Andrea Michaela Maechler

Exploring the Dynamics of Global Liquidity

This paper explores the concept of global liquidity, its measurement and macro-financial importance. We construct two sets of indicators for global liquidity: a quantity series distinguishing between core and noncore liabilities of financial intermediatires and a corresponding price series. Using price and quantity indicators simultaneously, it is possible to distinguish between shocks to the supply and demand for global liquidity, and isolate their impact on the economy. Our results confirm that global liquidity conditions matter for economic and financial stability, and points to indicators whose regular monitoring could be valuable to policymakers.

Foreign Banks in the CESE Countries: In for a Penny, in for a Pound?

The aim of this paper is to construct a comprehensive and consistent dataset to analyze the potential risks from foreign bank lending, for both the creditor and borrower countries of Central, Eastern and South-Eastern Europe (CESE). We develop a picture of bank claims on 13 CESE countries by combining credit statistics from several sources. Our constructed data suggest that some of these host countries have become more at risk from a sudden withdrawal of short-term external funding, while home countries have significant aggregate exposures to the region. Overall, we find that data on banking activity remain largely inadequate for surveillance and policymaking purposes, and that a concerted effort to improve data collection is needed at the international level.

Trade liberalization and the environment: The case of intra-industry trade

Abstract While a large body of literature examines the environmental impact of trade on the environment, this discussion focuses largely on the context of inter-industry trade. Empirical evidence has long suggested that an increasing share of international trade takes the form of intra- rather than inter-industry trade. In an attempt to fill this gap, the present paper uses a price-setting duopoly model of intra-industry trade to highlight the environmental consequences of trade liberalization when oligopolistic rivalry rather than comparative advantage drives international trade. We find that the environmental impact of trade liberalization depends mostly on two factors, namely, on the nature of pollution (i.e. whether it is local, transboundary or global) and on which country liberalizes trade (i.e. whether it is the ‘clean’ country or the ‘dirty’ country).

The Real Effects of Financial Sector Risk

A photoconductive layer is formed on the entire outer peripheral surface of a light transmissive drum, and a conductive layer is formed on the photoconductive layer and is made up of a plurality of strip-like conductive portions. Provided around the drum are a tank for storing thermo-melting ink, a blade which removes surplus ink on the outer peripheral surface of the drum, a drier for drying the ink filling the gaps between the conductive portions in the conductive layers, a platen roller which presses against the outer peripheral surface of the drum with a sheet of recording paper in between, and a light source which is provided inside the drum, facing the inner peripheral surface thereof. When the light source is selectively operated in accordance with image information, current is made to flow between the conductive portions in the conductive layer via the photoconductive layer at image recording areas, thus causing the ink filling the gap to be transferred to the recording paper.

The Impact of Intra-Industry Trade on the Environment

By addressing environmental protection in the context of intra-industry trade, this paper offers a new perspective on the trade and environment debate. Empirical evidence has long suggested that an increasing share of international trade takes the form of intra- rather than inter-industry trade. Thus, it is essential to discuss the likely impact of trade on the environmental quality in the context of two-way trade. Using a simple intra-industry trade model a la Brander and Krugman (1983), this essay shows that environmental consequences of trade liberalization differ significantly when oligopolistic rivalry rather than comparative advantage drives international trade.