Lending of Last Resort, Moral Hazard and Twin Crises: Lessons from the Bulgarian Financial Crisis 1996/1997

In 1996/1997 Bulgaria was hit by a severe financial crisis, spreading from a banking crisis to a currency crisis. While being widely neglected by the financial crisis literature and the international discussion we argue that the Bulgarian Financial Crisis might serve as an illustrative example of a twin crisis primarily (but not only) due to systematic moral hazard behaviour of the banking sector. Thus, the Bulgarian Financial Crisis might be closer to the story of third generation moral hazard models of currency crises than the Asian Crisis. We also show how Bulgaria managed to overcome the crisis by introducing a second generation currency board allowing the central bank to act as a strictly limited lender of last resort thereby (hopefully) making the country less prone to a financial crisis in the future.http://deepblue.lib.umich.edu/bitstream/2027.42/39848/3/wp464.pd

Lending of Last Resort, Moral Hazard and Twin Crises: Lessons from the Bulgarian Financial Crisis 1996/1997

In 1996/1997 Bulgaria was hit by a severe financial crisis, spreading from a banking crisis to a currency crisis. While being widely neglected by the financial crisis literature and the international discussion we argue that the Bulgarian Financial Crisis might serve as an illustrative example of a twin crisis primarily (but not only) due to systematic moral hazard behaviour of the banking sector. Thus, the Bulgarian Financial Crisis might be closer to the story of third generation moral hazard models of currency crises than the Asian Crisis. We also show how Bulgaria managed to overcome the crisis by introducing a second generation currency board allowing the central bank to act as a strictly limited lender of last resort thereby (hopefully) making the country less prone to a financial crisis in the future.Financial Crises, Bulgaria, Lender of Last Resort, Twin Crises, Currency Boards

Financial Convergence in the New EU Member States

In this paper we explore the issue of financial convergence in the new EU member states (NMS). For the purposes of our analysis the countries falling into the category NMS are Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia, i.e. all countries that joined the EU in the last decade, except Cyprus and Malta

Financial Convergence in the New EU Member States

In this paper we explore the issue of financial convergence in the new EU member states (NMS). For the purposes of our analysis the countries falling into the category NMS are Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia, i.e. all countries that joined the EU in the last decade, except Cyprus and Malta.

Financial Convergence in the New EU Member States

In this paper we explore the issue of financial convergence in the new EU member states (NMS). For the purposes of our analysis the countries falling into the category NMS are Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia, i.e. all countries that joined the EU in the last decade, except Cyprus and Malta.

Maritime forward scatter radar: data collection and clutter analysis

This thesis is the result of study into development, experimental testing and clutter analysis in a Forward Scatter Radar (FSR) designed to detect low reflectivity maritime targets at low grazing angles. The concept of such kind of maritime system is presented; its advantages for surveillance applications are described. Scattering of Electromagnetic (EM) Waves over the sea surface at different radar configurations is outlined with the focus made on forward scattering and appropriate sea clutter models. Phenomenology of the signals in FSR is examined and explained. The development of an experimental FSR hardware operating in X- and K- frequency bands for target detection and clutter analysis and its performance are described in details. It follows with the comprehensive analysis on the measured sea clutter which includes study of influence of a large number of parameters of the radar and sea conditions on the clutter spectral and statistical properties. Finally preliminary analysis of radio frequency (RF) target signatures made with the prototype radar is presented

Higher harmonic anisotropic flow measurements of charged particles in Pb-Pb collisions at 2.76 TeV

We report on the first measurement of the triangular $v_3$, quadrangular $v_4$, and pentagonal $v_5$ charged particle flow in Pb-Pb collisions at 2.76 TeV measured with the ALICE detector at the CERN Large Hadron Collider. We show that the triangular flow can be described in terms of the initial spatial anisotropy and its fluctuations, which provides strong constraints on its origin. In the most central events, where the elliptic flow $v_2$ and $v_3$ have similar magnitude, a double peaked structure in the two-particle azimuthal correlations is observed, which is often interpreted as a Mach cone response to fast partons. We show that this structure can be naturally explained from the measured anisotropic flow Fourier coefficients.Comment: 10 pages, 4 figures, published version, figures at http://aliceinfo.cern.ch/ArtSubmission/node/387

The terror that underpins the ‘peace’: The political economy of Colombia’s paramilitary demobilisation process

Studies on terrorism have traditionally focused on non-state actors who direct violence against liberal states. Such studies have also tended to focus on political motivations and, therefore, have neglected the economic functions of terrorism. This article challenges the divorce of the political and economic spheres by highlighting how states can use terrorism to realise interconnected political and economic goals. To demonstrate this, we take the case of the paramilitary demobilisation process in Colombia and show how it relates to the US-Colombian free trade agreement (FTA). We argue that the demobilisation process fulfils a dual role. Firstly, the process aims to improve the image of the Colombian government required to pass the controversial FTA through US Congress in order to protect large amounts of US investment in the country. Secondly, the demobilisation process serves to mask clear continuities in paramilitary terror which serve mutually supportive political and economic functions for US investment in Colombia