Introduction

This book is the first of a two-volume series, and focuses on Cross-Border Spillovers in Labor, Financial, Commodities and Real Estate markets and associated Economic Psychology issues (primarily Cross-Border Spillovers from developed countries to Emerging market countries; and to a lesser extent, across industries in the same country). During the last twenty years, geopolitical shocks were a major cause of global market volatility and changes in corporate policies of multinational corporations (MNCs), and thus they have major financial, social and economic implications. Hence, International Political Economy (IPE) issues have been a major change element in global capital markets. Economic Recessions, rapidly changing modes of social interactions, environmental damage in several large countries (e.g. China, Brazil, the United States), the global digital economy, the negative effects of online social networks, the European sovereign debt crisis and the Global Financial Crisis of 2007–2015 exposed weaknesses in financial markets (particularly real estate and fixed income markets), social structures and environmental compliance worldwide and has rekindled economists’ and policy-makers’ interest in the relationships among constitutions, financial/banking regulation, the global digital economy, credit expansion and sustainable growth. More than 110 countries created new constitutions or substantially amended their constitutions during 1990–2010 and many of the new constitutions are based on US- and UK-style constitutions. However, despite international coordination, increased automation, growth of the global digital economy and new laws, financial risk regulation remains highly ineffective as manifested by the failures of new financial regulations and government stimulus programs that were implemented or enacted during 2007–2015 in many developed and developing countries.