Has Forward Guidance Been Effective?
... economic benefits of committing to accommodation with the potential risks associated with constraining future monetary policy. To allow the FOMC flexibility while still influencing expectations for the future path of interest rates, the Committee chose to issue “more-general rather than more-specifi ...
... economic benefits of committing to accommodation with the potential risks associated with constraining future monetary policy. To allow the FOMC flexibility while still influencing expectations for the future path of interest rates, the Committee chose to issue “more-general rather than more-specifi ...
Mutual Fund Intermediation, Equity Issues, and the Real Economy
... Households invest more in MF when perceived productivity is high (Jank, 2012) ...
... Households invest more in MF when perceived productivity is high (Jank, 2012) ...
Returns and Statistics
... return of 7% every year for 50 years. How much do you have at the end of the 50 years? – Sn=100(1.07)50 = 2945.70 ...
... return of 7% every year for 50 years. How much do you have at the end of the 50 years? – Sn=100(1.07)50 = 2945.70 ...
Week in Focus Price slide: ECB to rush to the rescue
... the sovereign debt crisis flares up once more, and yield premiums of peripheral bonds versus Bunds rise again. Long-dated government bonds from Italy and Spain trade at a yield of 5.9% and 5.7%, respectively. Against this backdrop the economy in the euro area contracts in 2014 and 2015 by 0.7% and 1 ...
... the sovereign debt crisis flares up once more, and yield premiums of peripheral bonds versus Bunds rise again. Long-dated government bonds from Italy and Spain trade at a yield of 5.9% and 5.7%, respectively. Against this backdrop the economy in the euro area contracts in 2014 and 2015 by 0.7% and 1 ...
Preliminary Results Announcement
... 08 vs March 07 Impaired loans at March 07 of 54bps was significantly below 10-year average of 96bps March 08 at 78bps sees a reversion to trend Rigorous approach to managing credit risk in changing environment – early intervention of problem accounts and active portfolio management ...
... 08 vs March 07 Impaired loans at March 07 of 54bps was significantly below 10-year average of 96bps March 08 at 78bps sees a reversion to trend Rigorous approach to managing credit risk in changing environment – early intervention of problem accounts and active portfolio management ...
Scenarios on the sovereign debt crisis
... ■ Bank balance sheets improve quickly and credit growth resumes ■ Strong growth boosts tax revenues/cuts ...
... ■ Bank balance sheets improve quickly and credit growth resumes ■ Strong growth boosts tax revenues/cuts ...
Chilean tax ruling may affect foreign institutional investors
... than fifteen clients during the preceding twelve months, (ii) did not hold themselves out generally to the public as investment advisers, and (iii) were not advisers to any registered investment company under the ’40 Act. Advisers taking advantage of this private adviser exemption were still require ...
... than fifteen clients during the preceding twelve months, (ii) did not hold themselves out generally to the public as investment advisers, and (iii) were not advisers to any registered investment company under the ’40 Act. Advisers taking advantage of this private adviser exemption were still require ...
Will crowdfunding contribute to financial development in developing
... Many borrowers turning to the crowd for funding are rejected. Success rates are in the range between low single digits to upward of 40% (Mach 2014, Massolution 2015). Much depends on early contributions, as funding propensity increases with accumulated capital indicating herding behavior by investo ...
... Many borrowers turning to the crowd for funding are rejected. Success rates are in the range between low single digits to upward of 40% (Mach 2014, Massolution 2015). Much depends on early contributions, as funding propensity increases with accumulated capital indicating herding behavior by investo ...
Folie 1 - Rainer Maurer
... What was most severe, was the hardship which with this stock market crisis hit the real economy: ■ Since many people – from business man to worker – had invested in stock, many people lost net wealth. ■ Their lower net wealth led to lower demand for goods. ■ In the short run, firms adjusted their su ...
... What was most severe, was the hardship which with this stock market crisis hit the real economy: ■ Since many people – from business man to worker – had invested in stock, many people lost net wealth. ■ Their lower net wealth led to lower demand for goods. ■ In the short run, firms adjusted their su ...
Credit cycles and systemic risk - Centre de Recerca en Economia
... banking crises tend to lead sovereign-debt crises (with an increase in domestic government debt). Their results suggest that banking crises increase broader debt crises (Kaminsky and Reinhart, 1999). All in all, the results point out that ex-ante leverage is crucial to explain banking crises, and t ...
... banking crises tend to lead sovereign-debt crises (with an increase in domestic government debt). Their results suggest that banking crises increase broader debt crises (Kaminsky and Reinhart, 1999). All in all, the results point out that ex-ante leverage is crucial to explain banking crises, and t ...
Lecture Notes
... monetary exposure of the parties under the terms of the derivative instrument. As money usually is not due until the specified date of performance of the parties' obligations, lack of up-front commitment of cash may obscure the eventual monetary significance of the parties' obligations. An often ove ...
... monetary exposure of the parties under the terms of the derivative instrument. As money usually is not due until the specified date of performance of the parties' obligations, lack of up-front commitment of cash may obscure the eventual monetary significance of the parties' obligations. An often ove ...
19 - Commercial Real Estate Analysis and Investment
... 2) Buy shorter-term bonds, then reinvest when they mature. o But then she would be subject to “reinvestment risk”: o The mkt interest rates at which she will have to reinvest might be lower when the short-term bonds mature. 3) Buy longer-term bonds (>5yrs maturity), and sell them in 5 yrs. o But the ...
... 2) Buy shorter-term bonds, then reinvest when they mature. o But then she would be subject to “reinvestment risk”: o The mkt interest rates at which she will have to reinvest might be lower when the short-term bonds mature. 3) Buy longer-term bonds (>5yrs maturity), and sell them in 5 yrs. o But the ...
Modelling Financial Instability: A Survey of the
... of models focuses on how runs on banks originate. These models identify coordination failure as the root of banks’ vulnerability to runs. Section 3 reviews models of bank runs based on coordination failure. Coordination failure can cause one bank or an entire banking system to fail. However, in the ...
... of models focuses on how runs on banks originate. These models identify coordination failure as the root of banks’ vulnerability to runs. Section 3 reviews models of bank runs based on coordination failure. Coordination failure can cause one bank or an entire banking system to fail. However, in the ...
Liquid Assets Strategies in Silesian Non
... present net value always equals zero. It would be a result of the statement that due to the fact that marginal liquidity value is always equal to interests lost, cash reserves size has no significance at all (Henderson 1989, p. 95; Kim 1998, Lee 1990, p. 540). For organization being in possession of ...
... present net value always equals zero. It would be a result of the statement that due to the fact that marginal liquidity value is always equal to interests lost, cash reserves size has no significance at all (Henderson 1989, p. 95; Kim 1998, Lee 1990, p. 540). For organization being in possession of ...
Professeur à l`Ecole Polytechnique et Président d`AMAFI
... discovered that instead of dispersing risks in the marketplace, shadow banking transactions actually concentrated them in the banking system. We must really believe that these rules (in particular Basel III, which is fairly quantitative and supervised) are serious, otherwise we have a big problem. ...
... discovered that instead of dispersing risks in the marketplace, shadow banking transactions actually concentrated them in the banking system. We must really believe that these rules (in particular Basel III, which is fairly quantitative and supervised) are serious, otherwise we have a big problem. ...
Download (PDF)
... Households live for two periods and take prices as given. In the first period, they supply an exogenous amount of labor Nt which is measured in efficiency units, such that changes in labor supply reflect population growth, human capital formation, and labor-augmenting technical progress. Nominal wag ...
... Households live for two periods and take prices as given. In the first period, they supply an exogenous amount of labor Nt which is measured in efficiency units, such that changes in labor supply reflect population growth, human capital formation, and labor-augmenting technical progress. Nominal wag ...
A Model of Monetary Policy and Risk Premia
... securities to command a premium in equilibrium. This liquidity premium depends on the nominal interest rate. The liquidity premium of reserves equals the nominal rate because that is the opportunity cost of holding them. The liquidity premium of government bonds is likewise proportional to the nomin ...
... securities to command a premium in equilibrium. This liquidity premium depends on the nominal interest rate. The liquidity premium of reserves equals the nominal rate because that is the opportunity cost of holding them. The liquidity premium of government bonds is likewise proportional to the nomin ...
160715 gmp q3
... In the wake of the Greek referendum on the 5th of July, which resulted in a resounding “no” to Europe’s bailout offer, financial markets are likely to remain volatile in the near term. However, as it becomes apparent that exposure to Greece is very limited and contagion from Greece is under control, ...
... In the wake of the Greek referendum on the 5th of July, which resulted in a resounding “no” to Europe’s bailout offer, financial markets are likely to remain volatile in the near term. However, as it becomes apparent that exposure to Greece is very limited and contagion from Greece is under control, ...
Capital Market
... - Settlement instructions for OTC trades are sent to SIX SIS via SWIFT or proprietary messaging systems . - SIX x-Clear is the Clearing House and CCP for Swiss market. It is also interoperable in UK market as CCP. - SIX SIS has direct links to ICSDs and some CSDs. To some other CSDs it uses local cu ...
... - Settlement instructions for OTC trades are sent to SIX SIS via SWIFT or proprietary messaging systems . - SIX x-Clear is the Clearing House and CCP for Swiss market. It is also interoperable in UK market as CCP. - SIX SIS has direct links to ICSDs and some CSDs. To some other CSDs it uses local cu ...
Managing risk in a topsy-turvy world
... and you may not get back the amount that you invest. Past performance is not a guide to future returns. Fund performance figures do not include any initial charge; if this is paid it will reduce performance from that shown. Opinions expressed whether in general or both on the performance of individu ...
... and you may not get back the amount that you invest. Past performance is not a guide to future returns. Fund performance figures do not include any initial charge; if this is paid it will reduce performance from that shown. Opinions expressed whether in general or both on the performance of individu ...
Deposit Insurance Reform: or, Deregulation Is the Cart, Not the Horse
... What the alternatives are depends on why bank depositors or creditors are insured. In the first and second parts of this paper, I consider two possible objectives: in the first, protecting those who are both poor and financially naive and, in the second, preventing bank runs. As it happens, our pres ...
... What the alternatives are depends on why bank depositors or creditors are insured. In the first and second parts of this paper, I consider two possible objectives: in the first, protecting those who are both poor and financially naive and, in the second, preventing bank runs. As it happens, our pres ...
1 ITEM 8 UNDERSTANDING FINANCIAL STATEMENTS It is
... months from the date of the balance sheet. a. ...
... months from the date of the balance sheet. a. ...
A Problem With the Pure Time Preference Theory of Interest:
... It is obvious from his general remarks, as well as his example of strawberries, that Hayek is perfectly aware of the possibilities illustrated in our hypothetical economy in Table 1. It is also noteworthy that Hayek has no problem with the notion that at least for some goods, a marginal present unit ...
... It is obvious from his general remarks, as well as his example of strawberries, that Hayek is perfectly aware of the possibilities illustrated in our hypothetical economy in Table 1. It is also noteworthy that Hayek has no problem with the notion that at least for some goods, a marginal present unit ...