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Credit Rating Agencies: Culprits or Scapegoats? On Competition in the Industry

Credit Rating Agencies: Culprits or Scapegoats? On Competition in the Industry
Throughout history, no single professional financial-market participant has been blamed with such concentrated intensity and pervasiveness as credit rating agencies (CRAs) after 2007. Banks follow in a distant second place; in any case, they are partly excused because they were reportedly confused by the CRAs’ action (or absence of action). Stimulated by media and demanding public opinions, policy makers have willingly entered into the rules of the industry’s game. All policy makers from multilateral to national, governments, parliaments and authorities have had their say. The result was, e.g. in...
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Whom Are We Going With?

Whom Are We Going With?
By 30 November Australia will have a new parliament. Before then, however, her citizens will have to solve a puzzling dilemma: whom do they want to go with? With the USA or the People’s Republic of China? The dilemma has been recently proposed by the academic and commentator, Hugh White. To be fair, most politicians and observers, including the recently ousted Prime Minister, Julia Gillard, believe that there is no need to choose at all. On the one hand, the USA would continue being Australia’s main security provider, obviously bearing in mind that in the most recent Defence White Paper (2009), the...
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China-USA: Investment Negotiations have a Long Way to Go

China-USA: Investment Negotiations have a Long Way to Go
Depending on the point of view, the economic crisis either provokes depression or inspires brilliance.  In the first case, the perception of decline prevails, a horizon with new players on the international scene.  In the second, an opportunity is presented to study the possible methods of managing and not succumbing to the redistribution of power.  Some equations can be solved while others remain inextricable.  The commercial and political accords that subtend the issue are visible on the front pages of newspapers.  The US and Asia’s attempts to contain China are evident in their work to form a...
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China: GDP slows to a more sustainable economic model

China: GDP slows to a more sustainable economic model
Is a slight flutter in the Chinese GDP—a 0.2% diminution—sufficient to cause a squall in the real and financial economies?  Can explaining a financial table determine chaos?  If this is possible in general and in a globalized economy, it is very less so in China’s case.  The latest data reports indicate a 7.5% second trimester growth with respect to the same time period last year.  Perhaps the predicted 7.5% annual growth will not be realized.  The alarm has sounded in offices across industrialized nations, in universities, and newsrooms.  But is Beijing equally worried?  According to...
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China Development Bank’s financing mechanisms: focus on foreign investments

China Development Bank’s financing mechanisms: focus on foreign investments
China Development Bank (CDB) makes use of different methods to promote overseas investments in infrastructure projects, expand its global portfolio and support Chinese companies abroad. It provides financing to Chinese firms, stipulates energy-backed loans to foreign authorities and national oil companies and invests in private equity funds. This paper outlines and discusses these schemes. Background China Development Bank is a major financial institution in the People’s Republic of China. It is at the center of Chinese infrastructural development and has financed high-speed railways, roads,...
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