Norbert Gaillard – författare

Moral Hazard is a core concept in economics. In a nutshell, moral hazard reflects the reduced incentive to protect against risk where an entity is (or believes it will be) protected from its consequences, whether through an insurance arrangement or an implicit or explicit guarantee system. It is fundamentally driven by information asymmetry, arises in all sectors of the economy, including banking, medical insurance, financial insurance, and governmental support, undermines the stability of our economic systems and has burdened taxpayers in all developed countries, resulting in significant costs to the community. Despite the seriousness and pervasiveness of moral hazard, policymakers and scholars have failed to address this issue. This book fills this gap.

It covers 200 years of moral hazard: from its origins in the 19th century to the bailouts announced in the aftermath of the COVID-19 outbreak. The book is divided into three parts. Part I deals with the ethics and other fundamental issues connected to moral hazard. Part II provides historical and empirical evidence on moral hazard in international finance. It examines in turn the role of the export credit industry, the international lender of last resort, and the IMF. Finally, Part III examines specific sectors such as automobile, banking, and the US industry at large.

This is the first book to provide an interdisciplinary analysis of moral hazard and explain why addressing this issue has become crucial today. As such, it will attract interest from scholars across different fields, including economists, political scientists and lawyers.

Moral Hazard is a core concept in economics. In a nutshell, moral hazard reflects the reduced incentive to protect against risk where an entity is (or believes it will be) protected from its consequences, whether through an insurance arrangement or an implicit or explicit guarantee system. It is fundamentally driven by information asymmetry, arises in all sectors of the economy, including banking, medical insurance, financial insurance, and governmental support, undermines the stability of our economic systems and has burdened taxpayers in all developed countries, resulting in significant costs to the community. Despite the seriousness and pervasiveness of moral hazard, policymakers and scholars have failed to address this issue. This book fills this gap.

It covers 200 years of moral hazard: from its origins in the 19th century to the bailouts announced in the aftermath of the COVID-19 outbreak. The book is divided into three parts. Part I deals with the ethics and other fundamental issues connected to moral hazard. Part II provides historical and empirical evidence on moral hazard in international finance. It examines in turn the role of the export credit industry, the international lender of last resort, and the IMF. Finally, Part III examines specific sectors such as automobile, banking, and the US industry at large.

This is the first book to provide an interdisciplinary analysis of moral hazard and explain why addressing this issue has become crucial today. As such, it will attract interest from scholars across different fields, including economists, political scientists and lawyers.

Despite the growing consensus that the rise of China is transforming international relations, policy makers and scholars have not sufficiently addressed the geopolitical and geoeconomic implications of a new paradigm, especially since the Covid-19 pandemic and the Russo-Ukrainian war. This book fills this gap.

This is an original and innovative book that investigates how a new modus vivendi between China and the United States in a post-globalized world requires more economic independence because of the distrust between G20 economies but heightened international cooperation, in order to avert a shift to nationalism and protectionism and to fight financial and climate crises.

The book is divided into four parts. Part I investigates the specific features of Chinese and U.S. capitalisms; Part II argues that several flaws observed in the multilateral architecture since the early 2000s have caused global imbalances and increased misunderstanding and mistrust between the two superpowers; Part III analyzes how the China-U.S. rivalry has manifested in Asia, Latin America, and in terms of global development finance and finally, Part IV provides a blueprint for a successful and revamped international order. The book provides an ambitious interdisciplinary analysis of the future of multilateralism and globalization with contributions from economists, lawyers, and political scientists.

Due to its multidisciplinary approach, the book will attract the interest of scholars and postgraduate students from wide ranging fields, as well as practitioners working in international organizations, policy makers and more generally educated lay readers interested in the topic.

Despite the growing consensus that the rise of China is transforming international relations, policy makers and scholars have not sufficiently addressed the geopolitical and geoeconomic implications of a new paradigm, especially since the Covid-19 pandemic and the Russo-Ukrainian war. This book fills this gap.

This is an original and innovative book that investigates how a new modus vivendi between China and the United States in a post-globalized world requires more economic independence because of the distrust between G20 economies but heightened international cooperation, in order to avert a shift to nationalism and protectionism and to fight financial and climate crises.

The book is divided into four parts. Part I investigates the specific features of Chinese and U.S. capitalisms; Part II argues that several flaws observed in the multilateral architecture since the early 2000s have caused global imbalances and increased misunderstanding and mistrust between the two superpowers; Part III analyzes how the China-U.S. rivalry has manifested in Asia, Latin America, and in terms of global development finance and finally, Part IV provides a blueprint for a successful and revamped international order. The book provides an ambitious interdisciplinary analysis of the future of multilateralism and globalization with contributions from economists, lawyers, and political scientists.

Due to its multidisciplinary approach, the book will attract the interest of scholars and postgraduate students from wide ranging fields, as well as practitioners working in international organizations, policy makers and more generally educated lay readers interested in the topic.

The financial difficulties experienced by Greece since 2009 serve as a reminder that countries (i.e., sovereigns) may default on their debt. Many observers considered the financial turmoil was behind us because major advanced countries had adopted stimulus packages to prevent banks from going bankrupt. However, there are rising doubts about the creditworthiness of several advanced countries that participated in the bailouts. In this uncertain context, it is particularly crucial to be knowledgeable about sovereign ratings. This book provides the necessary broad overview, which will be of interest to both economists and investors alike.

Chapter 1 presents the main issues that are addressed in this book. Chapters 2, 3, and 4 provide the key notions to understand sovereign ratings. Chapter 2 presents an overview of sovereign rating activity since the first such ratings were assigned in 1918. Chapter 3 analyzes the meaning of sovereign ratings and the significance of rating scales; it also describes the refinement of credit rating policies and tools. Chapter 4 focuses on the sovereign rating process. Chapters 5 and 6 open the black box of sovereign ratings. Chapter 5 compares sovereign rating methodologies in the interwar years with those in the modern era. After examining how rating agencies have amended their methodologies since the 1990s, Chapter 6 scrutinizes rating disagreements between credit rating agencies (CRAs). Chapters 7 and 8 measure the performances of sovereign ratings by computing default rates and accuracy ratios: Chapter 7 looks at the interwar years and Chapter 8 at the modern era. The two chapters assess which CRA assigns the most accurate ratings during the respective periods. Chapters 9 and 10 compare the perception of sovereign risk by the CRAs and market participants. Chapter 9 focuses on the relation between JP Morgan Emerging Markets Bond Index Global spreads and emerging countries’ sovereign ratings for the period 1993–2007.Chapter 10 compares the eurozone members’ sovereign ratings with Credit Default Swap-Implied Ratings (CDS-IRs) during the Greek debt crisis of November 2009–May 2010.

“This publication could not be more timely. Little more than a decade after the global financial crisis of 2008, governments are once again loosening the reins over financial markets. The authors of this volume explain why that is a mistake and could invite yet another major crisis.”—Benjamin Cohen, University of California, Santa Barbara, USA

“Leading political scientists from several generations here offer historical depth, as well as sensible suggestions about what reforms are needed now.”—John Kirton, University of Toronto, Canada, and Co-founder of the G7 Research Group

“A valuable antidote to complacency for policy-makers, scholars and students.”—Timothy J. Sinclair, University of Warwick, UKThis book examines the long-term, previously underappreciated breakdowns in financial regulation that fed into the 2008 global financial crash. While most related literature focuses on short-term factors such as the housing bubble, low interest rates, the breakdown of credit rating services and the emergence of new financial instruments, the authors of this volume contend that the larger trends in finance which continue today are most relevant to understanding the crash. Their analysis focuses on regulatory capture, moral hazard and the reflexive challenges of regulatory intervention in order to demonstrate that financial regulation suffers from long-standing, unaddressed and fundamental weaknesses.