IOSR Journal of Economics and Finance (IOSR-JEF)
... investment climate favourable to foreign investment by creating strong institutions capable of enforcing the rule of law and property rights. The government should work towards improving transparency and accountability in revenue collection especially from mineral sales. It should plug mineral leaka ...
... investment climate favourable to foreign investment by creating strong institutions capable of enforcing the rule of law and property rights. The government should work towards improving transparency and accountability in revenue collection especially from mineral sales. It should plug mineral leaka ...
The Interaction Between Monetary and Fiscal Policies
... exchange rate changes and inflation in his simple models. It is important to note, however, that relaxing these assumptions, while maintaining a hypothesis of perfect asset substitutability, still leads to the conclusion that monetary policy has no effect on output under a credible fixed exchange ra ...
... exchange rate changes and inflation in his simple models. It is important to note, however, that relaxing these assumptions, while maintaining a hypothesis of perfect asset substitutability, still leads to the conclusion that monetary policy has no effect on output under a credible fixed exchange ra ...
The real exchange rate and phasing in of oil revenues
... supply of non-tradeable goods therefore increases relative to the supply of tradeable goods and when this happens, the price of non-tradeable goods in relation to tradeable goods starts to fall. The price will continue to fall until the reallocation of factor inputs has ended. In the new long-run eq ...
... supply of non-tradeable goods therefore increases relative to the supply of tradeable goods and when this happens, the price of non-tradeable goods in relation to tradeable goods starts to fall. The price will continue to fall until the reallocation of factor inputs has ended. In the new long-run eq ...
11.3 www.bea.gov
... Data for federal government plans ▪ Actuarial reports go back to 1979 (civilians) or 1985 (military). ▪ Use PBO approach; legal funding targets are also based on PBO. ▪ Normal cost for each year, the PBO for 2013, and actual plan expenses used as inputs into simulations. For older years, we multipl ...
... Data for federal government plans ▪ Actuarial reports go back to 1979 (civilians) or 1985 (military). ▪ Use PBO approach; legal funding targets are also based on PBO. ▪ Normal cost for each year, the PBO for 2013, and actual plan expenses used as inputs into simulations. For older years, we multipl ...
The Demand for Currency Substitution.
... RS, and the two kinds of money earn rates of return RMi. It is presumed that RS > RMi > RXg.3 When the household exhausts its holdings of a medium of exchange, the cash-in-advance constraint forces it to replenish those holdings by converting some of its saving asset to the desired medium. There are ...
... RS, and the two kinds of money earn rates of return RMi. It is presumed that RS > RMi > RXg.3 When the household exhausts its holdings of a medium of exchange, the cash-in-advance constraint forces it to replenish those holdings by converting some of its saving asset to the desired medium. There are ...
NBER WORKING PAPER SERIES TAXATION AND THE SIZE AND
... of capital at the time that reform is announced. On the other hand, investment incentives may actually confer a windfall loss on the holders of existing capital. This di-stinction cannot be captured within the standard general equilibrium model, but requires a framework in which the distinction betw ...
... of capital at the time that reform is announced. On the other hand, investment incentives may actually confer a windfall loss on the holders of existing capital. This di-stinction cannot be captured within the standard general equilibrium model, but requires a framework in which the distinction betw ...
NBER WORKING PAPER SERIES IS-LM AND MONETARISM Michael D. Bordo Anna J. Schwartz
... The solution of these three equations produces the IS curve, a negative relationship in interest rates, nominal income space. A rise in the interest rate reduces investment and via the multiplier also income. In the money market, Hicks distinguishes the Keynesian demand for money or liquidity prefer ...
... The solution of these three equations produces the IS curve, a negative relationship in interest rates, nominal income space. A rise in the interest rate reduces investment and via the multiplier also income. In the money market, Hicks distinguishes the Keynesian demand for money or liquidity prefer ...
OF_Ch06
... Quotes and prices of Eurodollar futures – For a 3-month Eurodollar futures with the quote price Z, its price is 10,000×[100 – 0.25×(100 – Z)] [100 – 0.25×(100 – Z)] can be understood as the market price of a virtual 3-month zero coupon bond (ZCB) with $100 face value corresponding to the interest ra ...
... Quotes and prices of Eurodollar futures – For a 3-month Eurodollar futures with the quote price Z, its price is 10,000×[100 – 0.25×(100 – Z)] [100 – 0.25×(100 – Z)] can be understood as the market price of a virtual 3-month zero coupon bond (ZCB) with $100 face value corresponding to the interest ra ...
A Duration Hidden - Department of Economics and Business
... one potential explanation for nonlinear conditional returns. Although in principle such processes might be represented as having any number of regimes, the existing theoretical and empirical literature has tended to concentrate on two regimes, the traditional ‘bull’ and ‘bear’ markets. Blanchard and ...
... one potential explanation for nonlinear conditional returns. Although in principle such processes might be represented as having any number of regimes, the existing theoretical and empirical literature has tended to concentrate on two regimes, the traditional ‘bull’ and ‘bear’ markets. Blanchard and ...
Advancing the Credit Channel and Credit Rationing in the
... banks could potentially extend – throw a wrench in the banks’ financial intermediation machinery that reduces credit further. Banks deal with greater asymmetric information problems than exist in other credit markets (e.g., bond markets), making contractionary monetary policy more disruptive of thei ...
... banks could potentially extend – throw a wrench in the banks’ financial intermediation machinery that reduces credit further. Banks deal with greater asymmetric information problems than exist in other credit markets (e.g., bond markets), making contractionary monetary policy more disruptive of thei ...
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 ...
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 ...
CHAPTER 7 Wage and Price Adjustment: The Phillips Curve and
... expectations change, the Phillips curve will shift. Inflationary expectations adjust over time to reflect recent levels of inflation, and when expected inflation is equal to actual inflation, the economy is at full employment. Therefore, stagflation means that we are on a Phillips curve with high in ...
... expectations change, the Phillips curve will shift. Inflationary expectations adjust over time to reflect recent levels of inflation, and when expected inflation is equal to actual inflation, the economy is at full employment. Therefore, stagflation means that we are on a Phillips curve with high in ...
TRADING RULE PROFITS AND FOREIGN EXCHANGE MARKET
... in emerging markets based on mean-variance analysis. They introduced high transaction costs because this is a characteristic of these markets. Using mean-variance optimization as a trading rule for investors, they found significant profits even though high transaction costs were used. 25 emerging ec ...
... in emerging markets based on mean-variance analysis. They introduced high transaction costs because this is a characteristic of these markets. Using mean-variance optimization as a trading rule for investors, they found significant profits even though high transaction costs were used. 25 emerging ec ...
NBER WORKING PAPER SERIES ON THE CONSEQUENCES OF DEMOGRAPHIC CHANGE
... of their income from returns to capital, while the income of others is mainly composed of labor income. Abstracting from this heterogeneity does not allow a meaningful analysis of the distributional consequences of changes in factor prices. This feature also adds a precautionary savings motive to th ...
... of their income from returns to capital, while the income of others is mainly composed of labor income. Abstracting from this heterogeneity does not allow a meaningful analysis of the distributional consequences of changes in factor prices. This feature also adds a precautionary savings motive to th ...
Gauging the Impact of the Fed on Inequality During the Great
... industries following a monetary stimulus may push employment into generally higher-wage sectors (especially after accounting for the labor force characteristics) but will generally not be large enough to significantly affect the earnings distribution. The output stabilization effects of both fiscal ...
... industries following a monetary stimulus may push employment into generally higher-wage sectors (especially after accounting for the labor force characteristics) but will generally not be large enough to significantly affect the earnings distribution. The output stabilization effects of both fiscal ...
Economic Fluctuations, Unemployment, and Inflation
... • Inflation is a change in the general level of prices as measured by a price index such as the GDP deflator or the consumer price index. • Inflation is generally measured at an annual rate. • When inflation is high, the year-to-year changes in the inflation rate are nearly always highly variable, m ...
... • Inflation is a change in the general level of prices as measured by a price index such as the GDP deflator or the consumer price index. • Inflation is generally measured at an annual rate. • When inflation is high, the year-to-year changes in the inflation rate are nearly always highly variable, m ...
China`s heavily indebted corporate sector, Week in Focus, 15
... for 2,500 firms which revealed two main causes for concern. One is that companies in sectors suffering from excess capacity and falling profit margins tend to be highly indebted. Secondly, debt levels have risen particularly rapidly in state-run enterprises, which the government evidently wants to k ...
... for 2,500 firms which revealed two main causes for concern. One is that companies in sectors suffering from excess capacity and falling profit margins tend to be highly indebted. Secondly, debt levels have risen particularly rapidly in state-run enterprises, which the government evidently wants to k ...
The Effect of Macroeconomic Variables on Market Risk
... made to bring up the economy of the Eastern regions to the level of the Western ones. Germany was among the founders of European Union. In 1999 it was one of the eleven EU countries that adopted the euro currency. The country is a leading exporter of machinery, vehicles and household equipment. In 2 ...
... made to bring up the economy of the Eastern regions to the level of the Western ones. Germany was among the founders of European Union. In 1999 it was one of the eleven EU countries that adopted the euro currency. The country is a leading exporter of machinery, vehicles and household equipment. In 2 ...
Government Spending Effects in a Small Open Economy
... Background By mid 2009 policy interest rates were seem to be the minimum level in most central banks. During this downturn every country projected fiscal stimulus package. The packages differ in their compostions of tax cut and public sector deficit. Naturally economists became more interested in th ...
... Background By mid 2009 policy interest rates were seem to be the minimum level in most central banks. During this downturn every country projected fiscal stimulus package. The packages differ in their compostions of tax cut and public sector deficit. Naturally economists became more interested in th ...
7. Medium-Term Projections
... Accordingly, global liquidity conditions will play an important role on the future course of monetary policy. The current monetary policy and the instruments designed by the CBRT provide a flexible framework to contain the adverse effects of the global shocks on the domestic economy. Currently, the ...
... Accordingly, global liquidity conditions will play an important role on the future course of monetary policy. The current monetary policy and the instruments designed by the CBRT provide a flexible framework to contain the adverse effects of the global shocks on the domestic economy. Currently, the ...
Solutions to Questions and Problems
... If it has too much cash it can simply pay a dividend, or, more likely in the current financial environment, buy back stock. It can also reduce debt. If it has insufficient cash, then it must either borrow, sell stock, or improve profitability. ...
... If it has too much cash it can simply pay a dividend, or, more likely in the current financial environment, buy back stock. It can also reduce debt. If it has insufficient cash, then it must either borrow, sell stock, or improve profitability. ...
Lesson 1
... U is separable in c and m: same utility out of money whatever the level of consumption ...
... U is separable in c and m: same utility out of money whatever the level of consumption ...
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.