Money markets

In distinguishing between formal and real subsumption of the labor and production process of society by capital Marx provides a formative periodizing of capitalism. Yet, losing sight of Marx’s subtle distinctions, it would be the writings of Karl Kautsky, in whose hands the very term Marxism originates, that most influenced generations of Marx’s followers. Kautsky maintained that Marxism is a theory of historical directionality. He argued that Marx’s study of capitalism constituted a subtheory of historical materialism and confirmed socialism as the historical telos. A combination of theoretical problems deriving from Kautsky’s reconstruction of Marxism plus the fact that capitalism would survive its first major economic crisis at the close of the nineteenth century to emerge reloaded in its imperialist stage by the early twentieth century animated the important work of Rudolf Hilferding, V.I. Lenin, and Nicolai Bukharin. Theorizing of imperialism provides the foundation for studies of the corporate form of business enterprise and what is referred to today as financialization.

This paper uses a two-sector model to estimate the relationship between prices, money, and the exchange rate in Madagascar during the period 1982-2004. The estimated model, using quarterly data, finds a stable long-run relationship among monetary aggregates, domestic prices, real income, and foreign interest rates. In addition, the error-correction model shows that changes in the monetary aggregates, the exchange rate, and foreign interest rates exert a significant impact on inflation. The results also suggest that a disequilibrium in the money market has a lasting impact on inflation. The paper concludes with policy recommendations.

British banking had been enormously stable from the third quarter of the nineteenth century until the 1970s. The stability is frequently explained casually as a consequence of the cartel. But there was no cartel before 1914, and even through the twentieth century, the rate of return on capital in banking was not out of line with that in the rest of the economy, a feature more in keeping with a competitive model than a monopolistic one. Of course, there are many possible explanations for that and many ingredients in the stability. Importantly, the banks had found their own way to the appropriate capital, cash, and liquidity ratios. After the Second World War, the latter two were to change under direction from the authorities. And while it was not spelled out in these terms at the time, the Bank took responsibility for financial stability. The fact that the banking system had been so stable for so long meant that the subject was little discussed. The fact was, though, that the Bank watched over all that went on in the City and gathered intelligence on everything from mood to individual behaviour. The key figure in this in the Bank was the Principal of the Discount Office. That job was becoming more difficult in the world after competition and credit control (CCC) and came under close scrutiny in the secondary banking crisis that broke at the end of 1973, one of the most dramatic events in an eventful decade in which the Bank was involved.

In autumn of 2007 Britain experienced its first bank run of any significance since the reign of Queen Victoria. The run was on a bank called Northern Rock. This was extraordinary, for Britain had been free of such episodes because by early in the third quarter of the 19th century the Bank of England had developed techniques to prevent them.

Sovereign CDS spreads have become major variables focused on risks and expectations about the fiscal situation of different countries. In the paper we investigate, first, whether there is a link in the new member states between the expectations about the condition of their public finances and the dynamics of money markets, including integration of national money markets with the Euro area. Second, we look on the particularities of this relationship through the different phases of the crisis and across the different countries using different monetary regimes. This concerns mostly two opposite extreme monetary regimes, namely, currency boards (and quasi-fixed exchange rate) - Bulgaria, Estonia, Latvia, Lithuania, or inflation targeting - Poland, Czech Republic, Hungary and Romania. The results obtained form the high frequency panel data models support the theoretical hypotheses and policy intuition that exists strong relationship between the liquidity risk (measured by the short term ...

В статье исследована структура мирового и украинского финансовых рынков. Рынок деривативов рассмотрен как отдельный сегмент, но в составе рынков, которые образуют полную структуру финансового рынка.
Ключевые слова: финансовый рынок, рынок деривативов, фондовый рынок, денежный рынок, товарный рынок, валютный рынок

Ссылка на украинскую версию (Оригинал): http://www.academia.edu/4455050/_

In Scotland, at the time when Adam Smith was writing The Wealth of Nations, a monetary system was taking root in which, besides metallic money, convertible notes issued by private banks also circulated. In the same period, the English colonies of

This paper investigates whether the degree and nature of interdependence between the United States and the euro area have changed with the advent of EMU. Using real-time data, it addresses this issue from the perspective of financial markets by analysing the effects of monetary policy announcements and macroeconomic news on daily interest rates in the United States and the euro area. The paper finds that the interdependence of money markets has steadily increased over time, with the spillover effects from the United States to the euro area being somewhat stronger than in the opposite direction. Moreover, for the early stages of EMU, we find evidence that the markets were going through a learning process about the ECB monetary policy. Towards the end of our sample period, the importance attached to euro area consumer prices and M3 has reached levels that are remarkably similar to the role of German consumer prices and M3 for German interest rates prior to EMU. JEL Classification: E43...

This study examines the effectiveness of European Central Bank asset purchase program (quantitative easing) on the long-term interest rates. In particular, the study evaluates the effectiveness or influence of the European Central Bank’s non-conventional monetary policy tool, quantitative easing (also known as asset purchase program) on the yield of  5-year sovereign government bonds of Eurozone economies. The main objective and the motivation for this study is to provide the compact effects or influence of the quantitative easing in the Eurozone economies, as the current literature on quantitative easing insufficiently covers the effects of quantitative easing in the euro area. The duration of the quantitative easing or asset purchase program is from the end of 2014 until the first quarter of 2017; however, the currently available literature only studies the effects of the asset purchase program until mid of 2016. Very few researches are published after the completion of the quantitative program that estimates or evaluate the complete influence of the program on the long-term interest rates and economic indicators. Whereas, this research provides a complete solution to the literature gap by studying the influence of all the quantitative easing related announcements made by ECB from June 2014 to January 2017, or the whole period of extended asset purchase program conducted by ECB.
The research questions that the study aims to answer is that if the ECB announcements related to quantitative easing influence the long-term interest rates via influencing the 5-year government bonds. If the impact on the 5-year government bond yield is only influenced by those ECB announcements that contain new information related to asset purchase program. If the impact of quantitative easing or asset purchase program is larger on the weaker Eurozone economies namely Spain and Italy, as compared to the impact of the same program on stronger Eurozone economies including Germany and France
This research uses the event-study analysis methodology. Under the event study method, the research first estimates the abnormal variation in the yield of 5-year government bonds of the four largest Eurozone economies around the announcements made by European Central Bank regarding the quantitative easing or asset purchase program in the monetary policy statement. Later the study evaluates if abnormal variation in 5-year government bond yield around such announcements has statistical and economic significance. The sample of four 5-year government bonds of the four largest economies of Eurozone, namely Germany, France, Spain, and Italy, are considered for the research..
The research made key contributions to the literature on the subject of quantitative easing focused on the euro area. The statistical results of the research conclude that the ECB announcements negatively (decrease) influence the 5-year government bond yields. While the event-study results and the hypothesis revolve around measuring the effectiveness and influence of the non-conventional monetary policy tools used by ECB, the study also discovered a key pattern that the influence of such asset purchase program is much larger on weaker economies of the dataset like Spain and Italy, as compared to strong candidates i.e. Germany and France. The study also discovered that the abnormal variations in yields only occur around those central bank announcement that has a surprise element or that has a new information related the monetary policy.
The results of the study also show economic significance. The results show that at the initiation of the asset purchase program or quantitative easing, the inflation rates across Europe were between -1% to 0.8%, which is far below the optimal inflation rate of 2%. However, at the end of asset purchase program in the first quarter of 2017, the monthly inflation rates in Germany, France, Spain and Italy has increased to 2%, 1.4%, 2.6% and 2% respectively. At the beginning of the asset purchase program the quarterly GDP growth rate in sample countries was between -0.2% to 0.4%, whereas, at the end of the asset purchase program or quantitative easing in the second quarter of 2017, the quarterly GDP growth rate of Germany, France, Spain and Italy increased to 0.6%, 0.5%, 0.9% and 0.4% respectively. Hence all the results derived from the event-study analysis are consistent with the hypothesis proposed under this research.