Foreign exchange market is the most active market in today’s global financial domains. While the consensus on several aspects of this market is fairly established, the informational efficiency in this market is still unsettled, particularly during unexpected interruptions and unusual or unstable periods. The financial crisis of 2008 is the most recent example of such a period. This dissertation focuses on the efficiency of the foreign exchange market during a unique, turbulent period using the six most actively traded currencies: the Australian dollar, Canadian dollar, Swiss franc, Euro, British pound, and Japanese yen. Considering nine months before the peak of the financial crisis to nine months thereafter, the entire sample is divided into three sub-samples: full-, non-crisis-, and crisis-periods. Both daily and minute-by-minute data are used. A variety of instruments are analyzed, including spot, forward, and exchange traded funds on the currencies. The methodologies that are employed range from standard econometric tests of efficiency to estimation of vector error correction models to identify price discovery, or leadership positions, in each of the currency markets. The findings indicate behavioral similarities and differences. The patterns of the volatility of the currencies are mixed: two-humped for the AUD, CAD, and EUR; W-shaped for the CHF; three-humped for the GBP, and flat U-shaped for the JPY. The daily results from several methodologies provide mixed evidence on market efficiency. Over the entire sample period, the estimated forward premium coefficients from the GARCH (1, 1) model are not significant for all currencies, while the null hypotheses of zero and one cointegrating vectors cannot be rejected for all currencies, except for the AUD. These findings are consistent with some of the previous studies, concluding that the efficiency tests in the foreign exchange market would depend on the methodology and the time period of the study. The high frequency data results show different degrees of price discovery between pair-wise instruments. Specifically, the spot exchange market shows a greater contribution to price discovery than the corresponding exchange traded funds. A possible explanation is the current size of the market and its increased transparency through the use of electronic trading.

Purpose - The study sought to examine the liquidity linkages between the South African bond and equity markets before the global financial crisis in 2008. Design/methodology/approach: The window of observation covered the period January 2000 to September 2008. In order to ensure robustness in the estimation, the study used foreign participation in the various markets as an additional measure of liquidity. The other liquidity measures considered in the study were volume and value traded of the various securities respectively. Time series modeling techniques were used in the estimation. An unrestricted vector autoregressive (VAR) model was estimated following which the standard innovation accounting techniques, impulse response functions and forecast error variance decompositions were applied. In the empirical analysis, the Granger-causality between the two markets was also used. Findings - While all the liquidity measures suggest the existence of linkages between the bond and equity markets, the direction of causality was found to be unidirectional from equity to the bond market using the volume and value measures. On the other hand, the foreign participation measure of liquidity suggests bi-directional causality. The study also provides evidence of long run relationship between key macroeconomic variables such as inflation, exchange rate and interest rate on one hand and liquidity in the debt and equity markets on the other. As empirical findings indicates that the linkages in liquidity between these markets positive, this consistent with studies conducted by Chordia et al (2003 & 2005) and Engsted and Tanggaard (2000) who found the relationship was a positive one. When volumes of trade and trade values, the study find evidence on uni-directional causality and strong bi-directional causality is evidence when foreign investor participation is used as a liquidity measure. In summary, there is a strong evidence liquidity linkage between the bond and equity market from the empirical results.

This research examines the recent global financial crisis’ (GFC) impact on small- and medium-sized enterprises (SMEs) and analyses governments’ responses. According to most literature, SMEs already faced obstacles prior to the GFC, such as paying high taxes, overcoming low profitability, being affected by rising business costs, finding qualified labour, dealing with increasing competition, etc. The GFC has had serious repercussions for SMEs with respect to financing, markets, and liquidity. In order to explore in depth the governments’ responses, qualitative methods are employed to test the following three research questions: 1) To what extent did governments aim to assist SMEs to survive the GFC? What types of programs have been implemented to address new and existing obstacles? 2) Did governments apply appropriate strategic initiatives to realize their goals? If the initiatives could not achieve the governments’ original goals, what obstacles did they address? 3) Did governments tend to help SMEs more after the GFC? Did governments give up on disadvantaged firms or did they try to help them survive the crisis? Analysis revealed that, as a result of the GFC, governments developed programs aimed at new obstacles and at some of the existing ones. The aims did not differ materially for developed and less-developed economies. Financing and taxation programs tended to be designed to achieve their goals directly, where other programs tended to achieve them in a more indirect manner. Overall, government initiatives covered most of the serious obstacles faced by SMEs and government assistance programs aimed at SMEs tended to have been augmented in light of the GFC.

This study investigates the magnitude of credit contraction encountered by Canadian Small-and-Medium-Sized-Enterprises (SMEs) during the recent financial crisis of 2007-2008. These firms account for an important source of job creation and economic welfare (Haltiwanger et al., 2010); therefore, to ensure the creation and growth of SMEs through a smooth flow of capital is crucial for a healthy economic recovery from the crisis. The empirical observation obtained in this study is contrary to what the theory suggests, as well as what many of the existing studies witnessed (i.e., a financial crisis has a negative impact on SME loan circulations). Using binary probit regression and structural break testing, this work finds that Canadian SME loan approval and application rates were higher during the crisis period. This somewhat counterintuitive result prompts the researcher to search for the possible factors enabling SME credit lending in Canada to retain its health during the time of financial distress, which include: (1) the stability of Canadian banks evidenced by the relatively constant Capital Tier I ratio during the crisis; (2) initiatives the Canadian government implemented as a response to the crisis. This result also raises a question whether the five billion dollars the federal government injected in the SME lending market under the Business Capital Availability Program (BCAP), a measure designed to insulate Canadian SMEs from the liquidity shock, could be justified. This research question will be investigated as a future area of research.

The topic of this thesis is Credit swaps and CDOs and their use in the financial environment of the 21st century. The aim of this thesis is to examine how the market of these instruments works, show how they are traded and how diversely they can be used but also warns about the potential negative consequences in case these instruments are not handled with the required caution. The practical part of this thesis concentrates on the current situation on the credit derivatives market focusing on the above mentioned instruments. The role of CDSs and CDOs in the 2008 global financial crisis is examined with emphasis on the AIG case.

The thesis analyzes how IMFs operations transformed as the changes took place in the global economy after world war two. Policy and means used by IMF to achieve its purposes are examined focusing on their effectiveness. The analysis illustrates an apparent change in the role the institution is playing in the global economy. In the first three decades after the world war two the IMFs key role was to maintain surveillance over the rules of the monetary system established at international financial conference in Bretton Woods. The introduction of floating exchange rate systems in developed countries, oil crisis and independence of many African countries caused a shift in IMFs main focus towards developing countries, long-term financing and technical assistance. The analysis concludes that the institution was only in part successful in its mission to maintain global economic stability only in part. In the nineties it reacted promptly to financial crisis by introduction of new facilities and by activating in coordination with other global players of large financial support for the affected countries. However in the period before the financial crisis occurred more attention IMF should have given more attention to precautionary measures eliminating the risks associated with capital volatility.

The goal of this thesis is to analyze what the impact of current financial crisis and economic slowdown will be on Czech exporting companies. Firstly the causes of financial crisis are described. it is followed by the analysis of the primary impact of financial crisis in the Czech Republic - the impact on banking sector and liquidity. The economic slowdown on foreign markets is considered as the secondary impact. Finally some possible solutions on how to improve the competitiveness are offered.

Globalization is a phenomenon that has been influencing human existence for a long time. However, processes of globalization as well as its periods have not been unified yet. This paper seeks to describe basic milestones of globalization as well as its historical reflexion. The description is put in the context of the World Bank's approach to economic history. Globalization is inherent to many problems. Nevertheless, many authors point out positive effects of globalization. It is substantial to be aware of what the benefits of globalization are and to know why to support it. It is also important to monitor its negative impacts showing us warnings for the future and indicating what we should avoid in the present. The goal of this paper is to point out the influence of globalization within nowadays information and from the economic point of view. Present financial crisis which effects the whole world is closely associated with globalization. Therefore, one section of the paper is dedicated to this topic.

The analysis of reasons, side effects and consequences of the global financial crisis in relation to KBC Group. Analysis of profit evolution of KBC Group as well as particular business units. The other indices of financial health - credit ratings, the share price, solvency. The analysis of the strongest effects on the profit decline - CDO, US and Icelandic banks, decline of prices of shares. Comparison of the closest competitors - Société Générale and Erste Group.

This thesis focuses on the economic impact of the financial crisis that Argentina suffered between 2001 and 2002. It mainly analyses how the government approached such situation. The Currency Board regime ended and was substituted by a floating regime. Also many emergency measures were adopted in order to avoid even more chaotic situations. This thesis also deals with fiscal and monetary policy adopted in the longer term, which more or less until today reflexes the consequences of the crisis, i.e. fight against inflation, market regulation and sovereign debt towards official institutions and private investors.