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Financial Crisis and Stock Markets: Issues, Impact, and Policies

The financial crisis stemming from the burst of the housing and credit bubble lead to a shutdown of the credit markets and spread around the globe, with the resultant massive destruction of equity and real estate wealth. The drastic crisis of investor confidence triggered massive selloffs in the stock markets around the world. The markets, which were integrated into the global financial economy, got hit first. However, even those which were weakly integrated got adversely affected due to transmission of the crisis through the real sectors.

Stock Market Development and Internationalization: Do Economic Fundamentals Spur Both Similarly?

Financial markets, especially stock markets, have grown considerably in developed and developing countries over the last two decades. Several factors have aided in their growth, importantly improved macroeconomic fundamentals, such as more monetary stability and higher economic growth. General economic and specific capital markets reforms, including privatization of state-owned enterprises, financial liberalization, and an improved institutional framework for investors, have further encouraged capital markets development.

Healthy Fast Food

Healthy Fast Food was written for managers and staff of remote Indigenous community stores and takeaways, and others who work with them, such as nutritionists and health workers. It gives practical tips and advice on how stores and takeaways can promote and support healthy eating in remote communities.

Your Guide to Healthy Eating

Everyone knows that there is something that they could change in their life to become healthier. For most people, it's getting more exercise and eating a healthier diet. But, how do you know if you are eating healthily or not? There are so many different diets and strategies on the market, how do you know what to do for the best?

Understanding Chit Funds: Price Determination and the Role of Auction Formats in Rotating Savings and Credit Associations

The Rotating Savings and Credit Association (Rosca) plays an important role as a financial intermediary in many parts of developing countries. It flourishes in both urban and rural settings, especially where formal financial institutions seem to fail to meet the needs of a large fraction of the population. Bouman (1979), for example, estimates that, in central African countries, about 20% of household savings are accumulated in informal Roscas.

Do Financial Conglomerates Create or Destroy Economic Value?

This paper attempts to ascertain whether or not diversification (revenue and cost economies of scope) is value-enhancing or value-destroying in the financial services sector. The degree of diversification can change either as a financial services firm divests or acquires assets, or as it redirects its business activity into new business segments. Additionally, its portfolio of activities can shift over time due to divergent growth rates in the existing business segments and can assume more or less diverse geographic patterns.

Comprehensive Income and Cost of Equity Capital

Existing accounting literature on the usefulness of comprehensive income suggests that other comprehensive income is priced by the market but cannot predict future cash flows. Finance theory has long suggested that firm value is determined by present value of expected future cash flows. If a factor is associated with value but does not have an association with (expected) future cash flows, its effect on value must come from its relation with cost of capital (i.e. the discount factor). This argument can be especially true for other comprehensive income since other comprehensive income is mainly change in fair value of long-term financial assets and liabilities caused by market fluctuation.

Executive Compensation and Internal Capital Market Efficiency

Optimal allocation of scarce resources is at the heart of wealth creation in a free market economy. Efficient external capital markets facilitate in this process by allocating capital to the most productive investments. Similarly, efficiency of the internal capital market is critical to value creation in a multi-segment firm.

Type 2 Diabetes Costs in Australia

Close to one million (7.5%) Australian adults have diabetes mellitus and it is estimated that by the year 2010 this will increase to 1.23 million. Diabetes mellitus accounts for 5% of the total burden of disease and is the seventh leading cause of Australian deaths. Type 2 diabetes is the most common form representing 85-90% of those with diabetes mellitus. This report provides estimates for the direct health care costs of Type 2 diabetes attributable to obesity, and the potential impact on costs of diet and physical activity interventions.

The Exchange Rate Effect of Multi-Currency Risk Arbitrage

Microeconomic research on exchange rates has explored how news events affect exchange rates at daily or intraday frequencies. News measured by abroad set of macro announcements in Anderson et al. (2003) generate an immediate impact on the exchange rate. But the infrequent occurrence of such public news events implies that the overall percentage of exchange rate variation explained remains relative small.

Frugal Fat Loss

Variations of dietary exchange plans have been around since before World War Two. It was created for diabetics as an easy way to keep track of their daily food intake. Since then many people have lost weight or maintained a healthy weight using exchange programs. Weight Watchers® was based on exchanges until 1997. Richard Simmons Deal-A-Meal® system used exchanges. Joanna Lund's Healthy Exchanges® and a Christian Program called First Place® are two other programs with which you may be familiar. All of these plans are variations of the Exchange Lists produced by The American Diabetes Association and The American Dietetic Association.

Foreign Direct Investment in Times of Global Economic Crisis: Spotlight on New Europe

The first indications of a global financial crisis emerged in the middle of 2007 with rising defaults on subprime mortgages in the U.S. The crisis of money markets erupted in 2008. Stock markets have fallen, large financial institutions have collapsed or been bought out by the state, and governments around the world had to come up with rescue packages to bail out their financial systems. Not only private financial institutions (such as Lehman Brothers and Morgan Stanley), but even nations (such as Iceland) found themselves on the verge of bankruptcy.

Remittances, Institutions and Economic Growth

Theoretical and empirical investigations into remittances economic impact have produced highly mixed results. On the positive side, remittances contribute to the alleviation of poverty and, in some instances, provide capital to fund households investments and savings. For a number of countries, international remittances have driven macroeconomic growth, mostly by increasing national disposable income. For many low income, net emigration countries, remittances are the most important source of external financing, leading FDI and official development assistance (Figure 1).

Stock Market Development and Economic Growth: Evidence from Developing Countries

As the global equity markets have experienced their most explosive growth over the past decade, emerging equity markets have experienced an even more rapid growth, taking on an increasingly larger share of this global boom. For example, while overall capitalization rose from $4.7 trillion to $15.2 trillion globally, the share of emerging markets jumped from less than 4 to 13 percent in this period. Trading activity in these markets surged equally fast: the value of shares traded in emerging markets climbed from less than 3 percent of the $1.6 trillion world total in 1985 to 17 percent of the $9.6 trillion shares traded in all world's exchanges in 1994.

Manufactured Exports, Export Platforms, and Economic Growth

During the last thirty years, success in manufactured exports has been nearly synonymous with rapid economic development. With only a few exceptions, the countries that have achieved the most rapid gains in income per capita have also recorded the fastest growth in manufactured exports. The best known examples are the East Asian countries in which incomes grew by between four-fold (in Southeast Asia) and seven-fold (in the four tigers) on the back of labor intensive manufactured exports. Outside of East Asia, Mauritius, Ireland, and Tunisia have all achieved both rapid manufactured export growth and rapid economic growth over sustained periods.

Disclosure, Corporate Governance, and the Cost of Equity Capital in Emerging Markets

Whether or not disclosure reduces a firm's cost of capital is the focus of a growing body of accounting research. The study of this issue is motivated by the economic theory that greater disclosure lowers information asymmetry (Glosten and Milgrom 1985; Diamond and Verricchia 1991) and estimation risk (Barry and Brown 1985). Lang and Lundholm (1996) show that firms that disclose more have more accurate and less dispersed analyst earnings forecasts. Welker (1995) and Healy, Hutton, and Palepu (1999) further document that firms with a greater disclosure have lower bid-ask spreads, which is a measure of the cost that is related to information asymmetry.

The Allocation and Monitoring Role of Capital Markets: Theory and International Evidence

Why do we observe differences in economic performance among countries; across industries in the same economy; and across firms belonging to the same industry? What could be the role of the financial system in explaining cross-country and cross-industry variations in economic performance? While determinants of cross-country economic growth have been of great interest to development economists and growth economic theory, the role of financial markets and institutions has traditionally received very little attention.

A Study of Malaria and Sickle Cell Anemia

Malaria is a parasitic disease which is spread by the female Anopheles mosquitoes. There are about 2 million deaths from malaria each year, making it one of the world's deadliest diseases. Forty percent of the world's population is at risk of contracting malaria. Most of the fatal cases of malaria are in Sub-Saharan Africa, and most are children under the age of five or pregnant women. There are some areas where up to 40% of the children die of malaria when conditions are at their worst. The most effective prevention of malaria in children, as shown in a 1996 World Health Organization study, is protecting them from mosquito bites by having them sleep under bednets dipped in permethrin. In the WHO's pilot study in The Gambia, the death rate among children between birth and 5 years was reduced by 63% by this method.

Anaemia in pregnancy

Anaemia is defined as reduction in circulating haemoglobin mass below the critical level. The normal haemoglobin (Hb) concentration in the body is between 12-14 grams percent. WHO has accepted up to 11gm percent as the normal haemoglobin level in pregnancy. Therefore any haemoglobin level below 11gm in pregnancy should be considered as anaemia. However in India and most of the other developing countries the lower limit is often accepted as 10 gms percent.

Does Mortgage Hedging Raise Long-Term Interest Rate Volatility?

Volatility is an ever-present feature of financial markets. Recent history has evidenced several episodes of heightened volatility. Events such as the Russian debt crisis, the collapse of LTCM, and the disruption of the Asian markets in the late 1990s have all been responsible for periods of heightened volatility.

Systemic Risk from Real Estate and Macro-prudential Regulation

Banking regulation failed to prevent the crisis that started in the summer of 2007. One reason is that it was based on a micro-prudential approach. This involved regulating the risk taken by individual banks. The idea was that if the risk taken by each individual bank was limited then the risk in the financial system as a whole would be limited as well. The problem is that this approach ignores systemic risk. This is the risk faced by the financial system as a whole.

Foreign Direct Investment, Trade and Real Exchange Rate Linkages in Developing Countries

Trade flows and foreign direct investment are linked in a variety of ways. Direct investment may set the stage for export promotion, import substitution or greater trade in intermediate inputs, especially between parent and affiliate producers. These trade implications of foreign direct investment may be observed between the host and source country or with a set of third country markets. In addition to this direct linkage, there is an indirect linkage between trade flows and direct investment since each share the common determinant of the real exchange rate.

Does Foreign Direct Investment Accelerate Economic Growth?

With the drying-up of commercial bank lending to developing economies in the 1980s, most countries eased restrictions on foreign direct investment (FDI) and many aggressively offered tax incentives and subsidies to attract foreign capital (Aitken and Harrison, 1999; World Bank, 1997a,b). Along with these policy changes, there was a surge of non-commercial bank private capital flows to developing economies in the 1990s.

Measuring hunger and malnutrition

Five types of methods are used for assessing the extent of hunger and malnutrition, each having different applications and comparative advantages in terms of uses for advocacy, policy analysis and decisions, and research. Three of these, the FAO method, household income and expenditure surveys (HIES) and food intake surveys (FIS), estimate dietary intake and try to relate this to energy needs, of which physical activity is the largest single component yet the least measurable. The fourth assesses perceptions of hunger and behavioural response (qualitative methods), and the fifth measures physical effects on growth and thinness (anthropometry). Not only is there no absolute measure (or "gold standard"), but these methods assess different aspects of hunger and dimensions of its effects on health, suffering, behaviour and economics. None the less, triangulating on trends in "hunger" is a reasonable goal and is the underlying intent of the internationally agreed upon obligation to accelerate the reduction in the numbers of people affected.

The Minimum Cost of a Healthy Diet

Tackling chronic malnutrition effectively, and in particular improving the diet of children in the critical period up to the age of two years, remains a major challenge to the international community. Recent years have seen nutrition policy-makers focus heavily on addressing non-food related causes of malnutrition in developing countries (health status and caring practices), rather than tackling food insecurity. Furthermore, progress made in measuring food insecurity has largely involved measuring access to food energy, rather than aspects of dietary quality.

The Fast-5 Diet and the Fast-5 Lifestyle

The Fast-5 Diet is the temporary use of the Fast-5 plan to lose excess fat and reach a goal weight. The Fast-5 Lifestyle is the permanent adoption of the Fast-5 plan to maintain a lean weight and sustain a reduction of calorie intake that may have substantial health and longevity benefits. The practice of the diet and lifestyle is the same.

Reducing inequalities in health and diet: the impact of a food retail development: A pilot study

It has been suggested that inadequate retail provision of food for those with a low income or who live in poor neighbourhoods may contribute to diet-related inequalities in health. This pilot project, funded through the DH Reducing Health Inequalities Research Initiative (Phase 2), investigated these issues by evaluating the health impacts of a large-scale food retail development within a deprived area of Glasgow (Springburn). It used a prospective design which compared change in diet, and self reported health in an area where a new hypermarket was built (the intervention area), with a similarly-deprived comparison area in Glasgow city (Shettleston).

Foreign Direct Investment and the Domestic Capital Stock

Rising levels of foreign direct investment (FDI) concern growing numbers of policymakers and members of the American public. These concerns stem from the perception that foreign activities of American multinational corporations reduce employment and other economic activities within the United States. While investment flows within the United States go largely unnoticed, in an international setting the lexicon of "winners" and "losers" can be inescapable. Curiously, both capital exporting countries and capital importing countries have at times expressed concern over the consequences of international capital flows.

Monetary Policy and Stock Market Boom-Bust Cycles

Inflation has receded from center stage as a major problem, and attention has shifted to other concerns. One concern that has received increased attention is volatility in asset markets. A look at the data reveals the reason. Figure 1 displays monthly observations on the S&P500 (converted into real terms using the CPI) for the period 1870 to early 2006. Note the recent dramatic boom and bust. Two other pronounced "boom-bust" episodes are evident: the one that begins in the early 1920s and busts near the start oft he Great Depression ,and another one that begins in the mid 1950s and busts in the 1970s.

Financial Distress and Idiosyncratic Volatility: An Empirical Investigation

According to modern finance theory, high risk projects should, in equilibrium, offer high returns. Thus, there should be high returns forbearing elevated risk associated with financial distress, bankruptcy, default, and idiosyncratic volatility. This is not always the case. Indeed, in some instances, the returns on high risk stocks are very low, which flies in the face of modern financial theory.

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