The effects of the current turbulent times on American multinational banking : An overview

Turbulent times are nothing new in the long sweep of financial and monetary history. Nonetheless, the turbulence of the current period has some unique features in terms of both its causes and its long-run effects on the financial markets. Three factors in particular would seem to set the current period apart from previous turbulent periods. First, most previous periods of global financial difficulties were associated either with wars or with acute liquidity crises in the banking system. These factors have been present to some extent in the current episode. However, in addition there has been a dramatic change in the global monetary regime that has played a major role in the present turbulence. Second, most previous crises were not accompanied by technological changes of the magnitude of the current computer/information revolution. And third, no previous crisis occurred in the context of a highly regulated banking industry attempting to adjust to much higher levels of risk, much faster paces of technological change, and much greater price and non-price competition from both traditional and non-traditional competitors in the global financial markets. These factors have radically changed the nature of multinational banking and accelerated pressures to deregulate the price fixing and entry restriction parts of the American financial regulatory system. Many of the current technological, competitive and regulatory issues facing multinational banks have their roots in the unstable and inflationary global monetary regime of the past decade. High and volatile inflation and interest rates, fluctuating currencies, and a long and deep recession have both changed and raised the risks facing multinational banks. Banks have responded over the past decade by attempting to manage this greater risk more carefully through diversification and by developing new products and services that are in demand in this riskier environment, including better and cheaper means of cash management and a richer menu of fixed and variable rate bank deposit and loan products. While the major purpose of this paper is to review how American multinational banks adapted — and are adapting — to the current turbulent times, there is a more fundamental question to consider. That is, will the financial and monetary turbulence of the past decade continue, or will the 1980s bring a return to lower and more stable inflation and interest rates, and faster economic progress?     

Organization size, budget cycle, and budget related influence in city governments: An empirical study

This paper explores the relationship between budgeting and perceived power in city government organizations. Data are reported from a survey of perceived budget influence in six city governments in Texas. The findings suggest that perceived influence varies by stage of budget cycle, city size, level of hierarchy, department function, and vertical vs horizontal direction of influence. For example, during budget formulation city managers were perceived as having the most vertical power. During budget implemetation, there was a perceived increase in department head vertical power and a decrease in city council power. Perceptions of horizontal power suggested that budget departments generally had greater perceived influence than operating departments for budget formulation, but not for budget implementation. The findings are used to develop a strategic contingencies model of budget-related power, and to suggest some research steps for testing the proposed model.     

A sustainable state for urban life in poor societies: Bangladesh

Cities in the Third World do not currently have favourable prospects for the future. Their planning is dedicated primarily to coping with pressures of population and infrastructure needs. Any pale imitation of advanced urbanization that they might employ as minimum standards require many times more consumption of energy, water and human time than is available. The concept of a sustainable state for the long term seems unattainable to their policy makers. This exercise seeks a path to a desirable steady state for one of the world's poorest metropolises—Dhaka. This article shows that the essential knowledge, and some experience, already exist which make this transition to sustainability possible, and outlines the crucial features required. Promotion of family planning is assigned the highest priority during the transition, followed by education.     

Insurance Derivatives: A New Asset Class for the Capital Markets and a New Hedging Tool for the Insurance Industry

The number and severity of natural catastrophes has increased dramatically over the last decade. As a result, there is now a shortage of capacity in the property catastrophe insurance industry in the U.S. This article discusses how insurance derivatives, particularly the Chicago Board of Trade's catastrophe options contracts, represent a possible solution to this problem. These new financial instruments enable the capital markets to provide the insurance industry with the reinsurance capacity it needs. The capital markets are willing to perform this role because of the new asset class characteristics of securitized insurance risk: positive excess returns and diversification benefits.
The article also demonstrates how insurance companies can use insurance derivatives such as catastrophe options and catastrophe-linked bonds as effective, low-cost risk management tools. In reviewing the performance of the catastrophe contracts to date, the authors report promising signs of growth and liquidity in these markets.     

Portraits of youth: Understanding young people''s relationship with the future

Young people's relationship with the future is complex and contradictory. Some surveys and commentaries suggest most are optimistic, others that they are pessimistic. Some indicate they are adapted to the postmodern world of rapid change and uncertainty, others that they are anxious and apprehensive. Some of these differences can be readily explained; others require more thorough analysis. We need a better understanding of this relationship if we are to improve both young people's personal well-being and humanity's prospects. It may help if we distinguish between three different images—modern, postmodern and transformational.     

Research by the people, for the people

Most research is carried out on behalf of private enterprise, the military, national governments, or in pursuit of the scientific community's intellectual interests. The result is that research agendas often favour elite groups helping them to maintain positions of privilege. Taxpayers and consumers experience the consequences and also foot the bill. Little research is conducted directly on behalf of citizens or communities. This article describes an alternative, more democratic approach. ‘Community-based research’ is rooted in the community, serves a community's interest, and frequently encourages citizen participation at all levels.