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]. ...
Interest Rates and Real Business Cycles in Emerging Markets S. Tolga TİRYAKİ
... savings and investment (the Feldstein-Horioka puzzle), and the countercyclical current account in an open economy with perfect capital mobility. He examines the business cycles in Canada, a typical developed small open economy. He …nds that the Canadian business cycles are characterized by lower rel ...
... savings and investment (the Feldstein-Horioka puzzle), and the countercyclical current account in an open economy with perfect capital mobility. He examines the business cycles in Canada, a typical developed small open economy. He …nds that the Canadian business cycles are characterized by lower rel ...
Cyclicality of Credit Supply: Firm Level Evidence
... the incidence of bank loans, as compared to bonds, is very cyclical. Of firms receiving a bank loan but not issuing a bond in 1993, 16% received a loan but did not issue bonds in 1994, 3% issued bonds but did not get a syndicated loan, and 4% did both (77% did neither). Conditioning on individual fi ...
... the incidence of bank loans, as compared to bonds, is very cyclical. Of firms receiving a bank loan but not issuing a bond in 1993, 16% received a loan but did not issue bonds in 1994, 3% issued bonds but did not get a syndicated loan, and 4% did both (77% did neither). Conditioning on individual fi ...
Personal Finance 2015-2016 CSS Page 1 of 10 Instructional Area
... g. Describe types of lending abuses. Complete loan applications (FI:033) (SP) a. Explain factors that affect whether a person will be granted a loan (e.g., character, capacity, collateral). b. Discuss factors to consider in selecting a loan to obtain. c. Describe how APR impacts choice of loans. d. ...
... g. Describe types of lending abuses. Complete loan applications (FI:033) (SP) a. Explain factors that affect whether a person will be granted a loan (e.g., character, capacity, collateral). b. Discuss factors to consider in selecting a loan to obtain. c. Describe how APR impacts choice of loans. d. ...
A Theory of Banks, Bonds, and the Distribution of Firm Size
... some of the mid-sized firms that switch to bank financing. Further, despite the switching of some firms from bond issues to bank credit when bank monitoring costs fall, the increase in the relative cost of labor among bond issuers actually increases total bond issuance, as these large firms substitu ...
... some of the mid-sized firms that switch to bank financing. Further, despite the switching of some firms from bond issues to bank credit when bank monitoring costs fall, the increase in the relative cost of labor among bond issuers actually increases total bond issuance, as these large firms substitu ...
Have Increases in Federal Reserve Transparency Improved Private
... over the past 15 years, given the increases in Federal Reserve transparency that took place over that period (Table 1). In particular, we document (1) an improvement in financial markets’ ability to forecast the federal funds rate, (2) a reduction in financial market surprises around Federal Open Ma ...
... over the past 15 years, given the increases in Federal Reserve transparency that took place over that period (Table 1). In particular, we document (1) an improvement in financial markets’ ability to forecast the federal funds rate, (2) a reduction in financial market surprises around Federal Open Ma ...
NBER WORKING PAPER SERIES AN EQUILIBRIUM BUSINESS CYCLE FRAMEWORK
... bankruptcy costs that increase the real cost of servicing debt at date 2. In this case, the competitive equilibrium yields two mutually-consistent outcomes. On one hand, there is bankruptcy, that is firms become unable to repay their debt. On the other hand, the equilibrium relative price of nontrad ...
... bankruptcy costs that increase the real cost of servicing debt at date 2. In this case, the competitive equilibrium yields two mutually-consistent outcomes. On one hand, there is bankruptcy, that is firms become unable to repay their debt. On the other hand, the equilibrium relative price of nontrad ...
NBER WORKING PAPER SERIES CREDIT FRICTIONS AND
... bankruptcy costs that increase the real cost of servicing debt at date 2. In this case, the competitive equilibrium yields two mutually-consistent outcomes. On one hand, there is bankruptcy, that is firms become unable to repay their debt. On the other hand, the equilibrium relative price of nontrad ...
... bankruptcy costs that increase the real cost of servicing debt at date 2. In this case, the competitive equilibrium yields two mutually-consistent outcomes. On one hand, there is bankruptcy, that is firms become unable to repay their debt. On the other hand, the equilibrium relative price of nontrad ...
chapter 1 overview of the research thesis
... intermediary for the payment of the economy. In particular, lending is one of the basic activities of the bank, according to which credit institutions delivered to customers in an amount to be used for the purpose and time limit specified in the agreement with the principle of reimbursement principa ...
... intermediary for the payment of the economy. In particular, lending is one of the basic activities of the bank, according to which credit institutions delivered to customers in an amount to be used for the purpose and time limit specified in the agreement with the principle of reimbursement principa ...
Certainty Equivalents and Risk-Adjusted Discount Rates
... 1. Flip a fair coin. If heads comes up, you receive $1 million, but if tails comes up, you get nothing. The expected value of the gamble is (0.5)($1,000,000) ⫹ (0.5)($0) ⫽ $500,000, but the actual outcome will be either $0 or $1 million, so this choice is risky. 2. Do not flip the coin and simply po ...
... 1. Flip a fair coin. If heads comes up, you receive $1 million, but if tails comes up, you get nothing. The expected value of the gamble is (0.5)($1,000,000) ⫹ (0.5)($0) ⫽ $500,000, but the actual outcome will be either $0 or $1 million, so this choice is risky. 2. Do not flip the coin and simply po ...
NBER WORKING PAPERS SERIES TRADE REFORMS, CREDIBILITY, AND DEVELOPMENT
... the policies. A higher degree of risk aversion increases the magnitude of the above policies (i.e., it will increase the rates of private investment tax-cum-subsidy policies). To clarify the role of the integration with the international credit market, we compare the case where there ...
... the policies. A higher degree of risk aversion increases the magnitude of the above policies (i.e., it will increase the rates of private investment tax-cum-subsidy policies). To clarify the role of the integration with the international credit market, we compare the case where there ...
Making Sense of the Subprime Crisis
... mortgages, using information on the firms’ leverage and their stock prices. They found that risk was quite high (and, as a result, the value of the implicit government guarantee on GSE debt was also quite high). Many have argued that a major driver of the subprime crisis was the increased use of sec ...
... mortgages, using information on the firms’ leverage and their stock prices. They found that risk was quite high (and, as a result, the value of the implicit government guarantee on GSE debt was also quite high). Many have argued that a major driver of the subprime crisis was the increased use of sec ...
Shifts from Deposits into Currency
... ultimate result is that funds have been transferred from the public to the corporation or the Treasury with the help of the financial intermediary. The process of indirect finance using financial intermediaries is called financial intermediation and is the primary route for moving funds from lenders ...
... ultimate result is that funds have been transferred from the public to the corporation or the Treasury with the help of the financial intermediary. The process of indirect finance using financial intermediaries is called financial intermediation and is the primary route for moving funds from lenders ...
Price Negotiation in Differentiated Products Markets: Evidence from
... model the potential benefits to consumers of gathering quotes from two brokers rather than just one. They model the negotiation process as an English auction in which the lowest-cost broker wins and pays the cost of the losing broker. Theoretically, our setup is closest to Armstrong and Zhou (2011), ...
... model the potential benefits to consumers of gathering quotes from two brokers rather than just one. They model the negotiation process as an English auction in which the lowest-cost broker wins and pays the cost of the losing broker. Theoretically, our setup is closest to Armstrong and Zhou (2011), ...
Multi-Seller Commercial Paper - Dorris - Artic
... payments may be made from the program-wide credit enhancement facility. The rating of any provider of such program-wide credit enhancement, which may be the conduit’s bank sponsor or a third party, must be at least equal to the rating of the conduit’s commercial paper notes. Forms of program-wide cr ...
... payments may be made from the program-wide credit enhancement facility. The rating of any provider of such program-wide credit enhancement, which may be the conduit’s bank sponsor or a third party, must be at least equal to the rating of the conduit’s commercial paper notes. Forms of program-wide cr ...
Capital and Risk Management Pillar 3 Disclosures for the
... The four functions within the Risk Management group that support our risk management activities are outlined below. To ensure a formal separation of duties, each reports directly to the Chief Risk Officer. Group Market Risk - This unit provides independent oversight of the measurement, monitoring an ...
... The four functions within the Risk Management group that support our risk management activities are outlined below. To ensure a formal separation of duties, each reports directly to the Chief Risk Officer. Group Market Risk - This unit provides independent oversight of the measurement, monitoring an ...
NBER WORKING PAPER SERIES INTERNATIONAL CAPITAL FLOWS AND HOUSE PRICES: Jack Favilukis
... ‡uctuated, to great extent, independently of current and future economic conditions. But credit availability can also change endogenously in response to ‡uctuations in the aggregate economy and to revisions in expectations about future economic conditions, including house price growth. This informa ...
... ‡uctuated, to great extent, independently of current and future economic conditions. But credit availability can also change endogenously in response to ‡uctuations in the aggregate economy and to revisions in expectations about future economic conditions, including house price growth. This informa ...
The Relationship between Credit Growth and the Expected Returns
... bonds, any other industry index, an index of non-financial stocks, or an index of non-financial stocks sorted by balance sheet characteristics. In all these cases, the small predictive power of credit growth, if any, arises from its correlation with business cycle variables, which are known to predi ...
... bonds, any other industry index, an index of non-financial stocks, or an index of non-financial stocks sorted by balance sheet characteristics. In all these cases, the small predictive power of credit growth, if any, arises from its correlation with business cycle variables, which are known to predi ...
The IS-LM-FE Model - Pearson Higher Education
... The curve shown in Fig. 24.2(b) reflects this pattern. At point 3, the goods market is in equilibrium; therefore point 3 lies on the IS curve. Points such as 1 that lie above the IS curve represent an excess supply of goods. Point 1 represents the same level of current output supplied as at point 3 ...
... The curve shown in Fig. 24.2(b) reflects this pattern. At point 3, the goods market is in equilibrium; therefore point 3 lies on the IS curve. Points such as 1 that lie above the IS curve represent an excess supply of goods. Point 1 represents the same level of current output supplied as at point 3 ...
Managing Interest Rate Risk: Duration GAP and Economic
... the corporation’s equity under various changes in interest rates. Rate changes are instantaneous changes from current rates. The change in economic value of equity is derived from the difference between changes in the market value of assets and changes in the market value of liabilities. ...
... the corporation’s equity under various changes in interest rates. Rate changes are instantaneous changes from current rates. The change in economic value of equity is derived from the difference between changes in the market value of assets and changes in the market value of liabilities. ...
International Capital Flows and House Prices: Theory and Evidence*
... were …nanced and traded–appears to have ‡uctuated, to great extent, independently of current and future economic conditions. But credit availability can also change endogenously in response to ‡uctuations in the aggregate economy and to revisions in expectations about future economic conditions, in ...
... were …nanced and traded–appears to have ‡uctuated, to great extent, independently of current and future economic conditions. But credit availability can also change endogenously in response to ‡uctuations in the aggregate economy and to revisions in expectations about future economic conditions, in ...
SECURITIZATION AND MORAL HAZARD: EVIDENCE FROM A
... unit mass. Each borrower has a type x that represents hard information about the borrower that is relevant to predicting the performance of a loan to the borrower (for example, a credit score). Let x ∈ [0, 1] represent both the type of hard information about the borrower and his probability of repay ...
... unit mass. Each borrower has a type x that represents hard information about the borrower that is relevant to predicting the performance of a loan to the borrower (for example, a credit score). Let x ∈ [0, 1] represent both the type of hard information about the borrower and his probability of repay ...
Bank of England Inflation Report May 2008
... prolonged slowdown in demand growth and from the impact of persistently elevated inflation on inflation expectations have both increased since the February Report. Overall, the balance of risks is presently judged to lie to the upside. Financial markets Financial markets remained under stress. The d ...
... prolonged slowdown in demand growth and from the impact of persistently elevated inflation on inflation expectations have both increased since the February Report. Overall, the balance of risks is presently judged to lie to the upside. Financial markets Financial markets remained under stress. The d ...
403(b) – Vendor Charge Comparison Annuities
... These products are offered by investment management companies and brokerage firms. Participants may direct their contributions to various investment portfolios which are managed by the custodian or management company. Investment portfolios can include funds from a single fund family or can consist o ...
... These products are offered by investment management companies and brokerage firms. Participants may direct their contributions to various investment portfolios which are managed by the custodian or management company. Investment portfolios can include funds from a single fund family or can consist o ...
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.