Economic Recovery: Sustaining U.S. Economic Growth in a Post-Crisis Economy

[Excerpt] There is concern that this time the U.S. economy will either not return to its pre-recession growth path but perhaps remain permanently below it, or return to the pre-crisis path but at a slower than normal pace. Problems on the supply side and the demand side of the economy has so far led to a weaker than normal recovery. If the pace of private spending proves insufficient to assure a sustained recovery, would further stimulus by monetary and fiscal policy be warranted? One of the important lessons from the Great Depression is to guard against a too hasty withdrawal of fiscal and monetary stimulus in an economy recovering from a deep decline. The removal of fiscal and monetary stimulus in 1937 is thought to have stopped a recovery and caused a slump that did not end until WWII. Opponents of further stimulus maintain that the accumulation of additional government debt would lower future economic growth, but supporters argue that additional stimulus is the appropriate near-term policy

Trade Primer: Qs and As on Trade Concepts, Performance, and Policy

[Excerpt] The 112th Congress has a full legislative and oversight agenda on international trade. The agenda may include considering legislation to implement pending free trade agreements with Panama, South Korea, and Colombia, enhanced enforcement of U.S. trade agreements, as well as oversight of the World Trade Organization\u27s Doha Round and trade relations with China. This report provides information and context for many of these topics. It is intended to be read primarily by Members and staff who may be new to trade issues. This report is divided into four sections in a question-and-answer format: trade concepts, U.S. trade performance, formulation of U.S. trade policy, and trade and investment issues. Additional suggested readings are provided in an appendix. The first section on Trade Concepts deals with why countries trade, the consequences of trade expansion, and the relationship between globalization and trade. Key questions address the benefits of specialization in production and trade, efforts by governments to influence a country\u27s comparative advantage, how trade expansion can be costly and disruptive to workers in particular industries and skill categories, and some unique characteristics of trade between developed countries. The second section, on trade performance, focuses on the U.S. trade deficit and its impact on industries. Several questions address the causes of trade deficits, the role of foreign trade barriers, and how the trade deficit can be reduced. In terms of business impacts, the questions focus on which U.S. industries appear to be the most and least competitive, and on the relative size of the manufacturing sector. The third section deals with the roles played by the Executive Branch, Congress, the private sector, and the Judiciary in the formulation of U.S. trade policy. Information on how trade policy functions are organized in Congress and the Executive Branch, as well as the respective roles of individual Members and the President, is provided. The formal and informal roles of the private sector and the involvement of the Judiciary are also covered. The fourth section, on U.S. trade and investment policy, asks questions related to trade negotiations and agreements and to imports, exports, and investments. The justification, types, and consequences of trade liberalization agreements, along with the role of the World Trade Organization, are treated in this section. The costs and benefits of imports, exports, and investments are also discussed, including how the government deals with disruption and injury to workers and companies caused by imports and its efforts to both restrict and promote exports. The motivations and consequences of foreign direct investment flows are also discussed

Investors Behavioural Bias and Trading Behaviour - A Systematic Review

A systematic review of literature has been conducted on investor’s trading behaviour, andscientific literature until the year 2020 has been reviewed. It comprises research articles, reviews, and research reports. Appropriate keywords have been used, and each chosen literature has been assessed for itsquality. Based on the quantitative and qualitative research, evidence has been made, and a multi-dimensional framework has been developed, which is the basis for further research.The review examinesthe factors influencing women investors trading in thestock market and the behavioural biases affecting women in due course of investment and trading.Findings from research evidence have been integrated through thematic synthesis. The findings broadly indicate that there is less participation by females trading inthe stock market, and the behavioural biases explored by past researchers have not explored on females alone. Hence, this study can be further used for analyzing thebehavioural biases inherent in women investors trading inthe stock market

An Empirical Study of Convenience, Usefulness, Customer Trust and Customer Loyalty in the Live Streaming Platforms

Purpose: This study examines Live Streaming Platforms in China for convenience, usefulness, customer trust, and customer loyalty. This study was created, analyzed, and summarized using secondary data analysis using an archival study approach to establish a research framework. Research design, data, and methodology: 25 Chinese respondents employed purposive sample techniques and used an online questionnaire to collect the data, then used zoom meetings to ask respondents' opinions. After collecting data, descriptive statistics were used to explain crucial aspects. Results: The results of convenience, usefulness, trust, and loyalty can explain Livestream shopping systems' potential. Live streaming shopping connects factories, suppliers, and consumers directly. Customers can deal with suppliers, influencers, steamers, or net-idols on pricing, quality, custom needs, promotions, discounts, etc. Influencers, steamers, or net-idols entertain and give ideas for selling things while live streaming. Conclusions: The research findings have met the research objectives. This study paper's weaknesses include its China-centric focus. The research findings may only apply to China and no other countries

Global Stock Markets Development and Integration: with Special Reference to BRIC Countries

In a country like India where the stock market is undergoing significant transformation with liberalization measures, and the analysis of the nature of integration with other developed and emerging markets would not only give an idea of the possible gains to be reaped out of portfolio diversification from Indian market, but may also provide some indication of the vulnerability of the country’s stock market in case of a regional financial crisis and consequent reversal of capital flows from the region. In the context the study examined the integration of the stock market among the BRIC (Brazil, Russia, India and China) economies in general and their integration with the developed countries stock markets such as US, UK and Japan, which can be analyzed by using the Granger causality, Johansen co integration and Error correction Mechanism methodology, based on daily data for the period January1998- Aug 2009. The results of co integration shows co integration relationship found between BRIC countries and Developed countries namely USA, UK and Japan. The results of Error correction model reveal that Sensex, Nikki225, moscowtimes, FTSE 100, and Bovespa are significant. It implies that these markets share the forces of short run adjustment to long run equilibrium.Stock Market integration, Johansen Julius co integration test, ECM, Engel Granger Casualty test, emerging countries, developed countries

FINANCIAL MODERNIZATION LEGISLATION IN THE UNITED STATES. BACKGROUND AND IMPLICATIONS

The Gramm-Leach-Bliley Financial Modernization Act went into effect in the United States in1999. The Act establishes a new framework for affiliations among commercial banks, insurance companies and securities firms through "financial holding companies" and "financial subsidiaries", and establishes guidelines for entry into merchant banking. It moves financial institutions in the United States towards a system of conglomeration that has long existed in continental Europe and elsewhere in the world. This paper reviews important provisions of the new law, provides some comparisons with other countries, and draws some implications for future developments. The immediate effects of the law are not likely to be great, either in the United States or elsewhere. With respect to the integration of financial activities, it merely supports recent trends. At the same time, it requires a continued "separation of banking and commerce", precluding the establishment of true universal banks. Longer-run effects are likely to be more important. If the past is a guide to the future, whatever lines are now drawn by law and regulation between financial and commercial activities are likely to erode in the coming years.

Law, Finance, and Politics: The Case of India

The process of liberalisation of India's economy since 1991 has brought with it considerable development both of its financial markets and the legal institutions which support these. An influential body of recent economic work asserts that a country's 'legal origin'-as a civilian or common law jurisdiction-plays an important part in determining the development of its investor protection regulations, and consequently its financial development. An alternative theory claims that the determinants of investor protection are political, rather than legal. We use the case of India to test these theories. We find little support for the idea that India's legal heritage as a common law country has been influential in speeding the path of regulatory reforms and financial development. There is a complementarity between (i) India's relative success in services and software, (ii) the relative strength of its financial markets for outside equity, as opposed to outside debt, and (iii) the relative success of stock market regulation, as opposed to reforms of creditor rights. We conclude that political explanations have more traction in explaining the case of India than do theories based on 'legal origins'.India, Law and Finance, Investor Protection, Economic structure and financial structure

What explains Alibaba’s miraculous IPO success on the New York Stock Exchange?

Funding This work was supported by the Natural Science Foundation of China under Grant 72173036; the Natural Science Foundation of Hainan Province under Grant 721RC515. The authors are solely responsible for any error or omission herein. Funding Information: This work was supported by the National Natural Science Foundation of China under Grant 72173036; the Natural Science Foundation of Hainan Province under Grant 721RC515. The authors are solely responsible for any error or omission herein. Publisher Copyright: © 2022 Informa UK Limited, trading as Taylor & Francis Group.Peer reviewe

Macro-financial Linkage and Financial Deepening in China after the Global Financial Crisis

As China's economic integration with the global economy deepens, the amount of capital flow to/from China has been increasing significantly, especially since it joined the WTO. In spite of such environment, the recent global financial crisis has not severely affected the Chinese financial markets because of China's relatively strict control of cross-border capital transactions and its strong economic and financial fundamentals. The government's stimulus policies worked effectively to realize a quick recovery of the country's economic growth. However, on the horizon, the factors that protected the Chinese economy during the crisis also seem to carry with them substantial risks and challenges to its sustainable growth. This paper reviews the factors that have kept the Chinese economy and financial markets relatively stable and analyzes the recent changes in China's macro financial linkage overseas, and highlights the challenges that China faces in realizing a sustainable and efficient economic development.Macro-financial Linkage, Financial Deepening, Cross-border Capital Flow, Bank Lending

Including financial services in preferential trade agreements : lessons of international experience for China

The objective of this paper is to address the main considerations for China of including financial services in its preferential trade agreements. The paper briefly reviews China's financial liberalization process and the state of its domestic financial system, discusses the main considerations of including financial services in China's preferential trade agreements, compares and contrasts the different'architectural'approaches that have been used by countries to include financial services in such agreements, and identifies good practices in preparing for financial services negotiations. Particular emphasis is placed on lessons from Latin American preferential trade agreements, given their more frequent and extensive coverage of financial services compared with other regions.Emerging Markets,Banks&Banking Reform,Trade Law,Trade and Services,