Prospective Interest Rate Differential and Currency Returns
... into the permanent and transitory components. Under this decomposition, the temporary component follows an exogenous autocorrelated time-series process, which simultaneously determines the dynamics of short rate, as well as the cross-section of long-term government bond returns. A salient feature of ...
... into the permanent and transitory components. Under this decomposition, the temporary component follows an exogenous autocorrelated time-series process, which simultaneously determines the dynamics of short rate, as well as the cross-section of long-term government bond returns. A salient feature of ...
This PDF is a selection from a published volume from... Bureau of Economic Research Volume Title: Housing and the Financial Crisis
... on how these variables are related to real house price movements in recent data. Our main measure of credit standards is compiled from quarterly bank surveys of senior loan officers, carried out by national central banks as part of their regulatory oversight. We consider this a summary indicator of flu ...
... on how these variables are related to real house price movements in recent data. Our main measure of credit standards is compiled from quarterly bank surveys of senior loan officers, carried out by national central banks as part of their regulatory oversight. We consider this a summary indicator of flu ...
The Economic Viability of Microfinancing in Pennsylvania
... approximately 82 percent of the owners of microenterprises (microentrepreneurs) have never received a bank loan (Burrus, 2005). Of the 82 percent, 86 percent never applied for a bank loan, and 14 percent applied but were rejected. Burrus estimated that less than 1 percent of microentrepreneurs recei ...
... approximately 82 percent of the owners of microenterprises (microentrepreneurs) have never received a bank loan (Burrus, 2005). Of the 82 percent, 86 percent never applied for a bank loan, and 14 percent applied but were rejected. Burrus estimated that less than 1 percent of microentrepreneurs recei ...
Zvi NBER WORKING PAPER SERIES
... tegy whereby contracts were entered into at quarterly intervals, held for three months, and then liquidated. The number of commodities increases from 13 in 1953 to 22 by ...
... tegy whereby contracts were entered into at quarterly intervals, held for three months, and then liquidated. The number of commodities increases from 13 in 1953 to 22 by ...
Interest Rates and Monetary Policy Uncertainty
... real balances. In a model with infinitely-lived agents, perfect markets and no agency costs, one would expect households to capitalize future transfers, as otherwise, with heterogeneous households, welfare could be increased by the opening of a market for claims on future transfers. However, it may ...
... real balances. In a model with infinitely-lived agents, perfect markets and no agency costs, one would expect households to capitalize future transfers, as otherwise, with heterogeneous households, welfare could be increased by the opening of a market for claims on future transfers. However, it may ...
MACRO HEDGING OF INTEREST RATE RISK INTRODUCTION
... Nevertheless, there are events out of the ordinary that can cause a macro hedge to be ineffective. Such ineffectiveness can only arise when actual events are different from the respective behavioural assumption (as mentioned in section I.C) which the model was based on, such as when the observed vol ...
... Nevertheless, there are events out of the ordinary that can cause a macro hedge to be ineffective. Such ineffectiveness can only arise when actual events are different from the respective behavioural assumption (as mentioned in section I.C) which the model was based on, such as when the observed vol ...
Performance Evaluation
... The initial value is compounded forward at the interest rate R because P0 is a "time-zero" value. The rest of the cash flows is split into two: half is modeled as being paid at the beginning (and thus needs to be compounded forward at the rate R), while the other half is modeled as being paid at the ...
... The initial value is compounded forward at the interest rate R because P0 is a "time-zero" value. The rest of the cash flows is split into two: half is modeled as being paid at the beginning (and thus needs to be compounded forward at the rate R), while the other half is modeled as being paid at the ...
Performance Evaluation
... The initial value is compounded forward at the interest rate R because P0 is a "time-zero" value. The rest of the cash flows is split into two: half is modeled as being paid at the beginning (and thus needs to be compounded forward at the rate R), while the other half is modeled as being paid at the ...
... The initial value is compounded forward at the interest rate R because P0 is a "time-zero" value. The rest of the cash flows is split into two: half is modeled as being paid at the beginning (and thus needs to be compounded forward at the rate R), while the other half is modeled as being paid at the ...
House Prices, Sales and Time on the Market: A Search
... time. That is, adjustments in the housing market seem to take place not only through prices and quantities, as in a Walrasian world, but also through the degree of liquidity; i.e., how easy/hard it is to sell a property. Whereas in “hot” real estate markets prices and sales rise and time-on-the-mark ...
... time. That is, adjustments in the housing market seem to take place not only through prices and quantities, as in a Walrasian world, but also through the degree of liquidity; i.e., how easy/hard it is to sell a property. Whereas in “hot” real estate markets prices and sales rise and time-on-the-mark ...
Asia Pacific Real Estate Strategic Outlook
... can increase supply of this property type to meet the very high specifications of tenants. Residential development is also another familiar opportunistic play although margins have since fallen in China. As consolidation in China’s property sector continues, the recapitalisation of some cash-starved ...
... can increase supply of this property type to meet the very high specifications of tenants. Residential development is also another familiar opportunistic play although margins have since fallen in China. As consolidation in China’s property sector continues, the recapitalisation of some cash-starved ...
Endogenous Interest rate Wedge and Productivity Growth in an
... The paper belongs to the literature on pattern of capital flows across developing and developed economies, where financial friction is used to generate the uphill capital flows from the former to latter group. Frictions that impact saving includes the quality of institution (Lucas 1990, Alfaro, Kale ...
... The paper belongs to the literature on pattern of capital flows across developing and developed economies, where financial friction is used to generate the uphill capital flows from the former to latter group. Frictions that impact saving includes the quality of institution (Lucas 1990, Alfaro, Kale ...
Country Spreads and Emerging Countries: Who Drives Whom?
... In this paper, we attempt to disentangle the intricate interrelations between country spreads, the world interest rate, and business cycles in emerging countries. We do so using a methodology that combines empirical and theoretical analysis. We begin by estimating a VAR system that includes measure ...
... In this paper, we attempt to disentangle the intricate interrelations between country spreads, the world interest rate, and business cycles in emerging countries. We do so using a methodology that combines empirical and theoretical analysis. We begin by estimating a VAR system that includes measure ...
29.00 - fimmda
... (b) Does the Exporter make a loss of 9.80 ? The Exporter’s Decision was to protect his business profit of Rs 10.00, which he has done by delivering the USD at the contracted rate of 1 USD= Rs 39.20. The Exporter suffers an “Opportunity Loss” by protecting himself against all Exchange Rate ...
... (b) Does the Exporter make a loss of 9.80 ? The Exporter’s Decision was to protect his business profit of Rs 10.00, which he has done by delivering the USD at the contracted rate of 1 USD= Rs 39.20. The Exporter suffers an “Opportunity Loss” by protecting himself against all Exchange Rate ...
NBER WORKING PAPER SERIES COUNTRY SPREADS AND EMERGING COUNTRIES: WHO DRIVES WHOM?
... In this paper, we attempt to disentangle the intricate interrelations between country spreads, the world interest rate, and business cycles in emerging countries. We do so using a methodology that combines empirical and theoretical analysis. We begin by estimating a VAR system that includes measure ...
... In this paper, we attempt to disentangle the intricate interrelations between country spreads, the world interest rate, and business cycles in emerging countries. We do so using a methodology that combines empirical and theoretical analysis. We begin by estimating a VAR system that includes measure ...
Slides part 13 :Financial Crisis
... - Rise in real estate prices : money that was on the stock market has moved to the real estate market. (more rewarding) ...
... - Rise in real estate prices : money that was on the stock market has moved to the real estate market. (more rewarding) ...
PPT_Mic9e_one_click_ch11
... The Demand for New Capital and the Investment Decision Comparing Costs and Expected Return expected rate of return The annual rate of return that a firm expects to obtain through a capital investment. The expected rate of return on an investment project depends on the price of the investment, the ex ...
... The Demand for New Capital and the Investment Decision Comparing Costs and Expected Return expected rate of return The annual rate of return that a firm expects to obtain through a capital investment. The expected rate of return on an investment project depends on the price of the investment, the ex ...
Access to Refinancing and Mortgage Interest Rates
... their homes (LTV 95). In all, an estimated 30 percent of mortgage borrowers did not have sufficient equity to refinance their loans in the beginning of 2010 (CoreLogic, 2013). Mounting job losses during the Great Recession put a further dent into household ability to refinance mortgages as lenders w ...
... their homes (LTV 95). In all, an estimated 30 percent of mortgage borrowers did not have sufficient equity to refinance their loans in the beginning of 2010 (CoreLogic, 2013). Mounting job losses during the Great Recession put a further dent into household ability to refinance mortgages as lenders w ...
Critique of accommodating central bank policies and the
... of that is low rates. If we were to try to keep interest rates above the levels called for by fundamentals, we would have a yet weaker economy”. This paper will explain this position as exemplified by Weidmann, Coeuré and Yellen 10 in more detail, and will also analyse some of the arguments that low ...
... of that is low rates. If we were to try to keep interest rates above the levels called for by fundamentals, we would have a yet weaker economy”. This paper will explain this position as exemplified by Weidmann, Coeuré and Yellen 10 in more detail, and will also analyse some of the arguments that low ...
Relationship lending - European Investment Bank
... He asked the banks for each customer in his sample if they classified themselves as relationship lender and compared these self assessments with the different possible indicators for relationship lending. It is shown that a high portion of debt financing by one bank has the highest explanatory power ...
... He asked the banks for each customer in his sample if they classified themselves as relationship lender and compared these self assessments with the different possible indicators for relationship lending. It is shown that a high portion of debt financing by one bank has the highest explanatory power ...
Home credit remedies evaluation
... of the data-sharing remedy in increasing the constraint from mainstream lenders on home credit providers. Looking forward, the paper concludes that maximizing the impact of the website remedy in particular will be important. This remedy remains well supported by stakeholders and can be used to conti ...
... of the data-sharing remedy in increasing the constraint from mainstream lenders on home credit providers. Looking forward, the paper concludes that maximizing the impact of the website remedy in particular will be important. This remedy remains well supported by stakeholders and can be used to conti ...
The Expectations Theory of the Term Structure and Short
... Unbiased estimates of a2(R~), a2(Rt) and a2(rt) can be obtained if the population means of R~, Rt and rt are known or if the sample variances are corrected for degrees of freedom when the population means are unknown. However, this latter correction will result in unbiased estimates only if the obse ...
... Unbiased estimates of a2(R~), a2(Rt) and a2(rt) can be obtained if the population means of R~, Rt and rt are known or if the sample variances are corrected for degrees of freedom when the population means are unknown. However, this latter correction will result in unbiased estimates only if the obse ...
“Macroeconomics with Financial Frictions”
... only via outside money. Whenever an agent becomes productive he buys capital goods from less productive agents using his outside money, and vice versa. While the fund transfers are limited, money becomes very valuable in this case. In contrast, when the financial sector is well capitalized, outside ...
... only via outside money. Whenever an agent becomes productive he buys capital goods from less productive agents using his outside money, and vice versa. While the fund transfers are limited, money becomes very valuable in this case. In contrast, when the financial sector is well capitalized, outside ...
Influence of Interest Rates Determinants on the Performance of
... while 13 are foreign owned. Banking industry in Kenya is governed by the Companies Act, the Banking Act, the Central Bank of Kenya Act and the various prudential guidelines issued by the CBK. The Kenyan government adopted the CBK amendment act in 2001 and allows CBK to regulate interest rates. An an ...
... while 13 are foreign owned. Banking industry in Kenya is governed by the Companies Act, the Banking Act, the Central Bank of Kenya Act and the various prudential guidelines issued by the CBK. The Kenyan government adopted the CBK amendment act in 2001 and allows CBK to regulate interest rates. An an ...
NBER WORKING PAPER SERIES MACROECONOMICS WITH FINANCIAL FRICTIONS: A SURVEY Markus K. Brunnermeier
... only via outside money. Whenever an agent becomes productive he buys capital goods from less productive agents using his outside money, and vice versa. While the fund transfers are limited, money becomes very valuable in this case. In contrast, when the financial sector is well capitalized, outside ...
... only via outside money. Whenever an agent becomes productive he buys capital goods from less productive agents using his outside money, and vice versa. While the fund transfers are limited, money becomes very valuable in this case. In contrast, when the financial sector is well capitalized, outside ...
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.