Disintermediation and the Development of Bond Markets in Emerging Europe

Posted: 17 Nov 2003

See all articles by Jonathan A. Batten

Jonathan A. Batten

RMIT University

Thomas Fetherston

University of Alabama at Birmingham

Peter G. Szilagyi

EDHEC Business School

Abstract

The recent financial crises in Asia and Russia have shown that emerging European economies, due to their strong dependence on foreign capital, are highly vulnerable to the excessive volatility of international capital flows. Those economies that pursued sound macroeconomic policies, including setting up functioning financial market systems, have held up well and avoided major spillover effects. We argue that the appropriate approach to meet future refinancing needs is through the development of viable domestic and international bond markets. A key benefit of this strategy will be a reduction in systemic risk and the probability of future crisis.

Keywords: Disintermediation, Bond Markets, Emerging Markets

JEL Classification: E44, F33, G18

Suggested Citation

Batten, Jonathan A. and Fetherston, Thomas A. and Szilagyi, Peter G., Disintermediation and the Development of Bond Markets in Emerging Europe. Available at SSRN: https://ssrn.com/abstract=463401

Jonathan A. Batten (Contact Author)

RMIT University ( email )

Level 12, 239 Bourke Street
Melbourne, Victoria
Australia

HOME PAGE: http://https://www.rmit.edu.au/contact/staff-contacts/academic-staff/b/batten-professor-jonathan

Thomas A. Fetherston

University of Alabama at Birmingham ( email )

Birmingham, AL 35294
United States
205-934-8860 (Phone)
205-975-6234 (Fax)

Peter G. Szilagyi

EDHEC Business School ( email )

24 Av. Gustave Delory
Roubaix, 59057
France

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
1,028
PlumX Metrics