Investment Implications of an “Activist” Federal Reserve
... by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. A major role of the Fed is conducting the nation’s monetary policy in pursuit of maximum employment, stable prices, and moderate long-term interest rates. The term “monetary policy” ...
... by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. A major role of the Fed is conducting the nation’s monetary policy in pursuit of maximum employment, stable prices, and moderate long-term interest rates. The term “monetary policy” ...
reserve base lending and the outlook for shale oil and gas finance
... US oil production rose 74 percent, from 5.4 million barrels per day in 2009 to 9.4 million barrels per day in 2015,1 with shale oil driving more than 92 percent of the growth.2 The rapid expansion of shale oil and gas production in the United States from 2009 to 2014 has been associated with a perio ...
... US oil production rose 74 percent, from 5.4 million barrels per day in 2009 to 9.4 million barrels per day in 2015,1 with shale oil driving more than 92 percent of the growth.2 The rapid expansion of shale oil and gas production in the United States from 2009 to 2014 has been associated with a perio ...
DISCUSSION PAPER NO 1 TEXTO PARA DISCUSSÃO NO 1
... to money4. We need to adjust these returns by a, which is the expected appreciation (or depreciation) of any asset relative to what is taken as the unit of account (or unit of comparison/measurement), i.e. money5. This is the equivalent of the forward discount or premium. Thus, we can look at the re ...
... to money4. We need to adjust these returns by a, which is the expected appreciation (or depreciation) of any asset relative to what is taken as the unit of account (or unit of comparison/measurement), i.e. money5. This is the equivalent of the forward discount or premium. Thus, we can look at the re ...
NBER WORKING PAPER SERIES FIRM DYNAMICS, INVESTMENT, AND DEBT PORTFOLIO:
... on the financial accelerator (see for example Bernanke and Gertler 1989) shows, in a world of imperfectly competitive capital markets, changes to the net worth affect firms’ access to external funds and hence do have real effects. We could expect to find a positive or a negative effect of devaluation o ...
... on the financial accelerator (see for example Bernanke and Gertler 1989) shows, in a world of imperfectly competitive capital markets, changes to the net worth affect firms’ access to external funds and hence do have real effects. We could expect to find a positive or a negative effect of devaluation o ...
NBER WORKING PAPER SERIES INTERNATIONAL RESERVES AND ROLLOVER RISK Javier Bianchi
... to adverse shocks can either reduce the stock of gross debt or increase its reserve holdings, or some combination of the two. The fundamental trade-off the government faces is whether to keep reserves that provide a buffer against a future increase in the borrowing cost or to use the reserves to pay ...
... to adverse shocks can either reduce the stock of gross debt or increase its reserve holdings, or some combination of the two. The fundamental trade-off the government faces is whether to keep reserves that provide a buffer against a future increase in the borrowing cost or to use the reserves to pay ...
Earnings and Cash Flow Analysis
... REVIEW: As we discussed, dividends became taboo during the 1990’s. Since the 2000-2002 bear market, investors have changed their minds about dividends. Dividends can be discussed in polite company again! ...
... REVIEW: As we discussed, dividends became taboo during the 1990’s. Since the 2000-2002 bear market, investors have changed their minds about dividends. Dividends can be discussed in polite company again! ...
Australian Journal of Basic and Applied Sciences A Conceptual
... several ratios, for instance, current ratio and quick ratio. Firm‟s liquidity is vital as it shows the ability to pay bills when they are due and to meet unpredicted needs for cash. Higher liquidity values should provide a better shield to distress and insolvency. A number of empirical studies have ...
... several ratios, for instance, current ratio and quick ratio. Firm‟s liquidity is vital as it shows the ability to pay bills when they are due and to meet unpredicted needs for cash. Higher liquidity values should provide a better shield to distress and insolvency. A number of empirical studies have ...
Investment in Innovation and Fixed Assets: the effect of US tax
... Throughout the paper assumes a hierarchy of finance model of firm investment.4 Under strong assumptions the cost of capital should be independent of the type of capital used: the financial structure of the firm should be irrelevant to the value of the firm.5 These assumptions are: one, there is per ...
... Throughout the paper assumes a hierarchy of finance model of firm investment.4 Under strong assumptions the cost of capital should be independent of the type of capital used: the financial structure of the firm should be irrelevant to the value of the firm.5 These assumptions are: one, there is per ...
How Excessive Is Banks` Maturity Transformation?∗
... we quantify the extent to which banks’ average debt maturities were excessively short and the size of the welfare gains that would have been associated with regulating liquidity risk in such an environment. In our recursive model, banks place non-tradable debt among unsophisticated investors who are ...
... we quantify the extent to which banks’ average debt maturities were excessively short and the size of the welfare gains that would have been associated with regulating liquidity risk in such an environment. In our recursive model, banks place non-tradable debt among unsophisticated investors who are ...
Mortgage-Related Securities
... have the same interest rate. If you invest in a fixed-income debt security, the price of the security will fluctuate inversely with interest rates. Higher interest rates will drive down the price of the security. If you sell the security in the secondary market prior to maturity or redemption, you c ...
... have the same interest rate. If you invest in a fixed-income debt security, the price of the security will fluctuate inversely with interest rates. Higher interest rates will drive down the price of the security. If you sell the security in the secondary market prior to maturity or redemption, you c ...
Emerging economies still punch well below their weight in
... The combined output of the developing economies accounted for 38% of world GDP (at market exchange rates) in 2010, twice its share in 1990 (see upper chart). On reasonable assumptions, it could exceed the developed world’s within seven years. If GDP is instead measured at purchasing-power parity, w ...
... The combined output of the developing economies accounted for 38% of world GDP (at market exchange rates) in 2010, twice its share in 1990 (see upper chart). On reasonable assumptions, it could exceed the developed world’s within seven years. If GDP is instead measured at purchasing-power parity, w ...
Cash Flow Review Techniques - RBAP-MABS
... household, the AO must revise the cash flow. Loan applicants tend to overstate their incomes. ...
... household, the AO must revise the cash flow. Loan applicants tend to overstate their incomes. ...
Integrating a System of Child Benefits Into Egypt*s Fiscal Space
... increased over the same period suggesting that the economic growth experienced was not pro-poor. Not surprising, achieving social justice has been a central demand by the Egyptian revolution. Like in many countries, Egyptian children (in particular those living in large households) are overrepresent ...
... increased over the same period suggesting that the economic growth experienced was not pro-poor. Not surprising, achieving social justice has been a central demand by the Egyptian revolution. Like in many countries, Egyptian children (in particular those living in large households) are overrepresent ...
Finance - Business @ UOW
... • Sources of funds • internal sources of finance – retained profits • external sources of finance • debt – short-term borrowing (overdraft, commercial bills, factoring), long-term borrowing (mortgage, debentures, unsecured notes, leasing) • equity – ordinary shares (new issues, rights issues, placem ...
... • Sources of funds • internal sources of finance – retained profits • external sources of finance • debt – short-term borrowing (overdraft, commercial bills, factoring), long-term borrowing (mortgage, debentures, unsecured notes, leasing) • equity – ordinary shares (new issues, rights issues, placem ...
LF Economics
... Net rental income losses have mounted for residential investors, as rental prices have generally tracked the rate of inflation while housing prices and mortgage debt have simultaneously boomed. The losses are larger than indicated because the ATO does not record data on principal payments, as it is ...
... Net rental income losses have mounted for residential investors, as rental prices have generally tracked the rate of inflation while housing prices and mortgage debt have simultaneously boomed. The losses are larger than indicated because the ATO does not record data on principal payments, as it is ...
Net Capital Expenditures
... convention treats operating leases as operating expenses, they are really financial expenses and need to be reclassified as such. This has no effect on equity earnings but does change the operating earnings • COGS Adjustment: Inventory costs are associated with particular goods using one of several ...
... convention treats operating leases as operating expenses, they are really financial expenses and need to be reclassified as such. This has no effect on equity earnings but does change the operating earnings • COGS Adjustment: Inventory costs are associated with particular goods using one of several ...
2005 Survey - Freddie Mac Home
... personal loan or second mortgage) In general, delinquent homeowners: each month – Stress about having enough money – Are rarely, if ever, late on any of – Take on several financial obligations these financial obligations each month – Are about four times as likely to pay key – Feel their financial s ...
... personal loan or second mortgage) In general, delinquent homeowners: each month – Stress about having enough money – Are rarely, if ever, late on any of – Take on several financial obligations these financial obligations each month – Are about four times as likely to pay key – Feel their financial s ...
PCC Financial Ratios for Fiscal Years 2007-2016
... Primary Reserve Ratio Measures the financial strength of the institution by indicating how long the institution could function using its expendable reserves to cover operations should additional net assets not be available. A positive ratio and an increasing amount over time, generally reflects str ...
... Primary Reserve Ratio Measures the financial strength of the institution by indicating how long the institution could function using its expendable reserves to cover operations should additional net assets not be available. A positive ratio and an increasing amount over time, generally reflects str ...
M15_Gordon8014701_12_Macro_C15
... and Rise of S • In the late 1990s, household saving as a percentage of disposable income was the lowest in the U.S. since the Great Depression. Why? • The PIH would predict that higher incomes in the 1990s would have pushed up the saving rate. • The LCH has consumption depending on lifetime income a ...
... and Rise of S • In the late 1990s, household saving as a percentage of disposable income was the lowest in the U.S. since the Great Depression. Why? • The PIH would predict that higher incomes in the 1990s would have pushed up the saving rate. • The LCH has consumption depending on lifetime income a ...
Domestic Debt Market in India Vighneswara Swamy PhD, PDF
... monetary credibility, the share of domestic debt in total debt should increase. A good strand of literature suggests that domestic debt and private savings were found to be closely associated. Higher private savings are found to enhance the scope for domestic debt issuance while a larger supply of d ...
... monetary credibility, the share of domestic debt in total debt should increase. A good strand of literature suggests that domestic debt and private savings were found to be closely associated. Higher private savings are found to enhance the scope for domestic debt issuance while a larger supply of d ...
Fingrid Oyj
... capital (WACC) calculation for the 2016-23 period compared to the previous regulatory period (RP3, which ran from 2012-15). In Finland the WACC is mainly driven by the 10-year Finnish government bond yield, used as the risk-free rate in both the cost of debt and cost of equity calculations. The regu ...
... capital (WACC) calculation for the 2016-23 period compared to the previous regulatory period (RP3, which ran from 2012-15). In Finland the WACC is mainly driven by the 10-year Finnish government bond yield, used as the risk-free rate in both the cost of debt and cost of equity calculations. The regu ...
From Debt Collection to Relief Provision: 60 Years of Official Debt
... 1980s. Third, the number of episodes with face- value reductions increased over time both for OSI and for PSI. Fourth, restructurings are conducted both pre- and post-default. Finally, restructurings have become quicker to complete over time. More recently, Reinhart and Trebesch (2016) focus on the ...
... 1980s. Third, the number of episodes with face- value reductions increased over time both for OSI and for PSI. Fourth, restructurings are conducted both pre- and post-default. Finally, restructurings have become quicker to complete over time. More recently, Reinhart and Trebesch (2016) focus on the ...
NBER WORKING PAPERS SERIES Eliana Cardoso Working Paper No. 3585
... external debt in the world. Whereas the first stage of debt accumulation saw a large transfer of real resources, in later stages more and more borrowing went simply to cover interest obligations on earlier loans. The dynamics of debt-led debt had become part of the Brazilian story, a process magnifi ...
... external debt in the world. Whereas the first stage of debt accumulation saw a large transfer of real resources, in later stages more and more borrowing went simply to cover interest obligations on earlier loans. The dynamics of debt-led debt had become part of the Brazilian story, a process magnifi ...
Efficient Bailouts? - Federal Reserve Bank of Minneapolis
... to reduce the level of financial fragility.5 In particular, Jeanne and Korinek (2011) study a stylized three-period model with a fire-sale externality and show that there is scope for both ex-ante and ex-post policy intervention.6 The inefficiency in this literature relates to the effects of an inte ...
... to reduce the level of financial fragility.5 In particular, Jeanne and Korinek (2011) study a stylized three-period model with a fire-sale externality and show that there is scope for both ex-ante and ex-post policy intervention.6 The inefficiency in this literature relates to the effects of an inte ...
Household debt
Household debt is defined as the amount of money that all adults in the household owe financial institutions. It includes consumer debt and mortgage loans. A significant rise in the level of this debt coincides historically with many severe economic crises and was a cause of the U.S. and subsequent European economic crises of 2007–2012. Several economists have argued that lowering this debt is essential to economic recovery in the U.S. and selected Eurozone countries.