Accounting for Global Value Chains/Global Supply Chains

Source: Asian infrastructure finance 2021 : Sustaining global Value Chains

Key Terms

• Global Value Chains
• Global Supply Chains
• Global Production Networks
• Supply and Use Tables
• Production and Trade Networks
• Production and Distribution Planning
• Supply Chain Management
• Transparency in Networks
• Cooperation in Networks
• Collaboration in Networks
• Net Chains
• Risks
• Resiliency
• Fragility
• Rebalancing
• Reconfiguration
• Networks
• Contagion
• Failure Cascades
• Failure Avalanche
• Spillovers
• Supply Chain Disruption
• Demand Collapse
• Supply Collapse
• Offshoring
• Outsourcing
• Strategic Coupling
• Fragmentation of Production
• Great Unbundling
• Global Financial Crisis
• COVID 19 Pandemic
• SMILE Curve
• Forward Propagation
• Backword Propagation
• Distributed Production
• Ripple Effect
• Bullwhip Effect
• VAX ratio
• Backward linkage
• Forward linkage
• GVC participation rate
• GVC position index
• GTAP
• WIOD
• ADB MRIO
• UNCTAD EORA
• Fragmentation
• Disintegration of Production
• Vertical Specialization
• Global Sourcing
• Trade in Value Added (TiVA)
• Global Commodity Chains
• Credit Chains
• Payments Flows
• Supply chain management
• Supply chain resilience
• Sustainable supply chain
• Industry 4.0
• Agility
• Leanness
• Digital twin
• Reconfigurable supply chain
• Average Production Length

Accounting and Measurement in Global Value Chains

Source: Handbook on Accounting for Global Value Chains

Meeting of the Expert Group on international trade and economic globalization statistics

Economic globalization has created new opportunities for businesses to organize their production chains more efficiently. This has increased the complexity of compiling economic statistics, as it is more difficult to break down production activities on a country-by-country basis. There is a need to understand the cross country benefits and risks by being able to “look through” the global firms in the global value chains (GVCs) and see their contributions in the production networks of resident enterprises in multiple countries. These emerging global production arrangements pose challenges to macroeconomic and business statistics, including the supporting business registers. The challenges include the choice of the statistical unit, the classification of the (global value chain satellite) accounts, the implementation of the principle of economic control and ownership, and the recording of domestic and cross-border transactions and positions in national accounts and balance of payments statistics.

In its decision 46/107, the Statistical Commission established the Expert Group on International Trade and Economic Globalization Statistics to address these measurement challenges. The main task of the Expert Group is to develop a handbook that will account for the measurement of GVCs, as described in various reports to the Commission on this topic in the past five years. Both the GVC perspective and the perspective of the national data compiler are fundamental to understanding the composition of the handbook. However, with the realization of the cross-country impact of GVCs on the economic structure of partner countries, a multi-country perspective for those national industries that are included in major GVCs is encouraged in the handbook. 

The GVC approach builds on the integrated collection of business statistics from large global enterprises (across countries) for a select set of GVC-related economic activities, including trade in intermediate goods and services and foreign direct investments. In addition, inter-country supply and use tables, as well as inter-country input-output tables, can help to chart and understand relations at a macroeconomic level. To properly and correctly measure the cross-border statistics, some data-sharing with important economic partner countries may be necessary. The Commission also agreed with the development of a global enterprise group register to help national statisticians better understand business strategies and the relations between enterprises in various economies.

Source: Global Value Chain Analysis: Concepts and Approaches

What Are Global Value Chains?

Source: The impact of Covid-19 on global value chains

Source: Drivers and benefits of Enhancing participation in global Value Chains: Lessons for India

ManagEment and Governance of Global Value Chains

Source: Accounting for Global Value Chains:
Extended System of National Accounts and Integrated Business Statistics

Source: Global value chains: A review of the multi- disciplinary literature

Source: GLOBAL VALUE CHAINS IN THE AGE OF UNCERTAINTY: ADVANTAGES, VULNERABILITIES, AND WAYS FOR ENHANCING RESILIENCE

Configuration, Reconfiguration, and Design of Supply Chains

• Digital Supply Chain
• Resilient Supply Chain
• Efficient Supply Chain
• Sustainable Supply Chain

Source: Reconfigurable supply chain: the X-network

Source: Reconfigurable supply chain: the X-network

Source: Reconfigurable supply chain: the X-network

Source: Reconfigurable supply chain: the X-network

Source: Reconfigurable supply chain: the X-network

RISKS AND RESILIENCY IN GLOBAL VALUE CHAINS

Source: Risk, resilience, and rebalancing in global value chains

Source: Reimagining industrial supply chains

Megatrends of International Production

• Technology
• Economic Governance
• Sustainability
• Unbundling/Rebundling
• Outsourcing/Insourcing
• Offshoring/Reshoring

Source: World Investment Report 2020 : International Production Beyond the Pandemic

At the start of a new decade, the global system of international production is experiencing a perfect storm, with the crisis caused by the COVID-19 pandemic arriving on top of existing challenges arising from the new industrial revolution (NIR), growing economic nationalism and the sustainability imperative.

This year’s World Investment Report (WIR) comes in the midst of a global crisis. The coronavirus pandemic has forced governments around the world to implement strict measures to limit the spread of the virus, ranging from social distancing and closures of public spaces and offices to complete lockdowns. These measures have resulted in production stoppages and severe supply chain disruptions in most sectors, virtually complete closures of entire industries, and unprecedented demand shocks in almost all economies. The immediate impact on international production and cross-border investment has been severe, with delayed implementation of investment projects and the shelving of new projects, as well as the drying up of foreign affiliate earnings of which normally a significant share is reinvested in host countries. Longer term, the need for multinational enterprises (MNEs) to create more resilient supply chains, combined with greater pressure from governments and the public to increase national or regional autonomy in productive capacity, especially of essential (e.g. health care related) goods and services, will have a lasting effect on global production networks.

However, COVID-19 is not the only gamechanger for international production. International trade, investment and global value chains (GVCs) were already entering a period of transformation as a result of several “megatrends”. These megatrends emerged and gradually increased in intensity over the course of the last decade, contributing to the slowdown of international production. The megatrends driving the transformation of international production can be grouped under three main themes:

• Technology trends and the NIR. 

The application of new technologies in the supply chains of global MNEs has far-reaching consequences for the configuration of international production networks. This has already raised important concerns for policymakers, with the realization that growth will depend on promoting investment in new sectors and that structural transformation through the build-up of the manufacturing sector is becoming more difficult.

• Global economic governance trends. 

Fragmentation in international economic policymaking and especially in trade and investment policy is reflected in a shift away from multilateral cooperation towards regional and bilateral solutions and increased protectionism. It is compounded by systemic competition between economic powers, as well as by a general shift in national economic policymaking in many countries towards more regulation and intervention.

• Sustainable development trends. 

The implementation of a broad range of sustainability measures, including climate change adaptation and mitigation measures, in the global operations of MNEs and differential speeds in the adoption and implementation of rules, regulations and practices aimed at sustainability will have important implications for international production networks. The need to channel investment to the Sustainable Development Goals (SDGs) will also affect patterns of foreign direct investment (FDI).

While the COVID-19-induced crisis is certainly a major challenge for international production on its own, it may also represent a tipping point, accelerating the effects of pre-existing megatrends. At the start of the new decade, due to the combined effect of the pandemic and existing trends reaching their boiling point, the system of international production finds itself in a “perfect storm” (figure IV.1). The decade to 2030 is likely to prove a decade of transformation.

Source: World Investment Report 2020

Source: World Investment Report 2020

Source: World Investment Report 2020

Source: World Investment Report 2020

Source: World Investment Report 2020

Source: World Investment Report 2020

Source: World Investment Report 2020

Source: World Investment Report 2020

Source: World Investment Report 2020

Source: World Investment Report 2020

Source: World Investment Report 2020

Source: World Investment Report 2020

Source: World Investment Report 2020

Source: World Investment Report 2017

Source: World Investment Report 2017

Source: World Investment Report 2017

Source: Reimagining industrial supply chains

Source: Governance of global value chains after the Covid-19 pandemic: A new wave of regionalization?

My Related Posts

Accounting For Global Carbon Emission Chains

Understanding Global Value Chains – G20/OECD/WB Initiative

Production Chain Length and Boundary Crossings in Global Value Chains

USA and China: What are Trade in Value Added (TiVA) Balances

Measuring Globalization: Global Multi Region Input Output Data Bases (G-MRIO)

Credit Chains and Production Networks

Balance Sheet Economics – Financial Input-Output Analysis (using Asset Liability Matrices) – Update March 2018

Trading Down: NAFTA, TPP, TATIP and Economic Globalization

Development of Global Trade and Production Accounts: UN SEIGA Initiative

The Collapse of Global Trade during Global Financial Crisis of 2008-2009

Supply Chain Finance (SCF) / Financial Supply Chain Management (F-SCM)

Production and Distribution Planning : Strategic, Global, and Integrated

FDI vs Outsourcing: Extending Boundaries or Extending Network Chains of Firms

Resource Flows: Material Flow Accounting (MFA), Life Cycle Analysis (LCA), Input Output Networks and other methods

Towards the Circular Economy

Intra Industry Trade and International Production and Distribution Networks

Understanding Trade in Intermediate Goods

The Hidden Geometry of Trade Networks

Trends in Intra Firm Trade of USA

Economics of Trade Finance

Oscillations and Amplifications in Demand-Supply Network Chains

Quantitative Models for Closed Loop Supply Chain and Reverse Logistics

The Strength of Weak Ties

Relational Turn in Economic Geography

Regional Trading Blocs and Economic Integration

Wassily Leontief and Input Output Analysis in Economics

Classical roots of Interdependence in Economics

Key Sources of Research

GVCs

OECD

https://www.oecd.org/sti/ind/global-value-chains.htm

Global Value Chains

Global Value Chains (GVC’s) WDR 2020

World Bank

https://wits.worldbank.org/gvc/global-value-chains.html

Handbook on Accounting for Global Value Chains

4th Meeting of the Expert Group on international trade and economic globalization statistics
Jointly organized by ISTAT and UNSD

Rome, Italy 7-9 May, 2018

https://unstats.un.org/unsd/trade/events/2018/rome/default.asp

Ist ITEGS Meeting

2016

http://unstats.un.org/unsd/trade/events/2016/newyork-egm/default.asp

2nd ITEGS Meeting

2016

https://unstats.un.org/unsd/trade/events/2016/nov-newyork/default.asp

3rd ITEGS Meeting

2017

https://unstats.un.org/unsd/trade/events/2017/luxembourg/default.asp

Global Value Chain Development Report

BEYOND PRODUCTION

NOVEMBER 2021

WTO

Click to access gvcdevreport_bprod_e.pdf

Click to access 00_gvc_dev_report_2021_e.pdf

Global Value Chain Development Report

WTO 2019

https://www.wto.org/english/res_e/publications_e/gvcd_report_19_e.htm

Global Value Chain Development Report

WTO 2017

Click to access gvcs_report_2017.pdf

Global value chain transformation to 2030: Overall direction and policy implications 

James Zhan, Richard Bolwijn, Bruno Casella, Amelia U. Santos-Paulino  13 August 2020

https://voxeu.org/article/global-value-chain-transformation-decade-ahead

Governance of global value chains after the Covid-19 pandemic: A new wave of regionalization?

José Pla-Barber1, Cristina Villar1 and Rajneesh Narula2

Business Research Quarterly 2021, Vol. 24(3) 204–213

https://journals.sagepub.com/doi/pdf/10.1177/23409444211020761

https://journals.sagepub.com/doi/full/10.1177/23409444211020761

GLOBAL VALUE CHAINS

Pol Antràs Davin Chor

Working Paper 28549

NATIONAL BUREAU OF ECONOMIC RESEARCH

1050 Massachusetts Avenue
Cambridge, MA 02138
March 2021

http://www.nber.org/papers/w28549

Click to access w28549.pdf

PART III
Global Value Chains

ADB

2021

Click to access part3-gvcs.pdf

https://www.adb.org/publications/key-indicators-asia-and-pacific-2021

Gary Gereffi: How Research on Global Value Chains Can Help U.S. Competitiveness

August 9, 2021

Duke University

https://igs.duke.edu/news/gary-gereffi-how-research-global-value-chains-can-help-us-competitiveness

Determinants of Global Value Chain Participation: Cross-country Analysis

Click to access BanerjeeZeman_GVC-Chain_IEA-submission-1.pdf

Globalization in transition: The future of trade and value chains

January 16, 2019 | Report

MGI

By Susan Lund, James Manyika, Jonathan Woetzel, Jacques Bughin, Mekala Krishnan, Jeongmin Seong, and Mac Muir

https://www.mckinsey.com/featured-insights/innovation-and-growth/globalization-in-transition-the-future-of-trade-and-value-chains

Global Value Chains – a Panacea for Development?

Author: Petra Dünhaupt & Hansjörg Herr

Working Paper, No. 165/2021

Berlin School of Economics and Law, Institute for International Political Economy (IPE)

Click to access ipe_working_paper_165__1_.pdf

The impact of Covid-19 on global value chains

Heli Simola

BOFIT Policy Brief 2/2021 14.01.2021

https://helda.helsinki.fi/bof/bitstream/handle/123456789/17842/bpb0221.pdf?sequence=1&isAllowed=y

Shifting Global Value Chains: The India Opportunity

WHITE PAPER

JUNE 2021

WEF

Click to access WEF_Shifting_Global_Value_Chains_2021.pdf

Rebuilding inclusive global value chains as Pathway to global economic Recovery

IsDB

Click to access GVC%20BOOK%20FINAL%20VERSION_06.06.2021.pdf

Risk, resilience and recalibration in global value chains

UNIDO

2020

https://iap.unido.org/articles/risk-resilience-and-recalibration-global-value-chains

Decoupling Global Value Chains*

Peter Eppinger University of Tübingen

Oliver Krebs University of Tübingen

Gabriel Felbermayr
Kiel Institute for the World Economy

Bohdan Kukharskyy City University of New York

February 15, 2021

Click to access eppinger.pdf

Shooting Oneself in the Foot? Trade War and Global Value Chains

Cecilia Bellora & Lionel Fontagné

No 2019-18 – April 20

Click to access cb_lf_tradewar.pdf

Efficiency and risks in global value chains in the context of COVID-19

Christine Arriola, Sophie Guilloux-Nefussi, Seung-Hee Koh, Przemyslaw Kowalski, Elena Rusticelli, Frank van Tongeren

OECD Economics Department Working Papers No. 1637

https://dx.doi.org/10.1787/3e4b7ecf-en

Click to access Efficiency-and-risks-in-global-value-chains-in-the-context-of-COVID-19.pdf

Managing Risks in Global Value Chains: Strengthening Resilience in the APEC Region

By Divya Sangaraju and Akhmad Bayhaqi

APEC Policy Support Unit POLICY BRIEF No. 37 December 2020

Click to access 220_PSU_Managing-Risks-in-GVC.pdf

UNCTAD-Eora Global Value Chain Database

https://worldmrio.com/unctadgvc/

Introduction to Accounting for Global Value Chains (GVCs) – GVC Satellite Accounts and Integrated Business Statistics

National Accounts Seminar for Latin America and the Caribbean 28-30 May 2019
Guatemala City, Guatemala

United Nations Statistics Division

Click to access introduction-accounting-gvcs-unsd-guatemala-2019.pdf

“Accounting for Globalisation: Frameworks for Integrated International Economic Accounts,” 

Nadim Ahmad, 2018.

NBER Chapters, in:  The Challenges of Globalization in the Measurement of National Accounts,

National Bureau of Economic Research, Inc.

https://www.nber.org/books-and-chapters/challenges-globalization-measurement-national-accounts/accounting-globalisation-frameworks-integrated-international-economic-accounts

Improving the accounting frameworks for analyses of global value chains

Nadim Ahmad (OECD)

Chapter 8 of GVC Development Report 2019

WTO

Click to access gvc_dev_report_2019_e_ch8.pdf

MaPPing gLoBaL VaLUe CHainS

Koen De Backer and Sébastien Miroudot

Working Paper Series

no 1677 / May 2014

ECB

Click to access ecbwp1677.pdf

Accounting for Global Value Chains:
Extended System of National Accounts and Integrated Business Statistics

Ivo Havinga
United Nations Statistics Division

25th Conference of International Input-Output Association (IIOA) June 19-23, 2017
Atlantic City, NJ, USA

Click to access IIOA2017%20Keynote_IvoHavinga.pdf

WORLD KLEMS Initiative

http://www.worldklems.net/index.htm

Conceptual Aspects of Global Value Chains∗

 Pol Antràs

Harvard University February 4, 2020

Click to access conceptual_aspects_gvcs.pdf

Global Value Chain Analysis: Concepts and Approaches 

Lin Jones, Meryem Demirkaya, and Erika Bethmann

United States International Trade Commission

Journal of International Commerce and Economics April 2019

Click to access concepts_approaches_in_gvc_research_final_april_18.pdf

The Age of Global Value Chains: Maps and Policy Issues

A VoxEU.org eBook
Edited by João Amador and Filippo di Mauro
CEPR Press 2015

Click to access GVCs-ebook.pdf

Global value chains: A review of the multi- disciplinary literature

Liena Kano1, Eric W. K. Tsang2 and Henry Wai-chung Yeung3

Journal of International Business Studies (2020)

Click to access 2020_02_kano_tsang_yeung_gvcs_a_review_of_the_lit.pdf

Modelling Global Value Chains: Approaches and Insights from Economics1

Davin Chor
Tuck School of Business, Dartmouth College & National University of Singapore

January 2019

Click to access Modelling_Global_Value_Chains_8Jan19.pdf

“The Margins of Global Sourcing: Theory and Evidence from U.S. Firms.”

Antràs, Pol, Teresa C. Fort, and Felix Tintelnot. 2017.

American Economic Review 107 (9): 2514-64.

https://scholar.harvard.edu/antras/publications/margins-global-sourcing-theory-and-evidence-us-firms

Disentangling Global Value Chains∗ 

Alonso de Gortari

adegortaribriseno@fas.harvard.edu

First version: August 12, 2016 This version: November 26, 2017

Click to access JobMarketPaperdegotardi.pdf

Global Value Chains: Overview and Issues for Congress

December 16, 2020

Congressional Research Service

https://crsreports.congress.gov R46641

Rachel F. Fefer, Coordinator
Analyst in International Trade and Finance

Andres B. Schwarzenberg

Analyst in International Trade and Finance

Liana Wong

Analyst in International Trade and Finance

Click to access R46641.pdf

Economic Bulletin

Issue 5 / 2020

ECB

ECB Economic Bulletin, Issue 5 / 2020 – Update on economic and monetary developments Summary

Click to access eb202005.en.pdf

Risk, resilience, and rebalancing in global value chains

MGI

August 2020

James Manyika
Director and Co-chair, McKinsey Global Institute Senior Partner, McKinsey & Company
San Francisco

Sven Smit
Director and Co-chair, McKinsey Global Institute Senior Partner, McKinsey & Company Amsterdam

Jonathan Woetzel
Director, McKinsey Global Institute Senior Partner, McKinsey & Company Shanghai

Click to access Risk-resilience-and-rebalancing-in-global-value-chains-full-report-vH.pdf

GLOBALIZATION IN TRANSITION: THE FUTURE OF TRADE AND VALUE CHAINS

MGI

JANUARY 2019

By Susan Lund, James Manyika, Jonathan Woetzel, Jacques Bughin, Mekala Krishnan, Jeongmin Seong, and Mac Muir

https://www.mckinsey.com/featured-insights/innovation-and-growth/globalization-in-transition-the-future-of-trade-and-value-chains

Accounting for growth and productivity in global value chains

Marcel Timmer, Xianjia Ye

2020

In B. Fraumeni (Ed.), 

Measuring Economic Growth and Productivity: Foundations, KLEMS Production Models, and Extensions (pp. 413-426). Academic Press. https://doi.org/10.1016/B978-0-12-817596-5.00018-4

https://research.rug.nl/en/publications/accounting-for-growth-and-productivity-in-global-value-chains

https://www.sciencedirect.com/science/article/pii/B9780128175965000184?via%3Dihub

“Evolving Trends in Global Value Chain Analysis: Country Case Studies of Brunei Darussalam, Malaysia, and Singapore” 

by Lumba, Angelo Jose, Mahintan Joseph Mariasingham and Kristina Baris 

Center for Global Trade Analysis
Department of Agricultural Economics
Purdue University
403 West State Street
West Lafayette, Indiana 47907-2056 USA 

https://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID=6090

Determinants of Global Value Chain Participation: Cross- country Analysis

Biswajit Banerjee, Juraj Zeman

NBS Working paper 1/2020

http://www.nbs.sk

Click to access WP_1_2020_Zeman_Determinants_of_GVC_EN.pdf

Drivers and benefits of Enhancing participation in global Value Chains: Lessons for India

Sabyasachi Mitra, Abhijit Sen Gupta, and Atul Sanganeria

No. 79 | December 2020

ADB

Click to access sawp-79-enhancing-participation-gvcs-india.pdf

Sustaining global Value Chains

AIIB

Asian Infrastructure Investment Bank 2021
AIIB Headquarters, Tower A, Asia Financial Center
No. 1 Tianchen East Road, Chaoyang District, Beijing 100101 China Tel: +86-10-8358-0000
econ@aiib.org

https://www.aiib.org/en/news-events/asian-infrastructure-finance/2021/introduction/index.html

Understanding the Impact of Global Value Chains – A Workshop

https://www.nationalacademies.org/our-work/understanding-the-impact-of-global-value-chains-a-workshop

Resilience in Global Value Chains: A Systemic Risk Approach 

sherwat@aucegypt.edu

Global Perspectives (2021) 2 (1): 27658

.https://doi.org/10.1525/gp.2021.27658

https://online.ucpress.edu/gp/article-abstract/2/1/27658/118661/Resilience-in-Global-Value-Chains-A-Systemic-Risk?redirectedFrom=fulltext

The mutual constraints of states and global value chains during COVID-19: The case of personal protective equipment

Mark P. Dallas a,⇑, Rory Horner b,c, Lantian Li d

a Department of Political Science & Asian Studies, Union College, Schenectady, NY 12308, USA
b Global Development Institute, University of Manchester, Manchester M13 9PL, UK
c Department of Geography, Environmental Management and Energy Studies, University of Johannesburg, Auckland Park, Johannesburg, South Africa d Department of Sociology, Northwestern University, Evanston, IL 60208, USA

World Development 139 (2021) 105324

Click to access Dallas-Horner-Li-Mutual-Constraints-of-States-and-GVCs-during-COVID-19_The-Case-of-PPEs-in-World-Development-139-Online.pdf

Statement of U.S. Global Value Chain Coalition

House Committee on Ways and Means
Hearing on the 2020 U.S. Trade Policy Agenda on June 17, 2020 July 1, 2020

Click to access U.S.%20Global%20Value%20Chain%20Coalition%20Submission%20for%20the%20Record.pdf

GLOBAL VALUE CHAINS IN THE AGE OF UNCERTAINTY: ADVANTAGES, VULNERABILITIES, AND WAYS FOR ENHANCING RESILIENCE

N. V. Smorodinskaya D. D. Katukov V. E. Malygin

Institute of Economics Russian Academy of Sciences 32 Nakhimovskiy Prospekt, Moscow, 117218, Russia

Received 20 April 2021

doi: 10.5922/2079-8555-2021-3-5

Click to access Global-value-chains-in-the-age-of-uncertainty-advantages-vulnerabilities-and-ways-for-enhancing-resilience.pdf

COVID-19 and Trade Policy:

Why Turning Inward Won’t Work

Edited by Richard Baldwin

and Simon J. Evenett

A CEPR Press VoxEU.org eBook

Handbook on Global Value Chains

Edited by

Stefano Ponte, Professor of International Political Economy, Director, Centre for Business and Development Studies, Copenhagen Business School (CBS), Denmark,

Gary Gereffi, Founding Director, Global Value Chains Center and Emeritus Professor, Department of Sociology, Duke University, US and

Gale Raj-Reichert, Bard College Berlin, Germany 

Publication Date: 2019 ISBN: 978 1 78811 376 2 Extent: 640 pp

https://www.e-elgar.com/shop/usd/handbook-on-global-value-chains-9781788113762.html

Dynamics in chains and networks

edited by H.J. Bremmers, S.W.F. Omta, J.H. Trienekens

Trends and applications of resilience analytics in supply chain modeling: systematic literature review in the context of the COVID-19 pandemic

Maureen S. Golan,¹Laura H. Jernegan,¹ and  Igor Linkov²

Environ Syst Decis. 2020 May 30 : 1–22. 

doi: 10.1007/s10669-020-09777-w [Epub ahead of print]

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7261049/

OR-methods for coping with the ripple effect in supply chains during COVID-19 pandemic: Managerial insights and research implications

Dmitry Ivanov^a,∗ and  Alexandre Dolgui^b

Int J Prod Econ. 2021 Feb; 232: 107921.
Published online 2020 Sep 15.

doi: 10.1016/j.ijpe.2020.107921

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7491383/

Ripple effect in the supply chain network: Forward and backward disruption propagation, network health and firm vulnerability

Yuhong Li,^aKedong Chen,^aStephane Collignon,^b and  Dmitry Ivanov^c,⁎

Eur J Oper Res. 2021 Jun 16; 291(3): 1117–1131.
Published online 2020 Oct 10.

doi: 10.1016/j.ejor.2020.09.053

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7546950/

The Emerging World of Chains and Networks, Bridging Theory and Practice

Th. Camps (Editor), P.J.M. Diederen (Editor), G.J. Hofstede (Editor), B. Vos (Editor)

Original language	English
Place of Publication	Amsterdam
Publisher	Reed Business Information
Number of pages	348
ISBN (Print)	9789059019287
Publication status	Published – 2004

Experimental learning in chains and networks,

G. J. Hofstede (2006)

Production Planning & Control, 17:6, 543-546,

DOI: 10.1080/09537280600866561

https://www.tandfonline.com/doi/full/10.1080/09537280600866561

Integrating supply chain and network analyses: The study of netchains

Sergio Lazzarini

John M. Olin School of Business, Washington University, 1 Brookings Drive, Campus Box 1133, St. Louis, MO 63130-4899, USA

Fabio Chaddad

Agribusiness Research Institute, University of Missouri – Columbia, 138A Mumford Hall, Columbia, MO 65211, USA

Michael Cook

Agribusiness Research Institute, University of Missouri – Columbia, 125C Mumford Hall, Columbia, MO 65211, USA

Journal on Chain and Network Science: 1 (1)- Pages: 7 – 22

https://doi.org/10.3920/JCNS2001.x002
Published Online: December 10, 2008

https://www.wageningenacademic.com/doi/10.3920/JCNS2001.x002

Network Science approach to Modelling Emergence and Topological Robustness of Supply Networks: A Review and Perspective

Supun S. Perera 1,*
(E-mail: s.perera@econ.usyd.edu.au Telephone: +61291141893, Fax: +61291141863)
Michael G.H. Bell 1
(E-mail: michael.bell@sydney.edu.au Telephone: +61291141816, Fax: +61291141863)
Michiel C.J. Bliemer 1
(E-mail:michiel.bliemer@sydney.edu.au Telephone: +61291141840, Fax: +61291141863)
1 Institute of Transport and Logistics Studies, University of Sydney, Australia

Click to access 1803.09913.pdf

Click to access s41109-017-0053-0.pdf

Trust and Transparency in Supply Netchains: A Contradiction?

Gert Jan Hofstede

Wageningen University & Research

Supply Chain Management: Issues in the New Era of Collaboration and Competition, (2007) William Y.C. Wang, Michael S.H. Heng & Patrick Y.K. Chau (eds), a book by Idea Group Inc., pp 105-126
This version: V2, May 2005

Click to access Trust-and-Transparency-in-Supply-Netchains-A-Contradiction.pdf

Strategic Planning and Management of Food and Agribusiness Chains: The ChainPlan Method (Framework)

Marcos Fava Neves1

1University of São Paulo and Fundação Getulio Vargas, São Paulo, Brazil.

Rafael Bordonal Kalaki2

2University of São Paulo and Socicana, Ribeirão Preto, Brazil

Jonny Mateus Rodrigues3

3University of São Paulo, Ribeirão Preto, Brazil

Allan Wayne Gray4

4Purdue University, West Lafayette, USA

https://www.scielo.br/j/rbgn/a/vN53Xv7Vz8LZskHkb5KXqBq/?format=pdf&lang=en

https://www.scielo.br/j/rbgn/a/vN53Xv7Vz8LZskHkb5KXqBq/?lang=en&format=html

World Development Report 2020: Trading for Development in the Age of Global Value Chains

World Bank IBRD 2020

https://www.worldbank.org/en/publication/wdr2020

Reconfigurable supply chain: the X-network.

Alexandre Dolgui, Dmitry Ivanov, Boris Sokolov.

International Journal of Production Research, Taylor & Francis, 2020, 58 (13), pp.4138-4163.

10.1080/00207543.2020.1774679 . hal-02882722

Click to access X-Network%20V2-1%20Preprint.pdf

COVID-19 and global value chains: Policy options to build more resilient production networks

3 June 2020

OECD

https://www.oecd.org/coronavirus/policy-responses/covid-19-and-global-value-chains-policy-options-to-build-more-resilient-production-networks-04934ef4/

Global value chains: Efficiency and risks in the context of COVID-19

11 February 2021

OECD

https://www.oecd.org/coronavirus/policy-responses/global-value-chains-efficiency-and-risks-in-the-context-of-covid-19-67c75fdc/

https://www.oecd.org/sti/ind/global-value-chains.htm

World Investment Report 2020

CHAPTER IV
INTERNATIONAL PRODUCTION: A DECADE OF TRANSFORMATION AHEAD

UNCTAD

Downloads

Click to access wir2020_en.pdf

World Investment Report 2013: Global Value Chains: Investment and Trade for Development

Chapter 4

UNCTAD

Click to access wir2013_en.pdf

World Investment Report 2017

UNCTAD

Click to access wir2017_en.pdf

Reimagining industrial supply chains

Thomas Baumgartner, Yogesh Malik, and Asutosh Padhi

McKinsey August 11, 2020

https://www.mckinsey.com/industries/advanced-electronics/our-insights/reimagining-industrial-supply-chains#

From Systems to Complex Systems

I have studied complex systems science from following teachers:

• Yaneer Bar Yam of NECSI: Physical, Biological, and Social Systems
• Scott Page of University of Michigan: Model Thinking: Complex Systems in Economics and Social/Political Sciences.
• Melanie Mitchell of Santa Fe Institute: Introduction to Complex Systems
• Michael Kearns of University of Pennsylvania: Networked Life: Science of Networks
• Ravi Iyenger of Mount Sinai Icahn School of Medicine: Introduction to Systems Biology
• Perry Mehrling of Columbia University/INET: Economics of Money and Banking
• John Sterman of MIT: Business Dynamics: Using Systems Dynamics

Key Terms

• Complex Systems
• Networks
• Interaction
• Agents
• Bottom Up Modeling
• Agent Based Modeling
• Netlogo
• New England Complex Systems Institute (NECSI)
• Santa Fe Institute (SFI)
• Yaneer Bar Yam
• Scott Page
• Melanie Mitchell
• Network Science
• Dynamical Systems
• Cellular Automata
• Artifical Life (A-Life)
• Anti Fragility
• Agility
• Learning
• Adaptability
• Resilience
• Synchronization
• Mark Newman
• Albert Laszlo Barabasi
• John Sterman
• Small World Networks
• Scale Free Networks
• Hierarchy
• Boundaries
• Stephen Wolfram
• Stuart Kaufman
• Increasing Retuns
• Path Dependence
• J Doyne Farmer
• W. Brian Arthur
• Duncan Watts
• Eugene Stanley
• Six Degrees of Separation
• Emergence
• Non Linear Dynamics
• Competition and Cooperation

What are Complex Systems?

Source: A Brief History of Systems Science, Chaos and Complexity

Key Topics in Complex Systems

Sources: Complex Systems: A Survey

• Lattices and Networks
• Dynamical Systems
• Discrete Systems and Cellular Automata
• Scaling and Criticality
• Adaptation and Game Theory
• Information Theory
• Computational Complexity
• Agent based Modeling
• Chaos and Fractals
• Spontaneous Order and Synchronization

Complex Systems

The original journal devoted to the science, mathematics and engineering of systems with simple components but complex overall behavior; publishes high-quality articles that focus on, but are not limited to, the following areas:

• Dynamic, topological and algebraic aspects of cellular automata and discrete dynamical systems
• Complex systems and complexity theory
• Algorithmic complexity and information theory
• Emergent properties of dynamical systems
• Formal languages, grammars and automata
• Algorithmic information dynamics
• Symbolic dynamics and connections to continuous systems
• Tilings, rewriting and substitution systems
• Computability theory
• Synchronous versus asynchronous models
• Applications of automata to areas such as machine and deep learning, physics, biology, social sciences and others

Source: A Brief History of Systems Science, Chaos and Complexity

History of Systems and Complex Systems

Source: A Brief History of Systems Science, Chaos and Complexity

My Related Posts

Micro Motives, Macro Behavior: Agent Based Modeling in Economics

Systems Biology: Biological Networks, Network Motifs, Switches and Oscillators

System Archetypes: Stories that Repeat

Contagion in Financial (Balance sheets) Networks

Multiplex Financial Networks

Boundaries and Networks

Networks and Hierarchies

Increasing Returns, Path Dependence, Circular and Cumulative Causation in Economics

Increasing Returns and Path Dependence in Economics

Interdependence in Payment and Settlement Systems

Classical roots of Interdependence in Economics

Feedback Thought in Economics and Finance

Jay W. Forrester and System Dynamics

Balance Sheets, Financial Interconnectedness, and Financial Stability – G20 Data Gaps Initiative

Oscillations and Amplifications in Demand-Supply Network Chains

Balance Sheet Economics – Financial Input-Output Analysis (using Asset Liability Matrices) – Update March 2018

Credit Chains and Production Networks

Wassily Leontief and Input Output Analysis in Economics

Key Sources of Research

An Introduction to Complex Systems Science and Its Applications 

Alexander F. Siegenfeld 1,2 and Yaneer Bar-Yam2

1Department of Physics, Massachusetts Institute of Technology, Cambridge, MA, USA 2New England Complex Systems Institute, Cambridge, MA, USA

Hindawi
Complexity
Volume 2020, Article ID 6105872, 16 pages https://doi.org/10.1155/2020/6105872

https://necsi.edu/an-introduction-to-complex-systems-science-and-its-applications

https://www.hindawi.com/journals/complexity/2020/6105872/

COMPLEXITY RISING:

From Human Beings to Human Civilization, a Complexity Profile

NECSI

https://necsi.edu/complexity-rising-from-human-beings-to-human-civilization-a-complexity-profile

Click to access ComplexityRising.pdf

MULTISCALE COMPLEXITY/ENTROPY

Y. BAR-YAM

Advances in Complex Systems Vol. 07, No. 01, pp. 47-63 (2004)

https://doi.org/10.1142/S0219525904000068

GENERAL FEATURES OF COMPLEX SYSTEMS 

Y. Bar-Yam

New England Complex Systems Institute, Cambridge, MA, USA

Click to access e1-29-01-00.pdf

The why, how, and when of representations for complex systems

Leo Torres
leo@leotrs.com
Network Science Institute, Northeastern University

Danielle S. Bassett
dsb@seas.upenn.edu
Department of Bioengineering, University of Pennsylvania

Ann S. Blevins
annsize@seas.upenn.edu
Department of Bioengineering, University of Pennsylvania

Tina Eliassi-Rad
tina@eliassi.org
Network Science Institute and Khoury College of Computer Sciences, Northeastern University

June 5, 2020

Click to access 2006.02870.pdf

Santa Fe Institute

https://www.santafe.edu

Strategy and Complex Systems 

wayne.smith@csun.edu

Thursday, December 10, 2020 

Click to access complex-systems.pdf

Learning to Live with Complexity

by 

• Gökçe Sargut
• Rita Gunther McGrath

HBR (September 2011)

MULTIDISCIPLINARY COMPLEX SYSTEMS RESEARCH

Report from an NSF Workshop in May 2017

Kimberly A. Gray, Northwestern University, Co-Chair

Adilson E. Motter, Northwestern University, Co-Chair

Click to access MultidisciplinaryComplexSystemsResearch-WorkshopReport-May2017.pdf

Center for Study of Complex System

University of Michigan

https://lsa.umich.edu/cscs

Complex Systems Theory

1988 Stefan Wolfram

Click to access complex-systems-theory.pdf

What is a complex system?

• June 2013
• European Journal for Philosophy of Science 3(1)

DOI:10.1007/s13194-012-0056-8

• Project: Complexity Science

Authors:

James Ladyman

• University of Bristol

James Lambert

Karoline Wiesner

• Universität Potsdam

https://www.researchgate.net/publication/50210075_What_is_a_complex_system

Learning in and about complex systems

John D. Sterman

MIT System Dynamics

First published: Summer ‐ Autumn (Fall) 1994 https://doi.org/10.1002/sdr.4260100214

Click to access SWP-3660-30352170.pdf

Complex Systems

Science for the 21st Century
A U.S. Department of Energy, Office of Science Workshop

Click to access Complex_Systems_Science_for_the_21st_Century_rpt.pdf

Effectiveness of Leadership Decision-Making in Complex Systems 

by Leonie Hallo ^1,*, Tiep Nguyen ², Alex Gorod ¹ and Phu Tran ²

¹Adelaide Business School, University of Adelaide, Adelaide, South Australia 5000, Australia

²Transport Economic Faculty, Ho Chi Minh University of Transport, Ho Chi Minh 700000, Vietnam

^*Author to whom correspondence should be addressed. 

Systems2020, 8(1), 5; https://doi.org/10.3390/systems8010005

Received: 4 January 2020 / Revised: 2 February 2020 / Accepted: 7 February 2020 / Published: 12 February 2020

https://www.mdpi.com/2079-8954/8/1/5

Debate the Issues: Complexity and policy makIng

OECD

OECD Insights, OECD Publishing, Paris, http://dx.doi.org/10.1787/9789264271531-en.

Click to access complexity_and_policymaking.pdf

The Rising Complexity of the Global Economy

OECD Insights

http://oecdinsights.org/2016/09/02/the-rising-complexity-of-the-global-economy/

Introduction to the Theory of Complex Systems

Stefan Thurner, Rudolf Hanel, and Peter Klimek

Medical University of Vienna, Austria

Modeling Complex Systems

Nino Boccara

Springer

Taming Complexity

Make sure the benefits of any addition to an organization’s systems outweigh its costs. by 

• Martin Reeves,
• Simon Levin,
• Thomas Fink,
• Ania Levina

HBR Magazine (January–February 2020)

https://hbr.org/2020/01/taming-complexity

How do I manage the complexity in my organization?

Suzanne Heywood

Rubén Hillar
David Turnbull

McKinsey 2010

Click to access how_do_i_manage_complexity_in_my_organization.pdf

Agility: The antidote to complexity

Deloitte 2021 Global Chief Procurement Officer Survey

Click to access at-cpo-survey-2021.pdf

Unlocking The True Value Of Digital Transformation

Modernize your IT Services to tackle rising complexity

A Forrester Consulting
Thought Leadership Paper Commissioned By Tata Consultancy Services

June 2020

Click to access enterprises-digital-transformation-multi-cloud-adoption.pdf

WHAT MAKES A SYSTEM COMPLEX?

AN APPROACH TO SELF ORGANIZATION AND EMERGENCE

Michel Cotsaftis

LACSC/ECE mcot@ece.fr

Click to access 0706.0440.pdf

An introduction to complex system science ∗ 

Lecture notes for the use of master students in Computer Science and Engineering

Andrea Roli andrea.roli@unibo.it
DISI – Dept. of Computer Science and Engineering Campus of Cesena
Alma Mater Studiorum Universita` di Bologna

Click to access 31046012.pdf

What is a Complex System?

James Ladyman, James Lambert

Department of Philosophy, University of Bristol, U.K.

Karoline Wiesner

Department of Mathematics and Centre for Complexity Sciences, University of Bristol, U.K.

(Dated: March 8, 2012)

Click to access 148349402.pdf

Overview of Complex Systems

Principles of Complex Systems | @pocsvox CSYS/MATH 300, Fall, 2013 | #FallPoCS2013

Prof. Peter Dodds| @peterdodds

Click to access 2013-08UVM-300overview-slides-handout.pdf

Introduction to the Theory of Complex Systems

• R. Hanel, S. Thurner, P. Klimek
• Published 2018

https://www.semanticscholar.org/paper/Introduction-to-the-Theory-of-Complex-Systems-Hanel-Thurner/015a0f1e0e5a6f03b9dc8828b8c25964555b3415

Click to access book-thurner18.pdf

Foundations of Complex-system Theories: In Economics, Evolutionary Biology …

By Sunny Y. Auyang

From simplistic to complex systems in economics

John Foster*

Cambridge Journal of Economics 2005, 29, 873–892

doi:10.1093/cje/bei083

Complex Systems: A Survey

M. E. J. Newman

Department of Physics, University of Michigan, Ann Arbor, MI 48109 and
Center for the Study of Complex Systems, University of Michigan, Ann Arbor, MI 48109

Click to access 1112.1440.pdf

Click to access cssurvey.pdf

Designing to learn about Complex Systems

Click to access hmelo_00_designing_to_learn_complex.pdf

Complex systems: Network thinking

Melanie Mitchell

Artificial Intelligence 170 (2006) 1194–1212

https://www.sciencedirect.com/science/article/pii/S000437020600083X?ref=cra_js_challenge&fr=js

Statecharts: a visual formalism for complex systems

DavidHarel

Science of Computer Programming
Volume 8, Issue 3, June 1987, Pages 231-274

https://www.sciencedirect.com/science/article/pii/0167642387900359

Control Principles of Complex Networks

Yang-YuLiu1,2 andAlbert-L ́aszl ́oBarab ́asi3,2,4,5 1Channing Division of Network Medicine,
Brigham and Women’s Hospital,
Harvard Medical School,

Boston, Massachusetts 02115,
USA
2Center for Cancer Systems Biology, Dana-Farber Cancer Institute, Boston, Massachusetts 02115,

USA
3Center for Complex Network Research and Departments of Physics, Computer Science and Biology,
Northeastern University,
Boston, Massachusetts 02115,
USA
4Department of Medicine,
Brigham and Women’s Hospital,
Harvard Medical School,
Boston, Massachusetts 02115,
USA
5Center for Network Science,
Central European University, Budapest 1052,
Hungary

(Dated: March 15, 2016)

Click to access 1508.05384.pdf

Physical approach to complex systems 

Jarosław Kwapień a,∗, Stanisław Drożdż a,b

a Complex Systems Theory Department, Institute of Nuclear Physics, Polish Academy of Sciences, PL–31-342 Kraków, Poland
b Institute of Computer Science, Faculty of Physics, Mathematics and Computer Science, Cracow University of Technology, PL–31-155 Kraków, Poland

Physics Reports 2011

Click to access Physical-approach-to-complex-systems.pdf

Dynamics of Complex Systems (Studies in Nonlinearity)

Yaneer Bar-Yam, 

Addison-Wesley, New York, 1997; ISBN 0-201-55748-7; 800 pp.,

https://necsi.edu/dynamics-of-complex-systems

MODULARITY AND INNOVATION IN COMPLEX SYSTEMS

SENDIL K. ETHIRAJ
The Wharton School of Business
3620 Locust Walk, Suite 2000 University of Pennsylvania, Philadelphia PA 19104 Ph. 215-898 1231
Email: sethiraj@wharton.upenn.edu

DANIEL LEVINTHAL University of Pennsylvania

https://journals.aom.org/doi/pdf/10.5465/apbpp.2002.7519521

Complex Systems—A New Paradigm for the Integrative Study of Management, Physical, and Technological Systems

Luis A. Nunes Amaral
Department of Chemical and Biological Engineering, McCormick School of Engineering, Northwestern University, Evanston, Illinois 60208, amaral@northwestern.edu

Brian Uzzi
Department of Management and Organizations, Kellogg School of Management, Northwestern University, Evanston, Illinois 60208, uzzi@northwestern.edu

MANAGEMENT SCIENCE

Vol. 53, No. 7, July 2007, pp. 1033–1035
issn 0025-1909 􏰀 eissn 1526-5501 􏰀 07 􏰀 5307 􏰀 1033

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.728.1068&rep=rep1&type=pdf

Boundaries, Hierarchies and Networks in Complex Systems

PAUL CILLIERS

Department of Philosophy University of Stellenbosch Stellenbosch7600 South Africa

Fpc@akad.sun.ac.za

International Journal of Innovation Management, Vol. 5, No. 2 (June 2001) pp. 135–147

Click to access Cilliers-2001-Boundaries-Hierarchies-and-Networks.pdf

Extracting the hierarchical organization of complex systems

Marta Sales-Pardo, Roger Guimera` , Andre ́ A. Moreira, and Luís A. Nunes Amaral*

Department of Chemical and Biological Engineering and Northwestern Institute on Complex Systems, Northwestern University, Evanston, IL 60208

Edited by H. Eugene Stanley, Boston University, Boston, MA, and approved July 22, 2007 (received for review April 23, 2007)

PNAS 􏰁 November 20, 2007 􏰁 vol. 104 􏰁 no. 47

Click to access 15224.full.pdf

Patterned Interactions in Complex Systems: Implications for Exploration.

Rivkin, J. W., & Siggelkow, N. (2007).

Management Science, 53 (7), 1068-1085. http://dx.doi.org/10.1287/mnsc.1060.0626

https://repository.upenn.edu/cgi/viewcontent.cgi?article=1038&context=mgmt_papers

A complex systems approach to constructing better models for managing financial markets and the economy

J. Doyne Farmer1, M. Gallegati2, C. Hommes3, A. Kirman4, P. Ormerod5, S. Cincotti6, A. Sanchez7, and D. Helbing8

1  Santa Fe Institute, 1399 Hyde Park Road, Santa Fe, NM 87501, USA

2  DiSES, Universit Politecnica delle Marche, Ancona, Italy

3  CeNDEF, University of Amsterdam, The Netherlands

4  GREQAM, Aix Marseille Universit ́e, EHESS, France

5  Volterra Partners, London and University of Durham, UK

6  DIME-DOGE.I, University of Genoa, Italy

7  GISC, Universidad Carlos III de Madrid, Spain

8  ETH, Zu ̈rich

Received 1 August 2012 / Received in final form 9 October 2012 Published online 5 December 2012

Eur. Phys. J. Special Topics 214, 295–324 (2012)

Click to access e2012-01696-9.pdf

THE ONTOLOGY OF COMPLEX SYSTEMS: Levels of Organization, Perspectives, and Causal Thickets*

(Canadian Journal of Philosophy, supp. vol #20, 1994, ed. Mohan Matthen and Robert Ware, University of Calgary Press, 207-274).
by William C. Wimsatt
Department of Philosophy
University of Chicago
January 4, 1994
wwim@midway.uchicago.edu

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.177.6704&rep=rep1&type=pdf

Requisite variety and its implications for the control of complex systems, 

Ashby W.R. (1958)

Cybernetica 1:2, p. 83-99.

http://pcp.vub.ac.be/Books/AshbyReqVar.pdf, 

Click to access ashbyreqvar.pdf

Weak Links

The Universal Key to the Stability of Networks and Complex Systems

P ́eter Csermely

February 25, 2009

Click to access 00-introduction.pdf

Weak Links: Stabilizers of Complex Systems from Proteins to Social Networks,

by Peter Csermely.

2006 XX, 408 p. 37 illus. 3-540-31151-3. Berlin: Springer, 2006.

An Introduction to Agent-Based Modeling: Modeling Natural, Social, and Engineered Complex Systems with NETLogo

Wilensky, Uri and Rand, William MIT Press: London, 2015
ISBN 978-0262731898 (pb)

Click to access 2.pdf

Dynamics of Complex Systems: Scaling Laws for the Period of Boolean Networks

Réka Albert and Albert-László Barabási*

Department of Physics, University of Notre Dame, Notre Dame, Indiana 46556

(Received 28 April 1999)

PHYSICAL REVIEW LETTERS

VOLUME 84, NUMBER 24

12 JUNE 2000

Click to access fulltext.pdf

Cities as Complex Systems: Scaling, Interactions, Networks, Dynamics
and Urban Morphologies

ISSN 1467-1298

Michael Batty

Centre for Advanced Spatial Analysis, University College London, 1-19 Torrington Place, London WC1E 6BT, UK
Email: m.batty@ucl.ac.uk, Web: www.casa.ucl.ac.uk

The Encyclopedia of Complexity & System Science, Springer, Berlin, DE, forthcoming 2008. Date of this paper: February 25, 2008.

Click to access 15183.pdf

Scale invariance and universality: organizing principles in complex systems

H.E. Stanleya;∗, L.A.N. Amarala , P. Gopikrishnana , P.Ch. Ivanova , T.H. Keittb , V. Pleroua

aCenter for Polymer Studies and Department of Physics, Boston University, Boston, MA 02215, USA bNational Center for Ecological Analysis and Synthesis, 735 State Street, Suite 300,
Santa Barbara, CA 93101, USA

Physica A 281 (2000) 60–68

Click to access Stanley-2000-PhysicaA-281-60.pdf

A pragmatist approach to transdisciplinarity in sustainability research: From complex systems theory to reflexive science

Florin Popa

Mathieu Guillermin

Tom Dedeurwaerdere

Futures
Volume 65, January 2015, Pages 45-56

http://dx.doi.org/10.1016/j.futures.2014.02.002

https://reader.elsevier.com/reader/sd/pii/S0016328714000391?token=D827F3C071B9690CE52D8DFA849A70017C16FA9D343460C0FB26D6EF7E6EF1C4A25080D7FD53AE6B883217306C09B19F&originRegion=us-east-1&originCreation=20210913203302

https://www.sciencedirect.com/science/article/pii/S0016328714000391

Extracting and Representing Qualitative Behaviors of Complex Systems in Phase Spaces

Feng Zhao

MASSACHUSETTS INSTITUTE OF TECHNOLOGY

ARTIFICIAL INTELLIGENCE LABORATORY
A.I. Memo No. 1274 Marc]: 1991

Click to access ADA241163.pdf

What is a Complex System?

James Ladyman, James Lambert

Department of Philosophy, University of Bristol, U.K.

Karoline Wiesner

Department of Mathematics and Centre for Complexity Sciences, University of Bristol, U.K.

(Dated: March 8, 2012)

Click to access LLWultimate.pdf

Modelling and prediction in a complex world 

Michael Battya, Paul M. Torrensb,*

aCentre for Advanced Spatial Analysis, University College London, 1 to 19 Torrington Place, London WC1E 6BT, UK
bDepartment of Geography, University of Utah, 260 S. Central Campus Dr., Rm. 270, Salt Lake City, UT 84112-9155, USA

Available online 19 March 2005

Click to access 2005-futures-complexity.pdf

Complex networks
Augmenting the framework for the study of complex systems

THE EUROPEAN PHYSICAL JOURNAL B

L.A.N. Amarala and J.M. Ottino
Department of Chemical and Biological Engineering, Northwestern University, Evanston, IL 60208, USA

Received 12 November 2003
Published online 14 May 2004

Eur. Phys. J. B 38, 147–162 (2004) DOI: 10.1140/epjb/e2004-00110-5

https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.200.4726&rep=rep1&type=pdf

Learning from Evidence in a Complex World

John D. Sterman
Jay W. Forrester Professor of Management and Professor of Engineering Systems Sloan School of Management
Massachusetts Institute of Technology
30 Wadsworth Street, E53-351
Cambridge MA 02142
617.253.1951
jsterman@mit.edu
web.mit.edu/jsterman/www

Revision of May 2005

Forthcoming,
American Journal of Public Health

Click to access LearningFromEvidenceFinal.pdf

INTERDISCIPLINARY DESCRIPTION OF COMPLEX SYSTEMS

7(2), pp. 22-116, 2009 ISSN 1334-4684

https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.191.510&rep=rep1&type=pdf

Error and attack tolerance of complex networks

R ́eka Albert, Hawoong Jeong, Albert-L ́aszl ́o Barab ́asi

Department of Physics, University of Notre Dame, Notre Dame, IN 46556

2000

Click to access 0008064.pdf

The Kuramoto model in complex networks

Francisco A. Rodriguesa, Thomas K. DM. Peronb,c,∗, Peng Jic,d,∗, Jürgen Kurthsc,d,e,f

aDepartamento de Matemática Aplicada e Estatística, Instituto de Ciências Matemáticas e de Computação, Universidade de São Paulo, Caixa Postal 668, 13560-970 São Carlos, São Paulo, Brazil
bInstituto de Física de São Carlos, Universidade de São Paulo, Caixa Postal 369, 13560-970, São Carlos, São Paulo, Brazil
cPotsdam Institute for Climate Impact Research (PIK), 14473 Potsdam, Germany dDepartment of Physics, Humboldt University, 12489 Berlin, Germany eInstitute for Complex Systems and Mathematical Biology, University of Aberdeen, Aberdeen AB24 3UE, United Kingdom
fDepartment of Control Theory, Nizhny Novgorod State University, Gagarin Avenue 23, Nizhny Novgorod 606950, Russia

2015

Click to access 1511.07139.pdf

Uncovering the overlapping community structure of complex networks in nature and society

Gergely Palla†‡, Imre Dere ́nyi‡, Ille ́s Farkas†, and Tama ́s Vicsek†‡ †Biological Physics Research Group of HAS, Pa ́zma ́ny P. stny. 1A, H-1117 Budapest, Hungary,

‡Dept. of Biological Physics, Eo ̈tvo ̈s University, Pa ́zma ́ny P. stny. 1A, H-1117 Budapest, Hungary.

Click to access 0506133.pdf

System Dynamics:
Systems Thinking and Modeling for a Complex World

John D. Sterman
MIT Sloan School of Management Cambridge MA 02421

617.253.1951 (voice) 617.258.7579 (fax) jsterman@mit.edu web.mit.edu/jsterman/www

April 2002

https://dspace.mit.edu/bitstream/handle/1721.1/102741/esd-wp-2003-01.13.pdf?sequence=1

Complex thinking, complex practice: The case for a narrative approach to organizational complexity

Haridimos Tsoukas and Mary Jo Hatch

Human Relations

[0018-7267(200108)54:8] Volume 54(8): 979–1013: 018452

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.621.6579&rep=rep1&type=pdf

From complex regions to complex worlds.

Holling, C. S. 2004.

Ecology and Society 9(1): 11. [online] URL: http://www.ecologyandsociety.org/vol9/iss1/art11

Click to access 26267656.pdf

Causal thinking and complex system approaches in epidemiology

Sandro Galea,* Matthew Riddle and George A Kaplan

International Journal of Epidemiology 2010;39:97–106

doi:10.1093/ije/dyp296

Tools and techniques for developing policies for complex and uncertain systems

Steven C. Bankes*

RAND, 1700 Main Street, Santa Monica, CA 90407

http://www.pnas.org􏰁cgi􏰁doi􏰁10.1073􏰁pnas.092081399

PNAS 􏰂 May 14, 2002 􏰂 vol. 99 􏰂 suppl. 3 􏰂 7263–7266

Click to access 7263.full.pdf

Explaining complex organizational dynamics

Dooley, Kevin J; Van de Ven, Andrew H
Organization Science; May/Jun 1999; 10, 3; ABI/INFORM Global pg. 358

Click to access 55e5c7fd08aede0b57375d28.pdf

Supply-chain networks: a complex adaptive systems perspective,

Amit Surana , Soundar Kumara , Mark Greaves & Usha Nandini Raghavan (2005)

International Journal of Production Research, 43:20, 4235-4265,

DOI: 10.1080/00207540500142274

Click to access Supply-chain-networks-A-complex-adaptive-systems-perspective.pdf

Hierarchical organization in complex networks

Erzs ́ebet Ravasz and Albert-La ́szl ́o Baraba ́si

Department of Physics, 225 Nieuwland Science Hall, University of Notre Dame, Notre Dame, IN 46556, USA (Dated: February 1, 2008)

Click to access 0206130.pdf

Unifying Principles in Complex Systems

Yaneer Bar-Yam New England Complex Systems Institute 24 Mt. Auburn St., Cambridge, MA 02138

General Features of Complex Systems

• January 2002

Authors:

Yaneer Bar-Yam

https://www.researchgate.net/publication/246294756_General_Features_of_Complex_Systems

Complex Systems

Journal

https://www.complex-systems.com

What is complex systems science?

Santa Fe Institute

https://www.santafe.edu/what-is-complex-systems-science

Complex Systems Modeling: Using Metaphors From Nature in Simulation and Scientific Models

https://homes.luddy.indiana.edu/rocha/publications/complex/csm.html

Complex systems science and brain dynamics

Hava T. Siegelmann^1,2*

• ¹ The Biologically Inspired Neural and Dynamical Systems lab, University of Massachusetts at Amherst, Amherst, MA, USA
• ² The Program for Evolutionary Dynamics, Harvard University, Cambridge, MA, USA

Front. Comput. Neurosci., 10 September 2010 | https://doi.org/10.3389/fncom.2010.00007

https://www.frontiersin.org/articles/10.3389/fncom.2010.00007/full

Evolutionary Psychology, Complex Systems, and Social Theory

Bruce MacLennan
Department of Electrical Engineering & Computer Science University of Tennessee, Knoxville MacLennan@utk.edu

Click to access EPCSST.pdf

Simulating Complex Systems – Complex System Theories, Their Behavioural Characteristics and Their Simulation

Rabia Aziza, Amel Borgi, Hayfa Zgaya, Benjamin Guinhouya

https://hal.archives-ouvertes.fr/hal-01716055/document

A Brief History of Systems Science, Chaos and Complexity

By Daniel Christian Wahl, originally published by P2P Foundation Blog
September 12, 2019

A Brief History of Systems Science, Chaos and Complexity

Economics needs to treat the economy as a complex system

J. Doyne Farmer1,2

1Department of Mathematics, the University of Oxford,

Institute for New Economic Thinking at the Oxford Martin School 

2Santa Fe Institute, 1399 Hyde Park road, Santa Fe, NM 87501, USA

May 3, 2012

Click to access farmer_berlinpaper.pdf

Understanding Complexity

By Olivier Serrat

ADB 2009

Click to access understanding-complexity.pdf

Global US Dollar Funding Markets

Global US Dollar Funding MarkeTS

When US interest rates decline ( accomadating monetary policy), funding flows increase in to USA. (Money markets). Driven by increase in loans in USA.

When US interest rates increase (tightening of Monetary policy), capital Investment flows increase into USA. (Capital Markets). Driven by search for yields.

Key Terms

• Eurodollars
• International Money Markets
• Funding Markets
• Shadow Banking
• Money Flows
• Capital Flows
• Round Tripping
• International Financial System
• FX Market
• FX Swaps
• FX Reserves
• Payment Flows
• Funding Flows
• Eurocurrency
• EuroEuro
• EuroYen
• EuroRMB
• FX Forwards
• Currency Swaps

International Markets for US Dollar

US dollar is currently predominant currency in global financial markets.

Its use is wide spread and deep.

• Cross Border Loans
• International Debt Securities
• FX Transactions
• Official Public FX Reserves
• Trade Invoicing
• SWIFT Payments

How are dollars funded by institutions involved in international credit markets?

• Euro Dollars
• FX Swaps and Forwards
• Currency Swaps

Please see this new publication from BIS for details.

US DOLLAR FUNDING: AN INTERNATIONAL PERSPECTIVE

The US dollar plays a central role in the international monetary and financial system. It is the foremost funding currency, with about half of all cross-border loans and international debt securities denominated in US dollars. Around 85% of all foreign exchange transactions occur against the US dollar. It is the world’s primary reserve currency, accounting for 61% of official foreign exchange reserves. Around half of international trade is invoiced in US dollars, and around 40% of international payments are made in US dollars (Graph 1).

Image Source: US DOLLAR FUNDING: AN INTERNATIONAL PERSPECTIVE

Currencies in Global Payments

Image Source: RMB Tracker

Currencies in Trade Finance Market

Image Source: RMB Tracker

Currencies in FX Spot market

Image Source: RMB Tracker

Characteristics of Global US Dollar Funding Markets

Image Source: US DOLLAR FUNDING: AN INTERNATIONAL PERSPECTIVE

Image Source: US DOLLAR FUNDING: AN INTERNATIONAL PERSPECTIVE

Image Source: THE GLOBAL ROLE OF THE US DOLLAR AND ITS CONSEQUENCES

Image Source: THE GLOBAL ROLE OF THE US DOLLAR AND ITS CONSEQUENCES

Image Source: THE GLOBAL ROLE OF THE US DOLLAR AND ITS CONSEQUENCES

Image Source: THE GLOBAL ROLE OF THE US DOLLAR AND ITS CONSEQUENCES

Image Source: FX swaps and forwards: missing global debt?

Image Source: FX swaps and forwards: missing global debt?

Assets and Liabilities of Banks and Shadow Banks in Onshore and Offshore markets

Assets and Liabilities in Balance sheets in Onshore markets

Image Source: Offshore Dollar Creation and the Emergence of the post-2008 International Monetary System

Liabilities in Balance sheets of Financial Intermediatory in Onshore and Offshore markets

Image Source: The Future of Offshore Dollar Creation: Four Scenarios for the International Monetary System by 2040

Transactions Chains in cross border funding markets

Image Source: US DOLLAR FUNDING: AN INTERNATIONAL PERSPECTIVE

Money Inflows and RounD tripping

Several papers and articles in the references below discuss issues of US dollar inflows on US money and credit markets and monetary policy.

Round tripping involves foreign banks borrowing money from US funding markets and lending it to borrowers in the capital/credit markets.

US monetary policy also impacts capital outflows and inflows.

My Related posts

Global Liquidity and Cross Border Capital Flows

Global Flow of Funds: Statistical Data Matrix across National Boundaries

Low Interest Rates and International Capital Flows

Currency Credit Networks of International Banks

Global Financial Safety Net: Regional Reserve Pools and Currency Swap Networks of Central Banks

Balance Sheet Economics – Financial Input-Output Analysis (using Asset Liability Matrices) – Update March 2018

TARGET2 Imbalances in European Monetary Union (EMU)

Contagion in Financial (Balance sheets) Networks

Balance Sheets, Financial Interconnectedness, and Financial Stability – G20 Data Gaps Initiative

Foundations of Balance Sheet Economics

The Future of FX Markets – Update October 2019

Understanding Global OTC Foreign Exchange (FX) Market

Economics of Trade Finance

The Dollar Shortage, Again! in International Wholesale Money Markets

Repo Chains and Financial Instability

Shadow Banking

Key Sources of Research

US dollar funding: an international perspective

Report prepared by a Working Group chaired by
Sally Davies (Board of Governors of the Federal Reserve System) and Christopher Kent (Reserve Bank of Australia)

BIS June 2020

Click to access cgfs65.pdf

The Eurodollar Market in the United States

MAY 27, 2015

NYFED

https://libertystreeteconomics.newyorkfed.org/2015/05/the-eurodollar-market-in-the-united-states.html

The global role of the US dollar and its consequences

Bank of England Quarterly Bulletin

2017 Q4

Click to access the-global-role-of-the-us-dollar-and-its-consequences.pdf

“Down The Rabbit Hole” — The Eurodollar Market Is The Matrix Behind It All

the1millionproject

Apr 19

by Tyler Durden

https://t1mproject.medium.com/down-the-rabbit-hole-the-eurodollar-market-is-the-matrix-behind-it-all-a7a054dd4b0f

The Fed’s Quandary With Uncle ED (Eurodollar)

Feb. 28, 2015 4:45 AM ET

https://seekingalpha.com/article/2961016-the-feds-quandary-with-uncle-ed-eurodollar

US Monetary Aggregates, Income Velocity and the Euro-dollar Market

BIS 1980Warren D. McClam

Click to access econ2.pdf

Chapter 5 EURODOLLARS 

Marvin Goodfriend

Federal Reserve Bank of Richmond Richmond, Virginia
1998

Click to access chapter_05.pdf

The evolution of the Offshore US-Dollar System: past, present and four possible futures

Steffen Murau, Joe Rini and Armin Haas

Global Development Policy Center, Boston University, Boston; City Political Economy Research Centre (CITYPERC), City, University of London, London; Institute for Advanced Sustainability Studies (IASS), Potsdam and Institute for Advanced Sustainability Studies (IASS), Potsdam
*Corresponding author. Email: armin.haas@iass.de

(Received 30 September 2019; revised 17 March 2020; accepted 24 March 2020; first published online 6 May 2020)

Click to access evolution_of_the_offshore_usdollar_system_past_present_and_four_possible_futures.pdf

https://www.cambridge.org/core/journals/journal-of-institutional-economics/article/evolution-of-the-offshore-usdollar-system-past-present-and-four-possible-futures/B36ED9082CECE54F3F5B8E8F40D15148/core-reader

Hyper-Stablecoinization: From Eurodollars to Crypto-Dollars

Pascal Hügli

July 12, 2020·

https://finance.yahoo.com/news/hyper-stablecoinization-eurodollars-crypto-dollars-120000891.html

IMPACT OF EURO-MARKETS ON THE UNITED STATES BALANCE OF PAYMENTS

*FRED H. KLOpSTOCKf

https://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=3237&context=lcp

Financial globalization as positive integration: monetary technocrats and the Eurodollar market in the 1970s

• March 2020
• Review of International Political Economy

https://www.researchgate.net/publication/340100333_Financial_globalization_as_positive_integration_monetary_technocrats_and_the_Eurodollar_market_in_the_1970s

https://www.tandfonline.com/doi/full/10.1080/09692290.2020.1740291

The Euromarket and the making of the transnational network of finance 1959 – 1979 (Doctoral thesis).

Kim, S. W. (2018). 

University of Cambridge

 https://doi.org/10.17863/CAM.23876

https://www.repository.cam.ac.uk/handle/1810/276574

Dollar Shortage and Eurodollars

By Prashant K. Trivedi and Krushi Parekh | Apr 14 2020 | What We Are Writing, Global Macro

https://multi-act.com/dollar-shortage-and-eurodollars/

Evolution of US-Dollar-Centric International Money Markets and Pro-Cyclicality of Basel III Liquidity Framework

Oleksandr Valchyshen 2019

Bard College

https://digitalcommons.bard.edu/cgi/viewcontent.cgi?article=1021&context=levy_ms

Eurodollars and the US Money Supply

Click to access Eurodollars_Jun_Jul1980.pdf

The dollar and international capital flows in the COVID-19 crisis 

Giancarlo Corsetti, Emile Marin  

03 April 2020

https://voxeu.org/article/covid-19-crisis-dollar-and-capital-flows

Crypto Dollars and the Evolution of Eurodollar Banking

MAX BRONSTEIN

7 APR 2020 

https://unexpected-values.com/crypto-dollars/

The $40 Trillion Problem

Apr. 6, 2020

Lyn Alden Schwartzer

https://seekingalpha.com/article/4336136-40-trillion-problem

Euro-Dollars and United States Monetary Policy. 

Cort Burk Schlichting 1973

Louisiana State University and Agricultural & Mechanical College

https://digitalcommons.lsu.edu/cgi/viewcontent.cgi?article=3424&context=gradschool_disstheses

Eurodollar Banking and Currency Internationalization

• January 2013

• In book: Investing in Asian Offshore Currency Markets (pp.199-214)

Authors:

Dong He

Robert Neil Mccauley

BIS

https://www.researchgate.net/publication/304796024_Eurodollar_Banking_and_Currency_Internationalization

The Eurodollar Market, Short-term Capital Flows and Currency Crises

Book 1979

Author: Leonard Gomes

Publisher: Macmillan Education UK

https://www.springerprofessional.de/en/the-eurodollar-market-short-term-capital-flows-and-currency-cris/10146406

The Eurodollar Market and the International Transmission of Interest Rates

Jay H. Levin

The Canadian Journal of Economics / Revue canadienne d’Economique 

Vol. 7, No. 2 (May, 1974), pp. 205-224 (20 pages) Published By: Wiley 

https://www.jstor.org/stable/134162?origin=crossref&seq=1

The Eurodollar Deposit Market: Stategies for Regulation

George H. Windecker Jr.

1993

American University International Law Review 9, no. 1 (1993): 357-384.

The circular flow of dollars in the world financial markets

Kashi NathTiwari

Available online 23 March 2002.

https://www.sciencedirect.com/science/article/abs/pii/104402839090012C

The Euro-dollar market as a source of United States bank liquidity

Steve B. Steib

Iowa State University

1972

https://lib.dr.iastate.edu/cgi/viewcontent.cgi?article=6277&context=rtd

RMB Tracker

SWIFT

https://www.swift.com/our-solutions/compliance-and-shared-services/business-intelligence/renminbi/rmb-tracker/rmb-tracker-document-centre

The Eurodollar Conundrum

FRBNY 1982

Click to access v7n1article2.pdf

The federal funds market and the overnight Eurodollar market

Yungsook Lee

1999

Research Notes, No. 99-2, Deutsche Bank Research, Frankfurt

Click to access 26673040X.pdf

THE RISE AND FALL OF THE EURODOLLAR SYSTEM 

SEPTEMBER 2016

Click to access TheRiseAndFallOfTheEurodollarSystem_160907.pdf

Offshore Dollar Creation and the Emergence of the post-2008 International Monetary System

Steffen Murau

The Future of Offshore Dollar Creation:
Four Scenarios for the International Monetary System by 2040

Steffen Murau, Joe Rini, Armin Haas

IASS Potsdam, in collaboration with Weatherhead Center for International Affairs, Harvard University

2017 | ‘The Political Economy of Private Credit Money Accommodation. A Study of Bank Notes, Bank Deposits and Shadow Money’, PhD thesis

7th November 2017  Private Credit Money Accommodation  by Steffen Murau

https://openaccess.city.ac.uk/id/eprint/19010/

Towards a theory of shadow money

Daniela Gabor and Jakob Vestergaard

Click to access Towards_Theory_Shadow_Money_GV_INET.pdf

Private Debt as Shadow Money? Conceptual Criteria, Empirical Evaluation and Implications for Financial Stability

Steffen Murau1 and Tobias Pforr2 May 2020

Click to access murau-pforr-private-debt-project-final.pdf

Grey matter in shadow banking: international organizations and expert strategies in global financial governance

Cornel Bana, Leonard Seabrookeb and Sarah Freitasa

aBoston University, Boston, MA, USA; bDepartment of Business and Politics, Copenhagen Business School, Copenhagen, Denmark

Click to access Grey-matter-in-shadow-banking-_circulate.pdf

The Politics of Shadow Money: Security Structures, Money Creation and Unconventional Central Banking

Pre-print version. Print version forthcoming in: New Political Economy Joscha Wullweber

Faculty of Economics University of Witten/Herdecke

Click to access The-Politics-of-Shadow-Money-Security-Structures-Money-Creation-and-Unconventional-Central-Banking-Pre-print-version-Print-version-forthcoming-in-New-Political-Economy.pdf

REFORMING THE SHORT-TERM FUNDING MARKETS

Morgan Ricks

Discussion Paper No. 713 05/2012

Click to access Ricks_713.pdf

Money and (Shadow) Banking: A Thought Experiment

Review of Banking and Financial Law, Vol. 31, 2011-2012

18 Pages Posted: 7 Apr 2013

Morgan Ricks

Vanderbilt University – Law School; European Corporate Governance Institute (ECGI)

Date Written: April 1, 2012

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2245685

Privatized global money: The US-Dollar and the international monetary system — Steffen Murau interviewed by Dezernat Zukunft, Part 1

By Mathis Richtmann

Privatized global money: The US-Dollar and the international monetary system — Steffen Murau interviewed by Dezernat Zukunft, Part 1

FX swaps and forwards: missing global debt?

Claudio Borio Robert McCauley Patrick McGuire

claudio.borio@bis.org robert.mccauley@bis.org patrick.mcguire@bis.org

Click to access r_qt1709e.pdf

The Global Financial and Monetary System in 2030

WEFORUM

Click to access WEF_Global_Future_Council_Financial_Monetary_Systems_report_2018.pdf

Global Liquidity Indicators

BIS

https://www.bis.org/statistics/gli.htm

The Financial Crisis and the Global Shadow Banking System

La crise financière et le Global Shadow Banking System

Maryse Farhi et Marcos Antonio Macedo Cintra

https://journals.openedition.org/regulation/7473

Global Flow of Funds: Statistical Data Matrix across National Boundaries

Global Flow of Funds: Statistical Data Matrix across National Boundaries

Liquidity: Money stocks which can be quickly turned into flows.

Economists recently have emphasized use of Gross Capital Flows rather than Net Capital Flows due to

• Financial Globalization
• Financial System Stability
• Inability of Current Account Statistics to explain financial fragility

Three Interesting papers related to capital flows/global flow of funds data needs.

Capital Inflows and the US Housing Boom

Click to access 13housingsap.pdf

THE NEW DYNAMICS OF FINANCIAL GLOBALIZATION

Click to access Financial%20globalization_Full%20Report_August_29_2017%20(1).pdf

The global role of the US dollar and its consequences

Click to access the-global-role-of-the-us-dollar-and-its-consequences.pdf

Roles of Money

From: The global role of the US dollar and its consequences

• Money as Reserve Currency
• Money as Invoicing Currency
• Money as Funding Currency

Money Attributes

• Capital Flows
  • Public and Private
• Funding Flows
  • Money flows mostly private
• Payments Flows
  • Private

Types of Capital Flows

• FDI Foreign Direct Investment
• Equity Portfolio Investments
• Bond Finance
• Commercial Bank Lending
• International Wholesale Funding (Money Markets)
• Foreign Exchange Market
• FX Swaps Market
• Euro Currency Market
• FX Swaps of Central Banks
• Trade Finance
• Retail Finance
• Remittances
• Intra Firm Finance of MNCs
• Intra Bank finance of Global Bank Branches
• Payments Flows

Key Terms

• Global Capital
• Global Money
• Global Liquidity
• Money Markets
• Capital Markets
• Trade Finance
• Portfolio Flows
• FDI
• Safety Nets
• Currency Swaps
• FX Swaps
• Euro Dollars
• LIBOR OIS Spread
• Covered Interest Parity CIP
• Uncovered interest Parity
• Wholesale Funding Markets
• Triffin Dilemma
• Triple Coincidence
• Helen Rey
• Currency Flows
• Capital Inflows
• Capital Outflows
• Gross Capital Flows
• Statistical Matrix
• Stocks and Flows
• Current Account
• Capital Account
• Balance of Payments
• International Finance
• International Economics
• NIPA
• Financial Accounts
• Federal Reserve Z.1 Report
• Net Capital Flows
• Current Account Deficits
• Capital Accounts Controls

MEASURING GLOBAL FLOW OF FUNDS: FOCUS ON CHINA, JAPAN, AND THE UNITED STATES

This paper aims to establish a new statistical framework for measuring global flow of funds (GFF) based on its inherent mechanisms. It advances a previous theoretical discussion and develops a practical operational statistical matrix. Based on theoretical and practical possibilities the paper gets existing data from the International Investment Position, the Coordinated Direct Investment Survey, the Coordinated Portfolio Investment Survey, and International Banking Statistics are integrated for measuring GFF. The main outcome is a prototype GFF matrix that includes stock data geographically disaggregated by country/region and selected financial instruments. The paper presents a GFF Matrix compiled with the pattern of ‘Country vis-à-vis Country’ matrix, and through using the GFF matrix to analyze the basic status, mutual relationship and existing problems between China, Japan, and the United States in the external financial positions.

Image Source: BANKS AND CROSS-BORDER CAPITAL FLOWS: POLICY CHALLENGES AND REGULATORY RESPONSES

Image Source: BANKS AND CROSS-BORDER CAPITAL FLOWS: POLICY CHALLENGES AND REGULATORY RESPONSES

Image Source: THE NEW DYNAMICS OF FINANCIAL GLOBALIZATION

Image Source: THE NEW DYNAMICS OF FINANCIAL GLOBALIZATION

Image Source: THE NEW DYNAMICS OF FINANCIAL GLOBALIZATION

Image Source: THE NEW DYNAMICS OF FINANCIAL GLOBALIZATION

My Related Posts

Global Liquidity and Cross Border Capital Flows

Low Interest Rates and International Capital Flows

The Dollar Shortage, Again! in International Wholesale Money Markets

Understanding Global OTC Foreign Exchange (FX) Market

The Future of FX Markets – Update October 2019

Global Financial Safety Net: Regional Reserve Pools and Currency Swap Networks of Central Banks

Currency Credit Networks of International Banks

Measuring Globalization: Global Multi Region Input Output Data Bases (G-MRIO)

Economics of Digital Globalization and Information Data Flows

Economics of Money, Credit and Debt

Balance Sheet Economics – Financial Input-Output Analysis (using Asset Liability Matrices) – Update March 2018

Balance Sheets, Financial Interconnectedness, and Financial Stability – G20 Data Gaps Initiative

Foundations of Balance Sheet Economics

Economics of Trade Finance

External Balance sheets of Nations

Low Interest Rates and International Investment Position of USA

Morris Copeland and Flow of Funds accounts

Integrated Macroeconomic Accounts, NIPAs, and Financial Accounts

Stock-Flow Consistent Modeling

Credit Chains and Production Networks

TARGET2 Imbalances in European Monetary Union (EMU)

Key Sources of Research

Large Capital Flows
Causes, Consequences, and Policy Responses

Alejandro L�pez-Mej�a

1999 IMF Finance and Development article

https://www.imf.org/external/pubs/ft/fandd/1999/09/lopez.htm

All of the World’s Money and Markets in One Visualization

on May 27, 2020

ByJeff Desjardins

All of the World’s Money and Markets in One Visualization

How the Financial System Works?

– A Map of Money Flows in the Global Financial Ecosystem –

Zoltan Pozsar

Senior Adviser
Office of Financial Research, U.S. Treasury

Click to access OFRwp2014-04_Pozsar_ShadowBankingTheMoneyView_Attachment.pdf

Measuring global flow of funds: focus on China, Japan, and the United States

Nan Zhang & Xiuzhen Zhao

Pages 520-550 | Received 28 Aug 2018, Accepted 03 Jan 2019, Published online: 11 Feb 2019

Economic Systems Journal

2019 Vol 31/4

https://www.tandfonline.com/doi/full/10.1080/09535314.2019.1574719

Click to access nzhang.pdf

Click to access ESR.pdf

Global flows in a digital age: How trade, finance, people, and data connect the world economy

McKinsey Global Institute

April 2014

Click to access Global_flows_in_a_digital_age_Full_report%20March_2015.pdf

Highlights of global financial flows

BIS Quarterly Review  |  March 2017  |  06 March 2017

https://www.bis.org/publ/qtrpdf/r_qt1703b.htm

Global Monitoring of International Capital Flows

Volume 47, 2012 · Number 2 · pp. 129–136

Intereconomics

https://www.intereconomics.eu/contents/year/2012/number/2/article/global-monitoring-of-international-capital-flows.html

What Drives Global Capital Flows?

Myth, Speculation and Currency Diplomacy

2006

Brown, B.

Palgrave

https://www.palgrave.com/gp/book/9781403947574

Capital Flows Tracker

Institute of International Finance

https://www.iif.com/Research/Capital-Flows-and-Debt/Capital-Flows-Tracker

Global Flow of Funds: Mapping Bilateral Geographic Flows

Luca Errico, Richard Walton, Alicia Hierro, Hanan AbuShanab, Goran Amidzic Statistics Department, International Monetary Fund
Corresponding author: Richard Walton, email: rwalton@imf.org

IMF

Click to access STS083-P1-S.pdf

Redrawing the Map of Global Capital Flows: The Role of Cross-Border Financing and Tax Havens

Antonio Coppola, Matteo Maggiori, Brent Neiman and Jesse Schreger

JANUARY 2020

Click to access BFI_WP_2019118_Revised.pdf

Click to access w26855.pdf

Global Liquidity and Financial Flows to Developing Countries:

New Trends in Emerging Markets and their Implications

C.P. Chandrasekhar

No. 52, November 2008

Click to access 52.pdf

The Management of Capital Inflows

John Williamson (PIIE)

Paper published in Pensamiento Iberoamericano

1995

Peterson Institute of International Economics

https://www.piie.com/commentary/speeches-papers/management-capital-inflows?gclid=EAIaIQobChMIhdjPqP2J7QIVSgiICR0_RA4vEAMYASAAEgKM1fD_BwE

Gross capital flows: Dynamics and crises

FernandoBroner^aTatianaDidier^bAitorErce^cSergio L.Schmukler^b

Click to access 476.pdf

https://www.sciencedirect.com/science/article/abs/pii/S0304393212001675

Decline of Globalism: Capital Flows Update

September 21, 2020

UPenn Wharton

https://budgetmodel.wharton.upenn.edu/issues/2020/9/21/capital-flows-update

How does international capital flow?

by Michael Kumhof, Phurichai Rungcharoenkitkul and Andrej Sokol

Monetary and Economic Department October 2020

Click to access work890.pdf

Global Money: A Work in Progress

By Perry G. Mehrling

JUN 12, 2016 

https://www.ineteconomics.org/perspectives/blog/global-money-a-work-in-progress

International Dollar Flows

Ayelen Banegas Ruth Judson Charles Sims Viktors Stebunovs

International Finance Discussion Papers

Board of Governors of the Federal Reserve System

Number 1144 September 2015

Click to access ifdp1144.pdf

Global financial flows

How do shocks between countries transmit through financial linkages and financial flows? Sebnem Kalemli-Ozcan discusses how global financial flows affect domestic markets. This video was recorded at the American Economic Association in Chicago in January 2017.

https://voxeu.org/content/global-financial-flows

Mapping Capital Flows Into the U.S. Over the Last Thirty Years

Up until 2014, the growth in central bank dollar reserves closely mapped to the increase in U.S. net external debt. The past few years have been different: for the first time in a long time, yield-starved private investors in Europe and Japan, not emerging market reserve managers, financed the United States’ external deficit. 

Blog Post by Brad W. Setser

February 16, 2018

CFR

https://www.cfr.org/blog/mapping-capital-flows-us-over-last-thirty-years

The global capital flows cycle: structural drivers and transmission channels

No 2280 / May 2019

Maurizio Michael Habib, Fabrizio Venditti

ECB

Click to access ecb.wp2280~2e76974901.en.pdf

Capital Flows

IMF

https://capitalflows.elibrary.imf.org/?redirect=true

Capital Inflows, Credit Growth, and Financial Systems

Deniz Igan and Zhibo Tan

IMF

2015

Click to access 22783-9781513520964.pdf

Cross-border Capital Flows since the Global Financial Crisis

Elliott James, Kate McLoughlin and Ewan Rankin

2014 Reserve Bank of Australia

Click to access bu-0614-8.pdf

Global Drivers of Gross and Net Capital Flows

J. Scott Davis, Giorgio Valente and Eric van Wincoop

FED Reserve Dallas 2019

Click to access 0357.pdf

Global Cycles: Capital Flows, Commodities, and Sovereign Defaults, 1815–2015†

Carmen M. Reinhart, Vincent Reinhart, and Christoph Trebesch*

American Economic Review: Papers & Proceedings 2016, 106(5): 574–580

https://www.newyorkfed.org/medialibrary/media/research/conference/2016/globalresearchforum/Reinhart_Reinhart_Trebesch_2016

Varieties of Capital Flows: What Do We Know?

Eduardo Levy Yeyati* Jimena Zúñiga** * Harvard University and Universidad Torcuato Di Tella ** Universidad Torcuato Di Tella

April 2016 Copyright © Inter-American Development Bank.

Click to access Varieties-of-Capital-Flows-What-Do-We-Know.pdf

Redrawing the Map of Global Capital Flows: The Role of Cross-Border Financing and Tax Havens

Antonio Coppola Matteo Maggiori Brent Neiman Jesse Schreger

February 2020

Click to access CMNS_Slides.pdf

Global Collateral and Capital Flows

Ana Fostel John Geanakoplos Gregory Phelan∗ 

February 2019

Click to access d2169.pdf

How does international capital flow?

Michael Kumhof, Phurichai Rungcharoenkitkul and Andrej Sokol

November 2020

https://www.bankofengland.co.uk/working-paper/2020/how-does-international-capital-flow

Financial globalization: Retreat or reset?

McKinsey 2013

Click to access MGI_Financial_globalization_Executive_Summary_Mar2013.pdf

The new dynamics of financial globalization

August 22, 2017 | Report

McKinsey Global Institute

https://www.mckinsey.com/industries/financial-services/our-insights/the-new-dynamics-of-financial-globalization

FINANCIAL FLOWS AND THE INTERNATIONAL MONETARY SYSTEM

Evgenia Passari Hélène Rey

2015

Click to access w21172.pdf

International capital flows:

Structural reforms and experience with the OECD Code of Liberalisation of Capital Movements

Report from the OECD to the G20 Sub-Group on Capital Flow Management

Click to access 48972216.pdf

Composition of International Capital Flows: A Survey

Koralai Kirabaeva1 and Assaf Razin2

Bank of Canada

Click to access wp10-33.pdf

International Flow of Funds

J. Gaspar: Adapted from Jeff Madura International Financial Management

(Balance of Payments)

Click to access Chapter-02-Compatibility-Mode.pdf

Understanding Flow of Funds Accounting

Cullen Roche –  03/21/2016

Understanding Flow of Funds Accounting

GLOBAL LIQUIDITY: MEASUREMENT AND FINANCIAL STABILITY IMPLICATIONS

ECB

Click to access ecb.fsrart201112_03.en.pdf

Understanding Global Liquidity

by Sandra Eickmeier, Leonardo Gambacorta and Boris Hofmann

Monetary and Economic Department February 2013

BIS

Click to access work402.pdf

U.S. Banks and Global Liquidity∗

Ricardo Correa † Wenxin Du ‡ Gordon Liao §

First Draft: December 2019 This Draft: June 2020

Federal Reserve

Click to access ifdp1289.pdf

https://www.nber.org/papers/w27491

The Shifting Drivers of Global Liquidity

Stefan Avdjiev Leonardo Gambacorta Linda S. Goldberg Stefano Schiaffi

Staff Report No. 819 June 2017 Revised August 2019

FRBNY

Click to access sr819.pdf

Global Liquidity through the Lens of Monetary Aggregates

Kyuil Chung, Jong-Eun Lee, Elena Loukoianova, Hail Park, and Hyun Song Shin

IMF

Click to access wp1409.pdf

The Second Phase of Global Liquidity and Its Impact on Emerging Economies

Hyun Song Shin

Click to access Shin-AEPC2013.pdf

Commentary: Global Liquidity: Public and Private

Claudio Borio

Click to access 2013borio.pdf

A primer on ‘global liquidity’ 

Eugenio Cerutti, Stijn Claessens, Lev Ratnovski  08 June 2014

VOX EU

https://voxeu.org/article/primer-global-liquidity

Capital Wars: The Rise of Global Liquidity

Book 2020 Michael J. Howell

https://www.palgrave.com/gp/book/9783030392871

Assessing global liquidity

December 2011

BIS

Dietrich Domanski

Ingo Fender

Patrick Michael McGuire

https://www.researchgate.net/publication/227370415_Assessing_global_liquidity

The Second Wave of Global Liquidity: Why Are Firms Acting Like Financial Intermediaries?

Caballero, Julián; Panizza, Ugo; Powell, Andrew

May 2016

IADB

https://publications.iadb.org/en/publication/12465/second-wave-global-liquidity-why-are-firms-acting-financial-intermediaries

Global Liquidity: Public and Private

Jean-Pierre Landau

Click to access Jackson-Hole-Print.pdf

Cross-border banking and global liquidity

by Valentina Bruno and Hyun Song Shin

Monetary and Economic Department August 2014

Click to access work458.pdf

The Global US Dollar Liquidity Cycle

Posted on April 17, 2020

By Julius Probst

MacroBond

https://www.macrobond.com/posts/the-global-us-dollar-liquidity-cycle/

The Global Liquidity Safety Net: Institutional Cooperation on Precautionary Facilities and Central Bank Swaps

New Thinking and the New G20 Series Paper No. 5

• C. Randall Henning

Series: New Thinking and the New G20

March 20, 2015

CIGI

https://www.cigionline.org/publications/global-liquidity-safety-net-institutional-cooperation-precautionary-facilities-and

Breaking free of the triple coincidence in international finance

Published in: Economic Policy, 2016.BIS Working Papers  |  No 524  |  20 October 2015

by  Stefan Avdjiev, Robert N McCauley and Hyun Song Shin

https://www.bis.org/publ/work524.htm

Accounting for global liquidity: reloading the matrix

Hyun Song Shin
Economic Adviser and Head of Research

IMF-IBRN Joint Conference “Transmission of macroprudential and monetary policies across borders” Washington DC, 19 April 2017

https://www.newyorkfed.org/medialibrary/media/ibrn/events/ibrn_imf-April2017/SHIN_monetary_policy_spillovers

Capital Flows and the Risk-Taking Channel of Monetary Policy

by Valentina Bruno and Hyun Song Shin Monetary and Economic Department

December 2012

Click to access work400.pdf

TRIFFIN: DILEMMA OR MYTH?

Michael D. Bordo Robert N. McCauley

Working Paper 24195 http://www.nber.org/papers/w24195

2018

Click to access w24195.pdf

The evolution of the Offshore US-Dollar System: past, present and four possible futures

Journal of Institutional Economics, Volume 16, Issue 6 

December 2020 , pp. 767-783

Steffen Murau ^(a1)Joe Rini ^(a2)Armin Haas ^(a2)

https://www.cambridge.org/core/journals/journal-of-institutional-economics/article/evolution-of-the-offshore-usdollar-system-past-present-and-four-possible-futures/B36ED9082CECE54F3F5B8E8F40D15148/core-reader

Globalization and Financial Stability

Published: November 2, 2017

Remarks of Richard Berner, Director, Office of Financial Research, at the IMF 18TH Jacques Polak Annual Research Conference on The Global Financial Cycle, November 2, 2017, Washington, D.C.

https://www.financialresearch.gov/public-appearances/2017/11/02/globalization-and-financial-stability/

The EuroZone “Debt” Crisis:
Another “Center” – “Periphery” Crisis Under Financial Globalization?

Arturo O’Connell* Working Paper No. 51

The EuroZone “Debt” Crisis:
Another “Center” – “Periphery” Crisis Under Financial Globalization?

Arturo O’Connell* Working Paper No. 51

November 2016

Click to access WP_51-O-Connell.pdf

Rethinking International Macroeconomic Policy∗

Gita Gopinath Harvard and NBER

October 25, 2017

Click to access openeconomypolicy100317.pdf

Comments on “The Once and Future Global Imbalances? Interpreting the Post-Crisis Record” by Menzie D. Chinn

Maurice Obstfeld

2017

https://www.kansascityfed.org/~/media/files/publicat/sympos/2017/obstfeld-remarks.pdf?la=en

The International Monetary and Financial System∗

 Pierre-Olivier Gourinchas† H ́el`ene Rey‡ Maxime Sauzet§

UC Berkeley London Business School UC Berkeley April 18, 2019

Click to access GRS_ARE_v17_WP_version.pdf

Gross capital flows and the balance-of-payments: a balance sheet perspective

Karsten Kohler

October 2020

Post Keynesian.net

Click to access PKWP2019_QQtbngA.pdf

The global role of the US dollar and its consequences

Fernando Eguren Martin, Mayukh Mukhopadhyay and Carlos van Hombeeck of the Bank’s Global Spillovers and Interconnections Division.(1)

Bank of England Quarterly Bulletin

2017 Q4

Click to access the-global-role-of-the-us-dollar-and-its-consequences.pdf

International capital flows and U.S. interest rates

Francis E.Warnock^abcVeronica CacdacWarnock^d

2009

https://www.sciencedirect.com/science/article/pii/S0261560609000461

International Capital Flows and U.S. Interest Rates

Francis E. Warnock Veronica Cacdac Warnock

2005

Click to access ifdp840.pdf

How Excessive Capital Inflows Harm the U.S. Economy

They fuel asset bubbles, increase the trade deficit, unemployment, and debt

Aug 19, 2019

Sukhayl Niyazov

The World Times

Medium.com

Capital Inflows and the U.S. Housing Boom

FILIPA SÁTOMASZ WIELADEK

First published: 29 March 2015

Journal of Money Credit and Banking

https://onlinelibrary.wiley.com/doi/pdf/10.1111/jmcb.12200

Click to access 13housingsap.pdf

Viewing the Current Account Deficit as a Capital Inflow

Matthew Higgins and Thomas Klitgaard

1998

FRBNY

Click to access ci4-13.pdf

Capital Flows and International Financial Architecture

• Eiji Ogawa (Hitotsubashi University) 
• Junko Shimizu (Gakushuin University)

May 6, 2019 | Last updated: June 13, 2019

Capital Flows and International Financial Architecture

Banks and Cross-Border Capital Flows: Policy Challenges and Regulatory Responses

Committee on International Economic Policy and Reform

Sep 2012 Brookings

Click to access 09-ciepr-banking-capital-flows.pdf

Conceptualising the Role of International Capital Flows for Housing Markets

By Michael Richter,  Johannes-Gabriel Werner

Volume 51, 2016 · Number 3 · pp. 146–154

Intereconomics
Review of European Economic Policy

https://www.intereconomics.eu/contents/year/2016/number/3/article/conceptualising-the-role-of-international-capital-flows-for-housing-markets.html

On Capital Inflows, Liquidity and Bubbles

Guillermo Calvo1

Columbia University

Click to access CapitalInflowsLiquidityandBubblesREVOct152012.pdf

The risks of large capital inflows

2015 WCEG

The risks of large capital inflows

Large Capital Inflows, Sectoral Allocation, and Economic Performance

Gianluca Benigno, Nathan Converse, and Luca Fornaro

Fed Reserve 2015

Click to access ifdp1132.pdf

America First? A US-centric View of Global Capital Flows

ECB Working Paper No. 2238 (2019);

36 Pages Posted: 14 Feb 2019

Peter McQuade

European Central Bank (ECB)

Martin Schmitz

European Central Bank (ECB)

Date Written: February 13, 2019

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3334368&download=yes

The massive inflow of foreign capital in the 2000s that enabled the American credit bubble was primarily from the private sector, not governments.

Does the Current Account Still Matter?

Maurice Obstfeld

2012

https://www.nber.org/papers/w17877

2014 Stock Flow Consistent Modeling Workshop

Website of Prof. N Zhang

http://ns1.shudo-u.ac.jp/~zhang/Research.htm

Flow of Funds Analysis

Innovation and Development

Authors: Zhang, Nan

Book Springer

https://www.springer.com/jp/book/9789811577192

Flow-of-funds Analysis: A Handbook for Practitioners

J. C. Dawson

Published 1996

https://www.semanticscholar.org/paper/Flow-of-funds-Analysis%3A-A-Handbook-for-Dawson/0e36239ba07f3f112d692d6ccf81f3465421884e

Re-examination of the Theoretical Model for Global-Flow-of-Funds Analysis*

Nan Zhang**

(Received on October 31, 2008)

https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.528.7226&rep=rep1&type=pdf

International Capital Flows: Private versus Public

 Yun Jung Kim

Jing Zhang

February 4, 2020

IMF·OAP-PRI Economics Workshop

Click to access 20200204iPRE.pdf

https://www.slideserve.com/html5point/slideshow.php?vid=4451064Download

https://www.slideserve.com/analu/the-composition-of-the-global-flow-of-funds-in-east-asia-powerpoint-ppt-presentation

The Composition of the Global Flow of Funds in East Asia

Nan Zhang
Faculty of Economic Sciences, Hiroshima Shudo University,

Hiroshima, 731-3159 Japan

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.534.757&rep=rep1&type=pdf

Inter-industry analysis in the Korean flow-of-funds accounts,

Kim, Jiyoung (2017) :

Journal of Economic Structures, ISSN 2193-2409, Springer, Heidelberg, Vol. 6, Iss. 25, pp. 1-27,

Click to access 1009836544.pdf

Measuring Global Flow of Funds and Integrating Real and Financial Accounts

Nan Zhang (Stanford University)

Click to access zhang.pdf

Mapping the Shadow Banking System Through a Global Flow of Funds Analysis

Luca Errico ; Artak Harutyunyan ; Elena Loukoianova ;Richard Walton ; Yevgeniya Korniyenko ; Goran Amidžic; Hanan AbuShanab ; Hyun S Shin

January 24, 2014

https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Mapping-the-Shadow-Banking-System-Through-a-Global-Flow-of-Funds-Analysis-41273

The U.S. Flow of Funds Accounts and Their Uses

Fed Reserve

Click to access 0701lead.pdf

Global-Flow-of-Funds Analysis in a Theoretical Model -What Happened in China’s External Flow of Funds –

Nan Zhang

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.595.6084&rep=rep1&type=pdf

Big Data Techniques for Measuring Global Flow of Funds*

Nan Zhang

Click to access Nan%20Zhang.%20monograph.pdf

Toward the Development of Sectoral Financial Positions and Flows in a From-Whom-to-Whom Framework

Manik Shrestha

2014

https://www.nber.org/books-and-chapters/measuring-economic-sustainability-and-progress/toward-development-sectoral-financial-positions-and-flows-whom-whom-framework

Simultaneous-Equations Model for Global-Flow-Funds Analysis

Nan Zhang

Click to access 950049.pdf

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.365.6192&rep=rep1&type=pdf

Foundations of Balance Sheet Economics

Kazusuke Tsujimura and Masako Tsujimura

2012 IARIW

Click to access TsujimuraPaper.pdf

What Happened in China’s External Flow of Funds?

–Global-Flow-of-Funds Analysis in a Theoretical Model– (Discussion paper)

Nan Zhang

Click to access zhang_nan.pdf

An Integrated Framework for Financial Positions and Flows on a From-Whom-to- Whom Basis: Concepts, Status, and Prospects

Manik Shrestha, Reimund Mink, and Segismundo Fassler

IMF 2012

Click to access c12835.rev0.pdf

How to Become a Big Player In the Global Capital Market – A Flow-of-Funds Approach –

Kazusuke TsujimuraMasako Mizoshita

March 2003 Ver. 1.0

KEO DISCUSSION PAPER No.84

https://core.ac.uk/reader/56669440

European Financial Integration in the Perspective of Global Flow of Funds

Kazusuke Tsujimura

Masako Mizoshita

June 6. 2002 Ver. 1.1

KEO DISCUSSION PAPERNo.72

https://core.ac.uk/reader/56669410

Compilation and Application of Asset-Liability Matrices:

A Flow-of-Funds Analysis of the Japanese Economy 1954-1999

Kazusuke Tsujimura Masako Mizoshita

November 3, 2004 ver.1.1 October 15, 2004 ver.1.0

Click to access fulltext.pdf

Copeland’s Money-Flows Accounts and The Presentation Format of National Accounts

Kazusuke Tsujimura and Masako Tsujimura

2010 IARIW

Click to access poster1Tsujimura.pdf

Flow-of-Funds Based National Accounting: An Experimental Application to the U.S. Economy

Kazusuke Tsujimura (Keio University) and Masako Tsujimura (Rissho University)

2016 IARIW

Click to access tsujimura.pdf

A FINANCIAL MACROECONOMETRIC MODEL OF THE UNITED STATES
1977-2002

Shigeru Nishiyama*

Journal of Applied Input-Output Analysis, Vol. 13 & 14, 2008

Click to access 001-031.pdf

Quantitative Evaluation of Foreign Exchange Intervention and Sterilization in Japan ―A Flow-of-Funds Approach―

Kazusuke Tsujimura

April 04, 2004 March 21, 2005

Masako Mizoshita

ver.1.0 ver.2.0

Click to access fulltext.pdf

Central and Commercial Bank Balance Sheet Risk Before, During, and after the Global Financial Crisis

IMF Working Paper No. 15/47

55 Pages Posted: 26 Mar 2015

Joe Crowley

International Monetary Fund (IMF)

Date Written: February 2015

https://www.semanticscholar.org/paper/Central-and-Commercial-Bank-Balance-Sheet-Risk-and-Crowley/0ea4bfc2dcbc98eb6eb0faf2817d8680bcae3f26?p2df

Financial deglobalisation in banking?

by Robert N McCauley, Agustín S Bénétrix, Patrick M McGuire and Goetz von Peter

Monetary and Economic Department June 2017

BIS

Click to access tep1717.pdf

Rise of Debt and Market Based Finance

It is also known as Non Bank finance or Shadow Banking.

The key difference between traditional banking and shadow banking is fragmented credit chains in the shadow banking.

Traditional Banking does

• Maturity Transformation
• Liquidity Transformation
• Credit Transformation

While traditional banking has backstops

• Deposit Insurance
• Central bank

Shadow Banks are not regulated and do not have advantage of backstops.

Hence they are susceptible to systemic risk and runs.

Questions

• What is Market based Finance?
• How big is the market?
• Institutions?
• Instruments?
• Who are the borrowers?
• Who are the investors?
• What are the risks in market based finance?
• Role of Central Banks?
• How to minimize risks?
• Regulations? Macro Prudential policies?
• How are banks involved in market based finance?
• How are they connected to each other and others?

Key Terms

• Market based Finance MBF
• Non Bank Credit Intermediation NCBI
• Shadow Banking
• Financial Stability
• Systemic Risk
• Liquidity Risk
• Broker Dealers
• Non Bank Finance NBF
• Balance Sheet Economics
• Market Makers
• Capital Markets
• Money Markets
• Money View
• Money Flows
• Network Dynamics
• Regulatory Arbitrage
• Credit Chains
• Fragmented Credit Chains
• Financial Supply Chains
• Credit Chain Length
• Growth of Debt

Growth and Size of Market based Finance

Image Source: BANK AND NONBANK LENDING OVER THE PAST 70 YEARS

Image Source: Shining a Light on Shadow Banking

Image Source: The Shadow Banking System in the United States: Recent Developments and Economic Role

Image Source: Shining a Light on Shadow Banking

Image Source: NON-BANK FINANCE: TRENDS AND CHALLENGES

Image Source: THE GROWTH OF NON-BANK FINANCE AND NEW MONETARY POLICY TOOLS 

Image Source: SHADOW BANKING AND MARKET BASED FINANCE

Structural Dynamics of Banking and Financial System

Changes prior to Global Financial Crisis

• Rise of Debt
• Rise of Market Based Finance
• Increase in capital flows both domestic and cross border

Debt dynamics is related to assets side of balance sheet of financial intemediatory.

Market based Finance is related to liabilities side of balance sheet of Financial Intermediatory.

If the chains of financial intermediation are long, then both assets and liabilities of each participant are linked.

Intermediation results in increase of capital flows. From money markets to capital markets. From deposits to loans. From liabilities to assets. There is both pull and push of money flows in the financial system. Demand for capital and supply of capital. They both are linked by banks and non bank finance. Growth of debt is linked to growth of money markets and non bank finance.

Size of Nonfinancial Business and Household Credit

Image Source: FINANCIAL STABILITY REPORT – NOVEMBER 2020

In a future post I will discuss debt in US and global financial system.

Please see my related posts for evolution of Financial System Complexity and Its dynamics.

Low Interest Rates and Banks’ Profitability – Update October 2020

Funding Sources and Liquidity for US Commercial Banks

Trends in Assets and Liabilities of Commercial Banks in the USA

Size and complexity arise together. Along with balance sheet expansion comes changes in links with counterparties (financial networks and interconnections).

Research continues in this area by several institutions and academics.

• OECD
• BIS
• FED RESERVE
• ECB
• FSB
• BOE
• IMF
• BOF
• Others

Source: Structural developments in global financial intermediation: The rise of debt and non-bank credit intermediation

The global financial crisis of 2008 underlined the importance for policy makers in understanding the scale and types of financial intermediation in their economies. During the financial crisis, non-bank financial intermediation was of particular concern to authorities, as such forms of ‘shadow banking’, contributed to both the root causes of the crisis, the transmission of financial contagion, and the amplification of shocks.

As this report is published, the rapid spread of the novel coronavirus Covid-19 has caused a global health crisis, has brought economic activity in some sectors to a halt, and has presented the greatest challenge to the global financial system since 2008. As then, understanding financial intermediation activities is critical to mapping the faultlines in the global financial system and mounting effective policy responses.

However, the shape of financial intermediation has changed in important ways since the global financial crisis. Activities in non-bank intermediation, including market-based intermediaries like investment funds and securitised products, have grown and are increasingly interconnected with financial markets. Understanding the interplay between these elements, and the benefits and risks of each, offers a more complete understanding of how global finance can contribute to sustainable economic growth. It also helps provide the full picture needed to help policy makers prepare for and respond to shocks, including pandemics.

“Structural developments in global financial intermediation: The rise of debt and non-bank credit intermediation” shines a light on the evolution of global financial intermediation in three key ways. First, it maps the broad-based growth of financial intermediation relative to GDP in many advanced and emerging market economies, and with this growth a shift toward market-based finance. Second, it assesses the shift from equity to debt markets, and the growing imbalances in sovereign and corporate debt markets during a period of highly accommodative monetary policies. Third, it draws attention to key activities in credit intermediation that could contribute to structural vulnerabilities in the global financial system, including: a sharp rise of below-investment grade corporate debt, in particular leverage loans and collateralised loan obligations; the growth of open-ended investment funds that purchase high-yield debt and leveraged loans; and risks associated with the large stock of bank contingent convertible debt.

While these various activities have helped to satisfy investors’ reach for yield during years of market exuberance, they represent new potential faultlines of systemic risk in the event of exogenous shocks, be they from trade tensions, geopolitical risks or the current global pandemic. This report underlines the need for policy frameworks to adapt to market-based finance, and fully reflect the interaction between monetary, prudential, and regulatory tools on credit intermediation. It also underlines the need for dynamic microprudential and activities-based tools to help mitigate excessive risk taking with respect to liquidity and leverage.

By mapping the global financial system, evaluating growing imbalances and risks that could amplify shocks, and assessing the interaction between macro and regulatory tools, this report provides a practical complement to the OECD’s Policy Framework for Effective and Efficient Financial Regulations. Financial authorities should use this analysis to inform both their assessments of activities and risks, and efforts to maximise available tools to harness the benefits of market-based finance to support fair, efficient markets and sustainable economic growth.

Greg Medcraft Director, OECD Directorate for Financial and Enterprise Affairs

Image Source: UNDERSTANDING THE RISKS INHERENT IN SHADOW BANKING: A PRIMER AND PRACTICAL LESSONS LEARNED

Image Source: THE ECONOMICS OF SHADOW BANKING 

Image Source: IS SHADOW BANKING REALLY BANKING?

Table Source: SHADOW BANKING AND MARKET BASED FINANCE

Table 1. A Stylized View of Structural Characteristics of Credit-based Intermediation

Characteristic:	Traditional Banking	Shadow Banking	Market-based Finance
Key Risk Transformations	Liquidity, maturity, leverage	Credit enhancement,liquidity, maturity, leverage	Less emphasis on credit enhancement and less opaque vs. shadow banking
Institutions Involved in Intermediation	Single entity	Can be many entities, interconnected through collateral chains and credit guarantees	Single/few entities
Formal Ex-anteBackstop	Yes	No / Indirect	No
Implied Sponsor Support	n.a.	Yes, can sometimes be contingent liabilities	No(insolvency remote)
Example of Entities	Commercial bank	Synthetic CDO, Structured Investment Vehicle (SIV), CNAV MMF, ABCP Conduit	Bond mutual fund, Distressed debt or PE partnership,Direct lending by pension fund
Main Form of Liabilities	Debt and deposits,Wholesale & retail-financed	Debt,Mainly wholesale financed	Highly diverse –Short and long-term debt and equity,Retail & wholesale financed
Key Resulting Financial Stability Risk	Systemic risk(institutional spillovers)	Systemic risk(institutional spillovers)	Shift in price of risk (market risk premia)

My Related Posts

Shadow Banking

Economics of Broker-Dealer Banks

Evolution of Banks Complexity

Low Interest Rates and International Capital Flows

Repo Chains and Financial Instability

Global Liquidity and Cross Border Capital Flows

The Dollar Shortage, Again! in International Wholesale Money Markets

Low Interest Rates and Banks’ Profitability – Update October 2020

Funding Sources and Liquidity for US Commercial Banks

Funding Strategies of Banks

Trends in Assets and Liabilities of Commercial Banks in the USA

Key sources of Research

The growth of non-bank finance and new monetary policy tools 

Adrien d’Avernas, Quentin Vandeweyer, Matthieu Darracq Pariès  

20 April 2020

https://voxeu.org/article/growth-non-bank-finance-and-new-monetary-policy-tools

Financial Stability Report

November 2019

Board of Governors of the Federal Reserve System

Click to access financial-stability-report-20191115.pdf

Financial Intermediaries, Financial Stability, and Monetary Policy

Tobias Adrian and Hyun Song Shin
Federal Reserve Bank of New York Staff Reports, no. 346 September 2008

Click to access sr346.pdf

US BROKER-DEALER LIQUIDITY IN THE TIME OF FINANCIAL CRISIS

https://www.shearman.com/perspectives/2020/05/us-broker-dealer-liquidity-in-the-time-of-financial-crisis

Unconventional monetary policy and funding liquidity risk

ECB

Click to access ecb.wp2350~32855510af.en.pdf

Structural developments in global financial intermediation: 

The rise of debt and non-bank credit intermediation

by

Robert Patalano and Caroline Roulet*

OECD

https://www.oecd-ilibrary.org/finance-and-investment/structural-developments-in-global-financial-intermediation-the-rise-of-debt-and-non-bank-credit-intermediation_daa87f13-en

Financial Stability Review, May 2020

ECB

https://www.ecb.europa.eu/pub/financial-stability/fsr/html/ecb.fsr202005~1b75555f66.en.html#toc1

Structural changes in banking after the crisis

Report prepared by a Working Group established by the Committee on the Global Financial System

The Group was chaired by Claudia Buch (Deutsche Bundesbank) and B Gerard Dages (Federal Reserve Bank of New York)

January 2018

BIS

Click to access cgfs60.pdf

BANK-BASED OR MARKET-BASED FINANCIAL SYSTEMS: WHICH IS BETTER?

Ross Levine

Working Paper 9138 http://www.nber.org/papers/w9138

NATIONAL BUREAU OF ECONOMIC RESEARCH

1050 Massachusetts Avenue
Cambridge, MA 02138
September 2002

Click to access w9138.pdf

Non-bank finance: trends and challenges

Financial Stability Review

Bank of France

2018

Click to access financial_stability_review_22.pdf

The Origins of Bank-Based and Market-Based Financial Systems: Germany, Japan, and the United States

Sigurt Vitols*

January 2001

Click to access 333898079.pdf

Financial Stability Report

August 2020

Bank of England

Click to access august-2020.pdf

Market-Based Finance:
Its Contributions and Emerging Issues

May 2016

Financial Conduct Authority

Click to access occasional-paper-18.pdf

Bank-Based Versus Market-Based Financing: Implications for Systemic Risk

https://www.researchgate.net/publication/322088863_Bank-Based_Versus_Market-Based_Financing_Implications_for_Systemic_Risk

Off the radar: The rise of shadow banking in Europe 

Martin Hodula  

16 March 2020

https://voxeu.org/article/radar-rise-shadow-banking-europe

Global Monitoring Report on Non-Bank Financial Intermediation 2019

2020

FSB

https://www.fsb.org/2020/01/global-monitoring-report-on-non-bank-financial-intermediation-2019/

Global Monitoring Report on Non-Bank Financial Intermediation 2018

FSB 2019

https://www.fsb.org/2019/02/global-monitoring-report-on-non-bank-financial-intermediation-2018/

Global Shadow Banking Monitoring Report 2017

FSB 2018

https://www.fsb.org/2018/03/global-shadow-banking-monitoring-report-2017/

Global Shadow Banking Monitoring Report 2016

10 May 2017

Click to access global-shadow-banking-monitoring-report-2016.pdf

FSB 2015 Report

Click to access global-shadow-banking-monitoring-report-2015.pdf

FSB 2014 Report

https://www.fsb.org/wp-content/uploads/r_141030.pdf?page_moved=1

FSB 2013 Report

Click to access r_131114.pdf

FSB 2012 Report

Click to access r_121118c.pdf

FSB 2011 Report

Click to access r_111027a.pdf

Shadow Banking: Monitoring Vulnerabilities and Strengthening Policy Tools

https://www.garp.org/#!/risk-intelligence/all/all/a1Z1W0000054xEzUAI

BANK-BASED AND MARKET-BASED FINANCIAL SYSTEMS: CROSS-COUNTRY COMPARISONS

Asli Demirguc-Kunt and Ross Levine*

June 1999

https://pdfs.semanticscholar.org/18e5/660bef2325f326bb8077bd0dd6f5225b1bf8.pdf?_ga=2.215410079.942675951.1605328042-1052966156.1604782392

Off the Radar: Exploring the Rise of Shadow Banking in the EU

Martin Hodula

https://www.cnb.cz/en/economic-research/research-publications/cnb-working-paper-series/Off-the-Radar-Exploring-the-Rise-of-Shadow-Banking-in-the-EU/

https://voxeu.org/article/radar-rise-shadow-banking-europe

Shadow Banking: Economics and Policy

Stijn Claessens, Zoltan Pozsar, Lev Ratnovski, and Manmohan Singh

IMF

2012

https://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2016/12/31/Shadow-Banking-Economics-and-Policy-40132

Bank-Based and Market-Based Financial Systems: Cross-Country Comparisons

A. Demirguc-Kunt

Published 1999

https://www.semanticscholar.org/paper/Bank-Based-and-Market-Based-Financial-Systems%3A-Demirguc-Kunt/cd8cf558db2f8404271050ba40408a28ac4fcbc4

Market-based finance: a macroprudential view

Speech given by
Sir Jon Cunliffe, Deputy Governor Financial Stability, Member of the Monetary Policy Committee, Member of the Financial Policy Committee and Member of the Prudential Regulation Committee

BOE/BIS

Asset Management Derivatives Forum, Dana Point, California Friday 9 February 2017

Click to access r180221a.pdf

Shadow Banking and Market Based Finance

Tobias Adrian, International Monetary Fund 
Helsinki

September 14, 2017

https://www.imf.org/en/News/Articles/2017/09/13/sp091417-shadow-banking-and-market-based-finance

Transforming Shadow Banking into Resilient Market-based Finance

An Overview of Progress

12 November 2015

FSB

Click to access shadow_banking_overview_of_progress_2015.pdf

Mapping Market-Based Finance in Ireland

Simone Cima, Neill Killeen and Vasileios Madouros1,2 

Central Bank of Ireland
December 13, 2019

Click to access no–17-mapping-market-based-finance-in-ireland-(cima-killeen-and-madouros).pdf

BANK AND NONBANK LENDING OVER THE PAST 70 YEARS

FDIC

Click to access fdic-v13n4-3q2019-article1.pdf

Financial Stability Review

November 2019

ECB

Click to access ecb.fsr201911~facad0251f.en.pdf

Shadow Banking

Zoltan Pozsar, Tobias Adrian, Adam Ashcraft, and Hayley Boesky

FRBNY Economic Policy Review / December 2013

Click to access 0713adri.pdf

Click to access 1306adri_map.pdf

https://www.newyorkfed.org/research/epr/2013/0713adri.html

Shadow Banking and Market-Based Finance

Tobias Adrian and Bradley Jones

IMF

No 18/14

Why Shadow Banking Is Bigger Than Ever

DANIELA GABOR

https://jacobinmag.com/2018/11/why-shadow-banking-is-bigger-than-ever

The Non-Bank Credit Cycle

Esti Kemp, Ren ́e van Stralen, Alexandros P. Vardoulakis, and Peter Wierts

2018-076

Fed Reserve

Click to access 2018076pap.pdf

The role of financial markets for economic growth

Speech delivered by Dr. Willem F. Duisenberg, President of the European Central Bank, at the Economics Conference “The Single Financial Market: Two Years into EMU” organised by the Oesterreichische Nationalbank in Vienna on 31 May 2001

https://www.ecb.europa.eu/press/key/date/2001/html/sp010531.en.html

Bank deleveraging, the move from bank to market-based financing, and SME financing

Gert Wehinger

OECD

OECD Journal: Financial Market Trends Volume 2012/1
© OECD 2012

Click to access Bank_deleveraging-Wehinger.pdf

Shadow Banking: A Review of the Literature

Tobias Adrian Adam B. Ashcraft

2012 FRBNY

Click to access sr580.pdf

The Global Pandemic and Run on Shadow Banks

FRBKC

2020

https://www.kansascityfed.org/en/publications/research/eb/articles/2020/global-pandemic-run-shadow-banks

Shadow Banking: The Rise, Risks, and Rewards of Non-Bank Financial Services

Roy J. Girasa

The Macroeconomics of Shadow Banking

ALAN MOREIRA and ALEXI SAVOV∗

THE JOURNAL OF FINANCE • 2017

Click to access ShadowMacro.pdf

Is Shadow Banking Really Banking?

Bryan J. Noeth ,  Rajdeep Sengupta

Saturday, October 1, 2011

FRBSL

https://www.stlouisfed.org/publications/regional-economist/october-2011/is-shadow-banking-really-banking

Three Essays on Capital Regulations and Shadow Banking

Diny Ghuzini
Western Michigan University, diny.ghuzini@wmich.edu

https://scholarworks.wmich.edu/cgi/viewcontent.cgi?article=1589&context=dissertations

CLARIFYING THE SHADOW BANKING DEBATE: APPLICATION AND POLICY IMPLICATIONS

Amias Gerety 2017

Institute of International Economic Law Georgetown University Law Center

Click to access IIEL-Issue-Brief-Amias-Gerety-Shadow-Banking-Accessible.pdf

Commercial Banking and Shadow Banking

The Accelerating Integration of Banks and Markets and its Implications for Regulation

ARNOUD W. A. BOOT AND ANJAN V. THAKOR

(prepared as revised version of Chapter 3 in The Oxford University Press Handbook, The Accelerating Integration of Banks and Markets and its Implications for Regulation, 3rd edition.)

Click to access Boot-Thakor-OUP_book-3rd-ed-Jan7-2018%20(002).pdf

The Shadow Banking System in the United States: Recent Developments and Economic Role

Tresor Economics

France

2013

https://www.tresor.economie.gouv.fr/Articles/ccfd4180-fddb-4333-bd16-0b91f2daa18c/files/6ae6455a-92be-43a5-a94d-91b03b38a8d8

Shadow Banking: Policy Challenges for Central Banks

Thorvald Grung Moe*

Levy Economics Institute of Bard College

May 2014

Click to access wp_802.pdf

BANKS, SHADOW BANKING, AND FRAGILITY

Stephan Luck and Paul Schempp

2014 ECB

Click to access ecbwp1726.pdf

Restructuring the Banking System to Improve Safety and Soundness

Thomas M. Hoenig
Vice Chairman of the Federal Deposit Insurance Corporation

Charles S. Morris
Vice President and Economist Federal Reserve Bank of Kansas City

Original version: May 2011 Revised: December 2012

Click to access restructuring-the-banking-system-05-24-11.pdf

Understanding the Risks Inherent in Shadow Banking: A Primer and Practical Lessons Learned

by David Luttrell Harvey Rosenblum and Jackson Thies

FRB Dallas

Click to access staff1203.pdf

Shadow Banking Concerns: The Case of Money Market Funds∗

Saad Alnahedh† , Sanjai Bhagat

Click to access Bhagat-MMF.pdf

Towards a theory of shadow money

Daniela Gabor* and Jakob Vestergaard

Click to access Towards_Theory_Shadow_Money_GV_INET.pdf

The Economics of Shadow Banking 

Manmohan Singh

2013

Click to access cf463b17aaea00a0a9b178a34065ffd8d900.pdf

Regulating the Shadow Banking System

GARY GORTON

ANDREW METRICK

Yale University

Click to access 2010b_bpea_gorton.pdf

The Rise of Shadow Banking: Evidence from Capital Regulation

Rustom M. Irani, Raymakal Iyer, Ralf R. Meisenzahl, and Jos ́e-Luis Peydr ́o

2018-039

Fed Reserve

Click to access 2018039pap.pdf

Shadow Banking: Background and Policy Issues

Edward V. Murphy

Specialist in Financial Economics

December 31, 2013

Click to access R43345.pdf

Shining a Light on Shadow Banking

The Clearing House

https://www.theclearinghouse.org/banking-perspectives/2015/2015-q4-banking-perspectives/articles/shining-a-light-on-shadow-banking

REGULATING SHADOW BANKING*

STEVEN L. SCHWARCZ

2011

Duke Law

Money Creation and the Shadow Banking System Adi Sunderam

Harvard Business School and NBER September 2014

https://dash.harvard.edu/bitstream/handle/1/27336543/sunderam_money-creation.pdf?sequence=1

Financial Crisis Inquiry Commission Report Chapter 2

Shadow Banking

Click to access fcic_final_report_chapter2.pdf

THE SHADOW BANKING CHARADE

By Melanie L. Fein*

February 15, 2013

Click to access s70409-95.pdf

Assessing shadow banking – non-bank financial intermediation in Europe

No 10/ July 2016

by
Laurent Grillet-Aubert Jean-Baptiste Haquin Clive Jackson
Neill Killeen
Christian Weistroffer

ESRB

Click to access 20160727_occasional_paper_10.en.pdf

Shedding Light on Shadow Banking

Timothy Lane

Bank of Canada

Click to access remarks-260613.pdf

shadow banking and capital markets

RISKS AND OPPORTUNITIES

Group of Thirty

Click to access ShadowBankingCapitalMarkets_G30.pdf

Shadow Banking and Market Based Finance

Tobias Adrian, International Monetary Fund 
Helsinki

September 14, 2017

https://www.imf.org/en/News/Articles/2017/09/13/sp091417-shadow-banking-and-market-based-finance

Financial Stability Report – November 2020

Federal Reserve

https://www.federalreserve.gov/publications/2020-november-financial-stability-report-purpose.htm

https://www.federalreserve.gov/publications/2019-november-financial-stability-report-purpose.htm

https://www.federalreserve.gov/publications/2018-november-financial-stability-report-purpose.htm

https://www.federalreserve.gov/publications/financial-stability-report.htm

Funding Sources and Liquidity for US Commercial Banks

Funding Sources and Liquidity for US Commercial Banks

Funding Types

• Secured
• Unsecured
• Short Term
• Long Term
• Domestic
• Foreign

Image Source: THE DARK SIDE OF BANK WHOLESALE FUNDING

Image Source: WHOLESALE FUNDING OF THE BIG SIX CANADIAN BANKS

Canadian Banks Funding Types

Canadian Banks Funding Instruments

MAPPING U.S. DOLLAR FUNDING FLOWS

US Dollar Funding Sources and Instruments

• Interbank Funding Market
• Money Market Mutual Funds Market
• Repo Market
• Fed Funds Market
• Commercial Paper Market
• Asset Backed Commercial Paper Market
• Certificate of Deposits
• Auction Rate Securities
• Bilateral and Tri Party Repos
• GSEs
• GSE Mortgage Pools
• Finance Companies
• Broker Dealers
• ABS Insurers

Major Trends prior to Global Financial Crisis of 2008

• Decline of Banks and Growth of Mutual Funds
• Rise of Market Based Finance (Non Bank Finance, Shadow Banking)
• Globalization of Financial Intermediation
• Rise of Repo Market
• Securitization

Please see detailed discussion in this reference from which I have used most of the charts.

Economic Policy Review

Federal Reserve Bank New York

Special Issue: The Stability of Funding Models, Feb 2014

Decline of Banks and Growth of Mutual Funds

Rise of MArket based Finance

Also, known as Non Bank Finance, Shadow Banking

Globalization of Financial Intermediation

Rise of Repo Market

Securitization

How did Central Banks respended during the crisis?

Central Bank Backstops During Financial Crisis

During financial crisis, US Federal Reserve has provided emergency liquidity facilities for markets in which liquidity dried up.

• AMLF Asset Back Comercial Papers Funding Facility
• MMLF Money MArket Mutual Funds Funding Facility
• CPFF Commercial Paper Funding Facility

Macro Prudential Policies and Regulations

For financial stability

Some of the important policies that aim at promoting stability are as follows:

• deposit insurance
• lender of last resort
• supervision
• capital requirements
• reserve requirements
• liquidity requirements
• transparency and disclosure requirements

Key Terms

• Market based Finance
• Shadow Banking
• Funding LIquidity
• Funding Sources
• Funding Instruments
• Bank Liabilities
• Interlinked Balance sheets
• Interconnectivity
• Balance Sheet Expansion
• Money Flows
• Systemic Risk
• Financial Contagion
• Capital Requirements
• BASEL III
• LCR Liquidity Coverage Ratio
• Money Market Mutual Funds MMMF
• Asset Backed Commercial Paper ABCP
• Commercial Paper CP
• Repurchase Agreements REPOs
• Fed Funds
• Interbank Funds
• Exposure
• Spillover
• Counterparties
• Cross Border Claims
• Quadruple accounting

My related Posts

Funding Strategies of Banks

Shadow Banking

The Dollar Shortage, Again! in International Wholesale Money Markets

Low Interest Rates and International Capital Flows

Balance Sheets, Financial Interconnectedness, and Financial Stability – G20 Data Gaps Initiative

Contagion in Financial (Balance sheets) Networks

Economics of Money, Credit and Debt

Trends in Assets and Liabilities of Commercial Banks in the USA

Low Interest Rates and Banks’ Profitability – Update October 2020

Key Sources of Research

US dollar funding markets during the Covid-19 crisis – the money market fund turmoil

12 May 2020

BIS

Click to access bisbull14.pdf

Mapping U.S. Dollar Funding Flows

This interactive map shows how various institutions generally engage with one another, and the Federal Reserve’s balance sheet, in the course of borrowing and lending U.S. dollar instruments in the money markets.

https://www.newyorkfed.org/research/blog/2019_LSE_Markets_Interactive_afonso

Recent stress in money market funds has exposed potential risks for the wider financial system

Prepared by Miguel Boucinha, Laura Capotă, Katharina Cera, Emmanuel Faïk, Jean-Baptiste Galléty, Margherita Giuzio, Maciej Grodzicki, Isabel Kerner, Simon Kördel, Luis Molestina Vivar, Giulio Nicoletti, Ellen Ryan and Christian Weistroffer

Published as part of Financial Stability Review, May 2020.

https://www.ecb.europa.eu/pub/financial-stability/fsr/focus/2020/html/ecb.fsrbox202005_07~725c8a7ec8.en.html

The circular flow of dollars in the world financial markets

Kashi NathTiwari

https://www.sciencedirect.com/science/article/abs/pii/104402839090012C

The Euro-dollar market as a source of United States bank liquidity

Steve B. Steib

Iowa State University

https://lib.dr.iastate.edu/cgi/viewcontent.cgi?article=6277&context=rtd

Shadow Banking: The Money View

Zoltan Pozsar

Click to access OFRwp2014-04_Pozsar_ShadowBankingTheMoneyView.pdf

Key Information on the Money Market Mutual Fund Liquidity Facility (MMLF)

https://www.bostonfed.org/news-and-events/news/2020/03/key-information-money-market-mutual-fund-liquidity-facility.aspx

https://www.federalreserve.gov/monetarypolicy/mmlf.htm

Managing the Liquidity Crisis

• Mike Harmon
• Victoria Ivashina

April 09, 2020

https://hbr.org/2020/04/managing-the-liquidity-crisis

Financial Stability Report

May 2020

Financial Stability Board

FED Reserve

Click to access financial-stability-report-20200515.pdf

Interbank lending market

https://en.wikipedia.org/wiki/Interbank_lending_market

Liquidity Risk and Credit in the Financial Crisis

BY PHILIP E. STRAHAN

FRBSF ECONOMIC LETTER

2012

Click to access el2012-15.pdf

The Money Market Mutual Fund Liquidity Facility

Marco Cipriani, Gabriele La Spada, Reed Orchinik, and Aaron Plesset

2020

https://libertystreeteconomics.newyorkfed.org/2020/05/the-money-market-mutual-fund-liquidity-facility.html

US money market funds and US dollar funding

Céline Choulet

BNP Paribas

2018

https://economic-research.bnpparibas.com/Views/DisplayPublication.aspx?type=document&IdPdf=31175

The Dark Side of Bank Wholesale Funding

Rocco Huang

Philadelphia Fed

Lev Ratnovski

Bank of England

Click to access huangratnovski.pdf

A Macroeconomic Model of Liquidity, Wholesale Funding and Banking Regulation

Corinne Dubois* Luisa Lambertini􏰀

Click to access Lambertini.pdf

The Effect of Monetary Policy on Bank Wholesale Funding

Dong Beom Choi (Federal Reserve Bank of New York)

Hyun-Soo Choi (Singapore Management University)

Click to access 3a-choi-presentation.pdf

Between deluge and drought: The future of US bank liquidity and funding

Rebalancing the balance sheet during turbulent times

Kevin Buehler Peter Noteboom Dan Williams

July 2013
McKinsey & Company

https://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/Risk/Working%20papers/48_Future%20of%20US%20funding.ashx

Can Banks Provide Liquidity in a Financial Crisis?

By Nada Mora

Click to access 10q3mora.pdf

How important was the worldwide use of wholesale funds for the international transmission of the US subprime crisis? 

Claudio Raddatz  15 March 2010

https://voxeu.org/article/how-bank-credit-market-funding-helped-spread-global-crisis

The Role of Liquidity in the Financial System

Notes from the Vault

Larry D. Wall
November 2015

https://www.frbatlanta.org/cenfis/publications/notesfromthevault/1511

Global Banks, Dollar Funding, and Regulation

by Iñaki Aldasoro, Torsten Ehlers and Egemen Eren

Monetary and Economic Department March 2018, revised May 2019

Click to access work708.pdf

Global Monitoring Report on
Non-Bank Financial Intermediation 2019 

19 January 2020

Click to access P190120.pdf

Bank Financing: The Disappearance of Interbank Lending

March 05, 2018

https://www.moneyandbanking.com/commentary/2018/3/4/bank-financing-the-disappearance-of-interbank-lending

Liquidity Risk and Funding Cost

Click to access 2018_MMWorkshop_Wrampelmeyer_presentation_Liquidity_Risk_Funding_Cost.pdf

Taking Market-Based Finance Out of the Shadows

Distinguishing Market-Based Finance from Shadow Banking

2018

Blackrock

Click to access viewpoint-taking-market-based-finance-out-of-the-shadows-february-2018.pdf

Wholesale Funding of the Big Six Canadian Banks

Matthieu Truno, Andriy Stolyarov, Danny Auger and Michel Assaf, Financial Markets Department

Bank of Canada Review

Click to access boc-review-spring17-truno.pdf

Liquidity Risk after the Crisis 

By Allan M. Malz

https://www.cato.org/cato-journal/winter-2018/liquidity-risk-after-crisis

Global Shadow Banking Monitoring Report 2017

5 March 2018

Click to access P050318-1.pdf

The Federal Funds Market since the Financial Crisis

https://www.clevelandfed.org/en/newsroom-and-events/publications/economic-commentary/2017-economic-commentaries/ec-201707-the-federal-funds-market-since-the-financial-crisis.aspx

Funding liquidity regulation

Allan M. Malz

Click to access fundingLiquidityRegulation.pdf

The Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF)

Rosalind Z. Wiggins2,
Yale Program on Financial Stability Case Study

May 9, 2017, revised: October 10, 2020

https://elischolar.library.yale.edu/cgi/viewcontent.cgi?article=1080&context=journal-of-financial-crises

Liquidity Risk and Credit in the Financial Crisis

BY PHILIP E. STRAHAN

Click to access el2012-15.pdf

Economic Policy Review

February 2014 Volume 20 Number 1

Special Issue: The Stability of Funding Models

Click to access EPRvol20no1.pdf

Trends in Assets and Liabilities of Commercial Banks in the USA

To big to fail means too interconnected to fail.

As the balance sheets of banks have expanded so has their number of counterparties on both sides of balance sheets.

The US commercial banks have have expanded their balance sheets.

On assets side, the loans portfolio has expanded.

Low Interest Rates and Banks’ Profitability – Update October 2020

On liabilities side, the deposits and borrowings have increased.

US Federal Reserve publishes H8 report on Assets and Liabilities of the US commercial banks. Detailed information on aggregate data presented in this post can be obtained from it.

https://www.federalreserve.gov/releases/h8/h8notes.htm

On liabilities side, the borrowings from wholesale money markets and shadow banking contributed to systemic risk during 2008 financial crisis. Please see my posts on this subject.

Funding Strategies of Banks

Shadow Banking

There were also capital flows in US markets from foreign banks and other markets.

Low Interest Rates and International Capital Flows

On liabilities side, because of increased borrowings from short term markets, the financial interconnections have also increased resulting in systemic risk and financial contagion.

On assets side, because of increased volumes of loan portfolios, the systemic risk and chances for financial contagion have increased.

Balance Sheets, Financial Interconnectedness, and Financial Stability – G20 Data Gaps Initiative

Contagion in Financial (Balance sheets) Networks

For analytical framework, accounting approach (Post Keynesian Economics) is one of the option.

Balance Sheet Economics – Financial Input-Output Analysis (using Asset Liability Matrices) – Update March 2018

Foundations of Balance Sheet Economics

Economics of Money, Credit and Debt

Morris Copeland and Flow of Funds accounts

Stock-Flow Consistent Modeling

Key Terms

• Money View
• Money Flows
• Stocks and Flows
• System Dynamics
• Business Dynamics
• Business Strategy
• Asset Liability Management ALM
• Balance Sheet Economics
• Monetary Policy
• Interest Rates
• Credit
• Debt
• Money
• Balance Sheet Expansion
• Systemic Risk
• Interconnectivity
• Loan Portfolio
• To big to fail
• Networks
• Funding Strategy
• Market Liquidity
• Funding Liquidity
• Deposits
• Interest Income
• Non Interest Income
• Borrowings
• Wholesale Money Markets
• Shadow Banking
• International Capital Flows
• Round Tripping
• Global Liquidity
• Eurodollar Market
• Money Market Mutual Funds
• Quadruple Accounting
• Morris Copeland
• Hyman Minsky
• Wynn Godley
• Perry Mehrling

Image Source: Liberty Street Economics 2017

AVERAGE NET INTEREST MARGIN OF BANKS IN THE UNITED STATES FROM 1995 TO 2019

Image Source: Statista

NET INTEREST MARGIN FOR ALL U.S. BANKS (USNIM)

Image Source: FRED

Total Assets, All Commercial Banks (TLAACBW027SBOG)

Image Source: FRED

Total Liabilities, All Commercial Banks (TLBACBW027NBOG)

Image Source: FRED

DEPOSITS, ALL COMMERCIAL BANKS (DPSACBW027SBOG)

Image Source: FRED

My Related Posts

Balance Sheet Economics – Financial Input-Output Analysis (using Asset Liability Matrices) – Update March 2018

Foundations of Balance Sheet Economics

Balance Sheets, Financial Interconnectedness, and Financial Stability – G20 Data Gaps Initiative

Funding Strategies of Banks

Economics of Money, Credit and Debt

Low Interest Rates and International Capital Flows

Low Interest Rates and Banks’ Profitability – Update October 2020

Morris Copeland and Flow of Funds accounts

Key Sources of Research

Deposits, All Commercial Banks (DPSACBW027SBOG)

https://fred.stlouisfed.org/series/DPSACBW027SBOG

Total Liabilities, All Commercial Banks (TLBACBW027NBOG)

https://fred.stlouisfed.org/series/TLBACBW027NBOG

TOTAL ASSETS, ALL COMMERCIAL BANKS (TLAACBW027SBOG)

https://fred.stlouisfed.org/series/TLAACBW027SBOG

Between deluge and drought:
The future of US bank liquidity and funding

Rebalancing the balance sheet during turbulent times

McKinsey

2013

https://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/Risk/Working%20papers/48_Future%20of%20US%20funding.ashx

Assets and Liabilities of Commercial Banks in the United States – H.8

https://www.federalreserve.gov/releases/h8/h8notes.htm

The geography of dollar funding of non-US banks1

Click to access r_qt1812b.pdf

Stock Flow Consistent Input Output Models (SFCIO)

Stock Flow Consistent Input Output Models (SFCIO)

 

SFCIO  = SFC + IO Models

SFC = Stock Flow Consistent

IO = Input Output

Stock Flow Consistent Input Output Models (SFCIO)

 

Integrating Varieties of Modeling Methods

• Monetary Input Output Models
• Physical Input Output Models
• Stock Flow Consistent Models
• System Dynamics Models

 

For integrating:

• Physical Flows (Resources and Products)
• Monetary Flows

 

 

From Ecological Macroeconomic Models: Assessing Current Developments

 

 

 

From A stock-flow-fund ecological macroeconomic model

 

 

From Stock-Flow Consistent Input–Output Models as a Bridge
Between Post-Keynesian and Ecological Economics

One effort to explicitly represent the dynamics of debt, finance, and other monetary factors has been the post-Keynesian stock-flow consistent (SFC) approach. At the same time, input–output (IO) models have been widely used to investigate sectoral interdependencies within the real economy, while environmentally extended input–output models have been used to analyze the relationship between the economy and ecological subsystems. However, the role of monetary dynamics has been left relatively unexplored in IO models (Caiani et al., 2014). This paper proposes a synthesis of elements from both SFC and IO models with insights from ecological economics to provide an avenue for investigating the interrelations between the monetary economy and the physical environment.

 

From Stock-Flow Consistent Input–Output Models as a Bridge
Between Post-Keynesian and Ecological Economics

By combining SFC models and IO models, financial flows of funds can be integrated with flows of real goods and services. Lawrence Klein, who developed large scale macroeconomic models typified by the FRB-MIT-Penn model, has noted the natural synergies between the National Income and Product accounts, the IO accounts, and the FF accounts (Klein, 2003). The approach of combining both SFC and IO models with ecological macroeconomics affords one method to unite those accounts, as suggested by Klein, and to simultaneously model monetary flows through the financial system, flows of produced goods and services through the real economy, and flows of physical materials through the natural environment. Models of this type may provide additional tools to aid macro economists, ecological economists, and physicists in the task of understanding the economy and the physical environment as one united and complexly interrelated system, rather than as a colloidal agglomeration of artificially separated analytical domains. These modes of analysis are required to study pressing problems such as climate change, which are neither purely economic, nor purely environmental, nor purely physical, but rather are all of the above (Rezai et al., 2013).

 

 

Please see my related posts:

Accounting For Global Carbon Emission Chains

Stock Flow Consistent Models for Ecological Economics

 

 

 

Key Sources of Research:

 

A stock-flow consistent input–output model with applications to
energy price shocks, interest rates, and heat emissions

Matthew Berg1, Brian Hartley2 and Oliver Richters3

2015

http://iopscience.iop.org/article/10.1088/1367-2630/17/1/015011/pdf

Stock-Flow Consistent Input–Output Models as a Bridge
Between Post-Keynesian and Ecological Economics

 

Matthew Berg (The New School for Social Research)
Brian Hartley (The New School for Social Research)
Oliver Richters (International Economics, Oldenburg University)

October 7, 2015

Click to access v_2015_10_23_richters.pdf

 

 

 

Integrating Energy Use into Macroeconomic Stock-Flow Consistent Models

Presented by
Oliver Richters

2015

Click to access richters-integrating-energy-use-sfc-models-2015.pdf

 

 

 

The role of money and the financial sector in energy-economy models used for assessing climate and energy policy,

Hector Pollitt & Jean-Francois Mercure

(2018)

Climate Policy, 18:2, 184-197

 

https://www.tandfonline.com/doi/pdf/10.1080/14693062.2016.1277685?needAccess=true

 

 

Ecological Macroeconomic Models: Assessing Current Developments

Lukas Hardt a,⁎, Daniel W. O’Neill

2017

 

https://ac.els-cdn.com/S0921800916303202/1-s2.0-S0921800916303202-main.pdf?_tid=4fe094ea-f4d6-4a7e-b7d6-230d3cce6c0e&acdnat=1522699485_1c1d93cd6adda3a829d89b5c8e841d13

 

Ecological macroeconomics: Introduction and review

2016

 

https://ac.els-cdn.com/S0921800915004747/1-s2.0-S0921800915004747-main.pdf?_tid=0cda7488-5f2d-4edf-966e-5b23cb7d43cd&acdnat=1522699625_aaa0756d02319c5ab25e0c1f1d8bf3f1

 

 

 

A stock-flow-fund ecological macroeconomic model

Yannis Dafermos a,⁎, Maria Nikolaidi b, Giorgos Galanis c

2016

 

https://ac.els-cdn.com/S0921800916301343/1-s2.0-S0921800916301343-main.pdf?_tid=932bb9db-d514-47b7-9be4-f345250b3f0d&acdnat=1522699759_7d965a332aad8ec5596fc4b34f22e6ec

 

 

 

Potential Consequences on the Economy of Low or No Growth – Short and Long Term Perspectives

J. Mikael Malmaeus a,⁎, Eva C. Alfredsson

 

https://ac.els-cdn.com/S0921800916300477/1-s2.0-S0921800916300477-main.pdf?_tid=6f5c6223-3f20-4d88-af15-ed8d18eff17a&acdnat=1522699926_1793a74188ac6b373bc1aec837514b30

 

 

Growth, Distribution, and the Environment in a Stock-Flow Consistent Framework∗

Asjad Naqvi†

February 6, 2015

Click to access EcolEcon_WorkingPaper_2015_2.pdf

 

 

 

Foundations for an Ecological Macroeconomics: literature review and model development

Tim Jackson, Ben Drake (SURREY), Peter Victor (York University), Kurt Kratena, Mark Sommer (WIFO)

Click to access WWWforEurope_WPS_no065_MS38.pdf

 

 

 

Towards a Stock-Flow Consistent Ecological Macroeconomics

Authors: Tim Jackson (SURREY), Peter Victor (York University), Ali Asjad Naqvi (WU)

March 2016

Click to access 856194174.pdf

Click to access WWWforEurope_WPS_no114_MS40.pdf

 

Consistency and Stability Analysis of Models of a Monetary Growth Imperative

Oliver Richtersa, Andreas Siemoneitb

a Department of Economics, Carl von Ossietzky University Oldenburg, http://www.oliver-richters.de
b Berlin, http://www.ezienzkritik.de

Click to access 863731139.pdf

 

Measuring Globalization: Global Multi Region Input Output Data Bases (G-MRIO)

Measuring Globalization: Global Multi Region Input Output Data Bases (G-MRIO)

 

A special issue of Economic Systems Research published in 2013 discussed currently available GMRIO data bases.  There are two strands of research in development and use of these databases:

• Trade flows and global supply chains
• Environmental Impacts of Economic Growth, Trade and Globalization

 

G-MRIO

• IDE JETRO Asian IO Tables
• EORA
• OECD Inter-Country Input-Output (ICIO) tables
• GRAM (Global Resource Accounting Model )
• World Input-Output Database (WIOD).
• Global Trade Analysis Project (GTAP)
• EXIOPOL (EXIOBASE)

 

Another recent development is development of Trade in Value added databases analyzing trade flows of intermediate goods and fragmented global supply chains and production networks.  These projects are currently underway at the time of writing of this post.

TIVA Databases

• NA TiVA Project
• The OECD-WTO TiVA database

• APEC TiVA initiative

 

There are also EE- GMRIO (Environmentally extended GMRIO) discussed else where in a related post.

 

GMRIO Databases

 

GRAM

The Global Resource Accounting Model (GRAM) is a multi-regional input-output model (MRIO), which currently distinguishes between 62 countries and one ‘rest of the world’ region and 48 industrial sectors per country or region. The heart of the model is made up of OECD data on bilateral trade flows and input-output tables for 1995 to 2010. Combined with additional data sets, such as CO2 emissions and material extraction, the model enables production-related variables to be attributed to end consumption.

 

 

GLOBAL MULTIREGIONAL INPUT–OUTPUT FRAMEWORKS: AN INTRODUCTION AND OUTLOOK

Arnold Tukker & Erik Dietzenbacher

Published online: 21 Mar 2013

This review is the introduction to a special issue of Economic Systems Research on the topic of global multi regional input–output (GMRIO) tables, models, and analysis. It provides a short historical context of GMRIO development and its applications (many of which deal with environmental extensions) and presents the rationale for the major database projects presented in this special issue. Then the six papers are briefly introduced. This is followed by a concluding comparison of the characteristics of the main GMRIO databases developed thus far and an outlook of potential further developments.

 

COMPILATION AND APPLICATIONS OF IDE-JETRO’S INTERNATIONAL INPUT–OUTPUT TABLES

Bo Meng , Yaxiong Zhang & Satoshi Inomata

Published online: 21 Mar 2013

International input–output (IO) tables are among the most useful tools for economic analysis. Since these tables provide detailed information about international production networks, they have recently attracted considerable attention in research on spatial economics, global value chains, and issues relating to trade in value added. The Institute of Developing Economies at the Japan External Trade Organization (IDE-JETRO) has more than 40 years of experience in the construction and analysis of international IO tables. This paper explains the development of IDE-JETRO’s multi-regional IO projects including the construction of the Asian International Input–Output table and the Transnational Inter regional Input–Output table between China and Japan. To help users understand the features of the tables, this paper also gives examples of their application.

 

 

EXIOPOL – DEVELOPMENT AND ILLUSTRATIVE ANALYSES OF A DETAILED GLOBAL MR EE SUT/IOT

Arnold Tukker , Arjan de Koning , Richard Wood , Troy Hawkins , Stephan Lutter , Jose

Published online: 21 Mar 2013

EXIOPOL (A New Environmental Accounting Framework Using Externality Data and Input–Output Tools for Policy Analysis) was a European Union (EU)-funded project creating a detailed, global, multi regional environmentally extended Supply and Use table (MR EE SUT) of 43 countries, 129 sectors, 80 resources, and 40 emissions. We sourced primary SUT and input–output tables from Eurostat and non-EU statistical offices. We harmonized and detailed them using auxiliary national accounts data and co-efficient matrices. Imports were allocated to countries of exports using United Nations Commodity Trade Statistics Database trade shares. Optimization procedures removed imbalances in these detailing and trade linking steps. Environmental extensions were added from various sources. We calculated the EU footprint of final consumption with resulting MR EE SUT. EU policies focus mainly on energy and carbon footprints. We show that the EU land, water, and material footprint abroad is much more relevant, and should be prioritized in the EU’s environmental product and trade policies.

 

 

A MULTI-REGION INPUT–OUTPUT TABLE BASED ON THE GLOBAL TRADE ANALYSIS PROJECT DATABASE (GTAP-MRIO)

Robbie M. Andrew & Glen P. Peters

Published online: 21 Mar 2013

Understanding the drivers of many environmental problems requires enumerating the global supply chain. Multi-region input–output analysis (MRIOA) is a well-established technique for this purpose, but constructing a multi-region input–output table (MRIOT) can be a formidable challenge. We constructed a large MRIOT using the Global Trade Analysis Project (GTAP) database of harmonised economic, IO, and trade data. We discuss the historical development of the GTAP-MRIO and describe its efficient construction. We provide updated carbon footprint estimates and analyse several issues relevant for MRIO construction and applications. We demonstrate that differences in environmental satellite accounts may be more important than differences in MRIOTs when calculating national carbon footprints. The GTAP-MRIO is a robust global MRIOT and, given its easy availability and implementation, it should allow the widespread application of global MRIOA by a variety of users.

 

 

THE CONSTRUCTION OF WORLD INPUT–OUTPUT TABLES IN THE WIOD PROJECT

Erik Dietzenbacher , Bart Los , Robert Stehrer , Marcel Timmer & Gaaitzen de Vries

Published online: 21 Mar 2013

This article describes the construction of the World Input–Output Tables (WIOTs) that constitute the core of the World Input–Output Database. WIOTs are available for the period 1995–2009 and give the values of transactions among 35 industries in 40 countries plus the ‘Rest of the World’ and from these industries to households, governments and users of capital goods in the same set of countries. The article describes how information from the National Accounts, Supply and Use Tables and International Trade Statistics have been harmonized, reconciled and used for estimation procedures to arrive at a consistent time series of WIOTs.

 

 

BUILDING EORA: A GLOBAL MULTI-REGION INPUT–OUTPUT DATABASE AT HIGH COUNTRY AND SECTOR RESOLUTION

Manfred Lenzen , Daniel Moran , Keiichiro Kanemoto & Arne Geschke

Published online: 21 Mar 2013

There are a number of initiatives aimed at compiling large-scale global multi-region input–output (MRIO) tables complemented with non-monetary information such as on resource flows and environmental burdens. Depending on purpose or application, MRIO construction and usage has been hampered by a lack of geographical and sectoral detail; at the time of writing, the most advanced initiatives opt for a breakdown into at most 129 regions and 120 sectors. Not all existing global MRIO frameworks feature continuous time series, margins and tax sheets, and information on reliability and uncertainty. Despite these potential limitations, constructing a large MRIO requires significant manual labour and many years of time. This paper describes the results from a project aimed at creating an MRIO account that represents all countries at a detailed sectoral level, allows continuous updating, provides information on data reliability, contains table sheets expressed in basic prices as well as all margins and taxes, and contains a historical time series. We achieve these goals through a high level of procedural standardisation, automation, and data organisation.

 

 

POLICY-RELEVANT APPLICATIONS OF ENVIRONMENTALLY EXTENDED MRIO DATABASES – EXPERIENCES FROM THE UK

Thomas Wiedmann & John Barrett

Published online: 21 Mar 2013

The impressive development in global multi-region input–output (IO) databases is accompanied by an increase in applications published in the scientific literature. However, it is not obvious whether the insights gained from these studies have indeed been used in political decision-making. We ask whether and to what extent there is policy uptake of results from environmentally extended multi-region IO (EE-MRIO) models and how it may be improved. We identify unique characteristics of such models not inherent to other approaches. We then present evidence from the UK showing that a policy process around consumption-based accounting for greenhouse gas emissions and resource use has evolved that is based on results from EE-MRIO modelling. This suggests that specific, policy-relevant information that would be impossible to obtain otherwise can be generated with the help of EE-MRIO models. Our analysis is limited to environmental applications of global MRIO models and to government policies in the UK.

 

From GLOBAL MULTIREGIONAL INPUT–OUTPUT FRAMEWORKS: AN INTRODUCTION AND OUTLOOK

 

From POLICY-RELEVANT APPLICATIONS OF ENVIRONMENTALLY EXTENDED MRIO  DATABASES – EXPERIENCES FROM THE UK

From Economic Systems Research

Volume 26, 2014 – Issue 3: A Comparative Evaluation of Multi-Regional Input-Output Databases

CONVERGENCE BETWEEN THE EORA, WIOD, EXIOBASE, AND OPENEU’S CONSUMPTION-BASED CARBON ACCOUNTS

Daniel Moran & Richard Wood

Published online: 14 Jul 2014

In this paper, we take an overview of several of the biggest independently constructed global multi-regional input–output (MRIO) databases and ask how reliable and consonant these databases are. The key question is whether MRIO accounts are robust enough for setting environmental policies. This paper compares the results of four global MRIOs: Eora, WIOD, EXIOBASE, and the GTAP-based OpenEU databases, and investigates how much each diverges from the multi-model mean. We also use Monte Carlo analysis to conduct sensitivity analysis of the robustness of each accounts’ results and we test to see how much variation in the environmental satellite account, rather than the economic structure itself, causes divergence in results. After harmonising the satellite account, we found that carbon footprint results for most major economies disagree by<10% between MRIOs. Confidence estimates are necessary if MRIO methods and consumption-based accounting are to be used in environmental policy-making at the national level.

COMPARATIVE EVALUATION OF MRIO DATABASES

Satoshi Inomata & Anne Owen

Published online: 11 Aug 2014

This editorial is the introduction to a special issue of Economics Systems Research on the topic of intercomparison of multi-regional input–output (MRIO) databases and analyses. It explains the rationale for dedicating an issue of this journal to this area of research. Then the six papers chosen for this issue are introduced. This is followed by a concluding section outlining future directions for developers and users of MRIO databases.

 

Please see my related posts:

Accounting For Global Carbon Emission Chains

Development of Global Trade and Production Accounts: UN SEIGA Initiative

Stock Flow Consistent Models for Ecological Economics

 

 

Key Sources of Research:

 

The World Input‐Output Database (WIOD): Contents, Sources and Methods

Edited by Marcel Timmer (University of Groningen)

With contributions from:
Abdul A. Erumban, Reitze Gouma, Bart Los, Umed Temurshoev and
Gaaitzen J. de Vries (University of Groningen)
Iñaki Arto, Valeria Andreoni Aurélien Genty, Frederik Neuwahl, José
M. Rueda‐Cantuche and Alejandro Villanueva (IPTS)
Joe Francois, Olga Pindyuk, Johannes Pöschl and Robert Stehrer
(WIIW), Gerhard Streicher (WIFO)

April 2012, Version 0.9

Click to access WIOD_sources.pdf

 

 

 

Analyzing Global Value Chains using the World Input-Output
Database

Bart Los (University of Groningen)
with Marcel Timmer (Groningen), Gaaitzen de Vries
(Groningen) and Robert Stehrer (wiiw Vienna)

BBVA Foundation – Ivie Workshop, October 30, 2017, Valencia

Click to access B.-Los.pdf

 

An Overview on the Construction of North American Regional Supply-Use and Input-Output Tables and their Applications in Policy Analysis

Statistics Canada
Anthony Peluso
U.S. Bureau of Economic Analysis
Gabriel Medeiros
Jeffrey Young
U.S. International Trade Commission
Ross J. Hallren
Lin Jones
Richard Nugent
Heather Wickramarachi

ECONOMICS WORKING PAPER SERIES
Working Paper 2017-12-A

Click to access na-tiva_white_paper_for_posting_revised_02-20.pdf

 

 

 

 

The Global MRIO Lab – charting the world economy,

Manfred Lenzen, Arne Geschke, Muhammad Daaniyall Abd Rahman, Yanyan
Xiao, Jacob Fry, Rachel Reyes, Erik Dietzenbacher, Satoshi Inomata, Keiichiro Kanemoto, Bart Los, Daniel Moran, Hagen Schulte in den Bäumen, Arnold Tukker, Terrie Walmsley, Thomas Wiedmann, Richard Wood & Norihiko Yamano

(2017)

Economic Systems Research, 29:2, 158-186

Click to access Lenzen%20et%20al._2017_Economic%20Systems%20Research_The%20Global%20MRIO%20Lab–charting%20the%20world%20economy.pdf

 

 

 

 

INPUT–OUTPUT ANALYSIS: THE NEXT 25 YEARS,

Erik Dietzenbacher, Manfred Lenzen, Bart Los, Dabo Guan, Michael L. Lahr,
Ferran Sancho, Sangwon Suh & Cuihong Yang

(2013)

Economic Systems Research, 25:4, 369-389

Click to access Guan-ESR-2013-IO%20next%2025%20years.pdf

 

 

 

OECD Inter-Country Input-Output (ICIO) Tables, 2016 edition

http://www.oecd.org/sti/ind/inter-country-input-output-tables.htm

 

 

Trade in Value Added

OECD

http://www.oecd.org/sti/ind/measuringtradeinvalue-addedanoecd-wtojointinitiative.htm

 

 

 

The Global Resource Accounting Model (GRAM)
a methodological concept paper

Stefan Giljum a, Christian Lutz b, Ariane Jungnitz b

a Sustainable Europe Research Institute (SERI), Vienna, Austria
b Institute for Economic Structures Research (GWS), Osnabrück, Germany

April 2008

Click to access Giljum_et_al_GRAM_concept_paper_final.pdf

 

 

 

POLICY-RELEVANT APPLICATIONS OF
ENVIRONMENTALLY EXTENDED MRIO DATABASES – EXPERIENCES FROM THE UK,

Thomas Wiedmann & John Barrett

(2013):

Economic Systems Research, 25:1, 143-156

Click to access Wiedmann__Barrett_-_2013_-_Policy-relevant_applications_of_evironmentally_extended_MRIO_databases_-_experiences_from_the_UK.pdf

 

 

THE CONSTRUCTION OF WORLD INPUT–OUTPUT TABLES IN THE WIOD PROJECT,

Erik Dietzenbacher , Bart Los , Robert Stehrer , Marcel Timmer & Gaaitzen de
Vries

(2013)

Economic Systems Research, 25:1, 71-98,

Click to access WIOD%20construction.pdf

 

 

System of Environmental-Economic Accounting 2012— Applications and Extensions

http://ec.europa.eu/eurostat/documents/3859598/7789413/KS-01-15-797-EN-N.pdf/9404d9b0-5c2d-48c8-b1e9-2632800162e7

 

 

Calculating Trade in Value Added

IMF

Prepared by Aqib Aslam, Natalija Novta, and Fabiano Rodrigues-Bastos1

July 2017

https://www.imf.org/~/media/Files/Publications/WP/2017/wp17178.ashx

 

 

World Input-Output Network

Federica Cerina, Zhen Zhu, Alessandro Chessa and Massimo Riccaboni

July 1, 2015

Click to access 336.pdf

 

 

 

Making Global Value Chain Research More Accessible

Lin Jones, William Powers, and Ravinder Ubee1

U.S. International Trade Commission, Office of Economics

October 21, 2013

Click to access ec201310a.pdf

 

On the Measurement of Upstreamness and Downstreamness in
Global Value Chains

Pol Antras
Harvard University and NBER
Davin Chor
National University of Singapore

October 30, 2017

Click to access upstream_ac_oct30_2017_withtables.pdf

 

 

 

THE OECD INPUT-OUTPUT DATABASE: 2006 EDITION

STI WORKING PAPER 2006/8

Norihiko Yamano and Nadim Ahmad

Click to access OECD%20Input-Output%20Database.pdf

 

 

 

GLOBAL MULTI REGIONAL INPUT–OUTPUT FRAMEWORKS: AN INTRODUCTION AND OUTLOOK,

Arnold Tukker & Erik Dietzenbacher

(2013)

Econ omic Systems Research, 25:1,1-19

Click to access UNSD%20-%20Tukker%20-%20Overview%20on%20International%20IO%20Tables%20-%202013.pdf

 

THE CONSTRUCTION OF WORLD INPUT–OUTPUT TABLES IN THE WIOD PROJECT,

Erik Dietzenbacher , Bart Los , Robert Stehrer , Marcel Timmer & Gaaitzen de
Vries

(2013)

Economic Systems Research, 25:1, 71-98

Click to access WIOD%20construction.pdf

 

 

 

A review of recent multi-region input–output models used for consumption-based
emission and resource accounting

Thomas Wiedmann

2009

http://wedocs.unep.org/bitstream/handle/20.500.11822/19433/a_review.pdf?sequence=1&isAllowed=y

 

 

World Input-Output Network

Federica Cerina, Zhen Zhu, Alessandro Chessa, Massimo Riccaboni

2015

Click to access pone.0134025.pdf

 

 

A Network of Networks Perspective on Global Trade

Julian Maluck, Reik V. Donner

Click to access pone.0133310.pdf

 

 

 

THE ‘REST OF THE WORLD’ – ESTIMATING THE ECONOMIC STRUCTURE OF MISSING REGIONS IN GLOBAL MULTI-REGIONAL INPUT–OUTPUT TABLES,

Konstantin Stadler, Kjartan Steen-Olsen & Richard Wood

(2014)

Economic Systems Research, 26:3, 303-326

Click to access Stadler,%20Steen-olsen,%20Wood_2015_Unknown_the%20‘%20Rest%20of%20the%20World%20’%20–%20Estimating%20the%20Economic%20Structure%20of%20Missing%20Regions%20in%20Global%20Multi.pdf

 

 

“Trade, Environment, and Growth: Advanced topics in Input-Output Analysis”*

Professor: Erik Dietzenbacher (U. Groningen)

March 9-13, 2015

Click to access outline___trade_growth_and_the_environment_.pdf

 

 

 

 

Wassily Leontief and the discovery of the input-output approach

Click to access memo-18-2016-versjon-2.pdf

 

 

Networks of value added trade,

Amador, João; Cabral, Sónia

(2016)

ECB Working Paper, No. 1931, ISBN 978-92-899-2179-4,

Click to access ecbwp1931.pdf

 

EXIOPOL – DEVELOPMENT AND ILLUSTRATIVE ANALYSES OF A DETAILED GLOBAL MR EE SUT/IOT,

Arnold Tukker , Arjan de Koning , Richard Wood , Troy Hawkins , Stephan
Lutter , Jose Acosta , Jose M. Rueda Cantuche , Maaike Bouwmeester , Jan Oosterhaven ,
Thomas Drosdowski & Jeroen Kuenen

(2013)

Economic Systems Research, 25:1,50-70

Click to access Tukker%20et%20al._2013_Economic%20Systems%20Research_Exiopol%20–%20Development%20and%20Illustrative%20Analyses%20of%20a%20Detailed%20Global%20Mr%20Ee%20SutIot.pdf

 

 

 

The World Input-Output Database (WIOD) project

Robert Stehrer

OECD-WPTSG meeting

November 18, 2009 – OECD, Paris

Click to access 44197850.pdf

 

 

The World Input-Output Database (WIOD): Construction, Challenges and Applications

Abdul Azeez Erumbana, Reitze Goumaa, Bart Losa,b, Robert Stehrerc, Umed
Temurshoevb, Marcel Timmer a,b,*, Gaaitzen de Vries

Paper prepared for World Bank workshop
“The Fragmentation of Global Production and Trade in Value Added”,
June 9-10, 2011.

Click to access PAPER_13_Erumban_Gouma_Los_Stehrer_Temurshoev_Timmer_deVries.pdf

 

The World Input-Output Database: Content, Concepts and Applications.

Timmer, M. P., Dietzenbacher, E., Los, B., Stehrer, R., & de Vries, G. J.

(2014).

GGDC Working Papers; Vol. GD-144).

Click to access gd144.pdf

 

 

Measuring Global Value Chains with the WIOD (World Input-Output Database)

Marcel Timmer

Groningen Growth and Development Centre
University of Groningen
(presentation at OECD conference,
Paris, 21 September, 2010)

Click to access 1-3_Timmer.pdf

 

 

 

Global value chains, trade, jobs, and environment: The new WIOD database

Hubert Escaith, Marcel Timmer

13 May 2012

https://voxeu.org/article/new-world-input-output-database

 

Wassily Leontief and the discovery of the input-output approach

Olav Bjerkholt

2016

Click to access 877412162.pdf

 

 

 

WHO PRODUCES FOR WHOM IN THE WORLD ECONOMY?

Guillaume Daudin (Lille-I (EQUIPPE) & Sciences Po (OFCE), Christine Rifflart, Danielle
Schweisguth (Sciences Po (OFCE))1

This version: July 2009

Click to access WP2009-18.pdf

 

 

 

An Anatomy of the Global Trade Slowdown based on the WIOD 2016 Release

Marcel P. Timmer, Bart Los,
Robert Stehrer, and Gaaitzen J. de Vries

December 2016

Click to access gd162.pdf

Credit Chains and Production Networks

Credit Chains and Production Networks

There are three kind of flows in a Supply Chain

• Goods
• Information
• Financial

 

Credit Terms in a Supplier Buyer contracts determine payment delays which accumulate in current accounts of a Firm.

• Account Receivables
• Account Payables

 

Credit Relations

• Bank to Bank
• Bank to Firm
• Firm to Firm

Dyad of Credit Relations

• Supplier – Buyer

 

Triad of Credit Relations

• Supplier – Bank – Buyer

Sources of Systemic Risk

• Failure of a Firm and its impact on Suppliers and Customers (Flow of Goods)
• Failure of a Bank and its impact on Trade Credit
• Credit Contraction due to de-risking by the Banks
• Decline in Correspondent Banking relations and its impact on Trade Finance

 

From Credit Chains and Sectoral Co-movement: Does the Use of Trade
Credit Amplify Sectoral Shocks?

Trade credit is an important source of short-term financing for firms, not only in the U.S., as documented by Petersen and Rajan (1997), but also around the World. For instance, accounts payables are larger than short-term debt in 60 percent of the countries covered by Worldscope. Also, across the world most firms simultaneously receive credit from their suppliers and grant it to their customers, which tend to be concentrated on specific sectors.  These characteristics of trade credit financing have led some authors to propose it as a mechanism for the propagation and amplification of idiosyncratic shocks. The intuition behind the mechanism is straightforward; a firm that faces a default by its customers may run into liquidity problems that force it to default to its own suppliers. Therefore, in a network of firms that borrow from each other, a temporary shock to the liquidity of some firms may cause a chain reaction in which other firms also get in financial difficulties, thus resulting in a large and persistent decline in aggregate activity. This idea was first formalized by Kiyotaki and Moore (1997) in a partial equilibrium setting, and has been recently extended to a general equilibrium environment by Cardoso-Lecourtois (2004), and Boissay (2006) who have also provided evidence of the potential quantitative importance of the mechanism by calibrating their models to the cases of Mexico and the U.S., respectively.

From Ontology of Bankruptcy Diffusion through Trade Credit
Channel

A supply network is a network of entities interacting to transform raw material into finished product for customers. Since interdependencies among supply network members on material, information, and finance are becoming increasingly intensive, financial status of one firm not only depends on its own management, but also on the performance and behaviours of other members. Therefore, understanding the financial flows variability and the material interactions is a key to quantify the risk of a firm. Due to the complex structure and dynamic interactions of modern supply networks, there are some difficulties faced by pure analysis approaches in analyzing financial status of the supply network members and the high degree of nonlinear interactions between them. Mathematical and operation research models usually do not function very well for this kind of financial decision making. These models always start with many assumptions and have difficulties modeling such complex systems that include many entities, relationships, features, parameters, and constraints. In addition, traditional modeling and analysis tools lack the ability to predict the impact of a specific event on the performance of the entire supply network.  Current financial data analysis with large volumes of structure data cannot offer the full picture and intrinsic insights into the risk nature of a company. Motivated by the literature gap in risk monitoring in investment background and limitations of analysis approaches for handling bankruptcy contagion phenomenon, we propose an ontological approach to present a formal, shared conceptualization of this domain knowledge.

From Inter-Firm Trade Finance in Times of Crisis

The severe recession that is hitting the global economy, with very low or even negative growth rates, has caused widespread contractions in international trade, both in developed and developing countries. World Trade Organization (WTO) has forecast that exports will decline by roughly 9% in volume terms in 2009 due to the collapse in global demand brought on by the biggest economic downturn in decades. The contraction in developed countries will be particularly severe with exports falling by 10%. In developing countries, which account for one-third of world trade, exports will shrink by some 2% to 3% in 2009.

The contraction in international trade has been accompanied by a sharp decline in the availability of trade finance. This decline is only partly explained by the contraction in demand: according to a BAFT (Banker’s Association for Trade and Finance) and International Monetary Fund (IMF) joint survey (2009), flows of trade finance to developed countries have fallen by 6% relative to the previous year, more than the reduction in trade flows, suggesting that part of the fall reflects a disruption of financial intermediation. The contraction in value of trade finance has also been accompanied by a sharp increase in its price. Fear that the decline in trade finance and the increase in its cost would accelerate the slowdown of world trade has triggered a number of government initiatives in support of trade finance (Chauffour and Farole,2009).

The situation is especially worrisome for firms operating in developing countries which rely heavily on trade finance to support both their exports and imports.1 With a restricted access to financing and an increased cost of financing, these firms may find difficulties in maintaining their production and trade activities.

 

Please see my related posts:

Supply Chain Finance (SCF) / Financial Supply Chain Management (F-SCM)

Production Chain Length and Boundary Crossings in Global Value Chains

Intra Industry Trade and International Production and Distribution Networks

Understanding Trade in Intermediate Goods

Trends in Intra Firm Trade of USA

Production and Distribution Planning : Strategic, Global, and Integrated

Development of Global Trade and Production Accounts: UN SEIGA Initiative

The Dollar Shortage, Again! in International Wholesale Money Markets

FDI vs Outsourcing: Extending Boundaries or Extending Network Chains of Firms

The Collapse of Global Trade during Global Financial Crisis of 2008-2009

Understanding Global Value Chains – G20/OECD/WB Initiative

Economics of Trade Finance

Balance Sheets, Financial Interconnectedness, and Financial Stability – G20 Data Gaps Initiative

Oscillations and Amplifications in Demand-Supply Network Chains

Contagion in Financial (Balance sheets) Networks

 

Key Sources of Research:

 

LIQUIDITY, BUSINESS CYCLES, AND MONETARY POLICY

Nobuhiro Kiyotaki
London School of Economics

John Moore
Edinburgh University and London School of Economics

27 November 2001

Click to access kimo.pdf

 

 

Credit Cycles

Nobuhiro Kiyotaki; John Moore

The Journal of Political Economy, Vol. 105, No. 2.

(Apr., 1997),

Click to access km.pdf

 

Credit chains

Nobuhiro Kiyotaki (Princeton University)

John Moore (University of Edinburgh)

Date January 1997

Click to access id118_esedps.pdf

Click to access Kiyotaki_CreditChains.pdf

 

 

Credit and Business Cycles

N Kiyotaki

1998

Click to access Credit-and-BusinessCycles.pdf

 

 

Inter-Enterprise Credit and Adjustment  During Financial Crises: The Role of Firm Size

Fabrizio Coricelli

Marco Frigerio

July, 2 2016

Click to access Coricelli%2C%20Fabrizio%20paper.pdf

 

 

Credit chains and bankruptcy propagation in production networks

Stefano Battiston, Domenico Delli Gatti, Mauro Gallegati,
Bruce Greenwald, Joseph E. Stiglitz

2007

Click to access 2007_Credit_Chains.pdf

 

 

Trade Finance in Crisis : Market Adjustment or Market Failure ?

Jean-Pierre Chauffour

Thomas Farole

Date Written: July 1, 2009

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1437955

Resaleable debt and systemic risk

Jason Roderick Donaldson , Eva Micheler

2018

Click to access Donaldson-Micheler-Resaleable_Debt.pdf

 

Supply chains and credit-market shocks: Some implications for emerging markets,

Jinjarak, Yothin (2013)

ADBI Working Paper Series, No. 443

Click to access 770887406.pdf

 

 

Financial Amplification Mechanisms and the Federal Reserve’s Supply of Liquidity during the Crisis

Asani Sarkar
Jeffrey Shrader

Staff Report no. 431
February 2010

Click to access sr431.pdf

 

 

Aggregate Fluctuations and the Role of Trade Credit

Lin Shao

2017

Click to access swp2017-37.pdf

 

 

Supply Chain Disruptions and Trade Credit

LU Yi OGURA Yoshiaki

TODO Yasuyuki ZHU Lianming

2017

Click to access 17e054.pdf

 

 

Credit Shocks and Aggregate Fluctuations in  an Economy with Production Heterogeneity

Aubhik Khan

Julia K. Thomas

September 2013

Click to access KhanThomasDCTsept2013.pdf

 

 

Financial Frictions in Production Networks

Saki Bigio

Jennifer La’O

February 7, 2013

Click to access FinancialFrictionsNetworks.pdf

 

Working Paper No. 67, April 2016

Click to access WP-67.pdf

 

 

The Origins of Aggregate Fluctuations in a Credit Network Economy

Levent Altinoglu

October 16, 2016

Click to access Altinoglu_JMP_CurrentVersion.pdf

September 30, 2015

Click to access fcb800d01a5b8dce9ed13a4a200bf51f6fed.pdf

 

Consolidated Bibliography

WTO

Click to access aid4tradesupplychain13_biblio_e.pdf

 

 

Propagation of Financial Shocks in an Input-Output Economy with Trade and Financial Linkages of Firms

Shaowen Luo

December 4, 2015

Click to access Luo.pdf

 

FDI, Trade Credit, and Transmission of Global Liquidity Shocks:
Evidence from Chinese Manufacturing Firms

Shu Lin and Haichun Ye

Click to access Lin–Ye_paper.pdf

 

 

Trade Credit, Financing Structure and Growth

Junjie Xia

October 27, 2016

Click to access jmp_oct16.pdf

 

The impact of corporate distress along the supply chain: evidences from United
States

Lucia Gibilaro

Gianluca Mattarocci

Click to access EFMA2017_0526_fullpaper.pdf

 

 

Does credit crunch investments down?
New evidence on the real eects of the bank-lending channel

Federico Cinganoz Francesco Manaresix Enrico Settex

December 2013

Click to access Credit_crunch_investments.pdf

 

Interwoven Lending, Uncertainty, and Liquidity Hoarding

Adam Zawadowski

December 13, 2017

Click to access credit.pdf

 

 

Trade credit: Elusive insurance of rm growth

DENNIS BAMS, JAAP BOS and MAGDALENA PISA*

October 5, 2016

Click to access Trade%20credit%20Elusive%20insurance%20of%20firm%20growth%202016.pdf

 

 

Chain Reactions, Trade Credit and the Business Cycle

Miguel Cardoso-Lecourtois

Click to access up.4593.1075462930.pdf

 

From production networks to geographical economics.

Gérard Weisbuch, Stefano Battiston.

Journal ofEconomic Behavior and Organization, Elsevier, 2007, 64 (3- 4), pp.448

https://hal.archives-ouvertes.fr/hal-00531863/document

 

 

Production networks and failure avalanches

Gerard Weisbuch
Stefano Battiston

March 5, 2018

Click to access 0507101.pdf

 

 

Self-organised patterns in production networks

Gerard Weisbuch

October 10, 2005

Click to access gwcomplexus.pdf

 

 

Networks : Propagation of Shocks over Economic Networks

Daron Acemoglu

July 22, 2014.

https://economics.mit.edu/files/9790

 

 

Debt-Rank Analysis of Financial Distress Propagation on a Production Network in Japan

FUJIWARA Yoshi
University of Hyogo
TERAI Masaaki
RIKEN
FUJITA Yuji
Turnstone Research Institute, Inc.
SOUMA Wataru
Nihon University

Click to access 16e046.pdf

 

 

Operational causes of bankruptcy propagation in supply chain

Zhongsheng Hua ⁎, Yanhong Sun 1, Xiaoyan Xu

2011

Click to access 48280.pdf

 

 

Propagation of Financial Shocks in an Input-Output Economy with Trade and Financial Linkages of Firms

Shaowen Luo
September 20, 2015

Click to access 10-02-15Luo.pdf

 

 

From Micro to Macro via Production Networks

Vasco M. Carvalho

Click to access carvalho_from_micro.pdf

 

 

Trade Credit and the  Propagation of Corporate Failure: An Empirical
Analysis

Tor Jacobson and Erik von Schedvin
August 2012

Click to access 723939764.pdf

 

CREDIT MARKET DISRUPTIONS AND LIQUIDITY SPILLOVER EFFECTS IN THE SUPPLY CHAIN

Anna M. Costello

August 8, 2017

Click to access costello-anna-acctgcamp2017_0.pdf

 

Modeling defaults of companies in multi-stage supply chain networks

Kamil J.Mizgier, StephanM.Wagner,, JanuszA.Holyst

2010

Click to access Mizgier_etal_InPress_Modeling_defaults_of.pdf

 

 

 

The origins of scale-free production networks

Stanislao Gualdizand Antoine Mandelx

June 28, 2015

Click to access Gualdi.pdf

 

 

Optimization of order policies in supply networks

S. GÄottlich¤ M. Hertyy C. Ringhoferz

August 18, 2008

Click to access FRG-2008-Ringhofer-Christian.FRG_Ringhofer_Orders080814.pdf

 

Financial Instability after Minsky: Heterogeneity, Agent Based Models and Credit
Networks

Domenico Delli Gatti

April 10, 2012

Click to access delli-gatti-domenico-berlin-paper.pdf

 

Measuring the Systemic Risk in Inter firm Transaction Networks

Makoto Hazama
And
Iichiro Uesugi

Click to access wp066.pdf

 

Systemic Risk Assessment in Complex Supply Networks

Anna Ledwoch, Alexandra Brintrup, J¨orn Mehnen, Ashutosh Tiwari

Click to access Ledwoch_etal_SJ_2016_Systemic_risk_assessment_in_complex_supply_networks.pdf

 

TRADE CREDIT DEFAULTS AND LIQUIDITY PROVISION BY FIRMS

Reint Gropp
Frédéric Boissay

2007

Click to access ecbwp753.pdf

 

The future of agent-based modelling.

Matteo Richiardi

Institute for New Economic Thinking and Nuffield College, Oxford, United Kingdom
Collegio Carlo Alberto, Moncalieri, Italy

This draft: June 2015

Click to access abmfuture-v12.pdf

 

 

Financially Constrained Fluctuations in an Evolving Network Economy

Domenico Delli Gatti
Mauro Gallegati
Bruce Greenwald
Alberto Russo
Joseph E. Stiglitz

Click to access DelliGatti%28presentation%29_ABM.pdf

 

 

Credit Chains and Sectoral Comovement: Does the Use of Trade Credit Amplify Sectoral Shocks?

Claudio Raddatz

The World Bank
March, 2007

Click to access Credit_chains_051707_withtables.pdf

 

 

Linkages and spillovers in global production networks: firm-level analysis of the Czech automotive industry

Petr Pavlinek

Pavla Žížalová

https://digitalcommons.unomaha.edu/cgi/viewcontent.cgi?article=1039&context=geoggeolfacpub

 

Ontology of Bankruptcy Diffusion through Trade Credit
Channel

Lin Cheng

Huaiqing Wang

Huaping Chen

Click to access JRPIT44.4.401.pdf

 

OPTIMAL ORDER AND DISTRIBUTION STRATEGIES IN PRODUCTION NETWORKS

Simone Gottlich, Michael Herty, and Christian Ringhofer

Click to access SpringerOpt10.pdf

 

Profitability, Trade Credit and Institutional Structure of Production

Michael Gofman
December 9, 2013

Click to access Supplier-Customer%20Network.pdf

 

The Economics of Information and Financial
Networks

Stefano Battiston
July 22, 2016

Click to access battiston2016information.pdf

 

Supply Chain Perspectives and Issues: A Literature Review

Albert Park
Gaurav Nayyar
Patrick Low

Click to access supply-chain-perspectives-and-issues.pdf

 

 

LIAISONS DANGEREUSES: INCREASING CONNECTIVITY, RISK SHARING, AND SYSTEMIC RISK

Stefano Battiston
Domenico Delli Gatti
Mauro Gallegati
Bruce C. Greenwald
Joseph E. Stiglitz

Click to access w15611.pdf

 

 

Inter-Firm Trade Finance in Times of Crisis

Anna Maria C. Menichini

Click to access WPS5112.pdf

 

 

Reducing the Probability of Bankruptcy Through Supply Chain Coordination

Xiaoyan Xu, Yanhong Sun, and Zhongsheng Hua

2010

Click to access 573eac9d08ae298602e6e77a.pdf

 

 

Pathways towards instability in financial networks

Marco Bardoscia, Stefano Battiston Fabio Caccioli & Guido Caldarelli

2017

Click to access bardoscia2017pathways-1.pdf

 

 

International Credit Supply Shocks

Ambrogio Cesa-Bianchiy Andrea Ferreroz Alessandro Rebuccix

June 16, 2017

https://www.bostonfed.org/-/media/Documents/events/2017/boston-policy-workshop/AlessandroRebucci.pdf?la=en

 

Risk Propagation through Payment Distortion in Supply Chains

Alejandro Serrano

Rogelio Oliva

Santiago Kraiselburd

Click to access 0e6d7dc9d4b4f6bcada884b71562791404ed.pdf

 

 

Payment Defaults and Interfirm Liquidity Provision

Frederic Boissay Reint Gropp

2013

https://academic.oup.com/rof/article-abstract/17/6/1853/1591419

 

SYSTEMIC RISK: A SURVEY

BY OLIVIER DE BANDT
AND PHILIPP HARTMANN

November 2000

Click to access ecbwp0035.pdf

 

 

Risk Propagation in Supply Chains

Alejandro Serrano

Rogelio Oliva

Santiago Kraiselburd

Click to access f3278ab2a75ff11b0142fba19a4cf223805a.pdf

 

 

How Inventory Is (Should Be) Financed: Trade Credit in Supply Chains with Demand
Uncertainty and Costs of Financial Distress

Song (Alex) Yang, John R. Birge

Click to access YangBirge_trade%20credit.pdf

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2746645

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1734682

 

 

The Supply Chain Effects of Bankruptcy

S. Alex Yang

John R. Birge, Rodney P. Parker

Click to access 86a8667f24af2c6a5cd7eb52bbd12b39697b.pdf

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.715.5812&rep=rep1&type=pdf

 

Supply Chain Management: Supplier Financing Schemes and Inventory Strategies

Min Wang

Click to access Min_Wang_Dissertation.pdf

 

Foreign Investment and Supply Chains in Emerging Markets: Recurring Problems and Demonstrated Solutions

Theodore H. Moran

PIIE

2014

Click to access wp14-12.pdf

 

Improving cash flow using credit management
The outline case

Click to access cid_improving_cashflow_using_credit_mgm_Apr09.pdf.pdf

 

CREDIT CHAINS AND THE PROPAGATION OF
FINANCIAL DISTRESS

2006

by Frederic Boissay

Click to access ecbwp573.pdf

 

Exposure to international crises: trade vs. financial contagion

Everett Grant

2016

https://www.esrb.europa.eu/pub/pdf/wp/esrbwp30.en.pdf?7b7cc950c1a2286d395ed8489bfde5c7

 

 

Credit Contagion and Trade Credit Supply:
Evidence from Small Business Data in Japan

TSURUTA Daisuke

Click to access 07e043.pdf

 

 

The Price of Complexity in Financial Networks

Joseph Stiglitz

2017

Click to access The%20Price%20of%20Complexity%20in%20Financial%20Networks.pdf

 

 

The Price of Complexity in Financial Networks

S. Battiston

2017

Click to access 160913_slides_battison.pdf