Operating and Financial Hedging: Evidence from Trade

Do Regional Ties Add to Depositor Trust during the Crisis? Evidence from Russia

The question of whether regional banks should be treated differently has recently become all the rage in the banking authorities’ debates in Russia. We add to this discussion by analyzing bank regional ties in the flight-to-familiarity context, which implies that agents naturally feel more favorable...
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Does Product Market Competition Cause Capital Constraints?

At the very center of Schumpeter’s (1934, 1942) notion of creative destruction is firms’ access to bank capital, which helps to fund the innovation in competitive product markets that drives out less productive firms in favor of those with more profitable ideas. However, competition is...
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Time to Worry about Illiquidity

At a time when central banks have injected unprecedented amounts of money, worrying about illiquidity may appear odd. However, if poorly understood and unaddressed, illiquidity could be the foundation of the next financial crisis. Market liquidity is defined as the ease of trading a financial...
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Is Local Monetary Policy Less Effective When Firms Have Access to Foreign Capital?

Central banks affect growth in part by raising or lowering the cost of investment through their influence over local interest rates. We examine whether the ability of local firms to raise money abroad reduces the influence of local monetary policy authorities. Surprisingly, it does not....
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Effects of International Taxation on Firm Valuation: Evidence from Japan’s 2009 Tax Reform

Authors: Sebastien Bradley and Estelle Dauchy, Drexel University and New Economic School. This brief highlights the results of a study of Japan’s 2009 adoption of a territorial tax regime exempting corporations’ foreign earnings from domestic taxation. We examine stock market reactions to events leading to...
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More Commitment is Needed to Improve Efficiency in EU Fiscal Spending

Author: Jenny Simon, SITE. The member states of the European Union coordinate on many policy areas. The joint implementation of public good type projects, however, has stalled. Centralized fiscal spending in the European Union remains small and there exists an overwhelming perception that the available...
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Integration Formations in the Monetary Sphere: the Possibility and the Necessity for Monetary Integration in the Post-Soviet Region

Author: Anastasiya Luzgina, BEROC. This policy brief addresses the possibility of monetary integration in the post-Soviet region. It provides a short overview of the literature devoted to the formation and development of the monetary unions, and argues that, based on this literature and real-world experiences,...
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