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Mark Harvey

provide a distinctive basis for collaboration and competition in the former by establishing industry-wide common standards. In Britain, in contrast, in the absence of specified quality and technical standards, quality and cost can more easily become opposing objectives of competition. Likewise, contractual law, a propensity to litigate, and the fostering of trust have been analysed as being central to different forms of inter-firm relations which fundamentally affect the nature and focus of competitive forces in Britain, Germany and Italy. Institutional and legal

in Market relations and the competitive process
Open Access (free)
Stan Metcalfe and Alan Warde

coming to mirror theory through the policy and practice of the powerful. We would not go so far as to say that the discourse of the virtuous market has created the institutional forms that it (mis)describes. Nevertheless, there are many potential ways in which the attribution of positive functions to market relations would affect understandings of reality and thus economic, political and social action. What we find most striking is the extent to which the market is considered to be without stain in the current period. Unparalleled, if not entirely unprecedented

in Market relations and the competitive process
Jonathan Michie

basis of a full acceptance of the findings of the MMC. In his announcement to the Stock Exchange Mr Byers said: Having considered the [MMC’s] report, advice from the Director General of Fair Trading and also taking into account further representations which have been received, I have decided to accept in full the unanimous recommendations of the MMC. The MMC’s findings are based mainly on competition grounds, where they concluded that the merger would adversely affect competition 134 Jonathan Michie and Christine Oughton between broadcasters. But they also examined

in Market relations and the competitive process
Oonagh McDonald

and the two government sponsored-entities, Fannie Mae and Freddie Mac, all of which were too highly leveraged. 17 What about the ‘Big Five’ investment banks? None of this affected the Big Five investment banks, Goldman Sachs, JP Morgan, Merrill Lynch, Bear Stearns and Lehman Brothers. Understanding exactly what effect the repeal of the Glass-Steagall Act had on the American banking system is to see that it was not only irrelevant as far as the financial crisis is concerned, but also that it did not affect

in Lehman Brothers
Why China survived the financial crisis
Shalendra D. Sharma

currency depreciation cycle, which would hurt the recovery of affected economies. But, there is a price to be paid to maintain the RMB value. Though devaluation may do little to improve exports, it would adversely affect imports . . . With a large foreign exchange reserve and trade surplus, the Chinese government probably has enough financial wherewithal to maintain the RMB exchange rate at least until early 2000, if not beyond.50 And second, can the Chinese government carry out the necessary “deep” restructuring challenges in the banking and SOE sector without

in The Asian financial crisis
Open Access (free)
Issues, debates and an overview of the crisis
Shalendra D. Sharma

conclusion of agreements with the IMF? What were the deficiencies in domestic policies that contributed to the onset of the crisis? How did the international community, especially the IMF, respond to the crisis? What was the content of the IMF policies, and how did it affect the economies under the IMF programs? What has been the nature of the economic recovery in the crisis countries, and what explains the relatively quick recovery? How valid is the claim that the IMF policies are largely responsible for the 8 Introduction: issues, debates and overview recovery? What

in The Asian financial crisis
Open Access (free)
Oonagh McDonald

-term stock prices. When ‘the dividend stock-price ratio is high, expected stock returns tend to be high, and when it is low, expected returns tend to be low’. In a joint paper with Ken French, they argued that ‘for both bonds and stocks, there are several variables that affect stocks, all of which are highly related to business conditions. We concluded that it tells us that it is likely that the variation in expected returns is rational, and presumably predictable’. 21 However, the variation in expected returns, if it is related to business conditions, can be rationally

in Lehman Brothers
Open Access (free)
Oonagh McDonald

with applying the copula model to estimate expected collateral losses on ABS CDOs was that it relied on correlations among bonds in the CDOs. The probability of default and expected losses produced by these models is that they are very sensitive to model parameters based on the historic performance of the underlying bonds, which were very reliable before 2007. ‘Crucially, these models were not designed to directly capture the sensitivity of the performance of the underlying assets to systemic changes in house prices or changes in attributes that affect the mortgage

in Lehman Brothers
Open Access (free)
The evolving international financial architecture
Shalendra D. Sharma

to fulfill this role, since lenders cannot quickly determine how a given shock will affect individual institutions. To limit moral hazard and the use of these facilities, the authorities impose supervisory and regulatory standards, and require, through partial deposit insurance and capital adequacy standards, that the private sector should share the cost of risk-taking. Moreover, since a domestic lender of last resort usually has regulatory authority over the commercial banks to which it lends, it can actually increase the supply of domestic money through is

in The Asian financial crisis
Scale of demand and the role of competences
Suma S. Athreye

objective is to develop their human resources and to utilise the human capital created as fully as possible. Achieving large scales of output is not necessarily a goal. In microeconomics’ terminology, the balance of fixed and variable costs differs according to whether a firm is a product provider or a service provider. This affects both the way in which firms think and compete and also has consequences for the market structure that emerges. Throughout the remainder of this chapter the emphasis will be on the first rather than the second. A final difference between the

in Market relations and the competitive process