billion due to currency derivatives trading in the third quarter of 2008. We show how the company‟s real hedge position deviated from its optimal hedge as a result of the speculation with OTC derivatives, permitted by weak governance structures that failed in preventing hubris and mistakes in risk management.

In markets with high levels of financial exclusion, actors in the financial system, financial service providers (FSPs), consumers, providers of financial system infrastructure and other market supporting functions, regulators and other policy makers, often face capacity limitations. These include insufficient or inexperienced staff, lack of knowledge or understanding of the market, and limited financial literacy. Building sustainable and inclusive financial markets will require building the capacity of these actors. Funders that work to promote financial inclusion can play a very useful role in tackling capacity challenges, particularly if they provide support in a way that facilitates the development of a capacity building services market. This approach can benefit the whole financial market as opposed to the more common approach of providing direct support to one or a few actors in the market. This focus note builds on the ideas discussed in ‘facilitating market development to adv...

Benchmarks are very useful tools. A benchmark is "a point of reference for measurement". They are (definitionally) the relative standards by which things are judged. As humans, we tend to benchmark almost everything in our lives that can be measured in any way consciously or unconsciously, appropriately or inappropriately. In business investment we do the same: we establish acceptable standards to identify normal and outstanding performance.

IVIE working papers offer in advance the results of economic research under way in order to encourage a discussion process before sending them to scientific journals for their final publication. * My deepest debt of gratitude goes to Avner Greif for his constant suggestions, encouragement and support. I also want to thank Ramon Marimon for his excellent supervision of my Ph.D. dissertation, on which this paper is based. I have benefited from many stimulating comments of B.