Despite impressive studies on financial crises consequences and foreign capital flows, by large the research done has examined these economic phenomenons separately without addressing their nexus. This paper aims at bridging this gap by examining the impact of financial crises on bilateral...

The corona virus pandemic has dramatically changed the economic outlook for the United States and many other countries. In June this year, the Federal Reserve published its unemployment predictions. From a July 2020 level of 10.2%, it expects the year-end ratio to drop to 9.3%; by the end of...

This paper explores the existence of rational bubbles in the pricing of an asset that pays no dividend. I find that when "the spirit of capitalism" is introduced into a growth model, rational bubbles do exist provided that the marginal benefit from holding wealth is nontrivial relative to the...

The last decade has been marked by cycles of excessive boom and bust in the housing market. However, not all countries have experienced high volatility in their house prices. Indeed, Germany has been unique in retaining flat price levels over the whole period and failing to respond to any of the...

This paper provides a simple infinite-horizon model of rational bubbles in a production economy. The bubble can arise because of the pursuit of status, which captures the main point of "the spirit of capitalism". I illustrate that the extent of "the spirit of capitalism" determines whether a...

Understanding and appreciating the crucial role privates’ investment plays in developing economies towards it sustainable growth, it became an imperative assignment to investigate the effect of corporate taxes and it impacts on privates’ Investment in developing countries, but focused the...

Understanding and appreciating the crucial role privates’ investment plays in developing economies towards it sustainable growth, it became an imperative assignment to investigate the effect of corporate taxes and it impacts on privates’ Investment in developing countries, but focused the...

The two key financial decisions that nearly all households have to make are related to a place to live (especially if this involves a mortgage), and the savings needed to have an acceptable income during retirement: pension savings. In a previous paper: “After the Great Recession: the Laws of...

One can describe the accumulation of wealth in home equity as a benefit to the homeowners. However, in practice the release process of such equity into cash is hindered by the fact that a joint ownership of a home by a lending institution and a household turns the equity stake into a debt...

The Bank of England started with Quantitative Easing in 2009 and bought U.K. Gilts for £445 billion. The Bank subsequently bought a further £450 billion. The Bank recently increased its key interest rate to 3%. The pressure on household's budgets is immense. This paper proposes a different...