The European Central Bank’s Monetary Policy Announcement Effect on the Exchange Rate in the Effective Lower Bound Era

By Raisa Khadija Muhtar, University of St. Andrews

Using a high-frequency event study of the European Central Bank’s (ECB) monetary policy announcements for both the “Press Release” event window and “Press Conference” event window, this paper observes an increasing sensitivity of exchange rate response to monetary policy announcements windows over the period of 2002 to 2019. Continue reading The European Central Bank’s Monetary Policy Announcement Effect on the Exchange Rate in the Effective Lower Bound Era

The Effect of National Radio on Financial Behavior

By Smeet Butala, University of Maryland

This paper examines the effects of increasing national coverage of All India Radio on financial inclusion during the early 2000s. Specifically, the dependent variable is bank account ownership and the explanatory variable of interest is subdistrict-level radio coverage. Continue reading The Effect of National Radio on Financial Behavior

BLOG: Northern Rock: The Forgotten Harbinger of the Global Financial Crisis

By Bishoy Megalla, Yale University

During the early days of 2007, Northern Rock stood as the fifth-largest bank in the United Kingdom by mortgage assets; with £113.5 billion in assets, the bank had grown tremendously from its origins in the twentieth century as a simple building society. Continue reading BLOG: Northern Rock: The Forgotten Harbinger of the Global Financial Crisis

Flow-Performance Relationship of Hedge Funds Before and After the Financial Crisis

By Lucas Cusimano and Ruby Zhang, The University of Chicago

This paper examines the determinants of U.S. hedge fund flow before and after the financial crisis using comprehensive hedge fund panel data. Hedge funds offer a unique testing ground for hypotheses about investor behavior due to their limited regulation structure. Continue reading Flow-Performance Relationship of Hedge Funds Before and After the Financial Crisis

BLOG: Market Distorting Moral Hazard of Dodd-Frank’s Title II: The Costs of Inefficient Capital Markets

By Charles LeSueur, Vassar College

The purpose of this paper is to analyze whether Title II of the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) effectively fulfills the stated goals of ending “too big to fail”, “no more taxpayer-funded bailouts”, and decreasing systemic risk.  I argue that Title II institutionalized taxpayer-funded bailouts under different language and increased systemic risk … Continue reading BLOG: Market Distorting Moral Hazard of Dodd-Frank’s Title II: The Costs of Inefficient Capital Markets

BLOG: Is Finance Making Geography Increasingly Insignificant?

By Yuxiang Hou, College of William and Mary

This paper attempts to revisit “the end of geography” debate by incorporating both established theoretical frameworks and the latest empirical evidence. It argues that for five reasons finance is not making geography increasingly insignificant. However, in the long run, things may be different. Continue reading BLOG: Is Finance Making Geography Increasingly Insignificant?

Developing Stock Markets and the Real Economy: Investigating Chinese Stock Market Turbulences in the Past 18 years

By Wei Wang. University of California, Berkeley

This study investigates the relationship between developing stock markets and the real economy by examining the effect of stock market crashes on… Continue reading Developing Stock Markets and the Real Economy: Investigating Chinese Stock Market Turbulences in the Past 18 years