NBER WORKING PAPER SERIES INCOMPLETE MARKET DYNAMICS IN NEOCLASSICAL PRODUCTION ECONOMY George-Marios Angeletos
... some persistence because agents seek to smooth consumption through time. When markets are incomplete, productive investment is risky and becomes even less attractive relative to current consumption. This can slow down convergence to the steady state, and thus increase the persistence of aggregate sh ...
... some persistence because agents seek to smooth consumption through time. When markets are incomplete, productive investment is risky and becomes even less attractive relative to current consumption. This can slow down convergence to the steady state, and thus increase the persistence of aggregate sh ...
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... institution in Islamic Finance industry has gone beyond the function of a financial intermediary whereby it also serves as a wakeel, custodian, partner, entrepreneur, and guarantor. Nonetheless, Islamic Finance is yet to come up with an alternative Islamic Pricing Benchmark (IPB) to determine its co ...
... institution in Islamic Finance industry has gone beyond the function of a financial intermediary whereby it also serves as a wakeel, custodian, partner, entrepreneur, and guarantor. Nonetheless, Islamic Finance is yet to come up with an alternative Islamic Pricing Benchmark (IPB) to determine its co ...
NBER WORKING PAPER SERIES HOUSING AND THE MONETARY TRANSMISSION MECHANISM
... macroeconometric models used by central banks, but the range of estimated elasticities of residential investment to the user cost of capital is wide. For U.S. data, the elasticities ...
... macroeconometric models used by central banks, but the range of estimated elasticities of residential investment to the user cost of capital is wide. For U.S. data, the elasticities ...
2004-2
... If we assume that generation 2 lives for a finite period of time, then generation 2 can pass-on dg2 debt to the next generation. Alternatively, if generation 2 represents all future generations, then generation 2 is required to obey the intertemporal budget balance rule, and thus the sum of the open ...
... If we assume that generation 2 lives for a finite period of time, then generation 2 can pass-on dg2 debt to the next generation. Alternatively, if generation 2 represents all future generations, then generation 2 is required to obey the intertemporal budget balance rule, and thus the sum of the open ...
CHAPTER 16 INVESTMENT SPENDING Chapter Outline The Stock
... But the rental cost may also be affected by the corporate income tax and investment tax credits. Due to complexities in tax laws, the effect of a change in the corporate income tax is fairly ambiguous and largely depends on whether an investment is debt- or equity-financed. We assume here that the r ...
... But the rental cost may also be affected by the corporate income tax and investment tax credits. Due to complexities in tax laws, the effect of a change in the corporate income tax is fairly ambiguous and largely depends on whether an investment is debt- or equity-financed. We assume here that the r ...
A Policy Model to Analyze Macroprudential Regulations and Monetary Policy 2014-6
... Elements of the risk-taking channel are introduced through the e¤ects of aggregate economic activity and funding conditions on the risk appetite of savers. Thus, in expansions when funding liquidity is plentiful, the risk appetite of investors increases, inducing them to rebalance their portfolios t ...
... Elements of the risk-taking channel are introduced through the e¤ects of aggregate economic activity and funding conditions on the risk appetite of savers. Thus, in expansions when funding liquidity is plentiful, the risk appetite of investors increases, inducing them to rebalance their portfolios t ...
NBER WORKING PAPER SERIES FIRM DYNAMICS, INVESTMENT, AND DEBT PORTFOLIO:
... insight that firms cannot switch their production from domestic markets to exports costlessly, due to, for example, an inelastic world demand for exports. Firms accumulate capital over time. However, investment can only be financed through internal resources or by borrowing in the international capi ...
... insight that firms cannot switch their production from domestic markets to exports costlessly, due to, for example, an inelastic world demand for exports. Firms accumulate capital over time. However, investment can only be financed through internal resources or by borrowing in the international capi ...
NBER WORKING PAPER SERIES WAGES, RELATIVE PRICES AND CHOICE BETWEEN
... 9Following Gray (1976) we might measure domestic output relative to "desired" output, rather than expected output, where the former is defined as that output which would prevail in a frictionless economy without contract lags. As long as labor supply is inelastic, these two objectives are equivalent ...
... 9Following Gray (1976) we might measure domestic output relative to "desired" output, rather than expected output, where the former is defined as that output which would prevail in a frictionless economy without contract lags. As long as labor supply is inelastic, these two objectives are equivalent ...
MONEY MARKET EQUILIBRIUM IN THE CZECH REPUBLIC
... market in the Czech Republic (CR), which is determined, on the one hand, by the money supply and, on the other hand, by the money demand. In terms of further development of the CR and its sustainable economic growth the examination of the balance in the domestic money market is relevant particularly ...
... market in the Czech Republic (CR), which is determined, on the one hand, by the money supply and, on the other hand, by the money demand. In terms of further development of the CR and its sustainable economic growth the examination of the balance in the domestic money market is relevant particularly ...
Ecs1028 (1) - gimmenotes
... In any society there is a need to hold wealth or surplus production in some form or another. The most common form of holding wealth is money, since it can always be exchanged for other goods or services at a later date. Wealth can also be held in other forms, such as fixed property, stocks and share ...
... In any society there is a need to hold wealth or surplus production in some form or another. The most common form of holding wealth is money, since it can always be exchanged for other goods or services at a later date. Wealth can also be held in other forms, such as fixed property, stocks and share ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... with an average rise of both the nominal and the real rate during these periods of about 1 percentage point. And although the relevant numbers are not reported in the tables, the same general tendency toward moderate interest rate increases continues through the second year of recoveries. Table 2 al ...
... with an average rise of both the nominal and the real rate during these periods of about 1 percentage point. And although the relevant numbers are not reported in the tables, the same general tendency toward moderate interest rate increases continues through the second year of recoveries. Table 2 al ...
Exchange Rate Developments and Fundamentals in Four
... with the repayment of foreign debt. A partial default could be avoided, however, and the countrys financial situation improved. After three years of deep recession, Romania recovered in 2000, mainly because of the strong demand in EU export markets. Since 2001, GDP growth has amounted to around 5%, ...
... with the repayment of foreign debt. A partial default could be avoided, however, and the countrys financial situation improved. After three years of deep recession, Romania recovered in 2000, mainly because of the strong demand in EU export markets. Since 2001, GDP growth has amounted to around 5%, ...
The cyclical relations between traded property stock prices and
... movements of the latter are generated by the changing economic-business conditions and by the performance of the underlying property market (Mei and Liu, 1994; McCue and Kling, 1994; Brooks and Tsolacos, 1999). The selection of the aggregate time-series to examine the stylised facts of the property ...
... movements of the latter are generated by the changing economic-business conditions and by the performance of the underlying property market (Mei and Liu, 1994; McCue and Kling, 1994; Brooks and Tsolacos, 1999). The selection of the aggregate time-series to examine the stylised facts of the property ...
Lecture notes on the Cambridge equation and the neo
... capacity savings forthcoming from the larger installed capacity. So in the long run expected aggregate demand leads economic growth by determining an adjustment of output capacity. If, on the other hand, expected demand slows down, there will slowly be a downsizing of output capacity. Labour populat ...
... capacity savings forthcoming from the larger installed capacity. So in the long run expected aggregate demand leads economic growth by determining an adjustment of output capacity. If, on the other hand, expected demand slows down, there will slowly be a downsizing of output capacity. Labour populat ...
() - ETF Securities
... The “new normal” paradigm requires lower benchmark rates than in the past. One of the most prominent examples of this is the decline of the estimated “natural interest rate” (i.e. the interest rate at which real GDP is growing at its trend rate and inflation is stable) in the US in the last decade. ...
... The “new normal” paradigm requires lower benchmark rates than in the past. One of the most prominent examples of this is the decline of the estimated “natural interest rate” (i.e. the interest rate at which real GDP is growing at its trend rate and inflation is stable) in the US in the last decade. ...
NBER WORKING PAPER SERIES Richard Clarida
... country model that is useful for international policy analysis. Consistent with a voluminous recent literature, our framework is optimization-based and is sufficiently tractable to admit an analytical solution.1 In most of this work (particularly the work that is purely analytical), nominal price sett ...
... country model that is useful for international policy analysis. Consistent with a voluminous recent literature, our framework is optimization-based and is sufficiently tractable to admit an analytical solution.1 In most of this work (particularly the work that is purely analytical), nominal price sett ...
CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT CENTER
... generally of monetary nature. Decrease in aggregate supply can derive from adverse socks, such as labour supply decrease, and increases in production factors. But aggregate supply decreases do not lead to continuous price increase unless they are backed by the Central Bank through continuous monetar ...
... generally of monetary nature. Decrease in aggregate supply can derive from adverse socks, such as labour supply decrease, and increases in production factors. But aggregate supply decreases do not lead to continuous price increase unless they are backed by the Central Bank through continuous monetar ...
Chapter 7
... permit the holder to buy stock for a stated price, thereby providing a capital gain if the stock’s price rises. ...
... permit the holder to buy stock for a stated price, thereby providing a capital gain if the stock’s price rises. ...
The Bond Yield "Conundrum" from a Macro
... factors have been suggested that could have induced such changes. For example, a new appreciation of lower macroeconomic volatility or reduced monetary policy uncertainty could alter assessments of the amount of interest rate risk faced by investors. Alternatively, risk aversion may have been reduc ...
... factors have been suggested that could have induced such changes. For example, a new appreciation of lower macroeconomic volatility or reduced monetary policy uncertainty could alter assessments of the amount of interest rate risk faced by investors. Alternatively, risk aversion may have been reduc ...
US Equities: Light at the End of the Tunnel
... By the end of 1999, U.S. equities and investment-grade bonds had both enjoyed a nearly twodecade-long bull market, precipitated in large part by steady declines in interest rates and inflation that boosted the prices of financial assets. Since then, their paths have diverged. Interest rates have fal ...
... By the end of 1999, U.S. equities and investment-grade bonds had both enjoyed a nearly twodecade-long bull market, precipitated in large part by steady declines in interest rates and inflation that boosted the prices of financial assets. Since then, their paths have diverged. Interest rates have fal ...
The Inflation Puzzle - VBA beleggingsprofessionals
... It would even be more fruitful to recognize that one does not need inflation and deflation protection all the time. One would like to protect against a tail event, for instance inflation below 0% or above 5%, as is where it starts to hurt growth dynamics and a global assets. Only then profits get sq ...
... It would even be more fruitful to recognize that one does not need inflation and deflation protection all the time. One would like to protect against a tail event, for instance inflation below 0% or above 5%, as is where it starts to hurt growth dynamics and a global assets. Only then profits get sq ...
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.