If capital-market liquidity recovers only slowly, what does that mean for the American economy?
Even countries with healthy budgets could do more to insulate themselves from capital-market volatility.
In the worst global economic slowdown for a generation, capital-market activity has contracted sharply (see chart).
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After all, China does not have the capital-market expertise or mechanisms to successfully manage a volatile currency.
That way, a solution to capital-market instability can be worked out in an atmosphere of relative tranquillity, not mounting panic.
Under those circumstances, members of Congress and private-sector activists may in the future seek targeted capital-market sanctions in response to egregious developments abroad.
He thereby acknowledges that at least for economies with small financial sectors floating exchange rates are feasible in the long run only if capital-market integration is slowed down.
It also filed a suit against Merck in New York, accusing it of flouting American capital-market rules by not explaining its motive for buying the shares.
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The majority of investment banks in Hong Kong have relied on IPOs and block trades for more than 70% of their capital-market revenue in the last five years, according to Dealogic.
In developing Asia, the dominant banks fear losing their loan book to disintermediation, and governments have failed to prod the banks to develop capital-market alternatives, except in Hong Kong and Singapore.
An even stricter test of capital-market integration, and the one on which the flows of saving and investment really depend, is that real (ie, inflation-adjusted) interest rates should be equal across countries.
It would be the largest government intervention into a completely free market--the market for capital--that I've ever seen.
Myhrvold's grand theme is that the U.S. needs an invention capital market--similar to venture capital for new businesses--to enable inventors to create hundreds of thousands more inventions each year than are being made today.
The impact investing industry channels capital to market-based solutions in areas such as affordable housing, clean technology, financial services for the poor, sustainable agriculture and other related sectors while targeting returns ranging from below market to market rate.
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The architects of a truly Europe-wide capital market, with a glance at consolidation among American exchanges, may hasten to encourage a pan-European solution, rather than fretting about silos.
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Bottom-fishers such as GE Capital have entered the market for high-risk mortgage debt.
The contribution that four important intangible assets--reputation, innovation, management and human capital--make to a company's market value is deemed to be its corporate brand value.
They have starved the most enterprising firms of capital black-market interest rates are 20% or more while the well-established and best-connected firms still find a way to raise the money they want.
Finally, FASB made market-to-market accounting a regulatory capital requirement in November 2007.
The International Capital Market Association, a trade group for securities-market participants, estimated in a report last month that the tax would cause the short-term repo market to contract by 66%.
That's because Asia's banks will supply less and shareholders will offer more capital in a consumer- and market-driven economy.
To shield themselves temporarily from the volatility in financial markets, those with weaker financial structures may need some form of capital controls, preferably market-based.
It seems that the market is banking on the Fed chief making explicit promises to spark the economy and capital markets with creative open-market operations.
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Pro-reform Iranian economists estimate that American sanctions and their ripple effects the drag on inward investment, the reliance on black-market and grey-market suppliers, the higher cost of capital and the lack of easy access to spare parts for the large installed base of American-made infrastructure are slowing the Iranian economy by 10-15% a year.
The Securities and Exchange Commission (SEC) has proposed numerous changes to this end, covering securities registration, money-market funds and capital standards for brokers.
Or he could change accounting rules, giving banks a time out from the relentless, capital-killing mark-to-market rules that require financial firms to price their assets in an environment where no one wants them.
Some say the lesson of the past few years is that you can't have a truly free global capital market without recurrent crises - because the free flow of capital inevitably leads to massive imbalances, and massive imbalances inevitably mean big crises when they get unwound (see my blog from 21 December).
Equally strong, however, was the sentiment that continuing to ignore this burgeoning, foreign government-sponsored use of our capital markets by wrong-doers in the guise of normal market participants was simply intolerable.
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This partially offsets the mark-to-market drain on regulatory capital and helps hold the financial system together.
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