Financial Markets in The Global Perspective: North & South America


  • Edwin Schumer University of Chicago
  • Catherine Baicker University of Chicago


The paper presents a critique of financial concepts in the global financial markets. The key concepts includes Equity and Debt Financing, Risk of a financial crisis and the economy: Minsky’s theory of financial fragility, with reference to hedge, speculative and Ponzi balance sheets.  Information Asymmetry: Adverse Selection and Moral Hazard in the Context of the Financial Services Industry, Weakened banking sector (extremely low bank capital), rising interest rates and asymmetric information and the onset of a currency and financial crisis. Elaborate illustrations are also presented to aid the contextualization of the global financial markets.

Keywords: Financial Markets, Equity, Debt, Hedge Funds, Information Asymmetry, Currency Devaluation.

Author Biographies

Edwin Schumer, University of Chicago

University of Chicago

Catherine Baicker, University of Chicago

University of Chicago


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How to Cite

Schumer, E., & Baicker, C. (2021). Financial Markets in The Global Perspective: North & South America. Journal of Finance and Accounting, 5(1), 89–99. Retrieved from