Term-Structure Models: a Review - IME-USP
... In the derivatives area at least two possible strands of empirical analysis, which I will call ’fundamental’ and ’derived’ or ’relative’, coexist. In the fundamental approach, it is recognized that the value of derivative contracts is ultimately derived from the dynamics of the underlying assets, a ...
... In the derivatives area at least two possible strands of empirical analysis, which I will call ’fundamental’ and ’derived’ or ’relative’, coexist. In the fundamental approach, it is recognized that the value of derivative contracts is ultimately derived from the dynamics of the underlying assets, a ...
eee06-Stazka2 3772739 en
... Quah (1989). A VAR system consisting of three variables – the rate of change in the real output, in the real exchange rate and in the price level – is estimated to draw inference on the three types of structural disturbances that constitute the driving forces of the variation in these variables. We ...
... Quah (1989). A VAR system consisting of three variables – the rate of change in the real output, in the real exchange rate and in the price level – is estimated to draw inference on the three types of structural disturbances that constitute the driving forces of the variation in these variables. We ...
NBER WORKING PAPER SERIES THE INTERTEMPORAL APPROACH TO THE CURRENT ACCOUNT Maurice Obstfeld
... all the income on and payouts on cross-border assets: dividends, interest payments, insurance premia and payments, etc.), but also net capital gains on existing foreign assets. From the close of World War I until relatively recently, most countries' holdings of foreign assets had been limited both i ...
... all the income on and payouts on cross-border assets: dividends, interest payments, insurance premia and payments, etc.), but also net capital gains on existing foreign assets. From the close of World War I until relatively recently, most countries' holdings of foreign assets had been limited both i ...
The Education of Ben Bernanke
... when European banks experienced credit problems in August, but he has dealt with it deliberately and creatively since then. With more than a million households facing the possibility of home foreclosure in the next year, he will need all of his resourcefulness and more. “Every central-bank governor ...
... when European banks experienced credit problems in August, but he has dealt with it deliberately and creatively since then. With more than a million households facing the possibility of home foreclosure in the next year, he will need all of his resourcefulness and more. “Every central-bank governor ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... Those who argue for government spending note that low utilization of resources suggests the benefits, net of the social cost, of additional spending is high. For example, unemployed teachers could be working to raise the human capital of children. Layed-off construction workers could be doing much-ne ...
... Those who argue for government spending note that low utilization of resources suggests the benefits, net of the social cost, of additional spending is high. For example, unemployed teachers could be working to raise the human capital of children. Layed-off construction workers could be doing much-ne ...
Comparative Study of Central Bank Quantitative
... The banks are The Federal Reserve Bank (Fed), The Bank of England (BOE), The Bank of Japan (BOJ) and The European Central Bank (ECB). By the end of 2008, the Federal Reserve had exhausted all traditional monetary measures. As it approached the zero low bound (ZLB) in December 2008, the Fed introduce ...
... The banks are The Federal Reserve Bank (Fed), The Bank of England (BOE), The Bank of Japan (BOJ) and The European Central Bank (ECB). By the end of 2008, the Federal Reserve had exhausted all traditional monetary measures. As it approached the zero low bound (ZLB) in December 2008, the Fed introduce ...
Downward Nominal Wage Rigidity, Currency Pegs, and Involuntary
... quantitatively. To this end, we develop a model of an open economy with downward nominal wage rigidity. The motivation for focusing on downward nominal wage rigidity is empirical. There exists a large literature suggesting that downward nominal wage rigidity is pervasive in developed countries. In t ...
... quantitatively. To this end, we develop a model of an open economy with downward nominal wage rigidity. The motivation for focusing on downward nominal wage rigidity is empirical. There exists a large literature suggesting that downward nominal wage rigidity is pervasive in developed countries. In t ...
PDF
... all the income on and payouts on cross-border assets: dividends, interest payments, insurance premia and payments, etc.), but also net capital gains on existing foreign assets. From the close of World War I until relatively recently, most countries' holdings of foreign assets had been limited both i ...
... all the income on and payouts on cross-border assets: dividends, interest payments, insurance premia and payments, etc.), but also net capital gains on existing foreign assets. From the close of World War I until relatively recently, most countries' holdings of foreign assets had been limited both i ...
interest rate and inflation risks in PFI contracts
... their indexation formulæ for the Unitary Charge, since their own budgets are normally set by reference to constant or inflation-adjusted base lines and so are without scope to absorb this kind of risk. The advantage of using a financial institution to absorb interest-rate risks is that they are able ...
... their indexation formulæ for the Unitary Charge, since their own budgets are normally set by reference to constant or inflation-adjusted base lines and so are without scope to absorb this kind of risk. The advantage of using a financial institution to absorb interest-rate risks is that they are able ...
MCEV – Market Consistent Embedded Value Report 2015
... The NAV consists of the required capital (RC) and the free surplus (FS). RC is the amount of capital necessary to run the business and FS the additional market value of assets not backing liabilities. The VIF comprises of the following components: ...
... The NAV consists of the required capital (RC) and the free surplus (FS). RC is the amount of capital necessary to run the business and FS the additional market value of assets not backing liabilities. The VIF comprises of the following components: ...
Velocity: Money`s Second Dimension
... balances, is a constant fraction of the level of income. However, Keynes believed that money is held for purposes other than as a medium of exchange. The speculative motive for holding money is not directly related to expenditures, according to Keynes, but depends instead on the "liquidity preferenc ...
... balances, is a constant fraction of the level of income. However, Keynes believed that money is held for purposes other than as a medium of exchange. The speculative motive for holding money is not directly related to expenditures, according to Keynes, but depends instead on the "liquidity preferenc ...
Research and Monetary Policy Department Working Paper No:06/04
... lead to a rise in the debt-to-GDP ratio by depreciating the domestic currency and raising domestic interest rates, which has the potential to ignite a self-fulfilling prophecy as in the second generation crisis models. Moreover, based on positive correlations between domestic interest rates, exchang ...
... lead to a rise in the debt-to-GDP ratio by depreciating the domestic currency and raising domestic interest rates, which has the potential to ignite a self-fulfilling prophecy as in the second generation crisis models. Moreover, based on positive correlations between domestic interest rates, exchang ...
MONETARY POLICY REPORT CENTRAL BANK OF THE REPUBLIC OF TURKEY JULY 2003
... in line with the set targets under the basic assumption that the economic program will be strictly implemented with a long term perspective and there will be no deviation from the financial discipline and structural reform process which both carry vital importance in maintaining and improving the cu ...
... in line with the set targets under the basic assumption that the economic program will be strictly implemented with a long term perspective and there will be no deviation from the financial discipline and structural reform process which both carry vital importance in maintaining and improving the cu ...
Unemployed
... Inflation is a sustained rise in the general level of prices of all goods and services. It is one of the 3 major macroeconomic variables (output and unemployment being the other 2) that is of concern to economists and policymakers. Inflation is a problem because it causes the purchasing power (or th ...
... Inflation is a sustained rise in the general level of prices of all goods and services. It is one of the 3 major macroeconomic variables (output and unemployment being the other 2) that is of concern to economists and policymakers. Inflation is a problem because it causes the purchasing power (or th ...
Information about Financial instruments
... price. This difference can be expressed as the compound rate of interest on the bond to maturity. If the investor chooses to sell the bond before maturity (early redemption), payment is restricted to the proceeds of the sale. Zero bonds are usually issued at a deep discount to their nominal value an ...
... price. This difference can be expressed as the compound rate of interest on the bond to maturity. If the investor chooses to sell the bond before maturity (early redemption), payment is restricted to the proceeds of the sale. Zero bonds are usually issued at a deep discount to their nominal value an ...
Fundamentals of Engineering Economics
... explains different methods to evaluate alternates available to the business owner. Engineering Economy is the study of the feasibility and evaluation of the cost of possible solutions to engineering problems. When benefits outweigh costs the alternate becomes a acceptable one. The lowest cost among ...
... explains different methods to evaluate alternates available to the business owner. Engineering Economy is the study of the feasibility and evaluation of the cost of possible solutions to engineering problems. When benefits outweigh costs the alternate becomes a acceptable one. The lowest cost among ...
85th Annual Report - Bank for International Settlements
... IV.6 Domestic cyclical drivers of inflation matter less and global more . . . . . . . . . . . . . 72 IV.7 Long-term inflation expectations are still anchored . . . . . . . . . . . . . . . . . . . . . . . . . . 73 IV.8 Worrisome household debt and house price trends persist . . . . . . . . . ...
... IV.6 Domestic cyclical drivers of inflation matter less and global more . . . . . . . . . . . . . 72 IV.7 Long-term inflation expectations are still anchored . . . . . . . . . . . . . . . . . . . . . . . . . . 73 IV.8 Worrisome household debt and house price trends persist . . . . . . . . . ...
EU Economy Review 2006 – Adjustment Dynamics in the Euro Area
... dynamically stable. National economies are seen to move out of line with the average cyclical position in the area as a result of country-specific developments and shocks. But this situation corrects itself over time as inflation starts to diverge and the loss or gain in competitiveness acts to rest ...
... dynamically stable. National economies are seen to move out of line with the average cyclical position in the area as a result of country-specific developments and shocks. But this situation corrects itself over time as inflation starts to diverge and the loss or gain in competitiveness acts to rest ...
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.