| SEMINAR ŞTIINŢIFIC MONEDA, FINANŢE, BĂNCI – SEMINAR ȘTIINȚIFIC |
About / Prezentare
Forthcoming seminars / Seminare viitoare Archive / Arhivă 2024-2025 Premiere 2024-2025
European Governments’ Fiscal Behaviour and Public Debt Holders: What Is the Financial Connection?
Marți, 29 aprilie 2025 – ora 16:30 – sala 3M4 (etaj 1, clădirea Moxa)
Peter Claeys
Universidad Pontificia Comillas; pgaclaeys@icade.comillas.edu
Abstract:
Concerns about fiscal sustainability and worsening balance sheet conditions of major banks triggered a doom loop between banks and sovereigns during the 2010-2013 sovereign debt crisis. Despite closer financial integration and additional institutional safeguards, the home bias, i.e. domestic bank holdings of domestic sovereign debt, is still high in most EU countries. We examine the effects of home bias on fiscal sustainability. We extend two IMF database on sovereign debt holdings to all EU Member States. We then apply panel smooth transition regression models on a fiscal rule. We find that a high home bias does not reduce the reaction of governments to public debt, but only if the financial system is sufficiently developed. A developed banking system allows sovereigns to raise more public debt at acceptable conditions to support economic stabilisation. An increased presence of foreign banks has a benign effect on sustainability by reducing governments’ debt bias, but state-owned banks reduce it. Developing financial markets further through the completion of the Banking and Capital Markets Unions in the EU could help countries in the trade-off between economic stabilisation and debt sustainability, while bringing in more foreign banks might enforce stronger fiscal discipline.
Zoom:
https://ase.zoom.us/j/88975840175?pwd=Q0ZnbHl0TjhqcEtzVnhMUWRmdWdPQT09
Activitate de socializare: J’ai Bistrot
How do microfinance and economic development mutually support each other? A Panel VAR approach in developing economies
Marți, 6 mai 2025 – ora 16:30 – sala 3M4 (etaj 1, clădirea Moxa)
Bogdan Nicolae Ianc
Universitatea de Vest din Timișoara; bogdan.ianc@e-uvt.ro
Abstract:
This paper explores the relationship between microfinance and economic development using a cross-country dataset of 60 developing countries from 2000-2018. We employ the Panel VAR model, estimated by the generalised method of moments (GMM). Microfinance institutions indicators are categorised into social and financial performance variables. Social performance variables include the number of clients served and the percentage of women borrowers, while financial performance indicators consist of the portfolio at risk, operational self-sufficiency, and operating expenses. Economic development is assessed using the Human Development Index, which integrates economic indicators like Gross National Income per capita with social indicators such as educational attainment and life expectancy at birth. We perform a Granger causality test confirming a Granger causal relationship between microfinance and economic development. Our findings indicate that shocks to social performance variables positively influence economic development, and shocks to financial performance variables significantly impact the human development index.
Zoom:
https://ase.zoom.us/j/88975840175?pwd=Q0ZnbHl0TjhqcEtzVnhMUWRmdWdPQT09
Activitate de socializare: J’ai Bistrot
Multi-Asset Market Making
Marți, 13 mai 2025 – ora 16:30 – sala 3M4 (etaj 1, clădirea Moxa)
Ioanid Roșu
HEC Paris; rosu@hec.fr
Abstract:
We study how risk-averse market makers manage inventory by setting quotes in multiple assets. As the correlation between assets increases, an inventory shock in one asset causes the market maker to quote more in other assets but less in the affected asset. We predict that a more risk-averse market maker reaches zero inventory more often in each asset, engages less in hedging inventory across assets, and causes a lower asset return correlation at higher frequencies: the Epps effect. Ignoring inventory cross-hedging by restricting analysis to a single asset leads to the underestimation of market maker risk aversion.
Zoom:
https://ase.zoom.us/j/88975840175?pwd=Q0ZnbHl0TjhqcEtzVnhMUWRmdWdPQT09
Activitate de socializare: Taproom – Hop Hooligans