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Official PDF , 10 pages
Official PDF , 10 pages

... position is weak and unprofitable (unless earnings from large scale agricultural lending or from mainstream cornmercial activities are available to offset the losses incurred on small scale loans), implying that credit is provided below its accounting cost; b) the provision of capital to agricultura ...
Investment Strategy Quarterly
Investment Strategy Quarterly

... growth – was the ‘new normal.’ Post-election sentiment suggests that we are going to get some fiscal stimulus, but that will likely be ineffective in boosting growth on a longterm basis due to demographic constraints.” • “I’m not optimistic that we’ll see a big increase in GDP growth. Economists ha ...
perceptron, inc.
perceptron, inc.

... permitted, the Company expects to adopt the updated guidance on January 1, 2014. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. In July 2013, the FASB issued updated guidance permitting the Federal Funds Effective Swap Rate (or Overnigh ...
Building on Success: Reforming the U
Building on Success: Reforming the U

... turbines, and new energy efficient vehicles.1 By assuring high level of demand over the next two years, entrepreneurs will be willing to make the investments necessary to scale up output and gain significant economies of scale. The federal government can resell what it purchases at cost to state and ...
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... Many factors should be considered when choosing the proper business form. ...
as a PDF
as a PDF

Chapter 2 - Economics
Chapter 2 - Economics

... • But, legal definition uses the historical price of capital. • If PK rises over time, then the legal definition understates the true cost and overstates profit, so firms could be taxed even if their true economic profit is zero. • Thus, corporate income tax discourages investment. CHAPTER 17 ...
Financialization and the nonfinancial corporation
Financialization and the nonfinancial corporation

The Role of Contractionary Monetary Policy in the Great Recession
The Role of Contractionary Monetary Policy in the Great Recession

... paradox is that low interest rates lead to an expansion of the money supply, which eventually leads to inflation. When inflation has been high in the past, lenders expect it to be high in the future as well, and therefore expect to be repaid in devalued dollars. As a result, they demand a higher ra ...
Sterling corporate bonds: an investor`s guide
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... which is on average lower than EUR or USD as you have large proportions of buy and hold investors. Average issue size is also lower. The chart below outlines some similarities between the GBP and EUR markets, as both have a very high level of concentration risk: the top 100 issuers accounted for mor ...
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... market asymmetry (more flexibility in the US and less flexibility in other G7 countries). With this extension credit shocks have the potential to explain the similar responses of GDP and financial markets and the asymmetric responses of employment and labor productivity. Our paper is related to the ...
Chapter 26: International Economic Relations of 1970 to 2000
Chapter 26: International Economic Relations of 1970 to 2000

... People 100 years ago were facing the same forces, and fearing the same fears, as people today. This trend toward integration began to reverse with World War I. The countries of the world became more isolated from each other between the beginning of World War I (1914) and shortly after the end of Wor ...
The Great Recession of 2008-2009: Causes, Consequences
The Great Recession of 2008-2009: Causes, Consequences

... Rogoff (2009) have shown that such financial crises typically induce a sharp recession, which last approximately two years. Consumption, private investment and credit flows are also slow to improve, which is driven by deleveraging of debts and risk perceptions. As a consequence, recovery is slow wit ...
International Payments Imbalances the East Asian Develaping Ecanomies
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... High and rising savings rates, At the core of the high growth in the region is the high rate of savings, which finances an extraordinarily high rate of capital formation. The high rate of capital formation adds directly to the growth of per capita income through capital deepening, and indirectly thr ...
Financial `deglobalization`?: capital flows, banks
Financial `deglobalization`?: capital flows, banks

... So why does this matter? This matters for two reasons. First, focusing on net capital flows – as has traditionally been done – ignores the huge increase in the size of cross-border financial flows and the corresponding extent of financial globalization that has occurred. The scale of these gross ca ...
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A team approach to Multi Asset investing

Access the Investor Brochure
Access the Investor Brochure

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Our Brave New World

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... financial stability, credit growth, and asset prices. In fact, more and more studies have tackled the question of designing appropriate macroprudential instruments to deal with financial stability. This new approach of multiple instrument framework admits that the economy is more complicated than i ...
Profits and rates of return
Profits and rates of return

... even for the whole economy, but such effects redistribute income between sectors of the economy, for example between financial and non-financial enterprises. This can have further repercussions on activity. The aggregate impact of inflation and relative price changes will have different effects on f ...
The spillover effects of unconventional monetary policies in major
The spillover effects of unconventional monetary policies in major

... look at the impacts of quantitative easing on long term yields, equity prices and exchange rates. Next, using the National Institute’s global macroeconomic model NIGEM we simulate the macroeconomic effects of lower yields, higher equity prices, and lower investment premia (attributable to unconventi ...
working papers - Berkeley Research Group
working papers - Berkeley Research Group

Minsky`s moment _ The Economist
Minsky`s moment _ The Economist

final paper - University of Mauritius
final paper - University of Mauritius

... financially integrated open developing countries grew at a higher rate than the less financially integrated developing countries, there is no robust evidence that financial globalisation delivers higher economic growth. There is a lot of research claiming that cross-country differences in per capita ...
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ESCAP photo 1 CHAPTER 1. THE RETURN OF THE FINANCIAL CRISIS

... others. There may be some reorientation of fund-raising from foreign to domestic sources, resulting in less credit being available, with negative impacts on overall corporate investments and household expenditures. There has also been a marked reduction in bond issuance, with spreads on Asian emergi ...
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Global saving glut

Global saving glut (also global savings glut, GSG, cash hoarding, dead cash, dead money, glut of excess intended saving, shortfall of investment intentions), describes a situation in which desired saving exceeds desired investment. By 2005 Ben Bernanke, chairman of the Federal Reserve, the central bank of the United States, expressed concern about the ""significant increase in the global supply of saving"" and its implications for monetary policies, particularly in the United States. Although Bernanke's analyses focused on events in 2003 to 2007 that led to the 2007–2009 financial crisis, regarding GSG countries and the United States, excessive saving by the non-financial corporate sector (NFCS) is an ongoing phenomenon, affecting many countries. Bernanke's ""celebrated (if sometimes disputed)"" global saving glut (GSG) hypothesis argued that increased capital inflows to the United States from GSG countries were an important reason that U.S. longer-term interest rates from 2003 to 2007 were lower than expected.Alan Greenspan testifying at the Financial Crisis Inquiry Commission in 2010 explained, ""Whether it was a glut of excess intended saving, or a shortfall of investment intentions, the result was the same: a fall in global real long-term interest rates and their associated capitalization rates. Asset prices, particularly house prices, in nearly two dozen countries accordingly moved dramatically higher. U.S. house price gains were high by historical standards but no more than average compared to other countries.""An 2007 Organisation for Economic Co-operation and Development (OECD) report noted that the ""excess of gross saving over fixed investment (i.e. net lending) in the ""aggregate OECD corporate sector"" had been unusually large since 2002. In a 2006 International Monetary Fund report, it was observed that, ""since the bursting of the equity marketbubble in the early 2000s, companies in many industrial countries have moved from their traditional position of borrowing funds to finance their capital expenditures to running financial surpluses that they are now lending to other sectors of the economy."" David Wessell in a Wall Street Journal article observed that, ""[c]ompanies, which normally borrow other folks’ savings in order to invest, have turned thrifty. Even companies enjoying strong profits and cash flow are building cash hoards, reducing debt and buying back their own shares—instead of making investment bets."" Although the hypothesis of excess cash holdings or cash hoarding has been used by the Organisation for Economic Co-operation and Development (OECD), the International Monetary Fund and the media Wall Street Journal, Forbes, Canadian Broadcasting Corporation, the concept itself has been disputed and criticized as conceptually flawed in articles and reports published by the Hoover Institute, the Max-Planck Institute and the CATO Institute among others. Ben Bernanke used the phrase ""global savings glut"" in 2005 linking it to the U.S. current account deficit.In their July 2012 report Standard and Poors described the ""fragile equilibrium that currently exists in the global corporate credit landscape."" U.S. nonfinancial corporate sector NFCS firms continued to hoard a ""record amount of cash"" with large profitable investment-grade companies and technology and health care industries (with significant amounts of cash overseas), holding most of the wealth.By January 2013, NFCS firms in Europe had over 1 trillion euros of cash on their balance sheets, a record high in nominal terms.
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