The Response of Stock Market Volatility to Futures
... expected stock returns. An unexpected monetary policy tightening constitutes negative news to stocks whose future cash flows (dividends) are valued at a higher than expected discount rate. This implies that a monetary policy shock is expected to decrease returns contemporaneously and to increase fut ...
... expected stock returns. An unexpected monetary policy tightening constitutes negative news to stocks whose future cash flows (dividends) are valued at a higher than expected discount rate. This implies that a monetary policy shock is expected to decrease returns contemporaneously and to increase fut ...
How Important Is the Inflation Risk Premium?
... = πexpect + RP. Therefore, this article will use recent data from the UK government bond markets to estimate the inflation risk premium embedded in nominal UK government bonds.16 Because yield differences of nominal and indexed government bonds are the sum of expected future inflation and the inflat ...
... = πexpect + RP. Therefore, this article will use recent data from the UK government bond markets to estimate the inflation risk premium embedded in nominal UK government bonds.16 Because yield differences of nominal and indexed government bonds are the sum of expected future inflation and the inflat ...
physical savings - Editorial Express
... in India is expected to depend on some other relevant variables. The first variable is the real interest rate. What is the effect of real interest rate (IR) on savings? The effect of an increase in real interest rate on saving could be either positive or negative. An increase in real interest rate i ...
... in India is expected to depend on some other relevant variables. The first variable is the real interest rate. What is the effect of real interest rate (IR) on savings? The effect of an increase in real interest rate on saving could be either positive or negative. An increase in real interest rate i ...
pen04Knaap-2 225520 en
... indexation of benefits to wages) and premiums are below their long-run level. This scenario is an attempt to approximate the current situation, even though much of the model is calibrated to 1999 data. The lack of funds in 1999, which was not actually observed in that year, can be explained as follo ...
... indexation of benefits to wages) and premiums are below their long-run level. This scenario is an attempt to approximate the current situation, even though much of the model is calibrated to 1999 data. The lack of funds in 1999, which was not actually observed in that year, can be explained as follo ...
Agustín S. Bénétrix IIIS, Trinity College Dublin Philip R. Lane
... values of a dummy variable that measures fiscal shocks in their empirical model. They show that anticipation effects are not important in the United States. Studies suggesting the existence of anticipation effects find that fiscal policy may be anticipated one or two quarters in advance. Using a new ...
... values of a dummy variable that measures fiscal shocks in their empirical model. They show that anticipation effects are not important in the United States. Studies suggesting the existence of anticipation effects find that fiscal policy may be anticipated one or two quarters in advance. Using a new ...
Stylised Facts for New Zealand Business Cycles
... and for Australia by Crosby and Otto (1995) and by Fisher, Otto and Voss (1996). More recent results for Australia have been reported in Tawardros (2011). In their examinations, KBH (1994) documented the volatility, autocorrelation, and crosscorrelation with real GDP of a comprehensive set of macro ...
... and for Australia by Crosby and Otto (1995) and by Fisher, Otto and Voss (1996). More recent results for Australia have been reported in Tawardros (2011). In their examinations, KBH (1994) documented the volatility, autocorrelation, and crosscorrelation with real GDP of a comprehensive set of macro ...
piedmont office realty trust, inc. - Piedmont REIT
... economic conditions. These assumptions could prove inaccurate. The forward-looking statements also involve risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Many of these factors are beyond Piedmont’s ability to cont ...
... economic conditions. These assumptions could prove inaccurate. The forward-looking statements also involve risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Many of these factors are beyond Piedmont’s ability to cont ...
the time value of money - Pegasus Server
... Define responsibilities for each team member in the written and oral report. This is PARTICULARLY important for team 1 & 2 since your presentation is due immediately after exam 2. The oral presentation on your company should include slides for the overhead projector and/or handouts and must be TIMED ...
... Define responsibilities for each team member in the written and oral report. This is PARTICULARLY important for team 1 & 2 since your presentation is due immediately after exam 2. The oral presentation on your company should include slides for the overhead projector and/or handouts and must be TIMED ...
2015-16 - University of Glasgow
... is relatively short then monetary policy becomes passive. Monetary policy accommodates inflation to facilitate the rapid reduction in debt levels following negative shocks and the resultant stabilization process results in large welfare losses. We demonstrate that for these two regimes the debt-to-o ...
... is relatively short then monetary policy becomes passive. Monetary policy accommodates inflation to facilitate the rapid reduction in debt levels following negative shocks and the resultant stabilization process results in large welfare losses. We demonstrate that for these two regimes the debt-to-o ...
Working papers - Federal Reserve Bank of Cleveland
... algorithm and applying it to U.S. data suggests that the United States faced two bouts of stagflation in the postwar era, 1974Q3–1975Q1 and 1980Q2–1980Q3. The stagflation algorithm allows for a more exhaustive analysis of the factors that can generate stagflation than visual analysis alone. Thus, we ...
... algorithm and applying it to U.S. data suggests that the United States faced two bouts of stagflation in the postwar era, 1974Q3–1975Q1 and 1980Q2–1980Q3. The stagflation algorithm allows for a more exhaustive analysis of the factors that can generate stagflation than visual analysis alone. Thus, we ...
Introduction - Geist Science
... that there was long run relationship between GDP, imports, money supply, Government revenue, Government expenditure and inflation in Pakistan. Aurangzeb (2012) investigated the determinants of inflation in Pakistan. Time series data set was used for the period from 1981 to 2010. By applying multiple ...
... that there was long run relationship between GDP, imports, money supply, Government revenue, Government expenditure and inflation in Pakistan. Aurangzeb (2012) investigated the determinants of inflation in Pakistan. Time series data set was used for the period from 1981 to 2010. By applying multiple ...
New Tax Rules for Offshore Portfolio Investment in Shares
... investment in countries such as the United States and the United Kingdom. In particular, investors faced significant tax barriers to investment in these countries as a result of the application of the previous foreign investment fund rules, which generally taxed full accrued capital gains (and captu ...
... investment in countries such as the United States and the United Kingdom. In particular, investors faced significant tax barriers to investment in these countries as a result of the application of the previous foreign investment fund rules, which generally taxed full accrued capital gains (and captu ...
Lecture Notes - Wiwi Uni
... over time. We are interested in why total production (real GDP) grows over time on average and why it shows sizeable ‡uctuations around its long-run growth trend. We want to understand what causes unemployment and in‡ation, how interest rates behave and what causes a trade de…cit. In contrast to mic ...
... over time. We are interested in why total production (real GDP) grows over time on average and why it shows sizeable ‡uctuations around its long-run growth trend. We want to understand what causes unemployment and in‡ation, how interest rates behave and what causes a trade de…cit. In contrast to mic ...
Monetary Policy - Central Bank of Nigeria
... citizens confidence in the future value of their money, so that they can make sound economic and financial decisions. Low and stable inflation also helps to prevent inflationary boom and bust cycles that could result in a recession and higher unemployment. ...
... citizens confidence in the future value of their money, so that they can make sound economic and financial decisions. Low and stable inflation also helps to prevent inflationary boom and bust cycles that could result in a recession and higher unemployment. ...
DRAFT September 8, 2010
... Flows of workers’ remittances appear to have been increasing sharply in magnitude during recent years. While related impressionistic evidence suggests that most of this increase is real, it is not possible to assess its magnitude conclusively, because part of the increase in recorded flows may simpl ...
... Flows of workers’ remittances appear to have been increasing sharply in magnitude during recent years. While related impressionistic evidence suggests that most of this increase is real, it is not possible to assess its magnitude conclusively, because part of the increase in recorded flows may simpl ...
Small Business Failure Rates - The Journal of Entrepreneurial Finance
... designed research study that adequately controls for the effects of these potentially confounding variables. The situation is made even more difficult by the lack of a generally agreed and suitable measure oi failure. This study is an attempt to highlight how different measures of failure might impa ...
... designed research study that adequately controls for the effects of these potentially confounding variables. The situation is made even more difficult by the lack of a generally agreed and suitable measure oi failure. This study is an attempt to highlight how different measures of failure might impa ...
Impact of the Payment of Interest on Demand Deposits
... institutions, and the banking structure from payment of interest on demand deposits and associated changes in the pricing of banking services are highly uncertain for they involve an assessment of institutional and public responses to a new ingredient in financial m a r k e t s — p a y m e n t of ex ...
... institutions, and the banking structure from payment of interest on demand deposits and associated changes in the pricing of banking services are highly uncertain for they involve an assessment of institutional and public responses to a new ingredient in financial m a r k e t s — p a y m e n t of ex ...
Budget Deficits, National Saving, and Interest Rates
... second model, the small open economy view, suggests that budget deficits do reduce national saving but, at the same time, induce increased capital inflows from abroad that finance the entire reduction. As a result, domestic production does not decline and interest rates do not rise, but future natio ...
... second model, the small open economy view, suggests that budget deficits do reduce national saving but, at the same time, induce increased capital inflows from abroad that finance the entire reduction. As a result, domestic production does not decline and interest rates do not rise, but future natio ...
The Risk-Free Rate`s Impact on Stock Returns with Representative
... management creates an agency problem since the fund has an incentive to maximize its profits rather than the risk-adjusted returns. This may result in excessive risk taking, the funds can increase their expected compensation through increasing the variance of their returns. Rajan also points out tha ...
... management creates an agency problem since the fund has an incentive to maximize its profits rather than the risk-adjusted returns. This may result in excessive risk taking, the funds can increase their expected compensation through increasing the variance of their returns. Rajan also points out tha ...
Interest rate
An interest rate is the rate at which interest is paid by borrowers (debtors) for the use of money that they borrow from lenders (creditors). Specifically, the interest rate is a percentage of principal paid a certain number of times per period for all periods during the total term of the loan or credit. Interest rates are normally expressed as a percentage of the principal for a period of one year, sometimes they are expressed for different periods such as a month or a day. Different interest rates exist parallelly for the same or comparable time periods, depending on the default probability of the borrower, the residual term, the payback currency, and many more determinants of a loan or credit. For example, a company borrows capital from a bank to buy new assets for its business, and in return the lender receives rights on the new assets as collateral and interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower.Interest-rate targets are a vital tool of monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment. The central banks of countries generally tend to reduce interest rates when they wish to increase investment and consumption in the country's economy. However, a low interest rate as a macro-economic policy can be risky and may lead to the creation of an economic bubble, in which large amounts of investments are poured into the real-estate market and stock market. In developed economies, interest-rate adjustments are thus made to keep inflation within a target range for the health of economic activities or cap the interest rate concurrently with economic growth to safeguard economic momentum.