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Financial Frictions in Macroeconomic Fluctuations
Financial Frictions in Macroeconomic Fluctuations

... 2. Amplification. The second hypothesis is that the initial driving force of movements in economic activities are nonfinancial factors such as drops in productivity or monetary policy shocks. However, as investment and employment fall, the credit ability of borrowers deteriorates more than the finan ...
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... loosened, the competition between the market and the institutions becomes increasingly fierce. The resulting prosperous environment creates the need for more efficient intermediation and the offering of more sophisticated financial instruments. These and other developments can not only decrease the ...
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... Culture refers to a set of values, ideas, artifacts and other meaningful symbols that help individuals communicate, interpret and evaluate as members of society (Engel, Blackwell and Miniard, 1995) Financial institutions that expand their operations abroad must be aware of the impact of some sensiti ...
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... to normalcy. However, considerable CIP deviations, though scaling back significantly from their peaks registered during the GFC, have persisted. While counterparty credit risk and liquidity funding risk in the interbank money market, as reflected in the spread between the London interbank offered ra ...
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... • Case 1 A debt that is serviced. You pay the interest but you never pay any principal. • Case 2 A debt that is not serviced. You pay neither interest nor principal. Your debt grows by 10% each year. • Case 2 is not sustainable. Sometimes called a rollover scheme, a pyramid scheme, or a Ponzi game, ...
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ECON 8838-001 Econometrics 2
ECON 8838-001 Econometrics 2

... available at http://www.colorado.edu/odh/. The Office of Discrimination and Harassment can be reached by telephone at 303-492-2127. The Office of Judicial ...
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Financial economics

Financial economics is the branch of economics characterized by a ""concentration on monetary activities"", in which ""money of one type or another is likely to appear on both sides of a trade"". Its concern is thus the interrelation of financial variables, such as prices, interest rates and shares, as opposed to those concerning the real economy. It has two main areas of focus: asset pricing (or ""investment theory"") and corporate finance; the first being the perspective of providers of capital and the second of users of capital.The subject is concerned with ""the allocation and deployment of economic resources, both spatially and across time, in an uncertain environment"". It therefore centers on decision making under uncertainty in the context of the financial markets, and the resultant economic and financial models and principles, and is concerned with deriving testable or policy implications from acceptable assumptions. It is built on the foundations of microeconomics and decision theory.Financial econometrics is the branch of financial economics that uses econometric techniques to parameterise these relationships. Mathematical finance is related in that it will derive and extend the mathematical or numerical models suggested by financial economics. Note though that the emphasis there is mathematical consistency, as opposed to compatibility with economic theory.Financial economics is usually taught at the postgraduate level; see Master of Financial Economics. Recently, specialist undergraduate degrees are offered in the discipline.Note that this article provides an overview and survey of the field: for derivations and more technical discussion, see the specific articles linked.
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