Introduction - Drake University
... of the claims. For example a mutual fund which takes a relatively small sum of money form an individual investor but invests in a portfolio of assets. (Decreases Credit Risk). The size of the firm allows it to be more cost effective at producing this risk reduction . An individual doing this alone, ...
... of the claims. For example a mutual fund which takes a relatively small sum of money form an individual investor but invests in a portfolio of assets. (Decreases Credit Risk). The size of the firm allows it to be more cost effective at producing this risk reduction . An individual doing this alone, ...
COMMENTS ON THE COMPANY`S
... transactions. The methodology consists of utilizing the data provided by 24 companies, and extrapolating them to the industry sector, defined by ABPO and consisting of 80 companies (see 1 below). The estimates are based on 2008 data. With the values at this date, extension factors for each variable ...
... transactions. The methodology consists of utilizing the data provided by 24 companies, and extrapolating them to the industry sector, defined by ABPO and consisting of 80 companies (see 1 below). The estimates are based on 2008 data. With the values at this date, extension factors for each variable ...
Evolving post-World War II UK economic
... difference between the mean growth rate in expansions and recessions, over the most recent period. McConnell and Perez-Quiros identify a structural break in the conditional volatility of reduced-form shocks to the rate of growth of US real GNP, again, in 1984:1, with the latter period being characte ...
... difference between the mean growth rate in expansions and recessions, over the most recent period. McConnell and Perez-Quiros identify a structural break in the conditional volatility of reduced-form shocks to the rate of growth of US real GNP, again, in 1984:1, with the latter period being characte ...
Mankiw 5/e Chapter 11: Aggregate Demand II
... Oct-Dec 1929: S&P 500 fell 17% Oct 1929-Dec 1933: S&P 500 fell 71% 2. Drop in investment ...
... Oct-Dec 1929: S&P 500 fell 17% Oct 1929-Dec 1933: S&P 500 fell 71% 2. Drop in investment ...
Project and Investment Appraisal for Sustainable Value
... receive goods and services now rather than later and (b) investors prefer to receive money today, rather than the same amount in the future, i.e., one dollar (or other currency) today is worth more than one dollar tomorrow. An investor demands a rate of return even for a riskless investment, as a re ...
... receive goods and services now rather than later and (b) investors prefer to receive money today, rather than the same amount in the future, i.e., one dollar (or other currency) today is worth more than one dollar tomorrow. An investor demands a rate of return even for a riskless investment, as a re ...
NATIONAL
... 3Foundations for equation (4) might be developed by combining a simple consumption function with a Bawuol-Tobin model of money demand. Suppose, for example, that consumers receive a constant flow of real income and desire a Income flows to bank accounts, where it is constant flow of consumption. pro ...
... 3Foundations for equation (4) might be developed by combining a simple consumption function with a Bawuol-Tobin model of money demand. Suppose, for example, that consumers receive a constant flow of real income and desire a Income flows to bank accounts, where it is constant flow of consumption. pro ...
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... for the future. Fifthly, restoration to the long-run target of the funding ratio (which is determined by the capital requirements) needs to take place within a maximum of ten years (versus 15 years previously), while entitlements may be cut immediately if restoration through other measures cannot be ...
... for the future. Fifthly, restoration to the long-run target of the funding ratio (which is determined by the capital requirements) needs to take place within a maximum of ten years (versus 15 years previously), while entitlements may be cut immediately if restoration through other measures cannot be ...
Financial Planning Model - Sollenberger Associates
... Distinguishing between strategic goals and other forecasting targets. There are only a few strategic financial goals – maybe a half dozen, certainly 10 or less. But, to forecast balance sheets and income statements, many more forecast variables are needed. For example, loan growth may be a strategic ...
... Distinguishing between strategic goals and other forecasting targets. There are only a few strategic financial goals – maybe a half dozen, certainly 10 or less. But, to forecast balance sheets and income statements, many more forecast variables are needed. For example, loan growth may be a strategic ...
NBER WORKING PAPER SERIES EXPLAINING DEVIATIONS FROM UNCOVERED INTEREST PARITY Robert E. Cumby
... if these returns can be explained by models of a foreign exchange risk premiumi After presenting evidence that both nominal and real epected speculative profits are non—zero, the paper examines if real returns to forward speculation are consistent with consumption—based models of risk premia. Estima ...
... if these returns can be explained by models of a foreign exchange risk premiumi After presenting evidence that both nominal and real epected speculative profits are non—zero, the paper examines if real returns to forward speculation are consistent with consumption—based models of risk premia. Estima ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... Treaty provisions, it is expected that further disinflation will be a major policy goal in Europe. For this reason, it is of the foremost importance that an attempt be made to properly estimate the costs and benefits of moving from low inflation to price stability. The purpose of this paper is to co ...
... Treaty provisions, it is expected that further disinflation will be a major policy goal in Europe. For this reason, it is of the foremost importance that an attempt be made to properly estimate the costs and benefits of moving from low inflation to price stability. The purpose of this paper is to co ...
Identifying Exchange Rate Common Factors
... are the true common factors. 2. If there are one or more common factors in the panel of residuals ∆soit , then either (fjtp or fstp ), or both (fjtp , fstp ) are not the true common factors. Hence we examine whether pairs of economic variables are approximately the true factors by regressing ∆s̃it o ...
... are the true common factors. 2. If there are one or more common factors in the panel of residuals ∆soit , then either (fjtp or fstp ), or both (fjtp , fstp ) are not the true common factors. Hence we examine whether pairs of economic variables are approximately the true factors by regressing ∆s̃it o ...
Currency Outlook-Why the JPY won`t weaken
... currency war within Asia, but the threat to currency peace is growing. Furthermore, should Japanese exporters succeed in grabbing market share, we could see an improvement in Japan’s external balance. In addition, capital flows may act as a support for the JPY, especially if the JPY’s role as a safe ...
... currency war within Asia, but the threat to currency peace is growing. Furthermore, should Japanese exporters succeed in grabbing market share, we could see an improvement in Japan’s external balance. In addition, capital flows may act as a support for the JPY, especially if the JPY’s role as a safe ...
Fiscal Multipliers: Lessons from the Great Recession for Small Open
... on impact. The point estimate for the cumulative multiplier is actually negative, although not significantly different from zero. We should note here that in the same sample, the output multiplier estimated without conditioning is as high as .7. Our finding thus supports the notion that, in an econo ...
... on impact. The point estimate for the cumulative multiplier is actually negative, although not significantly different from zero. We should note here that in the same sample, the output multiplier estimated without conditioning is as high as .7. Our finding thus supports the notion that, in an econo ...
Is the Phillips curve still dead?
... priority. Inflation targets could perhaps therefore be set somewhat higher in order to grant central banks more flexibility in pursuing these other goals. Epstein (2007: 9) argues that ‘moderate’ inflation has no “predictable negative consequences on the real economy”. According to Pollin and Zhu (2 ...
... priority. Inflation targets could perhaps therefore be set somewhat higher in order to grant central banks more flexibility in pursuing these other goals. Epstein (2007: 9) argues that ‘moderate’ inflation has no “predictable negative consequences on the real economy”. According to Pollin and Zhu (2 ...
Economic Commentaries
... a narrower index. But arguments are also expressed in favour of stabilising an index that disregards temporary price fluctuations or changes in prices that cannot be influenced by monetary policy, such as import prices and prices that are strongly weather-dependent. 4.1. “Monetary policy shall disre ...
... a narrower index. But arguments are also expressed in favour of stabilising an index that disregards temporary price fluctuations or changes in prices that cannot be influenced by monetary policy, such as import prices and prices that are strongly weather-dependent. 4.1. “Monetary policy shall disre ...
year12 inspection sample
... NCEA markers compare what you have written to what is in their marking schedule. If your answer includes the required evidence, you get awarded the grade for the question. In a way, questions are clues as to what is in the marking schedule and your job is to predict and replicate the marking schedul ...
... NCEA markers compare what you have written to what is in their marking schedule. If your answer includes the required evidence, you get awarded the grade for the question. In a way, questions are clues as to what is in the marking schedule and your job is to predict and replicate the marking schedul ...
This PDF is a selection from a published volume from
... (Bernanke 2004). Because of lags in when monetary policy actions affect real activity and inflation, central banks need to act before economic conditions deteriorate. A famous instance of forward looking policy occurred in 1994 when the Federal Reserve moved preemptively against increases in inflati ...
... (Bernanke 2004). Because of lags in when monetary policy actions affect real activity and inflation, central banks need to act before economic conditions deteriorate. A famous instance of forward looking policy occurred in 1994 when the Federal Reserve moved preemptively against increases in inflati ...
16. Investing in Bonds
... 8) A convertible bond allows the investor to exchange that bond for another issue of bonds within the convertible period. Answer: FALSE Diff: 2 Question Status: Previous edition 9) A bond's yield to maturity is the annualized percentage return of both interest and capital gains or losses if the bon ...
... 8) A convertible bond allows the investor to exchange that bond for another issue of bonds within the convertible period. Answer: FALSE Diff: 2 Question Status: Previous edition 9) A bond's yield to maturity is the annualized percentage return of both interest and capital gains or losses if the bon ...
Monetary Policy Coordination, Monetary Integration and Other Essays
... Bayoumi (1994) and Ricci (1997). Mundell (1961) proposed a simple idea to determine whether it is beneficial for countries in a region to create a common currency area. Suppose that a region composed of two countries, A and B, is hit by an asymmetric shock. The shock is called asymmetric because it ...
... Bayoumi (1994) and Ricci (1997). Mundell (1961) proposed a simple idea to determine whether it is beneficial for countries in a region to create a common currency area. Suppose that a region composed of two countries, A and B, is hit by an asymmetric shock. The shock is called asymmetric because it ...
1. Macroeconomic developments across the euro area
... The aim of this section is to provide an overview of the varied experiences of the twelve countries making up the euro area. From this overall view, we identify six countries that, because of their diverse experiences within the euro area, serve as useful case studies for an analysis of how economic ...
... The aim of this section is to provide an overview of the varied experiences of the twelve countries making up the euro area. From this overall view, we identify six countries that, because of their diverse experiences within the euro area, serve as useful case studies for an analysis of how economic ...
the impact of real exchange rate volatility on
... Kenya has witnessed exchange rate volatility following financial liberalization in the late 1980s which led to increased foreign private capital flows. Fluctuations in international world prices attributed to exchange rate volatility which hinders economic growth rate. These fluctuations increase ri ...
... Kenya has witnessed exchange rate volatility following financial liberalization in the late 1980s which led to increased foreign private capital flows. Fluctuations in international world prices attributed to exchange rate volatility which hinders economic growth rate. These fluctuations increase ri ...
Markets Overview
... compounding the impact on the USD after the US Fed FOMC decision stayed largely neutral on Thur morning. With most Asian markets closed next Mon for Labour Day holiday, trading is likely to thin out comparatively today and could keep a lid on the USD especially after the underwhelming US 1Q GDP repo ...
... compounding the impact on the USD after the US Fed FOMC decision stayed largely neutral on Thur morning. With most Asian markets closed next Mon for Labour Day holiday, trading is likely to thin out comparatively today and could keep a lid on the USD especially after the underwhelming US 1Q GDP repo ...
NBER WORKING PAPER SERIES ANTICIPATED RAMSEY REFORMS AND THE UNIFORM TAXATION PRINCIPLE:
... idiosyncratic, country-specific shocks, against which domestic residents can insure by trading in international financial markets. Since the seminal work of Lucas and Stokey (1983), a large body of research has been devoted to characterizing optimal fiscal and monetary policy in dynamic macroeconomi ...
... idiosyncratic, country-specific shocks, against which domestic residents can insure by trading in international financial markets. Since the seminal work of Lucas and Stokey (1983), a large body of research has been devoted to characterizing optimal fiscal and monetary policy in dynamic macroeconomi ...
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.