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... for subsidies in this kind of market (as opposed to the general rule which prevents state aids to firms). They don’t consider the fiscal effect of competition, which arises whenever the public funds are costly. With no budget constraint for the government, in their case market integration is always ...
... for subsidies in this kind of market (as opposed to the general rule which prevents state aids to firms). They don’t consider the fiscal effect of competition, which arises whenever the public funds are costly. With no budget constraint for the government, in their case market integration is always ...
Macroeconomic Factors and the Indian Stock Market
... response is immediate and negative to changes in interest rate. Real interest rate changes affect both stock returns and inflation. Stock returns explain little variation in inflation. Norway is an oil-dependent country and hence stock returns respond actively to oil prices. Both oil prices and real ...
... response is immediate and negative to changes in interest rate. Real interest rate changes affect both stock returns and inflation. Stock returns explain little variation in inflation. Norway is an oil-dependent country and hence stock returns respond actively to oil prices. Both oil prices and real ...
Examining Volatility Transmission in Major Agricultural Futures
... household spending. The unprecedented price spikes in agricultural commodities during the 2007-2008 food crisis, coupled with shortages and diminishing agricultural stocks, resulted in reduced access to food for millions of poor people in a large number of low income, net food-importing countries. T ...
... household spending. The unprecedented price spikes in agricultural commodities during the 2007-2008 food crisis, coupled with shortages and diminishing agricultural stocks, resulted in reduced access to food for millions of poor people in a large number of low income, net food-importing countries. T ...
Volatility Transmission and Spillovers among Gold, Bonds and
... processes between gold returns and financial markets. Do et al. (2009) surmise that gold returns are countercyclical in the Philippines and Vietnam equity markets, while they are procyclical in Indonesia, Malaysia and Thailand stock markets. Cohen and Qadan (2010) investigate the relation between go ...
... processes between gold returns and financial markets. Do et al. (2009) surmise that gold returns are countercyclical in the Philippines and Vietnam equity markets, while they are procyclical in Indonesia, Malaysia and Thailand stock markets. Cohen and Qadan (2010) investigate the relation between go ...
Limit Order Strategic Placement with Adverse Selection
... [Guéant et al., 2012] for a common framework involving limit orders for market makers and investors). For obvious reasons, the focus of papers about optimal trading strategies has been risk control. In practice market participants combine short term anticipations of price dynamics inside these risk ...
... [Guéant et al., 2012] for a common framework involving limit orders for market makers and investors). For obvious reasons, the focus of papers about optimal trading strategies has been risk control. In practice market participants combine short term anticipations of price dynamics inside these risk ...
CHAPTER 11: INVESTING IN STOCKS AND BONDS
... greater amounts of coverage). Guarantees securities or cash held by ...
... greater amounts of coverage). Guarantees securities or cash held by ...
Dynamic Asset Pricing With Non
... Financial markets and monetary authorities have recently been under pressure to design forward contracts written neither on financial assets nor on commodities but on non-tradable economic variables [see Shiller (1993), Sumner (1995) and Athanasoulis, Shiller and van Wincoop (1999)]. The most obviou ...
... Financial markets and monetary authorities have recently been under pressure to design forward contracts written neither on financial assets nor on commodities but on non-tradable economic variables [see Shiller (1993), Sumner (1995) and Athanasoulis, Shiller and van Wincoop (1999)]. The most obviou ...
Portfolio rebalancing is the process of bringing the different asset
... Portfolios are adjusted if and when a particular asset class deviates from its target allocation by more than a certain amount—say plus or minus five percentage points. So if, for example, the target for large-cap stocks was 60%, but a market rise caused that share to climb above 65%, stocks would ...
... Portfolios are adjusted if and when a particular asset class deviates from its target allocation by more than a certain amount—say plus or minus five percentage points. So if, for example, the target for large-cap stocks was 60%, but a market rise caused that share to climb above 65%, stocks would ...
NBER WORKING PAPER SERIES WHAT DOES FUTURES
... spot prices to forecast inflation. International economists use the forward discount, or the ratio of futures to spot price in the currency market, to forecast movements in exchange rates. Financial economists use the yield spread to forecast bond and stock returns. In this paper, we show that open i ...
... spot prices to forecast inflation. International economists use the forward discount, or the ratio of futures to spot price in the currency market, to forecast movements in exchange rates. Financial economists use the yield spread to forecast bond and stock returns. In this paper, we show that open i ...
2010 Flash Crash
The May 6, 2010, Flash Crash also known as The Crash of 2:45, the 2010 Flash Crash or simply the Flash Crash, was a United States trillion-dollar stock market crash, which started at 2:32 and lasted for approximately 36 minutes. Stock indexes, such as the S&P 500, Dow Jones Industrial Average and Nasdaq 100, collapsed and rebounded very rapidly.The Dow Jones Industrial Average had its biggest intraday point drop (from the opening) up to that point, plunging 998.5 points (about 9%), most within minutes, only to recover a large part of the loss. It was also the second-largest intraday point swing (difference between intraday high and intraday low) up to that point, at 1,010.14 points. The prices of stocks, stock index futures, options and ETFs were volatile, thus trading volume spiked. A CFTC 2014 report described it as one of the most turbulent periods in the history of financial markets.On April 21, 2015, nearly five years after the incident, the U.S. Department of Justice laid ""22 criminal counts, including fraud and market manipulation"" against Navinder Singh Sarao, a trader. Among the charges included was the use of spoofing algorithms; just prior to the Flash Crash, he placed thousands of E-mini S&P 500 stock index futures contracts which he planned on canceling later. These orders amounting to about ""$200 million worth of bets that the market would fall"" were ""replaced or modified 19,000 times"" before they were canceled. Spoofing, layering and front-running are now banned.The Commodity Futures Trading Commission (CFTC) investigation concluded that Sarao ""was at least significantly responsible for the order imbalances"" in the derivatives market which affected stock markets and exacerbated the flash crash. Sarao began his alleged market manipulation in 2009 with commercially available trading software whose code he modified ""so he could rapidly place and cancel orders automatically."" Traders Magazine journalist, John Bates, argued that blaming a 36-year-old small-time trader who worked from his parents' modest stucco house in suburban west London for sparking a trillion-dollar stock market crash is a little bit like blaming lightning for starting a fire"" and that the investigation was lengthened because regulators used ""bicycles to try and catch Ferraris."" Furthermore, he concluded that by April 2015, traders can still manipulate and impact markets in spite of regulators and banks' new, improved monitoring of automated trade systems.As recently as May 2014, a CFTC report concluded that high-frequency traders ""did not cause the Flash Crash, but contributed to it by demanding immediacy ahead of other market participants.""Recent research shows that Flash Crashes are not isolated occurrences, but have occurred quite often over the past century. For instance, Irene Aldridge, the author of High-Frequency Trading: A Practical Guide to Algorithmic Strategies and Trading Systems, 2nd ed., Wiley & Sons, shows that Flash Crashes have been frequent and their causes predictable in market microstructure analysis.