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Year of the Monkey
Year of the Monkey

The safe asset meme - Université Paris
The safe asset meme - Université Paris

What is financial reform in China?  Michael Pettis, Chief Strategist Macro Research
What is financial reform in China? Michael Pettis, Chief Strategist Macro Research

... The People's Bank of China also cut the benchmark one-year interest rates by 25 basis points on Friday to 3.25 percent in a bid to spur growth in the world's second-largest economy. But despite the interest rate cut, China's five state-owned banks have maintained their one-year deposit rates at 3.5 ...
Concept of Accounting And Review Of Balance Sheet
Concept of Accounting And Review Of Balance Sheet

... business to out side parties ( called creditors ). This includes amount owed to suppliers for goods or services purchased amount borrowed from banks or other lenders, salaries and taxes due but not paid. Net worth : the term net worth, proprietorship, owner’s investment, or capital– all have the sam ...
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Using Financial Innovation to Support Savers: From Coercion to Excitement

... Low/medium cost: compliance, additional match dollars ...
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... expected data releases, long-term growth prospects six to ten years ahead as measured by Consensus Economics, for example, have not significantly weakened in the euro area (see Chart A). In the United States, economic growth prospects appear to have been perceived as robust by market participants an ...
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The Corporate Governance Model of Japan
The Corporate Governance Model of Japan

Economics Web Newsletter - McGraw Hill Higher Education
Economics Web Newsletter - McGraw Hill Higher Education

... confidence in those plans resulting from unique, and likely temporary, circumstances. Interest rates were exceptionally low, so they obviously had to rise. But the risk of inflation also was low, so the pace could be leisurely. "The crucial difference between now and in the past is an extraordinary ...
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... took place in the way that there were relatively less official capital transactions and private direct investments (flows which do not make indebtedness heavier) for the benefit of increasing indebtedness transactions and borrowing financial resources sensitive to the interest rates changes. The rea ...
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monetary policies and industrial fluctuations in east european

... the structure of production. Industrial production development in Eastern Europe countries and their price indices reflect the effects of monetary expansion. The individuals ‘preference for current consumption is evidenced by the relatively smooth development of consumer goods ‘prices. Sharp swings ...
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... In a market economy, the allocation of economic resources is driven by the outcome of many private decisions. Prices are the signals that direct economic resources to their best use. The types of markets in an economy can be divided into (1) the market for products (manufactured goods and services) ...
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... o positive, but not perfect positive correlation means: if the return of A goes up (down), that of B usually also goes up (down), but not always and not always to the same extend o negative, but not perfect negative correlation means: if the return of A goes up (down), that of B usually also goes do ...
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... supply of capital. – Identify three ways the Federal Reserve exercises monetary control – Compare and contrast the functions of financial intermediaries, mortgage lenders, and mortgage investors. – Explain why Money Market Certificates (MMCs) failed to correct the problem brought about by inflation ...
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... financial system. The plan initially envisioned using those funds to buy financial assets— mostly mortgage-backed securities held by banks and other financial institutions—that have lost value in the wake of the housing bubble. Uncertainties about how far home prices will continue to decline and abo ...
THE ASSET ALLOCATION INVESTMENT PROCESS
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... Past performance is not a guarantee of future results. Diversification does not guarantee a profit or protect against loss. Return is measured by projected compound annual growth rates based on Wells Fargo Advisors 2010 Capital Market Assumptions for the associated asset class. Downside risk is the ...
economic insights - CIBC World Markets Research
economic insights - CIBC World Markets Research

... pain in 2015 (Brazil being a stark example) are unlikely to fare as badly this year and next. And, in India, the global economy has another potential catalyst of growth lined up. But even then, there are signs that the upturn will be a modest one for commodities. India is already more advanced than ...
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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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