Financial sector, Other Publications, Other Regions, External Publications

Challenges to Financial Stability – Perspective, Models and Policies Volume I: A Framework for Modeling Systemic Risk Drivers of Different Markets

From the editor, Renata Karkowska:

"During the global financial crisis exchange stock markets fell by more than 40% in Europe, USA or Japan. Real economy stopped, which was seen in international trade, direct investments and industry. These declines illustrate the scale and impact of systemic risk and its local and global consequences. In response, international supervisory and regulators have identified causes of the global financial crisis and took necessary steps to create stability of financial system, discipline in risk-taking, leverage and management of systemic risk."

The book consists of 19 chapters that are organized in 2 volumes - I. A Framework for Modelling Systemic Risk Drivers of Different Markets; II. Towards the Financial Stability - Macroprudential Policy and Perspective. Chapter 5: "The Impact of Liberalization on Financial Volatility: The Case of Transition Economies" by Christopher A. Hartwell "examines the common determinants of financial volatility of Central and Eastern Europe and the former Soviet Union 20 transition economies. The results from Prais-Winsten and GMM regressions methods support the thesis that greater internal liberalization and more advanced property rights, help to dampen financial sector volatility. Author explores that while the interaction of financial liberalization and property rights does appear to increase volatility, this effect is dominated by the moderating influence of internal liberalization and better property rights at their levels."


The book was published by ASERS Publishing.