Greta R. Krippner. Capitalizing on Crisis: The Political Origins of the
... economy after World War II. Both the political Right and Left made growth the focus of their policy prescriptions even as they fought over how to pursue that economic expansion and how to share its benefits. Andrew L. Yarrow links this more familiar policy story to cultural history, showing how econ ...
... economy after World War II. Both the political Right and Left made growth the focus of their policy prescriptions even as they fought over how to pursue that economic expansion and how to share its benefits. Andrew L. Yarrow links this more familiar policy story to cultural history, showing how econ ...
Globalisation 2
... Why worry? S Brittan there is no worry look at past histories deficits to pay for war Also compare with other countries Japan 170 per cent most of Europe above 80 per cent Worry is about buying government bonds and inflation expectations pushing up interest rates ...
... Why worry? S Brittan there is no worry look at past histories deficits to pay for war Also compare with other countries Japan 170 per cent most of Europe above 80 per cent Worry is about buying government bonds and inflation expectations pushing up interest rates ...
Ethical Balanced monthly commentary
... We have sold Dr Pepper Snapple Group as we have questioned the growth expectations of the recently acquired ‘Bai’ brand after slightly disappointing results and we have seen this as an opportunity to re-allocate funds away from the US to other regions such as Europe where companies are trading at ch ...
... We have sold Dr Pepper Snapple Group as we have questioned the growth expectations of the recently acquired ‘Bai’ brand after slightly disappointing results and we have seen this as an opportunity to re-allocate funds away from the US to other regions such as Europe where companies are trading at ch ...
GD_2012_post
... Were shocks in the IS curve responsible? – Foreign trade, government spending and taxes were too small – No exogenous consumption shock – Investment decline was the major shock. • Mechanism is unclear, but probably due to shift to “bad equilibrium” (panics, risk, high risk premiums, low investment, ...
... Were shocks in the IS curve responsible? – Foreign trade, government spending and taxes were too small – No exogenous consumption shock – Investment decline was the major shock. • Mechanism is unclear, but probably due to shift to “bad equilibrium” (panics, risk, high risk premiums, low investment, ...
From the 50s to 2000 II – the changing face of the US economy
... more recent Internet sector and related fields The period was marked by the founding (and, in many cases, spectacular failure) of a group of new Internet-based companies commonly referred to as dot-coms The venture capitalists saw record-setting rises in stock valuations of dot-com companies, an ...
... more recent Internet sector and related fields The period was marked by the founding (and, in many cases, spectacular failure) of a group of new Internet-based companies commonly referred to as dot-coms The venture capitalists saw record-setting rises in stock valuations of dot-com companies, an ...
Asset Bubbles and Moral Hazard: Evidence from Japan
... regulations and practices was to foster a high rate of household saving that could be channeled into either the Japanese Postal Savings System or Japanese banks, and the concentration of firm finance within keiretsu institutions rather than through a diversified mix that includes both equity and cor ...
... regulations and practices was to foster a high rate of household saving that could be channeled into either the Japanese Postal Savings System or Japanese banks, and the concentration of firm finance within keiretsu institutions rather than through a diversified mix that includes both equity and cor ...
ECON3315 – International Economic Issues
... When countries no longer have the funds to pay interest on their bonds, a “default” occurs Usually the lenders get together and go to the country to negotiate a “debt restructuring” which sometimes lowers interest rates so a payment can be made, sometimes agrees upon a future debt repayment schedule ...
... When countries no longer have the funds to pay interest on their bonds, a “default” occurs Usually the lenders get together and go to the country to negotiate a “debt restructuring” which sometimes lowers interest rates so a payment can be made, sometimes agrees upon a future debt repayment schedule ...
Word Document
... Low interest rates by the Federal Reserve caused a housing bubble, which subsequently crashed. o In the early 2000’s the federal funds rate was far below the Taylor Rule suggested level. o Adjustable rates were less than fixed rates, encouraging ARMs. Congress changed bankruptcy laws, so debtors ...
... Low interest rates by the Federal Reserve caused a housing bubble, which subsequently crashed. o In the early 2000’s the federal funds rate was far below the Taylor Rule suggested level. o Adjustable rates were less than fixed rates, encouraging ARMs. Congress changed bankruptcy laws, so debtors ...
Government and other non-market producers` owned assets
... • Measuring non-market output by proxy of costs; capital services (user cost times volume of services) better measure than decline in asset value ...
... • Measuring non-market output by proxy of costs; capital services (user cost times volume of services) better measure than decline in asset value ...
Lessons from Economic Theory and
... • Further externalities are generated as a result of information costs and imperfections. – If unit i doesn’t fully know other units’ characteristics—including the relationships (contracts) of those with whom it engages in a relationship, including all the relationships with whom those are engaged, ...
... • Further externalities are generated as a result of information costs and imperfections. – If unit i doesn’t fully know other units’ characteristics—including the relationships (contracts) of those with whom it engages in a relationship, including all the relationships with whom those are engaged, ...
the great risk/return inversion - who loses out?
... especially those with volatile and rising prices. The significance of the last condition is that if a security doubles in price and the investor is half-weight, the mismatch doubles; if he is double-weighted and the price halves, the mismatch halves also. Underweight positions in large, risky secur ...
... especially those with volatile and rising prices. The significance of the last condition is that if a security doubles in price and the investor is half-weight, the mismatch doubles; if he is double-weighted and the price halves, the mismatch halves also. Underweight positions in large, risky secur ...
soln_ch_01_financ_environ
... properties and sensitivities to various sources of risk, it allows investors to allocate and hedge particular sources of risk more efficiently. ...
... properties and sensitivities to various sources of risk, it allows investors to allocate and hedge particular sources of risk more efficiently. ...
The Bursting of the Asian Housing Bubble*
... since early 2009. In 2012, when global residential real estate prices increased by around 4 per cent, prices in Hong Kong rose by 24 per cent. It is now the most expensive place on earth, with property prices significantly higher than in New York, London or Shanghai. Of course, Hong Kong house price ...
... since early 2009. In 2012, when global residential real estate prices increased by around 4 per cent, prices in Hong Kong rose by 24 per cent. It is now the most expensive place on earth, with property prices significantly higher than in New York, London or Shanghai. Of course, Hong Kong house price ...
Financial stability in a crisis: What is the role of the central
... is making an explicit commitment to keep the policy rate at a low level for an extended period of time, thus reducing uncertainty and potentially reducing interest rates at greater maturities. The effectiveness of this measure depends on a central bank’s credibility. If it is not enough, monetary au ...
... is making an explicit commitment to keep the policy rate at a low level for an extended period of time, thus reducing uncertainty and potentially reducing interest rates at greater maturities. The effectiveness of this measure depends on a central bank’s credibility. If it is not enough, monetary au ...
C:\WINDOWS\DESKTOP\Econ WWW\directedresearch
... households see others making profits from speculative purchases and resales, they tend to follow: 'monkey see, monkey do'" [Kindleberger, 2000, 15]. The "gullible" public plunges into the market, pushing positive feedback to the point of "mania." "Manic" speculation detaches itself from truly valuab ...
... households see others making profits from speculative purchases and resales, they tend to follow: 'monkey see, monkey do'" [Kindleberger, 2000, 15]. The "gullible" public plunges into the market, pushing positive feedback to the point of "mania." "Manic" speculation detaches itself from truly valuab ...
Why Study Money, Banking, and Financial Markets?
... • A bond is a debt security that promises to make payments periodically for a specified period of time • An interest rate is the cost of borrowing or the price paid for the rental of funds ...
... • A bond is a debt security that promises to make payments periodically for a specified period of time • An interest rate is the cost of borrowing or the price paid for the rental of funds ...
Yale U
... For those investors who possess only public information, it is far more important to understand and to measure the feedback and dynamic relationship between the real side and the financial side. At the early stage of an upward trend in an asset price, there is an asymmetric sensitivity of the asset ...
... For those investors who possess only public information, it is far more important to understand and to measure the feedback and dynamic relationship between the real side and the financial side. At the early stage of an upward trend in an asset price, there is an asymmetric sensitivity of the asset ...
The land of the rising sun
... much new government spending Japan can afford. The yen’s weakness and equity increases are attractive for business investment, supporting wages, consumer confidence and spending, but household wage growth may not be enough to offset inflation. No matter how much money is created, banks must lend, in ...
... much new government spending Japan can afford. The yen’s weakness and equity increases are attractive for business investment, supporting wages, consumer confidence and spending, but household wage growth may not be enough to offset inflation. No matter how much money is created, banks must lend, in ...
FRBSF L CONOMIC
... The trouble with bubbles Bubbles involve a departure of market values from fundamentals. Most economists would agree that they are not easy to detect. With equities, for example, it is hard to determine the fundamental value of a stock, let alone the value of the entire stock market. With fundamenta ...
... The trouble with bubbles Bubbles involve a departure of market values from fundamentals. Most economists would agree that they are not easy to detect. With equities, for example, it is hard to determine the fundamental value of a stock, let alone the value of the entire stock market. With fundamenta ...
Asset Valuation and Residual Risks to the Nigerian Financial
... Banking sector reforms adopted in Nigeria in response to the financial crisis have so far yielded positive results as the reforms were carried out without depositors losing their money ...
... Banking sector reforms adopted in Nigeria in response to the financial crisis have so far yielded positive results as the reforms were carried out without depositors losing their money ...
William A. Niskanen POLITICAL GUIDANCE ON MONETARY POLICY
... tions, and a price rule can lead to considerable instability in other markets. The long experience with the several types of gold standards, for example, included several short periods ofinflation caused by major gold discoveries, long periods of deflation, frequent recessions, and the Great Depress ...
... tions, and a price rule can lead to considerable instability in other markets. The long experience with the several types of gold standards, for example, included several short periods ofinflation caused by major gold discoveries, long periods of deflation, frequent recessions, and the Great Depress ...
Was there a stock market bubble in Hungary?
... As we can notice in the related literature (Kindleberger, 2000; Shiller, 2000; Shleifer, 2000) bubbles were usually followed by declines in economic performance. All stock market bubbles are famous for their negative impact on the macroeconomy, because confidence in all assets weakened in the short ...
... As we can notice in the related literature (Kindleberger, 2000; Shiller, 2000; Shleifer, 2000) bubbles were usually followed by declines in economic performance. All stock market bubbles are famous for their negative impact on the macroeconomy, because confidence in all assets weakened in the short ...
Causes of the Great Depression (1919-1933) - meister
... the rest due when the big payday hit As people realized their stocks were overvalued, they dumped them, causing panic. ...
... the rest due when the big payday hit As people realized their stocks were overvalued, they dumped them, causing panic. ...
Effect of Lower interest rates:
... • Reduces the cost of borrowing... • Aims to stimulate borrowing by banks and consumers... • Stimulate economy with increased economic activity... ...
... • Reduces the cost of borrowing... • Aims to stimulate borrowing by banks and consumers... • Stimulate economy with increased economic activity... ...
Economic bubble
An economic bubble (sometimes referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, a speculative mania or a balloon) is trade in an asset at a price or price range that strongly deviates from the corresponding asset's intrinsic value. It could also be described as a situation in which asset prices appear to be based on implausible or inconsistent views about the future.Because it is often difficult to observe intrinsic values in real-life markets, bubbles are often conclusively identified only in retrospect, when a sudden drop in prices appears. Such a drop is known as a crash or a bubble burst. Both the boom and the burst phases of the bubble are examples of a positive feedback mechanism, in contrast to the negative feedback mechanism that determines the equilibrium price under normal market circumstances. Prices in an economic bubble can fluctuate erratically, and become impossible to predict from supply and demand alone.While some economists deny that bubbles occur, the cause of bubbles remains disputed by those who are convinced that asset prices often deviate strongly from intrinsic values. Many explanations have been suggested, and research has recently shown that bubbles may appear even without uncertainty, speculation, or bounded rationality. In such cases, the bubbles may be argued to be rational, where investors at every point fully compensated for the possibility that the bubble might collapse by higher returns. These approaches require that the timing of the bubble collapse can only be forecast probabilistically and the bubble process is often modelled using a Markov switching model. It has also been suggested that bubbles might ultimately be caused by processes of price coordination or emerging social norms.