Thesis advisor: Robert Murphy / A study of recent inflation dynamics in the G-7, this paper discusses a problem with the Phillips curve which arose during the Great Recession (2008-2011). We find that work with time-varying slope, expectation anchoring, and core inflation can correct for the under-predictions that develop in the Phillips Curve during the recession, improving its accuracy throughout the G-7. / Thesis (BA) — Boston College, 2012. / Submitted to: Boston College. College of Arts and Sciences. / Discipline: Economics Honors Program. / Discipline: Economics.

The relationship between financial development and economic growth is an important issue for both developed and developing countries through which the extent of economic growth and the sophistication of the country’s financial markets are linked. The research studies the existence of a relationship between financial development and economic growth using a sample of BRICS and G-7 countries for the period of 1996 to 2013. The study objective was to conduct a comparative analysis of the relationship between financial development and economic growth within BRICS and G-7 countries. A panel data analysis was used to analyse secondary data from 5 BRICS countries (Brazil. Russia, India, China and South Africa) and G-7 countries (Canada, France, Germany, Great Britain, Italy, Japan and United States).Variables used include, economic growth, stock market capitalisation, total investment growth, interest rates and population growth. This study found that real interest rates and total investment is positively related to economic growth in both BRICS and G-7; while other variables such as stock market size, do play a significant role in explaining economic growth in both BRICS and G-7 countries and insignificant variables such as population growth. Findings of this study suggests there are no major difference between developed and developing countries with regards to their financial development and economic growth. This study may assist BRICS and G-7 countries to improve their economic growth structure and financial development systems over time.

The relationship between financial development and economic growth is an important issue for both developed and developing countries through which the extent of economic growth and the sophistication of the country’s financial markets are linked. The research studies the existence of a relationship between financial development and economic growth using a sample of BRICS and G-7 countries for the period of 1996 to 2013. The study objective was to conduct a comparative analysis of the relationship between financial development and economic growth within BRICS and G-7 countries. A panel data analysis was used to analyse secondary data from 5 BRICS countries (Brazil. Russia, India, China and South Africa) and G-7 countries (Canada, France, Germany, Great Britain, Italy, Japan and United States).Variables used include, economic growth, stock market capitalisation, total investment growth, interest rates and population growth. This study found that real interest rates and total investment is positively related to economic growth in both BRICS and G-7; while other variables such as stock market size, do play a significant role in explaining economic growth in both BRICS and G-7 countries and insignificant variables such as population growth. Findings of this study suggests there are no major difference between developed and developing countries with regards to their financial development and economic growth. This study may assist BRICS and G-7 countries to improve their economic growth structure and financial development systems over time.

This study examines the lagged short run and long-term relationships between output growth and related index returns of the industrial and financial sectors of the G-7 economies. This study examines this relationship using quarterly data for a maximum time period of 22 years ranging from 1994(Q4) to 2017(Q4). The relationship between sector specific output growth and related index returns of the G-7 is investigated within this study, in order to determine whether passive investors should incorporate expected growth prospects into their decision making in order to earn superior returns. In order to examine the relationship between sector specific output growth and the related index returns of the G-7, this study uses correlation, cointegration as well as causality testing. This study finds weak non-lagged correlation relationships between output growth and related index returns of the industrial and financial sectors of the G-7 economies, with the correlation relationships becoming stronger in all cases when lags are incorporated within the correlations analysis. This study also finds cointegrating relationships between financial sector output growth and related index returns of Italy and the United Kingdom and that financial index return data of the United Kingdom serves as a leading indicator for financial sector growth within the United Kingdom. The overall Implication of these results is that investors should not incorporate growth prospects into their decision making of which passive funds to invest in, of which these passive funds examined track the performance of industrial and the financial firms within the G-7 economies.

Yes / Dividend policy has been a puzzling question for many years. This study attempts to identify the key factors affecting it in the financial sector that have been neglected in the literature. Using panel data on 621 Group of Seven (G-7) banks and 68 Gulf Cooperation Council (GCC) banks, five main factors namely, banks’ size, profitability, growth, leverage, and last year’s dividend were empirically tested regarding their impact on dividend payout ratios. In addition to comparing the two economies descriptively, the researchers employed panel data analysis using multiple regression with random effects. The findings revealed that the dividend payout ratio for the GCC countries is higher than G-7 countries in every year of the examined period (2010-2015). Furthermore, for both G-7 and GCC banks, profitability and last year dividend had a significant positive influence while banks’ leverage had a significant negative influence on the dividend payout. It was found also that banks’ size is an important dividend determinant in the G-7 countries only.

Md., Johns Hopkins Univ., Diss.--Baltimore, 2004. / Kopie, ersch. im Verl. UMI, Ann Arbor, Mich. - Enth. 3 Beitr.

This paper examines the synchronization of business cycles across the G7 countries during US recessions since the 1870's. Using a dynamic measure of business cycle synchronization, results depend on the globalisation period under consideration. On average, US recessions have significantly positive effects on business cycle co-movements only in the period following the breakdown of the Bretton Woods system of fixed exchange rates, while strongly decoupling effects among the G7 economies are documented during recessions that occurred under the classical Gold Standard. During the 2007-2009 recession, business cycles co-movements increased to unprecedented levels. (author's abstract) / Series: Department of Economics Working Paper Series

Multilateral trade negotiations are widely influenced by various forms of cooperation among countries and by international organizations. There is a wide spectrum of differences in cooperation between the Uruguay and the Doha round of multilateral trade negotiations. Multilateral forums of developed countries are not able to provide sufficient impetus for negotiations, views of developing countries must be considered. There are differences in formation of coalition of countries, which are more wide-spread and more influential, though mainly by setting the negotiations agenda. There has been even a shift in policies of multilateral organizations; their direct and indirect influence is more noticeable. Though financial crisis led to diversion from multilateral trade issues, changed some positions, since 2009 there are signals, that there might be a shift in negotiations leading to successful conclusion of the Doha negotiations.

This paper considers the linkages between output growth and output volatility for the sample of G7 countries over the period 1958M2-2011M7, thereby paying particular attention to spillovers within and between countries. Using the VAR-based spillover index approach by Diebold and Yilmaz (2012), we identify several empirical regularities: i) output growth and volatility are highly intertwined, with spillovers taking place into all four directions; ii) the importance of spillovers has increased after the mid 1980s and reached unprecedented levels during the recent financial and economic crisis; iii) the US has been the largest transmitter of output and volatility shocks to other countries. Generalized impulse response analyses point to moderate growth-growth spillovers and sizable volatility-volatility spillovers across countries, suggesting that volatility shocks quintuplicate in the long run. The cross-variable effects turn out negative: volatilty shocks lead to lower economic growth, growth shocks tend to reduce output volatility. Our findings underline the increased vulnerability of the G7 countries to destabilizing shocks and their detrimental effects on economic growth, which are sizeably amplified through international spillover effects and the associated repercussions. / Series: Department of Economics Working Paper Series