The Tax Elasticity of Financial Statement Income: Implications for Current Reform Proposals

There has been growing attention among policymakers and the general public to the taxation of multinational corporations (MNCs) in recent years. This reflects widespread concern about the capacity of the international tax regime – which originated in the 1920s – to accommodate recent developments such as the growth of digital services across borders. In particular, […]

The Impact of COVID-19 on the Municipal Securities Market During the Spring of 2020

The COVID-19 pandemic and associated global economic shutdown roiled financial markets around the world during the spring of 2020. The usually placid municipal securities market was not immune from this disruption. Initially, investors flocked to municipal securities to de-risk portfolios in response to the growing pandemic, pushing prices higher and bond yields to record lows. […]

FinTech and the COVID-19 Pandemic: Evidence from Electronic Payment Systems

The COVID-19 pandemic has changed many aspects of the way that individuals engage with banking and payment tools, including various FinTech services. There are several reasons why the pandemic might have accelerated the adoption of FinTech and other digital platforms in payments by consumers and financial institutions. The pandemic may have led to an increase […]

Short Sellers and Politically Motivated Bad News Hoarding

Short selling has been viewed as a market mechanism that can potentially disincentivize firms’ opportunistic behaviors such as negative information suppression, as short sellers take actions when they detect the hidden bad news. Extant studies have provided evidence that short selling can help deter management from suppressing negative information in developed economies. However, in emerging […]

Insurance as a Critical Tool for Financial Stability in the Anthropocene: A Caribbean Perspective

This post is the latest in our special issue: “Climate Change and Financial Markets – Risk, Regulation, and Innovation.” To learn more about the special issue and the work of the Global Financial Markets Center around climate change and financial markets, please read the special issue’s introduction here. And to review all The FinReg Blog […]

How Financial Intermediation Costs Affect Climate Policy

This post is the latest in our special issue: “Climate Change and Financial Markets – Risk, Regulation, and Innovation.” To learn more about the special issue and the work of the Global Financial Markets Center around climate change and financial markets, please read the special issue’s introduction here. And to review all The FinReg Blog […]

The Economic Costs and Opportunities in Addressing Climate Change

This post is the latest in our special issue: “Climate Change and Financial Markets – Risk, Regulation, and Innovation.” To learn more about the special issue and the work of the Global Financial Markets Center around climate change and financial markets, please read the special issue’s introduction here. And to review all The FinReg Blog […]

To Impose or Not to Impose—The Dilemma of Negative Interest Rates and the Rise of Bankocracy

As long as other countries are receiving the benefits of Negative Rates, the USA should also accept the “GIFT.” Big numbers! –Donald Trump   On June 10, 2020, the U.S. Federal Reserve (‘the Fed’) voted to keep interest rates near zero in the wake of the COVID-19 pandemic and hinted that rates will remain unchanged […]

The Value of Central Bank Liquidity During a Pandemic

The global spread of COVID-19 has triggered large disruptions in financial markets. In response, central banks, such as the Federal Reserve, have created and continue to run a range of facilities to improve liquidity in financial markets, with the goal of promoting economic recovery. How effective are these facilities during a pandemic? In this blog […]

Shadow Banking in China Compared to Other Countries

China’s shadow banking sector has grown rapidly in the last decade. While bank loans still dominate the financial system as a main source of funding, the shadow banking sector reached 32.9 percent of total social financing by 2016, though it then fell to 24.2% percent by 2019. Households and corporations benefit from the growing shadow […]