Inflation outlook over the next two years has taken a turn for the worse
... Export volume grows as well The fish catch over the first nine months of 2004 was 14% down year-on-year. The main factor at work was a 19% contraction in the pelagic catch. The much more valuable demersal catch increased by 3% in volume terms. Statistics Iceland estimates that catch value, measured ...
... Export volume grows as well The fish catch over the first nine months of 2004 was 14% down year-on-year. The main factor at work was a 19% contraction in the pelagic catch. The much more valuable demersal catch increased by 3% in volume terms. Statistics Iceland estimates that catch value, measured ...
Market and Public Liquidity
... on the real economy. It is therefore important to explore with the benefit of hindsight whether less costly approaches to public liquidity injections aren’t available. This is what we intend to do in this paper, by relying on the analytical framework we developed in Bolton, Santos and Scheinkman (20 ...
... on the real economy. It is therefore important to explore with the benefit of hindsight whether less costly approaches to public liquidity injections aren’t available. This is what we intend to do in this paper, by relying on the analytical framework we developed in Bolton, Santos and Scheinkman (20 ...
Inflation and the Housing Market
... to income in the early years of the contract need not of course be a problem for those households who had intended to save at a rate sufficiently high to satisfy the schedule; but would be a problem for other households and their number would grow rapidly with rising inflation and the sulting speedu ...
... to income in the early years of the contract need not of course be a problem for those households who had intended to save at a rate sufficiently high to satisfy the schedule; but would be a problem for other households and their number would grow rapidly with rising inflation and the sulting speedu ...
Case Objectives - Trinity University
... value (after translating strike rates into dollar values) is called the option’s “intrinsic value.” Options may be valuable even if their intrinsic values are negative. The reason is the time value component equal to the difference between total value and intrinsic value. Time value tends to decreas ...
... value (after translating strike rates into dollar values) is called the option’s “intrinsic value.” Options may be valuable even if their intrinsic values are negative. The reason is the time value component equal to the difference between total value and intrinsic value. Time value tends to decreas ...
Regime Switching Interest Rates and Fluctuations in
... occurrence of crises does not alter the business cycle moments significantly. The key reason for the divergent conclusions lies in the different precautionary savings behavior in both models. In Mendoza (2010), agents accumulate precautionary savings when approaching states in which the collateral c ...
... occurrence of crises does not alter the business cycle moments significantly. The key reason for the divergent conclusions lies in the different precautionary savings behavior in both models. In Mendoza (2010), agents accumulate precautionary savings when approaching states in which the collateral c ...
the use of portfolio credit risk models in central banks
... Credit risk may be defined as the risk of losses due to credit events, i.e. default (an obligor being unwilling or unable to repay its debt) or a change in the quality of the credit (rating change). Central banks may be exposed to at least two different sources of credit risk. The first is related t ...
... Credit risk may be defined as the risk of losses due to credit events, i.e. default (an obligor being unwilling or unable to repay its debt) or a change in the quality of the credit (rating change). Central banks may be exposed to at least two different sources of credit risk. The first is related t ...
Financial globalization or great financial expansion
... accommodative monetary policy, many economies experienced a rapid expansion of credit to firms and households. This “Great Financial Expansion” (Hoogduin, 2014) was not confined to the major financial centers, but occurred in many countries at the same time; it was thus a global phenomenon. For both ...
... accommodative monetary policy, many economies experienced a rapid expansion of credit to firms and households. This “Great Financial Expansion” (Hoogduin, 2014) was not confined to the major financial centers, but occurred in many countries at the same time; it was thus a global phenomenon. For both ...
Bankruptcy Equilibrium: Secured and Unsecured assets
... It turns out that this condition is also sufficient for two states of nature and if agents preferences does not depend on the durable commodity in t = 0. One of the main issues of the pure secured model is that the collateral constraint is too hard for debtors, actually if we consider the durable g ...
... It turns out that this condition is also sufficient for two states of nature and if agents preferences does not depend on the durable commodity in t = 0. One of the main issues of the pure secured model is that the collateral constraint is too hard for debtors, actually if we consider the durable g ...
Is monetary policy less effective when interest rates are persistently
... has gone along with a fall in real (inflation-adjusted) rates to persistently negative levels. Long-term rates have also trended down, albeit more gradually, over this period: in nominal terms, they fell from between 3–4% in 2009 to below 1% in 2016, on average (Graph 1, centre panel); in real terms ...
... has gone along with a fall in real (inflation-adjusted) rates to persistently negative levels. Long-term rates have also trended down, albeit more gradually, over this period: in nominal terms, they fell from between 3–4% in 2009 to below 1% in 2016, on average (Graph 1, centre panel); in real terms ...
Nonbanks and Lending Standards in Mortgage Markets. The
... MBS. By law, only loans insured by the U.S. government (FHA, Veterans A¤airs, Rural Development and Public and Indian Housing) can be securitized into a GNMA-backed product. The theory that we test is as follows: 1) The LCR rule has increased demand from the institutions a¤ected by the rule (and fro ...
... MBS. By law, only loans insured by the U.S. government (FHA, Veterans A¤airs, Rural Development and Public and Indian Housing) can be securitized into a GNMA-backed product. The theory that we test is as follows: 1) The LCR rule has increased demand from the institutions a¤ected by the rule (and fro ...
INSTITUTE OF ECONOMIC STUDIES Faculty of social sciences of
... a swap can reduce the cost of preferred form of funding if a swap’s user has access to a cheaper form of an available but non-preferred cost of funding reasons for interest rate advantage - swap rates reflect standard market yields and are not adjusted to take account of variations in the creditwort ...
... a swap can reduce the cost of preferred form of funding if a swap’s user has access to a cheaper form of an available but non-preferred cost of funding reasons for interest rate advantage - swap rates reflect standard market yields and are not adjusted to take account of variations in the creditwort ...
Swaps - dedeklegacy.cz
... a swap can reduce the cost of preferred form of funding if a swap’s user has access to a cheaper form of an available but non-preferred cost of funding reasons for interest rate advantage - swap rates reflect standard market yields and are not adjusted to take account of variations in the creditwort ...
... a swap can reduce the cost of preferred form of funding if a swap’s user has access to a cheaper form of an available but non-preferred cost of funding reasons for interest rate advantage - swap rates reflect standard market yields and are not adjusted to take account of variations in the creditwort ...
Bondch6s
... short-term yields (rST) are greater (or when short-term prices are lower) and when the yields on short-term government securities (rGST) are lower. Similarly, for long-term corporate bonds let us assume investors have a greater demand for such bonds when their yields (rLT) are higher and the yields ...
... short-term yields (rST) are greater (or when short-term prices are lower) and when the yields on short-term government securities (rGST) are lower. Similarly, for long-term corporate bonds let us assume investors have a greater demand for such bonds when their yields (rLT) are higher and the yields ...
NBER WORKING PAPER SERIES OF BELIEFS. Pierre Collin-Dufresne
... source of credit risk-premium, namely, a contagion risk premium, which is due to a marketwide adverse reaction to a given firm’s default. An implication of this argument is that models which ignore contagion risk may not be well-specified, in turn leading to a JTD risk premium that is biased upward. I ...
... source of credit risk-premium, namely, a contagion risk premium, which is due to a marketwide adverse reaction to a given firm’s default. An implication of this argument is that models which ignore contagion risk may not be well-specified, in turn leading to a JTD risk premium that is biased upward. I ...
To Cut or Not to Cut? That is the (Central Bank`s)
... Bernhardsen and Gerdrup (2007) for an overview). Most of the studies estimate the NRIR in advanced economies and usually concentrate on one country.5 There are only a few studies that estimate the NRIR for emerging economies, with studies for Latin America largely focusing on Chile, Colombia and Bra ...
... Bernhardsen and Gerdrup (2007) for an overview). Most of the studies estimate the NRIR in advanced economies and usually concentrate on one country.5 There are only a few studies that estimate the NRIR for emerging economies, with studies for Latin America largely focusing on Chile, Colombia and Bra ...
Liquidity provision, banking, and the allocation of interest rate risk*
... risks, the economist will note that fluctuations in interest rates affect the economy as a whole, so that interest rate risk is not diversifiuble. The interest-induced valuation risks of long-lived real assets can be shifted from one agent to another, or they can be shared between agents, but they c ...
... risks, the economist will note that fluctuations in interest rates affect the economy as a whole, so that interest rate risk is not diversifiuble. The interest-induced valuation risks of long-lived real assets can be shifted from one agent to another, or they can be shared between agents, but they c ...
Country spreads and emerging countries: Who drives whom?
... change in the interest rate would be interpreted as an exogenous innovation, and therefore part of the accompanying expansion would be erroneously attributed to a spread shock, when in reality it was entirely caused by a domestic improvement in productivity. Another important issue in understanding ...
... change in the interest rate would be interpreted as an exogenous innovation, and therefore part of the accompanying expansion would be erroneously attributed to a spread shock, when in reality it was entirely caused by a domestic improvement in productivity. Another important issue in understanding ...
Market conditions, default risk and credit spreads
... (2005)). It is a rare instance to combine these two data sources. Our CreditTrade dataset spans from June 1997 to March 2006, and our GFI dataset covers the period between January 2002 and November 2006.4 In this study, we use CDS prices for non-sovereign US corporate bond issuers denominated in US ...
... (2005)). It is a rare instance to combine these two data sources. Our CreditTrade dataset spans from June 1997 to March 2006, and our GFI dataset covers the period between January 2002 and November 2006.4 In this study, we use CDS prices for non-sovereign US corporate bond issuers denominated in US ...
A Simple Way to Overcome the Zero Lower Bound of Interest Rates
... ? oil price inflation and 7 , 7* the contemporaneously and serially uncorrelated error terms. So the model consists of an IS-equation (6), a Phillips-curve (7), the Fisher-equation (8) and an equation giving the inflation expectations which rely on the lagged inflation rate and the balance sheet ...
... ? oil price inflation and 7 , 7* the contemporaneously and serially uncorrelated error terms. So the model consists of an IS-equation (6), a Phillips-curve (7), the Fisher-equation (8) and an equation giving the inflation expectations which rely on the lagged inflation rate and the balance sheet ...
PDF
... gasoline prices between 5 and 13 billion gallons. This breakeven point reflects Department of Energy research on the value of ethanol as an octane enhancer in gasoline blends. The demand curve becomes vertical again to reflect the E10 blend wall, which is assumed here to be 13.5 billion gallons for ...
... gasoline prices between 5 and 13 billion gallons. This breakeven point reflects Department of Energy research on the value of ethanol as an octane enhancer in gasoline blends. The demand curve becomes vertical again to reflect the E10 blend wall, which is assumed here to be 13.5 billion gallons for ...
determinants of universal bank lending rate in ghana
... business, which are profitability, liquidity and solvency (Felicia, 2011 John (1998 ) posits that, the ability of universal banks to ensure its liquidity and survival, which contributing towards promoting the growth and development of the economy depends on their effective handling of lending operat ...
... business, which are profitability, liquidity and solvency (Felicia, 2011 John (1998 ) posits that, the ability of universal banks to ensure its liquidity and survival, which contributing towards promoting the growth and development of the economy depends on their effective handling of lending operat ...
Here - Punter Southall Transaction Services
... Whilst legislation allows schemes to utilise bond yields in their valuations directly, the majority of schemes do not choose to do so. Instead they set their discount rate based on the expected return on their assets, taking advantage of some of the flexibility in the funding regime. Data from t ...
... Whilst legislation allows schemes to utilise bond yields in their valuations directly, the majority of schemes do not choose to do so. Instead they set their discount rate based on the expected return on their assets, taking advantage of some of the flexibility in the funding regime. Data from t ...
Answers to End-of-Chapter Problems
... 3. Because the orchard owner likes only bananas but the banana grower doesn’t like apples, the banana grower will not want apples in exchange for his bananas, and they will not trade. Similarly, the chocolatier will not be willing to trade with the banana grower because she does not like bananas. Th ...
... 3. Because the orchard owner likes only bananas but the banana grower doesn’t like apples, the banana grower will not want apples in exchange for his bananas, and they will not trade. Similarly, the chocolatier will not be willing to trade with the banana grower because she does not like bananas. Th ...
Temi di Discussione
... * Bank of Italy, Department for Structural Economic Analysis, [email protected]. * Bank of Italy, Department for Structural Economic Analysis, [email protected]. ...
... * Bank of Italy, Department for Structural Economic Analysis, [email protected]. * Bank of Italy, Department for Structural Economic Analysis, [email protected]. ...
Credit rationing
Credit rationing refers to the situation where lenders limit the supply of additional credit to borrowers who demand funds, even if the latter are willing to pay higher interest rates. It is an example of market imperfection, or market failure, as the price mechanism fails to bring about equilibrium in the market. It should not be confused with cases where credit is simply ""too expensive"" for some borrowers, that is, situations where the interest rate is deemed too high. On the contrary, the borrower would like to acquire the funds at the current rates, and the imperfection refers to the absence of equilibrium in spite of willing borrowers. In other words, at the prevailing market interest rate, demand exceeds supply, but lenders are not willing to either loan more funds, or raise the interest rate charged, as they are already maximising profits.