To Cut or Not to Cut? That is the (Central Bank`s)
... The concept of the neutral interest rate was originally suggested by Wicksell (1898), who defined the natural real interest as the rate that equates saving and investment (thus, being non-inflationary, or neutral), which in the absence of frictions would equal the marginal product of capital in the ...
... The concept of the neutral interest rate was originally suggested by Wicksell (1898), who defined the natural real interest as the rate that equates saving and investment (thus, being non-inflationary, or neutral), which in the absence of frictions would equal the marginal product of capital in the ...
This PDF is a selection from a published volume from... Bureau of Economic Research
... central bank decides to accept a particular security as collateral at a lower haircut than otherwise available, this always lowers its required return. The required returns of other securities either all increase or all decrease, depending on what happens to the shadow cost of capital. The most intu ...
... central bank decides to accept a particular security as collateral at a lower haircut than otherwise available, this always lowers its required return. The required returns of other securities either all increase or all decrease, depending on what happens to the shadow cost of capital. The most intu ...
perspectives on dynamic asset allocation
... if so, how much should be allocated to it to increase the Sharpe ratio? Finally, a pure funding ratio put is hardly ever used in practice, because such a put is hard to get10. Instead, more partial, ad hoc solutions are applied, such as buying puts on one or more of the funding ratio’s constituent p ...
... if so, how much should be allocated to it to increase the Sharpe ratio? Finally, a pure funding ratio put is hardly ever used in practice, because such a put is hard to get10. Instead, more partial, ad hoc solutions are applied, such as buying puts on one or more of the funding ratio’s constituent p ...
Financial Soundness Indicators: - svgfsa.com
... ◦ Adopted by WOCCU in 1994; ◦ Revolves around the following six groups of indicators that focus on the health of financial institutions. Proposes a system of 44 financial ratios that deal with: ...
... ◦ Adopted by WOCCU in 1994; ◦ Revolves around the following six groups of indicators that focus on the health of financial institutions. Proposes a system of 44 financial ratios that deal with: ...
Currency Strategy 2017-01
... of 3.7% in 2017; well above potential. Capacity pressure is building, primarily in the construction sector, and will contribute to rising inflation through a tightening of the labor market. Headline inflation has remained below target so far, however, primarily due to continued negative tradables in ...
... of 3.7% in 2017; well above potential. Capacity pressure is building, primarily in the construction sector, and will contribute to rising inflation through a tightening of the labor market. Headline inflation has remained below target so far, however, primarily due to continued negative tradables in ...
THE EFFECT OF LENDING INTEREST RATE ON ECONOMIC
... claims on resources relative to future claims on resources. The price a borrower pays in order to be able to consume resources now (Kwak, 2000). ...
... claims on resources relative to future claims on resources. The price a borrower pays in order to be able to consume resources now (Kwak, 2000). ...
East African Community Common Market Protocol
... Tanzania to its commitments to guarantee the free movement of capital within the EAC. These controls encompassed mostly foreign exchange regulations that placed limits on cross-border financial activity thereby slowing down the purchase and sale of securities, money market instruments, bonds and oth ...
... Tanzania to its commitments to guarantee the free movement of capital within the EAC. These controls encompassed mostly foreign exchange regulations that placed limits on cross-border financial activity thereby slowing down the purchase and sale of securities, money market instruments, bonds and oth ...
U.S. Corporate Pension Liability Hedging Views at 6/30/2015.
... This document is not intended to provide, and shall not be relied upon for, accounting, legal or tax advice or investment recommendations. Any accounting, legal, or taxation position described in this presentation is a general statement and shall only be used as a guide. It does not constitute accou ...
... This document is not intended to provide, and shall not be relied upon for, accounting, legal or tax advice or investment recommendations. Any accounting, legal, or taxation position described in this presentation is a general statement and shall only be used as a guide. It does not constitute accou ...
Consumer Loans in Cambodia - Munich Personal RePEc Archive
... stability, provides a positive outlook and expectation for the country and thus is a factor explaining higher demand for housing loans. Moreover, the change of family structure in Cambodia also contributes to higher demand for housing loans, as more newly-wedded couples prefer to move out and live ...
... stability, provides a positive outlook and expectation for the country and thus is a factor explaining higher demand for housing loans. Moreover, the change of family structure in Cambodia also contributes to higher demand for housing loans, as more newly-wedded couples prefer to move out and live ...
2015 Glossary of Senior Living Finance Terms
... 2% of par, depending upon market conditions at the time of bond issuance. Fixed rate bonds usually carry call protection of ten years, but shorter call periods can sometimes be negotiated depending on investor preferences. Variable rate demand bonds do not carry call protection; they may be redeemed ...
... 2% of par, depending upon market conditions at the time of bond issuance. Fixed rate bonds usually carry call protection of ten years, but shorter call periods can sometimes be negotiated depending on investor preferences. Variable rate demand bonds do not carry call protection; they may be redeemed ...
The Federal Reserve sets the nation`s monetary policy to promote
... The Federal Reserve sets the nation’s monetary policy to promote the objectives of maximum employment, stable prices, and moderate long-term interest rates. The challenge for policy makers is that tensions among the goals can arise in the short run and that information about the economy becomes avai ...
... The Federal Reserve sets the nation’s monetary policy to promote the objectives of maximum employment, stable prices, and moderate long-term interest rates. The challenge for policy makers is that tensions among the goals can arise in the short run and that information about the economy becomes avai ...
Chapter 11
... can be diversified by industry or by size of capitalization (small-cap, mid-cap, and large-cap stock portfolios). ...
... can be diversified by industry or by size of capitalization (small-cap, mid-cap, and large-cap stock portfolios). ...
Macroprudential Policy Frameworks and Tools
... some notable differences in the use of MPTs across economies. Advanced Asian economies have made considerably more use of liquidity-based and borrower-based MPTs compared with other advanced economies, which have instead tended to rely more on structural tools (particularly limits on interbank expos ...
... some notable differences in the use of MPTs across economies. Advanced Asian economies have made considerably more use of liquidity-based and borrower-based MPTs compared with other advanced economies, which have instead tended to rely more on structural tools (particularly limits on interbank expos ...
How to Pick Managed Investments
... DALBAR Inc wanted to work out how much of a return retail investors were actually getting from their US mutual fund investments. The return they get isn’t necessarily the same as the average return of mutual funds because hardly anyone buys and holds, they usually chase the performance of funds that ...
... DALBAR Inc wanted to work out how much of a return retail investors were actually getting from their US mutual fund investments. The return they get isn’t necessarily the same as the average return of mutual funds because hardly anyone buys and holds, they usually chase the performance of funds that ...
Returns and Risk
... variability in returns resulting from fluctuations in the overall market common stock affected more than bonds Market risk components: Recessions, wars, structural change in the economy, and changes in consumer preferences 3. Inflation Risk purchasing power risk with unexpected inflation ...
... variability in returns resulting from fluctuations in the overall market common stock affected more than bonds Market risk components: Recessions, wars, structural change in the economy, and changes in consumer preferences 3. Inflation Risk purchasing power risk with unexpected inflation ...
market structure and bank competition conditions
... Controller of the Currency in the United States found that 81 percent out of the 162 failed banks since 1979 were due to not having a loan policy or did not closely follow their loan policy. In addition, 59 percent of these banks did not use an adequate system for identifying problem loans. From thi ...
... Controller of the Currency in the United States found that 81 percent out of the 162 failed banks since 1979 were due to not having a loan policy or did not closely follow their loan policy. In addition, 59 percent of these banks did not use an adequate system for identifying problem loans. From thi ...
Longevity risk - Andrei Simonov
... pensions have mortality as key source of risk. Products exposed to unanticipated changes over time in mortality rates of relevant reference populations. Eg annuity providers exposed to risk that mortality rates of pensioners will fall at faster rate than accounted for in pricing and reserving ca ...
... pensions have mortality as key source of risk. Products exposed to unanticipated changes over time in mortality rates of relevant reference populations. Eg annuity providers exposed to risk that mortality rates of pensioners will fall at faster rate than accounted for in pricing and reserving ca ...
Optimal Fiscal and Monetary Policy
... peace times. Wars are trade barriers. There is more competition and technological innovation during peace times. ...
... peace times. Wars are trade barriers. There is more competition and technological innovation during peace times. ...
SECURITIES AND EXCHANGE COMMISSION Washington, D.C.
... adjusted retroactively for stock dividends. The balance sheet at December 31, 1994 has been derived from audited financial statements at that date. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim ...
... adjusted retroactively for stock dividends. The balance sheet at December 31, 1994 has been derived from audited financial statements at that date. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim ...
Download paper (PDF)
... of 2007, in the last months before the onset of the 2008 -2010 recession. On July 31, 2007, two Bear Stearn’s hedge funds with substantial subprime mortgage portfolios filed for bankruptcy. This was followed a week later on August 7, 2007 by BNP Paribas suspending withdrawals from investment funds t ...
... of 2007, in the last months before the onset of the 2008 -2010 recession. On July 31, 2007, two Bear Stearn’s hedge funds with substantial subprime mortgage portfolios filed for bankruptcy. This was followed a week later on August 7, 2007 by BNP Paribas suspending withdrawals from investment funds t ...
Samuele Murtinu
... • Difficulty in collecting owed money Fire sales of assets • Firms forced to sell assets quickly to raise cash (i.e., acceptance of a lower price; airlines: -15/40% in the selling price of aircrafts) • Subsidiaries ...
... • Difficulty in collecting owed money Fire sales of assets • Firms forced to sell assets quickly to raise cash (i.e., acceptance of a lower price; airlines: -15/40% in the selling price of aircrafts) • Subsidiaries ...
TARP and market discipline - Lund University School of Economics
... 2011). Because the extent of monitoring and discipline reflects the market’s perception of future bailout probabilities, weakened market discipline should be associated with moral hazard. The expectation of diminished market discipline due to bailout expectations is not unambiguous, however. Recent ...
... 2011). Because the extent of monitoring and discipline reflects the market’s perception of future bailout probabilities, weakened market discipline should be associated with moral hazard. The expectation of diminished market discipline due to bailout expectations is not unambiguous, however. Recent ...
foreign bank participation in emerging markets
... Over the years, global banking sector has undergone changes. One of the biggest changes has been the rise in foreign banking, when a large number of countries in emerging markets open their banking sectors to foreign equity participation. A decision to open up domestic markets to foreign entry has b ...
... Over the years, global banking sector has undergone changes. One of the biggest changes has been the rise in foreign banking, when a large number of countries in emerging markets open their banking sectors to foreign equity participation. A decision to open up domestic markets to foreign entry has b ...
Guidance on the Critical Functions Report
... While other less-significant institutions are not covered, the SRB encourages NRAs to use the same format to collect the necessary information for resolution planning. ...
... While other less-significant institutions are not covered, the SRB encourages NRAs to use the same format to collect the necessary information for resolution planning. ...
Financial Cycles with Heterogeneous Intermediaries
... systemic risk) is non-monotonic. We explain here the basic economic intuition behind the workings of the model. Our model features an endogenous non-linearity in the trade-off between monetary policy (which affects the funding costs of intermediaries) and financial stability. When the level of inter ...
... systemic risk) is non-monotonic. We explain here the basic economic intuition behind the workings of the model. Our model features an endogenous non-linearity in the trade-off between monetary policy (which affects the funding costs of intermediaries) and financial stability. When the level of inter ...