The impacts of standard monetary and budgetary policies on liquidity and financial markets: International evidence from the credit freeze crisis

Gagnon, Marie-Hélène; Gimet, Céline

doi:10.1016/j.jbankfin.2013.04.003

Cited by 15 publications

(9 citation statements)

References 67 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In addition, these values are still higher than, for example, the 0.0181 percent and the 0.0373 percent that prevail in the NYSE and NASDAQ respectively (Jiang et al 2011). Similarly, liquidity cost in the ASE is higher than the 0.331 percent and the 0.213 percent that exist in the European exchanges and Canada respectively (Gagnon and Gimet, 2013), and the 0.217 percent that prevails in China (Ding et al 2013). The relatively high liquidity cost on the ASE is due to the market-making mechanism itself.…”

Section: Figure 8 Mean Annual Spread Valuesmentioning

confidence: 89%

The 2008 Global Financial Crisis: The Case of a Market with Consistent Losses Ever Since

Yaseen¹,

Omet²,

Abdel-Halim³

2015

EJBM

View full text Add to dashboard Cite

Following the 2008 global financial crisis, and in common with many stock markets around the world, the Amman Securities Exchange (ASE) experienced some heavy losses. However, what makes the Jordanian market probably different is its inability to recover. The weighted price index fell from 7519.3 points in 2007 to 5520.1 points in 2009, to 4593.9 points in 2012, and to 4336.7 points by the end of 2013 respectively. With a statutory minimum tick which is equal to one pence, this observation has some serious implications to the liquidity cost that prevails in the Jordanian capital market, and the cost of financing listed firms. The primary aim of this research paper is to examine the impact of the stock market crash in Jordan on liquidity cost. Based on a total number of 108 listed stocks and daily data during the years 2007 and 2009, the empirical results indicate that liquidity cost on the Jordanian capital market is high. In addition, the results show that the 2009 stock market crash has led to a substantial increase in liquidity cost. In other words, the market must consider a number of remedial measures to improve its' operational efficiency.

show abstract

Section: Figure 8 Mean Annual Spread Valuesmentioning

confidence: 89%

The 2008 Global Financial Crisis: The Case of a Market with Consistent Losses Ever Since

Yaseen¹,

Omet²,

Abdel-Halim³

2015

EJBM

View full text Add to dashboard Cite

show abstract

“…The NYSE for example marks 0.0181% while in NASDAQ about 0.0373 % (Jiang, 2011). Correspondingly, the 1.5 % cost of liquidity is higher than the 0.331 % and 0.213 % that are present in the European exchanges and Canada respectively (Gagnon & Gimet, 2013), while in China 0.217 % (Ding et al, 2013). Obviously, these observations indicate that investors in the ADSE and DFM cannot be assured of getting their orders executed whenever they want, and when they get them executed, the incur high cost.…”

Section: Ln (Vol It ) +  2 Ln (Price It ) +  3 Risk It +  4 Ln mentioning

confidence: 92%

The Minimum Tick and Stock Market Liquidity: The Case of Dubai and the Abu Dhabi Capital Markets

Omet¹,

Yaseen²,

Abdel-Halim³

2015

IJBM

View full text Add to dashboard Cite

In the framework of the financial and stock market literature, several economic concepts have been developed and considered including the concept of operational efficiency of stock markets. Basically, an efficient and liquid market permits investors to obtain the executed orders as fast and at reasonable prices as possible. This study provides answers for two major questions. The first question is what are the costs of liquidity which prevail in both Dubai and Abu Dhabi capital markets? Secondly, has the reduction in March 2000 in the minimum tick size in Dubai capital market led to a development in the operational efficiency of the capital market? Using data for an overall of 22 institutions which are listed on both markets and also based on a daily basis through the period from the first of October 2009 till first of August 2010, the practical investigations point out that liquidity cost in both markets is quite high. In addition, the outcomes obviously show that the decrease in the minimum tick size of the listed corporations on Dubai Capital Market have led to the preferred goal which is decreasing the cost of liquidity.

show abstract

“…In contrast, government spending shocks had a positive impact on credit and consumption, especially in Europe and Canada. Moreover, budgetary policies also had a positive international spillover effect on consumption and credit, especially for smaller economies such as Canada" [11].…”

Section: Advances In Economics Business and Management Research Volmentioning

confidence: 99%

“…The term "fiscal risk" in the economic literature has a number of interpretations that characterize its content. Thus, in the scientific publication and IMF analytical reviews, the term "fiscal risk" (originally -"budgetary risk") is considered as "the risk of non-fulfillment of the planned budget" [11,13]. In the documents of international financial organizations, the fiscal risks are understood as factors that, under certain circumstances, can lead to significant deviations of the actual budget parameters from planned and forecasted figures.…”

Section: Identification Of Fiscal Risksmentioning

confidence: 99%

Conceptual Approaches to Development and Implementation of Budgetary Policy

Solyannikova¹

2019

Proceedings of the External Challenges and Risks for Russia in the Context of the World Community’s Transition to Polycentrism:

View full text Add to dashboard Cite

The paper discusses methodological issues related to the development and implementation of good budgetary policy. The basic assumption is that modern challenges indicate that the budgetary policy is an appropriate tool to ensure countercyclical management efficiency and social equity. The analysis suggests a conclusion that the achievement of the appropriate quality of budgetary policy requires coordination between budgetary and monetary policies. The paper provides the classification of sources and types of fiscal risks, and formulates conditions that ensure the appropriate approach to the development and implementation of budgetary policy.

show abstract

The impacts of standard monetary and budgetary policies on liquidity and financial markets: International evidence from the credit freeze crisis

Cited by 15 publications

References 67 publications

The 2008 Global Financial Crisis: The Case of a Market with Consistent Losses Ever Since

The 2008 Global Financial Crisis: The Case of a Market with Consistent Losses Ever Since

The Minimum Tick and Stock Market Liquidity: The Case of Dubai and the Abu Dhabi Capital Markets

Conceptual Approaches to Development and Implementation of Budgetary Policy

Contact Info

Product

Resources

About