NBER WORKING PAPER SERIES THE FELDSTEIN-HORIOKA FACT Domenico Giannone Michele Lenza
... estimator is achieved as both the number of series and observations increase. These estimates are robust with respect to some form of non-stationarity in the data6 . Moreover, the estimated factors can be considered as they were known provided that the number of countries is not too small relative t ...
... estimator is achieved as both the number of series and observations increase. These estimates are robust with respect to some form of non-stationarity in the data6 . Moreover, the estimated factors can be considered as they were known provided that the number of countries is not too small relative t ...
ABS 415 Help Education Expert/abs415helpdotcom
... • You recently sold 100 shares of your new company, XYZ Corporation, to your brother at a family reunion. At the reunion your brother gave you a check for the stock and you gave your brother the stock certificates. Which of the following statements best describes this transaction? • 1) This is an ex ...
... • You recently sold 100 shares of your new company, XYZ Corporation, to your brother at a family reunion. At the reunion your brother gave you a check for the stock and you gave your brother the stock certificates. Which of the following statements best describes this transaction? • 1) This is an ex ...
Aggregate Demand
... • Money = cash and bank deposits on which people can write checks • People and firms hold money because it reduces the cost and inconvenience of making transactions • Increase in the aggregate price level, other things equal, reduces the purchasing power of a given amount of money holdings • Basket ...
... • Money = cash and bank deposits on which people can write checks • People and firms hold money because it reduces the cost and inconvenience of making transactions • Increase in the aggregate price level, other things equal, reduces the purchasing power of a given amount of money holdings • Basket ...
Adobe PDF - printer friendly version
... These penalties are calculated in a variety of ways. It’s worth noting that if market interest rates have fallen since your term deposit started, the bank may be willing to reduce the early repayment penalty. That’s because they would rather not be paying out higherthan-market interest. ...
... These penalties are calculated in a variety of ways. It’s worth noting that if market interest rates have fallen since your term deposit started, the bank may be willing to reduce the early repayment penalty. That’s because they would rather not be paying out higherthan-market interest. ...
Estimating the Expected Marginal Rate of Substitution: Exploiting
... appropriate short-term riskless interest rate. 2 That is, the EMRS is simply equated with e.g., the Treasury-bill rate; it is not estimated at all. While this simplifies empirical work considerably, this assumes integration between stock and money markets, one of the very assumptions we wish to test ...
... appropriate short-term riskless interest rate. 2 That is, the EMRS is simply equated with e.g., the Treasury-bill rate; it is not estimated at all. While this simplifies empirical work considerably, this assumes integration between stock and money markets, one of the very assumptions we wish to test ...
Investments: An Introduction Sixth Edition
... The discount rate • The rate of interest that the Federal Reserve charges banks for borrowing reserves. • By borrowing the necessary reserves, banks will not have to liquidate assets in order to obtain the funds to meet their reserve requirements which means maintaining the supply of money and cred ...
... The discount rate • The rate of interest that the Federal Reserve charges banks for borrowing reserves. • By borrowing the necessary reserves, banks will not have to liquidate assets in order to obtain the funds to meet their reserve requirements which means maintaining the supply of money and cred ...
Giancarlo Bertocco Money as an institution of capitalism. On the
... function of money as a means of exchange assumes importance, while in a capitalist economy the non neutrality of money is based on his store of wealth function.4 By specifying this function of money Keynes, in the General Theory, highlights the monetary nature of the interest rate and shows that th ...
... function of money as a means of exchange assumes importance, while in a capitalist economy the non neutrality of money is based on his store of wealth function.4 By specifying this function of money Keynes, in the General Theory, highlights the monetary nature of the interest rate and shows that th ...
Yield Curve Basics
... Treasury bond market includes securities of virtually every maturity, from 3 months to 30 years. A yield curve depicts yield differences, or yield spreads, that are due solely to differences in maturity. It therefore conveys the overall relationship that prevails at a given time in the marketplace b ...
... Treasury bond market includes securities of virtually every maturity, from 3 months to 30 years. A yield curve depicts yield differences, or yield spreads, that are due solely to differences in maturity. It therefore conveys the overall relationship that prevails at a given time in the marketplace b ...
GMAC Demand Notes – What`s the Risk
... investment grade status for its debt if it were a stand alone entity. However, issues with the parent company have tarnished GMAC’s credit rating. This reality is not lost on GM management, which has publicly acknowledged that it may sell all or part of GMAC. Were GMAC to be sold, any risk in owning ...
... investment grade status for its debt if it were a stand alone entity. However, issues with the parent company have tarnished GMAC’s credit rating. This reality is not lost on GM management, which has publicly acknowledged that it may sell all or part of GMAC. Were GMAC to be sold, any risk in owning ...
pdf
... tax, investment or other professional advice and formulate an appropriate investment strategy that would suit the risk profile of the client prior to acting upon information. Coronation Management Company (RF) (Pty) Ltd is not acting and does not purport to act in any way as an advisor or in a fiduc ...
... tax, investment or other professional advice and formulate an appropriate investment strategy that would suit the risk profile of the client prior to acting upon information. Coronation Management Company (RF) (Pty) Ltd is not acting and does not purport to act in any way as an advisor or in a fiduc ...
On the Desirability of Capital Controls
... In this example, we emphasized the role of asset trade on the relative supply of domestically and foreign produced goods. But asset trade also potentially affects relative demand. In the near term, following a positive domestic productivity shock, the extra investment that is financed by bond trade ...
... In this example, we emphasized the role of asset trade on the relative supply of domestically and foreign produced goods. But asset trade also potentially affects relative demand. In the near term, following a positive domestic productivity shock, the extra investment that is financed by bond trade ...
INVESTMENT LED GROWTH IN INDIA: HINDU FACT OR
... contribution of capital growth as disappointing, and suggest that it has been a constraint on growth. This view is reiterated in Bosworth and Collins (2008) where the authors compare India, East Asia and China. They argue also that reforms to the business environment are needed to improve investment ...
... contribution of capital growth as disappointing, and suggest that it has been a constraint on growth. This view is reiterated in Bosworth and Collins (2008) where the authors compare India, East Asia and China. They argue also that reforms to the business environment are needed to improve investment ...
Paper - Dynare
... president of the United States. Contrary to Wilson, he was far more in favor of letting the markets play their role. The deflation was then seen as a necessary cure to the former excesses that generated high inflation just a few years ago. During this period, we have then an economy in free fall wit ...
... president of the United States. Contrary to Wilson, he was far more in favor of letting the markets play their role. The deflation was then seen as a necessary cure to the former excesses that generated high inflation just a few years ago. During this period, we have then an economy in free fall wit ...
Optimal fiscal and monetary policy in a medium
... 1993; and Chari et al. 1991). Second, the fact that nominal wages are sticky provides an incentive for the government to set the price level so as to engineer the efficient real wage. This practice, when studied in isolation, also makes high inflation volatility optimal. When the fiscal authority is ...
... 1993; and Chari et al. 1991). Second, the fact that nominal wages are sticky provides an incentive for the government to set the price level so as to engineer the efficient real wage. This practice, when studied in isolation, also makes high inflation volatility optimal. When the fiscal authority is ...
Document
... Since employment of all resources is unchanged, total output is also unchanged by the money supply. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service o ...
... Since employment of all resources is unchanged, total output is also unchanged by the money supply. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service o ...
Sovereign yield spreads during the Euro-crisis
... residual maturity of two years as well. Our main focus is on the third term in (3) that should capture the risk premium stemming from the perceived risk of a country’s withdrawal of the currency union ( ). Unfortunately, no market based measure of exit probabilities for individual EMU is available. ...
... residual maturity of two years as well. Our main focus is on the third term in (3) that should capture the risk premium stemming from the perceived risk of a country’s withdrawal of the currency union ( ). Unfortunately, no market based measure of exit probabilities for individual EMU is available. ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... interact with, long growth trends which dominate developments across decades. Peacetime expansions in the United States averaged about 3 years in the last half-century, 2 years in the earlier periods containing 10 cycles each (table 2.1). Each of the wartime expansions was much longer. Contractions ...
... interact with, long growth trends which dominate developments across decades. Peacetime expansions in the United States averaged about 3 years in the last half-century, 2 years in the earlier periods containing 10 cycles each (table 2.1). Each of the wartime expansions was much longer. Contractions ...
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.