T esting for correlational and causality relationships between stock prices and macroeconomic variables-The case of Palestine Securities Exchange:
... Economists, researchers, policy makers and financial investors find the relationship between macroeconomic variables and stock prices very important to study for many reasons. First, it helps policy makers understand the full effect of prevailing and upcoming policies and regulations. Second, if in ...
... Economists, researchers, policy makers and financial investors find the relationship between macroeconomic variables and stock prices very important to study for many reasons. First, it helps policy makers understand the full effect of prevailing and upcoming policies and regulations. Second, if in ...
A Theory of Macroprudential Policies in the Presence of Nominal Rigidities ∗
... direction of the best intervention. The formula delivers the implicit taxes needed in financial markets as a function of primitives and sufficient statistics. In particular, within each state of the world there is a sub-equilibrium in goods and labor markets affected by nominal rigidities. One can d ...
... direction of the best intervention. The formula delivers the implicit taxes needed in financial markets as a function of primitives and sufficient statistics. In particular, within each state of the world there is a sub-equilibrium in goods and labor markets affected by nominal rigidities. One can d ...
A Theory of Macroprudential Policies in the Presence of Nominal Rigidities
... direction of the best intervention. The formula delivers the implicit taxes needed in financial markets as a function of primitives and sufficient statistics. In particular, within each state of the world there is a sub-equilibrium in goods and labor markets affected by nominal rigidities. One can d ...
... direction of the best intervention. The formula delivers the implicit taxes needed in financial markets as a function of primitives and sufficient statistics. In particular, within each state of the world there is a sub-equilibrium in goods and labor markets affected by nominal rigidities. One can d ...
instructional objectives
... A. Key Graph 14.1c illustrates the money market. It combines demand with supply of money. B. If the quantity demanded exceeds the quantity supplied, people sell assets like bonds to get money. This causes bond supply to rise, bond prices to fall, and a higher market rate of interest. C. If the quant ...
... A. Key Graph 14.1c illustrates the money market. It combines demand with supply of money. B. If the quantity demanded exceeds the quantity supplied, people sell assets like bonds to get money. This causes bond supply to rise, bond prices to fall, and a higher market rate of interest. C. If the quant ...
M09_ABEL4987_7E_IM_C09
... d. The result is no change in employment, output, or the real interest rate e. The price level is higher by the same proportion as the increase in the money supply f. So all real variables (including the real wage) are unchanged, while nominal values (including the nominal wage) have risen proportio ...
... d. The result is no change in employment, output, or the real interest rate e. The price level is higher by the same proportion as the increase in the money supply f. So all real variables (including the real wage) are unchanged, while nominal values (including the nominal wage) have risen proportio ...
Money, inflation and interest rates
... market operations are what the FED does to implement its policy of targeting of the Federal Funds Rate. The Federal Funds rate is the rate at which banks lend to each other balances they held at the Federal Reserve overnight. Banks need to satisfy their reserve requirement and, as we discussed, they ...
... market operations are what the FED does to implement its policy of targeting of the Federal Funds Rate. The Federal Funds rate is the rate at which banks lend to each other balances they held at the Federal Reserve overnight. Banks need to satisfy their reserve requirement and, as we discussed, they ...
Chapter 15: Monetary Policy - the School of Economics and Finance
... Although it does not directly set the federal funds rate, through open market operations the Fed can control it quite well. From December 2008, the target federal funds rate was 0-0.25%. • The low federal funds rate was designed to encourage banks to make loans instead of holding excess reserves, wh ...
... Although it does not directly set the federal funds rate, through open market operations the Fed can control it quite well. From December 2008, the target federal funds rate was 0-0.25%. • The low federal funds rate was designed to encourage banks to make loans instead of holding excess reserves, wh ...
Chapter 15: Monetary Policy - the School of Economics and Finance
... Although it does not directly set the federal funds rate, through open market operations the Fed can control it quite well. From December 2008, the target federal funds rate was 0-0.25%. • The low federal funds rate was designed to encourage banks to make loans instead of holding excess reserves, wh ...
... Although it does not directly set the federal funds rate, through open market operations the Fed can control it quite well. From December 2008, the target federal funds rate was 0-0.25%. • The low federal funds rate was designed to encourage banks to make loans instead of holding excess reserves, wh ...
ECONOMICS SERVICE OLIGOPOLIES AND AUSTRALIA`S
... include: transport, electricity, water supply, gas distribution, telecommunications, finance and insurance, education and health. 2 While regulatory policies cover both product pricing and quality, we focus entirely on price regulation, including price surveillance as well as price ...
... include: transport, electricity, water supply, gas distribution, telecommunications, finance and insurance, education and health. 2 While regulatory policies cover both product pricing and quality, we focus entirely on price regulation, including price surveillance as well as price ...
Lesson 2 - uwcentre
... The Quantity Theory of Money: A First Look at the Link between Money and Prices ...
... The Quantity Theory of Money: A First Look at the Link between Money and Prices ...
investigating the relationship between the oil prices, interest rate
... demand. When monetary authorities fail to increase money supply to meet growing money demand, interest rate will rise deteriorating the growth rate. Brown and Yücel (2002) discussed the impact of monetary policy giving more detail. Inflation effect is another transmission channel which establishes a ...
... demand. When monetary authorities fail to increase money supply to meet growing money demand, interest rate will rise deteriorating the growth rate. Brown and Yücel (2002) discussed the impact of monetary policy giving more detail. Inflation effect is another transmission channel which establishes a ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... shocks. The discussion focuses on the dependency of the adjustment on the market power enjoyed by each producer. The analysis shows that unexpected monetary shocks can generate persistent aggregate output and relative price shocks whose nature is determined by the degree of substitutability between ...
... shocks. The discussion focuses on the dependency of the adjustment on the market power enjoyed by each producer. The analysis shows that unexpected monetary shocks can generate persistent aggregate output and relative price shocks whose nature is determined by the degree of substitutability between ...
Answers to Practice Questions 8
... b. is incorrect b/c money market is irrelevant c. is correct and represents an assumption underlying the structure of the costs d. is incorrect by definition; in addition, if the real GDP changes the supply curves of the firms will change as well e. this is a characteristic of the aggregate demand c ...
... b. is incorrect b/c money market is irrelevant c. is correct and represents an assumption underlying the structure of the costs d. is incorrect by definition; in addition, if the real GDP changes the supply curves of the firms will change as well e. this is a characteristic of the aggregate demand c ...
NBER WORKING PAPER SERiES ThADE POLICY, EXCHANGE RATES AND GROWTH Sebastian Edwards
... for helpful comments, and to participants at a seminar in 1TAM, Mexico City for helpful discussions. I thank Fernando Losada for excellent research assistance. This paper is part of NBER's research programs in International Finance and Macroeconomics and International Trade and Investment. Any opini ...
... for helpful comments, and to participants at a seminar in 1TAM, Mexico City for helpful discussions. I thank Fernando Losada for excellent research assistance. This paper is part of NBER's research programs in International Finance and Macroeconomics and International Trade and Investment. Any opini ...
contracts 9,899,780,283 traded
... I think the insight is still helpful, although the equipment we need to understanding trading costs is more sophisticated than it used to be. Transactions costs typically include a measure of the bid/ask spread, which can be measured in any number of ways. The liquidity of a market might be characte ...
... I think the insight is still helpful, although the equipment we need to understanding trading costs is more sophisticated than it used to be. Transactions costs typically include a measure of the bid/ask spread, which can be measured in any number of ways. The liquidity of a market might be characte ...
Exchange Rate Determination and Forecasting: Can the
... these studies consistently confirm a significant positive association between exchange rates and the corresponding contemporaneous order flow. We aim to revisit the association between exchange rates and contemporaneous order flow and the predictability of the lagged order flow on the future exchang ...
... these studies consistently confirm a significant positive association between exchange rates and the corresponding contemporaneous order flow. We aim to revisit the association between exchange rates and contemporaneous order flow and the predictability of the lagged order flow on the future exchang ...
Abstract - African Development Bank
... we use the trade-weighted annual growth of all trading partners as a measure for external shocks. These studies draw the conclusion that output volatility in partner countries has a positive effect on exporters’ GDP volatility. Jansen et. al (2009) examine the role of foreign demand shocks in partn ...
... we use the trade-weighted annual growth of all trading partners as a measure for external shocks. These studies draw the conclusion that output volatility in partner countries has a positive effect on exporters’ GDP volatility. Jansen et. al (2009) examine the role of foreign demand shocks in partn ...
When Contractionary Fiscal Policy Is Expansionary - ANU Press
... expansion depends on whether foreign investors supply die extra funds necessary to finance the additional public spending by acquiring die Treasury bonds sold to fund die higher budget deficit. Yet foreigners will acquire domestic-currency denomi nated bonds issued at an interest rate in line with ...
... expansion depends on whether foreign investors supply die extra funds necessary to finance the additional public spending by acquiring die Treasury bonds sold to fund die higher budget deficit. Yet foreigners will acquire domestic-currency denomi nated bonds issued at an interest rate in line with ...
If a certain combination of goods or services lies outside the
... States increases relative to that of the rest of the world, capital should flow a. into the United States and the dollar will depreciate b. into the United States and the dollar will appreciate c. out of the United States and the dollar will depreciate d. out of the United States and the dollar will ...
... States increases relative to that of the rest of the world, capital should flow a. into the United States and the dollar will depreciate b. into the United States and the dollar will appreciate c. out of the United States and the dollar will depreciate d. out of the United States and the dollar will ...
The Feasibility of a Monetary Union in MERCOSUR
... becomes unnecessary”2. He implies that only under these conditions would a monetary union make economic sense. Mundell’s article and suggestions are important for this paper as they correspond to fiscal integration, which seems to be a necessity for a monetary union. Also, due to the success of the ...
... becomes unnecessary”2. He implies that only under these conditions would a monetary union make economic sense. Mundell’s article and suggestions are important for this paper as they correspond to fiscal integration, which seems to be a necessity for a monetary union. Also, due to the success of the ...
2009:2 Monetary policy when the interest rate is zero by Ulf
... is stuck in a liquidity trap, as individuals are holding as much cash as they need, and a further increase in the money supply would have no effect on the economy. In practice, of course, a change in the money supply will not reach firms and households directly, but would instead go through the ban ...
... is stuck in a liquidity trap, as individuals are holding as much cash as they need, and a further increase in the money supply would have no effect on the economy. In practice, of course, a change in the money supply will not reach firms and households directly, but would instead go through the ban ...
Axel A Weber: The role of interest rates in theory and practice
... important information on the current state of the economy, and the extent to which past monetary policy measures have already started to take effect. Put it differently, interest rates are important as both an input into and an output of monetary policy decisions – they are instrument variables as w ...
... important information on the current state of the economy, and the extent to which past monetary policy measures have already started to take effect. Put it differently, interest rates are important as both an input into and an output of monetary policy decisions – they are instrument variables as w ...
China-US Trade Flow Behavior: The Implications of Alternative
... 10.1% of its GDP in 2007 to 2.1% in 2013, the controversy surrounding China’s exports and its exchange rate policy has not entirely disappeared. In the April 2014 Report to the Congress on International Economic and Exchange Rate Policies, the US Treasury maintained the view that the Chinese currenc ...
... 10.1% of its GDP in 2007 to 2.1% in 2013, the controversy surrounding China’s exports and its exchange rate policy has not entirely disappeared. In the April 2014 Report to the Congress on International Economic and Exchange Rate Policies, the US Treasury maintained the view that the Chinese currenc ...
Exchange rate
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In finance, an exchange rate (also known as a foreign-exchange rate, forex rate, FX rate or Agio) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. For example, an interbank exchange rate of 119 Japanese yen (JPY, ¥) to the United States dollar (US$) means that ¥119 will be exchanged for each US$1 or that US$1 will be exchanged for each ¥119. In this case it is said that the price of a dollar in terms of yen is ¥119, or equivalently that the price of a yen in terms of dollars is $1/119.Exchange rates are determined in the foreign exchange market, which is open to a wide range of different types of buyers and sellers where currency trading is continuous: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday. The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.In the retail currency exchange market, a different buying rate and selling rate will be quoted by money dealers. Most trades are to or from the local currency. The buying rate is the rate at which money dealers will buy foreign currency, and the selling rate is the rate at which they will sell the currency. The quoted rates will incorporate an allowance for a dealer's margin (or profit) in trading, or else the margin may be recovered in the form of a commission or in some other way. Different rates may also be quoted for cash (usually notes only), a documentary form (such as traveler's cheques) or electronically (such as a credit card purchase). The higher rate on documentary transactions has been justified to compensate for the additional time and cost of clearing the document, while the cash is available for resale immediately. Some dealers on the other hand prefer documentary transactions because of the security concerns with cash.