Financial Crises, Liquidity, and the International Monetary System

Book Description

Once upon a time, economists saw capital account liberalization--the free and unrestricted flow of capital in and out of countries--as unambiguously good. Good for debtor states, good for the world economy. No longer. Spectacular banking and currency crises in recent decades--from Latin America in the early 1980s to Scandinavia a decade later to Mexico, Southeast Asia, Russia, and, quite lately, Argentina--have shattered the consensus. In this remarkably clear and pithy volume, one of Europe's leading economists examines these crises, the reforms being undertaken to prevent them, and how global financial institutions might be restructured to this end.

Jean Tirole first analyzes the current views on the crises and on the reform of the international financial architecture. Reform proposals often treat the symptoms rather than the fundamentals, he argues, and sometimes fail to reconcile the objectives of setting effective financing conditions while ensuring that a country "owns" its reform program. A proper identification of market failures is essential to reformulating the mission of an institution such as the IMF, he emphasizes. Next he adapts the basic principles of corporate governance, liquidity provision, and risk management of corporations to the particulars of country borrowing. Building on a "dual- and common-agency perspective," he revisits commonly advocated policies and considers how multilateral organizations can help debtor countries reap enhanced benefits while liberalizing their capital accounts.

Based on the Paolo Baffi Lecture the author delivered at the Bank of Italy, this refreshingly accessible book is teeming with rich insights that researchers, policymakers, and students at all levels will find indispensable.

Customer Reviews:

An original and groundbreaking approach to financial crises.......2003-01-09

While most economists are still puzzled by the most recent foreign exchange and banking crises - such as the ones that took place last year in Argentina and Uruguay - and some of them (like Stiglitz) are proposing reckless and innefective solutions, such as abolishing the IMF and most of the existing international agencies, Jean Tirole presents a more pensive and fruitful explanation of why these crises occur, and sheds new light towards a much more effective solution. His approach is based on a new field of agency theory called Corporate Finance, which deals with the set of institutions that make it credible for the suppliers of funds to recover their investments in an specific firm.

Tirole applies the basic principles of the prudential regulation of banks, that he worked before in collaboration with Mathias Dewatripont (MIT Press, 1994, ISBN: 0262041464), and which contains much of what we have learned through the twentieth century about financial crises. According to this approach, both the international financial and monetary systems would work much better if we had international risk classifying agencies on the one hand, providing information to investors about the liquidity and solvency of debtor countries, and a lender of last resort on the other. The trouble with the IMF is that it tries to perform both functions.

However, what makes external borrowing more complicated than a typical financial arrangement is the presence of a third player, that is the borrower's government which has both the incentives and the means to affect the foreing investor's return by manipulating the exchange rate or the capital mobility. Because the investors' return is affected by the behaviour of two agents, the borrower himself and its government, Tirole calls this a dual agency problem.

Tirole proposes an institutional reform in which the IMF should redefine its original mission, by concentrating in the role of facilitating the country's favourable access to foreign borrowing. This role underlies the (controversial) task of pre-qualification and conditionality. The IMF should also redefine its internal structure if it wants to perform well this new role. Its Board of Governors is too big and too heterogeneous to allow rapid and efficient decisions.

In summary, this book presents and original and groundbreaking approach to financial crises which, as we expected from the beginning, arises more questions than answers. However, we know that the only way to find the appropriate solution to a problem is by formulating the right questions, and this is exactly what Tirole does. I am convinced that if the international agencies follow this approach they will soon find the right way to prevent or to lessen international financial crises, in the same way as central banks and financial regulatory agencies did with domestic banking crises during the last century.

Clear, concise, visionary.......2002-08-22

Tirole has written an invaluable book that sheds light to a complex and extremley actual topic. By showing once again his seriousness as an economist (as opposed to others; i.e. Stiglitz), he goes back to first principles to understand the source of problems in international contracts. The application of modern corporate finance to international finance is extraordinary.
Even the first chapters should be obligatory reading to any student of international macro (even in the first macro course). The first one gives a concise history of modern currency crisis -the so called first twenty-first century crisis- while the second one masterfully summarizes the economists views on the subject.
Good economics, great topic, amazing timing.

Average customer rating:
CIMA Paper 6 - Stage 2: Financial Accounting (IFNA): Exam Dates - 11-01, 05-02: Study Text (2001)

Manufacturer: BPP Business Education Ltd
ProductGroup: Book
Binding: Paperback

Financial | Accounting | Industries & Professions | Business & Investing | Subjects | Books
ASIN: 0751731625

Average customer rating:
CIMA Paper 6 - Stage 2: Financial Accounting (IFNA): Exam Dates - 5-01, 11-01: Practice and Revision Kit (2001)

Manufacturer: BPP Business Education Ltd
ProductGroup: Book
Binding: Paperback

General | Finance | Accounting & Finance | Professional & Technical | Subjects | Books
ASIN: 0751738328

Average customer rating:
CIMA Paper 6 - Stage 2: Financial Accounting: Exam Dates - 05-01, 11-01: Study Text (2000)

Manufacturer: BPP Business Education Ltd
ProductGroup: Book
Binding: Paperback

Financial | Accounting | Industries & Professions | Business & Investing | Subjects | Books
ASIN: 0751731366

Average customer rating:
CIMA Paper 6 - Stage 2
Chartered Institute of Management Accountants
Manufacturer: BPP Publishing Ltd
ProductGroup: Book
Binding: Spiral-bound

General | Business & Investing | Subjects | Books
Management | Accounting | Industries & Professions | Business & Investing | Subjects | Books
General | Taxation | Law | Subjects | Books
ASIN: 0751734373

Average customer rating:
CIMA Paper 6 - Stage 2: Financial Accounting (IFNA): Exam Dates - 5-02, 11-02: Passcards (2002)

Manufacturer: BPP Business Education Ltd
ProductGroup: Book
Binding: Spiral-bound

General | Taxation | Law | Subjects | Books
ASIN: 0751736376

Average customer rating:
CIMA Paper 6 - Stage 2: Financial Accounting (IFNA): Exam Dates - 5-03, 11-03: Passcards (2003)

Manufacturer: BPP Business Education Ltd
ProductGroup: Book
Binding: Spiral-bound

General | Business & Investing | Subjects | Books
General | Taxation | Law | Subjects | Books
ASIN: 0751702641

Average customer rating:
Cima Study Text: Stage 2 Paper 6 - Financial Accounting (6/90) (CIMA Study Texts)

Manufacturer: BPP Publishing Ltd
ProductGroup: Book
Binding: Paperback

Financial | Accounting | Industries & Professions | Business & Investing | Subjects | Books
ASIN: 0862777925

Book Description

The goal of the Workshop was to open the way for exchange of ideas between physicists working in different areas of quantum physics but studying the objects of mesoscopic nature which reveal important generic features and allow for similar approaches. Among these objects are complex nuclei, atoms and molecules, nanoscale condensed matter systems, atomic clusters, atoms in traps, prototypes of quantum computers etc. The Workshop WNMP-2004 was organized with the idea of bringing together researchers actively working on the multitude of mesoscopic problems in various areas and, through cross-fertilizing discussions, make an attempt to bridge the existing gaps, find a common language and clean the way for future collaborations. The topics of common interest included general features of mesoscopic systems; experimental, theoretical and computational methods used for their studies; coherent phenomena, such as superfluidity and superconductivity; many-body quantum chaos; marginally stable and open systems; phase transitions and thermodynamic properties (an exciting subject with contradictory opinions reflected in the Proceedings).

Book Description

High-temperature superconductors are one of the most active areas of research in condensed matter physics. The authors here discuss the development of the science that has produced superconductors. Beginning with the first liquefaction of helium, the book explains the Meissner effect and then moves to the key work of Nobel prize-winners Bednorz and Muller. The last section outlines technological advances and suggests future directions, and it examines the impact of theoretical physics on superconductors. Rise of the Superconductors ends with a brief look at the struggle for technical superiority between the U.S. and Japan, and the influence Europe has had on the development of superconductors.

Book Description

Spitting Feathers is a collection of comedic essay ranging from absurd to offensive.

Fodder for Spitting Feathers includes national politics, class and race problems in America, stupid radio station advertisements and pedophilia.

Customer Reviews:

Should I be laughing this hard?.......2005-12-30

This book has the type of humor that makes you feel almost guilty for laughing but you can't help it. It's offensive but hilarious. It's very smart, satirical and culturally relevant. If I had to compare Austin to somebody it would probably be Bill Hicks or maybe Tre Parker. If you are really into comedy this book is a breath of fresh air. I absolutely loved it.

Book Description

In the 1830s, Mexico endured a tragic era of internal political instability. Meanwhile, bold American frontiersmen sought their fortunes beyond the borders of the United States, with many settling in the Mexican territory of Texas. In 1835, these transplanted Americans led a revolt against Texas's embattled rulers in Mexico City.

Lone Star Navy chronicles the little fleet of wooden warships, bought on credit by an impoverished band of revolutionaries and sent to sea on a singular mission: to win Texas's independence from Mexico. Beginning with four small sailing vessels, the upstart flotilla became a vital counterpart to Texan armies fighting for an independent republic. Indeed, Capt. Jeremiah Brown's naval battle off Matamoros in April 1836 helped save the fledgling republic from a premature end. But even as it battled for independence on the Gulf of Mexico, the Texas navy came under attack from unexpected enemies. The same fierce individuality that led Texans to shake off their Mexican rulers also stymied their efforts to govern themselves with any consensus. Lauded by its advocates as strategically vital and ridiculed by its detractors as a farcical waste of money, the navy became a flashpoint in a clash of visions. Denied adequate funding, sailors and officers suffered long periods without pay, and their vessels fell into chronic disrepair, but they still defended their small nation's fortunes.

The decrepit remains of the battle-scarred fleet finally fell into American hands when Texas, in need of a strong ally, was annexed by the United States in 1845. The Mexican government prophesied that relinquishing Texas would lead to the loss of its other northern territories. And, indeed, the Mexican War and the U.S. acquisition of New Mexico, Arizona, California, and parts of Utah, Colorado, and Nevada soon followed.

Customer Reviews:

A fleet built on credit and little-known.......2006-03-13

Jonathan W. Jordan's LONE STAR NAVY: TEXAS, THE FIGHT FOR THE GULF OF MEXICO, AND THE SHAPING OF THE AMERICAN WEST analyzes the role played by a fleet of wooden warships who in the 1830s led a revolt by transplanted Americans against Texas' rulers in Mexico City. The 'fleet' was bought on credit and sent overseas by an improvised band of revolutionaries, basically saving Texas from Mexico, and accomplishing it on a shoestring. The navy went on to become the focal point of various clashes: LONE STAR NAVY is packed with action and insights on a little-covered group.

Facinating reading of an overlooked bit of history.......2006-03-02

The Texas navy rarely gets more than a page or two in even the most comprehensive Texas histories. But Jonathan Jordan makes a compelling case that it was in fact the damage to Mexican supply lines done by the tiny fighting Republic fleet that forced a withdrawal after the battle of San Jacinto, and thus turned the strategic tide.
The rich cast of historical characters described here are fascinating and sometimes hilarious, from the rogue Secretary of the Navy who essentially stole the fleet for a filibustering expedition, to a never-ending run of drunken gun-toting foul-mouthed salty sea captains. Key are Sam Houston, whose bravery and decisiveness in leading the new Republic was matched only by his ignorance of sea power, and Commodore Edwin Moore, a true hero who fought budget cutters and frigates with equal aplomb only to cross swords with the aforementioned President.
I loved this book. From a sliver of time it tells an arresting story with crisp description, page-turning narrative and wry wit. You can't ask for more from a history.

Average customer rating:
Journey Across Time: Early Ages, Teachers Wraparound Edition

Manufacturer: Glencoe/Mcgraw-Hill
ProductGroup: Book
Binding: Hardcover

General | World | History | Subjects | Books
Pedagogy | Education | Nonfiction | Subjects | Books
Similar Items:

Journey Across Time, Early Ages, StudentWorks Plus CD-ROM

World History Journey Across Time: (National Survey)

ASIN: 0078603161

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World History Journey Across Time: The Early Ages [Teacher Wraparound Edition (Alabama Edition)

Manufacturer: Glencoe McGraw-Hill
ProductGroup: Book
Binding: Hardcover
ASIN: 0078603080

Book Description

The Internet revolution has allowed scientific knowledge to come to the door of every Web-connected household. The Scientific American Guide to Science on the Internet lets readers conquer information overload by pre-surfing thousands of sites to find the most useful, most consistently accurate sources of information on hundreds of scientific subjects. Whether it's DNA or star maps, human anatomy, or paleontology, this book takes readers right to the best sites, complete with a wealth of screen shots to help you decide if it's what you need.

Download Description

An authoritative guide to science on the Internet for students, researches, and professionals

Customer Reviews:

A map to gold mines of information..........2003-11-03

Discovery Channel, move over. Keep this book at your computer terminal. Now you can indulge in (a lot) of learning, or just quenching your curiosity!

Not just for grown-ups--there's a whole chapter (pp313-334) titled "KIDSTUFF", with pointers to such sites as "Helping Your Child Learn Science", "Children's Butterfly Site", "Science Made Simple" and "Planet Pals". With the decline of our schools, perhaps kids using the Net to carve out their own learning journey will be a big part of the solution.

Oh, there's a whole chapter on Mathematics! Good for those among us who were unlucky enough not to have good math teachers at school (which is most of us, I guess. Good maths teachers are a rarity.) The sites covered here might very well spark passion in our younger folk who have this subject spoon fed to them in it's most tasteless form. I mention this because I, myself, struggled with Maths at high school. That struggle ended when I took charge of my own Maths training. I chose my own books & materials and methods of learning. And saw my Maths marks skyrocket.

Need I say more? Get this book. For yourself. For your kids. For your country which is already in painful need for the scientifically astute.

A map to gold mines of information..........2003-11-03

Discovery Channel, move over. Keep this book at your computer terminal. Now you can indulge in an orgy of learning, or just quenching your curiosity!

Need I say more? Get this book. For yourself. For your kids. For your country which is already in painful need for the scientifically astute.

A map to gold mines of information..........2003-11-03

Discovery Channel, move over. Keep this book at your computer terminal. Now you can indulge in an orgy of learning, or just quenching your curiosity!

Need I say more? Get this book. For yourself. For your kids. For your country which is already in painful need for the scientifically astute.

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