Foreign Banks and Political Sovereignty: The Case of Argentina

Abstract

This paper analyzes a seldom discussed aspect of Argentina's banking crisis of 2001–2002: the conflict that arose between foreign banks and the national government over the economic policies applied in response to the banking crisis. In particular, the paper will examine the foreign banks' strategy to dollarize the economy and to impede the national government's strategy of pesofication.     

Exploring the Foreclosure Contagion Effect Using Agent-Based Modeling

Over the last several years, the United States has experienced a significant recession. During this downturn, the number of real estate foreclosures has risen drastically. Recent studies have demonstrated a reduction in property values due to neighboring foreclosures—known as the foreclosure contagion effect. This study uses an agent-based modeling approach to explore market-wide emergent behavior that results from the interconnected property-agent behavior. Specifically, we find that the magnitude of the foreclosure contagion effect is a less powerful cause of eventual market collapse than the time a foreclosed property is allowed to linger on the market. This is important because disposition time is much easier to address from a policymaker perspective than is the strength of the foreclosure contagion effect.     

Ethical Frameworks and Planning Theory

The turbulence which characterized the 1980s created uncertainty as to the role and purpose of planning in liberal democracies. Instrumental rationality is no longer defensible as a guiding doctrine and major questions arise concerning the relationship of planning to the market economy and the political process. The realization that the problems confronting planners are not amenable to technocratic solutions has led to recognition of the political and therefore essentially ethical nature of the planning activity. However, whilst there is widespread recognition that fundamental ethical dilemmas underpin both planning practice and theory, little explicit consideration has been given to the nature of the normative frameworks available. The purpose of this paper is to critically review the ethical frames of reference implied in the most influential theories within planning and to evaluate their relevance to practice. The paper highlights the extent to which debate has been, and continues to be, dominated by procedural questions, the rejection of universalism in favour of relativity and subjectivity, and a focus on individual interests rather than more general concern with the common good. Reluctance to engage with debates of a more foundational nature concerning ends and values is questioned and planning theorists are urged to reconnect with the fundamental issue of planning’s contribution to the creation of desirable futures. — Les troubles et difficultés des années quatre-vingt ont créé une incertitude quant au rôle et aux objectifs de la planification dans les démocracies libérales. La rationalité instrumentale comme doctrine dirigeante n’est plus défendable et des questions importantes se posent quant à la relation de la planification avec l’économie de marché et le processus politique. Les responsables de la planification ont puis conscience du fait que les problèmes qu’ils recontraient ne pouvaient pas être résolvé de manière technocratique – cela les a conduit à prendre en compte la dimension politique et donc fondamentalement éthique de la planification. Néanmoins, malgré la reconnaissance générale des dilemmes éthiques qui sont derrière la pratique et la théorie de la planification, la nature des structures normatives disponibles a rarement été puis en compte. Le but de cet article est de faire une revue critique des systèmes de référence implicites dans les théories de la planification les plus influentes et d’évaluer leur applicabilité pratique. L’article souligne à quel point le débat a été et reste dominé par des questions de procédure, par le rejet de l’universalisme en faveur de la relativité et de la subjectivité, et par une attention particulière donné aux intérêts individuels plutôt que par une préoccupation plus générale pour le bien commun. Le refus de considérer des problèmes plus fondamentaux concernant les fins et les valeurs est mis en cause. Les théoriciens de la planification doivent revenir à la question fondamentale de la contribution de la planification à la création d’un avenir meilleur.     

An empirical examination of the benefits of international diversification

We examine the benefits of international portfolio diversification for U.K. investors between January 1985 and December 2000 using the approach of Wang [Wang, Z., 1998. Efficiency loss and constraints on portfolio holdings. Journal of Financial Economics 48, 359–375] and Li et al. [Li, K., Sarkar, A., Wang, Z., 2003. Diversification benefits of emerging markets subject to portfolio constraints. Journal of Empirical Finance 10, 57–80]. We find significant increases in the Sharpe [Sharpe, W.F., 1966. Mutual fund performance. Journal of Business 39, 119–138] and certainty equivalent return (CER) performance in moving from a domestic strategy to an international strategy that includes either global industry or country equity portfolios, even in the presence of short selling restrictions. We also find significant diversification benefits using U.K. unit trusts with international equity objectives. However, U.K. international unit trusts do not capture all the diversification benefits provided by either global industry or country equity portfolios.     

Is technical analysis profitable on a stock market which has characteristics that suggest it may be inefficient?

This paper considers the returns to technical analysis on the New Zealand stock market. The small nature, short-selling constraints, lack of analyst coverage, and loose insider trading regulation suggest that the New Zealand equity market may be less efficient than overseas markets. This raises the possibility that technical analysis is still profitable in New Zealand. Using a bootstrapping technique with common null models for stock returns and 12 popular technical trading rules, we find that the returns to technical analysis in New Zealand follow a similar pattern to those in large offshore markets. Technical analysis is no longer profitable.