CENTRAL BANKS: FROM POLITICALLY INDEPENDENT TO MARKET-DEPENDENT INSTITUTIONS

Responses to the financial crisis are undermining the Chinese walls painfully built between monetary and fiscal authorities. Central banks and state treasuries are working side by side as lenders of last resort. Central banks are helping economic ministers with purchases of public debt and discounting of private paper. Regulation and control of financial institutions is now a political football. Central banks must be seen again as market-dependent institutions in a world of currency competition. Privatisation in law or in fact is back on the table.     

Fear and adventure tourism in Brazil

The search for new non-routine emotions and sensations has become a decisive factor in taking part in adventure tourism. As Barros and Dines (2000) have pointed out, Brazil's natural resources are abundant and have been widely used to promote the nation's tourism. Empirical literature describes fear as one of the main emotions in adventure activities, and for this reason a questionnaire was designed to examine the presence of fear before and after three adventure activities (parachuting, white-water rafting, and rock-climbing). This study not only aimed to consolidate fear as a fundamental emotion in performing such activities but also to stimulate interest for further studies in this area.     

Economic returns to cowpea research,extension, and input distribution in Senegal

This paper calculates the rate of return to a set of cowpea research, extension and distribution projects in Senegal to be between 31% and 92%. The results show that a modestly funded program on a secondary crop can be successful. They also indicate that programs may increase their effectiveness by addressing specific household needs – in this case, by focusing on short-cycle varieties that provide food during the hunger season prior to the traditional harvest.     

FROM THE WAR ON POVERTY TO WELFARE REFORM: HOW THE AMERICAN UNDERSTANDING OF THE CAUSES OF POVERTY CHANGED

The American understanding of the causes of poverty has changed significantly since the War on Poverty was launched in 1964. It was then commonly believed that jobs were unavailable to the poor and that poverty should be reduced by doles. Today most observers contend that jobs are available for the poor, and that poverty stems from self-defeating behaviours that doles exacerbate.     

A Prescription for Monetary Policy in the Bush Administration

How should the Federal Reserve conduct monetary policy for stable growth and low inflation? Professor Anna Schwartz of the National Bureau of Economic Research in New York, argues that the American central bank should steadily reduce the rate of monetary growth.     

Striking the Regulatory Balance in the Unique Case of the Voluntary Sector

This article considers the requirement for a regulatory regime for the UK voluntary sector that is sensitive to the unique features of the sector, while also maximizing public trust and safeguarding the interests of wider stakeholders. Regulatory Impact Assessments are important mechanisms in the achievement of this complex and delicate balance. However, these and other regulatory instruments need to be underpinned by a deep understanding of the voluntary sector 'persona', including and most particularly the voluntary ethos that is its core.     

An analysis of the economic justification for consolidation in a secondary security market

This paper considers whether all trading in a listed security should be required to go through an exchange. To this end, the incentives for a brokerage firm to offer in-house execution services are discussed, and an analytical framework is developed which shows that, under idealized conditions, fragmentation of the market through in-house execution services would not result in any overall deterioration of market performance characteristics. However, when some of the idealized conditions are relaxed, the market fragmentation arising from in-house execution causes the gains to some customers to be more than overcome by the losses to others. The analysis, which also takes account of the desirability of enforcing reasonable trading priority rules (such as priority by price and time) across all traders, yields several public policy implications. For some unlikely scenarios, it would be possible, through appropriate commission sharing and a perfectly operating intermarket trading system, for optimal overall market performance to be consistent with the market fragmentation inherent in in-house execution services. However, for most realistic scenarios, fragmentation would cause a deterioration in the quality of the market. Thus it seems desirable to require that all trading go through a central exchange with a consolidated limit order book.