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Inflation targeting in Brazil: 1999–2006 - Bresser
Inflation targeting in Brazil: 1999–2006 - Bresser

... mixed. First, considering inflation itself, the Government’s targets were met when the international financial conditions allowed it, that is, inflation targeting was successful when the exchange-rate dynamics helped the BCB efforts to control inflation. Second, when compared with the period of exch ...
NBER WORKING PAPER SERIES ADJUSTING DEPRECIATION IN AN INFLATIONARY
NBER WORKING PAPER SERIES ADJUSTING DEPRECIATION IN AN INFLATIONARY

... with respect to their relative price.3 If the supply of funds is perfectly 1To take an extreme example, consider an investment with a one year life, a net cost of $100 and a rate of return of 10 percent. A 5 percent increase in the net cost cuts the return in half while a 10 percent increase in net ...
Wells Fargo Short Term Investment Fund
Wells Fargo Short Term Investment Fund

... assurance that the Fund will achieve its objective. Strategy. The Fund will pursue its investment objective through active management of a diversified portfolio of money market instruments with an overall dollar-weighted average maturity of 60 days or less. Risk versus returns. The Fund is designed ...
403(b) – Vendor Charge Comparison Annuities
403(b) – Vendor Charge Comparison Annuities

... Up to 7 yrs for Class L, illness, nursing up to 13 yrs for Included in listed fees Included in listed fees home; after 5 years, Class B, and 0 yrs retirement or for Class C severence of employment ...
Inflation Uncertainty, Investment Spending, and Fiscal Policy
Inflation Uncertainty, Investment Spending, and Fiscal Policy

... equation. Though other factors were also at work, the investment shortfall during the recent expansion apparently was, in large part, caused by the high degree of inflation uncertainty throughout this period of rapidly rising prices. ...
RQ_ANS
RQ_ANS

... The country of Nemedia does not trade with any other country. Its GDP is $20 billion. Its government collects $4 billion in taxes and pays out $3 billion to households in the form of transfer payments. Consumption equals $15 billion and investment equals $2 billion. What is public saving in Nemedia, ...
Liberty Mutual Holding Company Inc. December 31, 2013 and 2012
Liberty Mutual Holding Company Inc. December 31, 2013 and 2012

... Company exercises control including majority and wholly owned subsidiaries, and variable interest entities when the Company is deemed the primary beneficiary (collectively “LMHC” or the “Company”). The minority ownership of consolidated affiliates is represented in equity as noncontrolling interest. ...
S1201017_en.pdf
S1201017_en.pdf

... which in extreme poverty— and that the region continues being characterized by an extremely unequal income distribution (ECLAC, 2012), the case studies place particular emphasis on the inclusion of the poor and vulnerable population into social protection systems, as well as on the distributional im ...
Chapter 32
Chapter 32

... An example is Friedman’s k-percent rule. The k-percent rule is a monetary policy rule that makes the quantity of money grow at k percent per year, where k equals the growth rate of potential GDP. Money targeting works when the demand for money is stable and predictable. But technological change in t ...
NBER WORKING PAPER SERIES THE TALE OF THE TORMENTED INSURER
NBER WORKING PAPER SERIES THE TALE OF THE TORMENTED INSURER

... Consider a small open economy with stochastic endowment income and limited opportunities for risk sharing and consumption smoothing because financial markets are incomplete. This economy is inhabited by two infinitely-lived agents: a representative household and a government. The government receives ...
NBER WORKING PAPER SERIES FINANCIAL FRICTIONS, INVESTMENT AND TOBIN'S Q Guido Lorenzoni
NBER WORKING PAPER SERIES FINANCIAL FRICTIONS, INVESTMENT AND TOBIN'S Q Guido Lorenzoni

... The standard model of investment with convex adjustment costs predicts that movements in the investment rate should be entirely explained by changes in Tobin’s q. This prediction has generally been rejected in empirical studies, which show that cash flow and other measures of current profitability h ...
Chapter 33
Chapter 33

... An example is Friedman’s k-percent rule. The k-percent rule is a monetary policy rule that makes the quantity of money grow at k percent per year, where k equals the growth rate of potential GDP. Money targeting works when the demand for money is stable and predictable. But technological change in t ...
eee06-Nuti  3872134 en
eee06-Nuti 3872134 en

... so-called Club Med countries (Spain, Portugal, Italy and Greece) two years before their entry into the euro area is encouraging (Gros, 2002). It should also be remembered that both inflation and interest criteria are compulsory only in the year preceding EMU admission, not in the preceding and the f ...
Using Derivatives to Manage Interest Rate Risk Derivatives A
Using Derivatives to Manage Interest Rate Risk Derivatives A

... participant who wants to reduce spot market risk associated with an increase in interest rates  If spot rates increase, futures rates will typically also increase so that the value of the futures position will likely decrease.  Any loss in the cash market is at least partially offset by a gain in ...
Using Derivatives to Manage Interest Rate Risk
Using Derivatives to Manage Interest Rate Risk

... participant who wants to reduce spot market risk associated with an increase in interest rates  If spot rates increase, futures rates will typically also increase so that the value of the futures position will likely decrease.  Any loss in the cash market is at least partially offset by a gain in ...
The credit risk premia - Swiss Finance Institute
The credit risk premia - Swiss Finance Institute

... So asset allocators try to take a forward-looking view. We will try to do the same and apply this view to: ...
Inflation Dynamics During and After the Zero Lower Bound Introduction
Inflation Dynamics During and After the Zero Lower Bound Introduction

... Experiment 1. In our first experiment we ask the following question: what would have happened in the U.S., had the Fed targeted a 4% inflation rate throughout our sample? The results are depicted in Figure 4 of the handout. The solid black lines correspond to the actual data. We consider two alterna ...
The Size and Role of Automatic Fiscal Stabilisers
The Size and Role of Automatic Fiscal Stabilisers

... output, see Asdrubali et al. (1996). The role of monetary policy is central in this regard, although this depends crucially on the exchange rate regime in place. Where exchange rate arrangements permit, monetary policy adjustments designed to ensure price stability should operate to stabilise activi ...
What Explains the Industrial Revolution in East Asia? Evidence
What Explains the Industrial Revolution in East Asia? Evidence

... example, one possible explanation of higher real wages in East Asia is the improvements in labor quality, particularly due to rising educational levels. Equation (7) adjusts for this by measuring the wages of a given quality of labor across time for many different types of workers.12 Although averag ...
Sectoral Analysis
Sectoral Analysis

... K*, then investment will not take place so that over time K will fall to K*. This gradual adjustment is particularly true when there is an adjustment cost, including the cost of time for adjustment. Thus only a portion, say , will be done in this year. In the next period, an investment will be made ...
Social Structures of Accumulation, the Rate of Profit
Social Structures of Accumulation, the Rate of Profit

... explained by declining capitalist power, not just with respect to labor but also in its relation to foreign suppliers of imports to the U.S. and to U.S. citizens in general. It is difficult to decisively prove any hypothesis using econometric techniques, particularly for such a complex question as t ...
Comments on “When Do TIPS Prices Adjust to
Comments on “When Do TIPS Prices Adjust to

... Introduction 1. Based on the DeAngelo & DeAngelo (2006) static analysis, we derive a theoratical dynamic model and show that there exists an optimal payout ratio under perfect market. 2. We derive the relationship between firm’s optimal payout ratio and its risks. 3. We derive the relationship betw ...
Andrs Solimano
Andrs Solimano

... practice find that the "hurdle rates" that firms require for expected returns on projects are typically three or four times the cost of capital.3 In other words, firms do not invest until 1McDonald and Siegel assumed that the investment can be made instantaneously. The multiple grows even larger whe ...
Christina D. Romer NATIONAL
Christina D. Romer NATIONAL

... interest rates and in the high-employment surplus during recessions and around troughs were taken largely to end the recessions or for other reasons. We find that nearly all of the monetary changes and most of the fiscal changes were genuinely anti-recessionary. Interestingly, we find that many of t ...
monetary transmission mechanism in albania
monetary transmission mechanism in albania

... Turning to the second stage of the channel, Aslanidi (2007) finds that the exchange rate is more efficient in influencing fluctuations in output, monetary aggregates and credit than the interest rate and foreign exchange interventions in Georgia. Moreover, foreign exchange interventions seem to hav ...
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Pensions crisis

The pensions crisis is a predicted difficulty in paying for corporate, state, and federal pensions in the United States and Europe, due to a difference between pension obligations and the resources set aside to fund them. Shifting demographics are causing a lower ratio of workers per retiree; contributing factors include retirees living longer (increasing the relative number of retirees), and lower birth rates (decreasing the relative number of workers, especially relative to the Post-WW2 Baby Boom). There is significant debate regarding the magnitude and importance of the problem, as well as the solutions.For example, as of 2008, the estimates for the underfunding of U.S. states' pension programs range from $1 trillion using the discount rate of 8% to $3.23 trillion using U.S. Treasury bond yields as the discount rate. The present value of unfunded obligations under Social Security as of August 2010 was approximately $5.4 trillion. In other words, this amount would have to be set aside today such that the principal and interest would cover the program's shortfall between tax revenues and payouts over the next 75 years.Some economists question the concept of funding, and, therefore underfunding. Storing funds by governments, in the form of fiat currencies, is the functional equivalent of storing a collection of their own IOUs. They will be equally inflationary to newly written ones when they do come to be used.Reform ideas are in three primary categories: a) Addressing the worker-retiree ratio, via raising the retirement age, employment policy and immigration policy; b) Reducing obligations via shifting from defined benefit to defined contribution pension types and reducing future payment amounts (by, for example, adjusting the formula that determines the level of benefits); and c) Increasing resources to fund pensions via increasing contribution rates and raising taxes.
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