Contents of the volume

2017, Volume 70 - Issue 4

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 20 October 2017

SECULAR STAGNATION: IS IT IN THE DATA?

Dimitris Kirikos

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INCOME INEQUALITY AND GROWTH: NEW INSIGHTS FROM ITALY

Bernard Njindan Iyke, Sin-Yu HO

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FOREIGN DIRECT INVESTMENTS, EXPORTS, UNEMPLOYMENT AND ECONOMIC GROWTH IN THE NEW EU MEMBERS – A PANEL DATA APPROACH

Nicholaos Dritsakis, Pavlos Stamatiou

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IS REAL DEPRECIATION OR MORE GOVERNMENT DEBT CONTRACTIONARY? THE CASE OF ROMANIA

Yu Hsing

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HEDGE FUNDS: A POLITICAL AND ECONOMIC ANALYSIS

Cameron J. Gable, Shalendra Sharma

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REASSESSING THE SUSTAINABILITY OF PUBLIC FINANCES IN POLAND: EVIDENCE FROM A MULTICOINTEGRATION APPROACH

Marco Tronzano

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THE ASSOCIATION BETWEEN INCOME INEQUALITY AND HEALTH IN ADVANCED COUNTRIES

Stephen Foreman

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Cameron J. GABLE, University of San Francisco, California, USA

Co-authors

Shalendra SHARMA, University of San Francisco, California, USA

Hedge Funds: A Political and Economic Analysis

Pages

479-508

Abstract

Hedge funds are indispensable to the modern day economy, but remain one of the most poorly understood instruments of financial globalization.  The financial crisis of 2007-2009 propagated fallacious interpretations of the role of hedge funds in precipitating the crisis.  In turn, this has led to unsubstantiated policymaking.  This paper seeks to clarify many of the misconceptions surrounding hedge funds and elucidate their rise to prominence.  It will be argued that the excessive regulation of hedge funds is unnecessary and ultimately detrimental to the global financial system.  Governments can prudently utilize hedge funds because they have the potential to reduce systemic risk and induce innovation.

JEL classification

G15, G21, F30, F38

Keywords

Alternative Investment Vehicles, Assets under Management (AUM), Capital Markets, Long-Term Capital Management, 2007-2009 Financial Crisis

Index

  1. Introduction
  2. Composition and functionality of hedge funds
  3. Origins of hedge funds
  4. The role of hedge funds
  5. The economic effects of hedge funds in the United States
  6. "Herding" and psychological attributes
  7. The role of hedge funds in the 1997 Asian financial crisis
  8. The disruptive effects of hedge funds in Europe
  9. The role of hedge funds in the 2007-2009 financial crisis
  10. Germany and France lead the charge to heavily regulate hedge funds in the EU
  11. The alternative investment fund managers directive (AIFMD)
  12. Effectiveness of other regulations and the broader implications for the global economy
  13. Conclusion

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