Search results for "jel:E4"
showing 10 items of 28 documents
Nonlinear dynamics of interest rate and inflation
2004
According to several empirical studies, US inflation and nominal interest rates, as well as the real interest rate, can be described as unit root processes. These results imply that nominal interest rates and expected inflation do not move one-for-one in the long run, which is not consistent with the theoretical models. In this paper we introduce a nonlinear bivariate mixture autoregressive model that seems to fit quarterly US data (1952 Q1 – 2000 Q2) reasonably well. It is found that the three-month treasury bill rate and inflation share a common nonlinear component that explains a large part of their persistence. The real interest rate is devoid of this component, indicating one-for-one m…
L'analyse de la monnaie et de la finance par David Hume : conventions, promesses, régulations
2008
De l’apport de David Hume a l’analyse economique, un aspect est generalement retenu : son approche presumee quantitative de la monnaie. Or, lorsqu’on resitue l’examen des relations monetaires et financieres a l’interieur de son corpus philosophique, il revele d’autres perspectives. Selon Hume, le processus de civilisation institue certaines fictions, qui permettent aux individus de forger un ordre symbolique. Dans une economie de marche, la distinction entre la monnaie – de nature conventionnelle – et les engagements financiers – assimiles a des promesses – est centrale. Alors que les conventions monetaires autorisent de multiples agencements, les engagements financiers doivent etre etroite…
Structural reforms in a debt overhang
2014
We assess the effects of reforms in product and labor markets in a model economy featuring credit restrictions and pre-existing long-term debt. Both elements, which are core features of the current scenario faced by some euro area countries, combine to produce a slow and protracted deleveraging of the private sector and a persistent recession following a negative financial shock. In this environment, we show that product and labor market reforms may stimulate output and employment even in the short run, despite their defl ationary effects. Furthermore, by favoring a faster recovery of investment and collateral values, product market reforms bring forward the end of deleveraging and the exit…
Exchange Rate Arrangements in Central and Eastern European Countries – Evolutions and Characteristics
2007
The process of choosing the exchange rate regime for the new EU member states has been influenced by other criteria than the traditional ones, which belong to macroeconomic criteria. This paper make a comparative analyze of the exchange rate arrangements in Central and Eastern European after 1990. These arrangements are dynamic on the one hand due to their permanent diversification and on the other hand because the values established this way are rapidly changing. In essence, they differ according to the degree of flexibility adopted when the exchange rate is established: from more rigid forms – currency board or pegging the currency to a foreign currency – to free floating.
THE REVOLUTION OF DIGITAL TECHNOLOGY
2012
Like any other revolution, the one that we are living nowadays will cause victims. The Mass-media and the retail have been already hit rising of the digital technology, the same as in the past in the days the confection factories, entailed the end of the loom, and the appearance of the Ford Model T brought to extinction of the blacksmith on the market. If we look now to the future factories, we will probably get frightened on the idea. Not only will the manner be affected, but also the place where the objects will be made as well. This paper present an interpretations of the answers following the questionnaire worked out last year and its results will be useful for both the research and the…
MODERN TECHNOLOGY IN RURAL CHARACTERISTICS
2012
Electronic business can change the socio-economic life of a people. It can increase knowledge, and employee revenue. In this paper we are focusing on how it promotes improving the structure of economic sectors within the rural areas. Then it can increase the farmers' level of organization. It promotes a career and employment in manufacturing for the village inhabitants. Family life of farmers and the social appearance in the rural environment are greatly improved as well Also it raises the education and social value of the population in the rural areas of the country.
Financial Reforms and Income Inequality
2012
Available online 8 June 2012
The Capital’s Election Criteria Used in the Financial Management of a Company’s Financing Decision
2009
The optimization of the capital structures of a company after the cost criteria represents a profitable activity, provided that it is well conceived, organized and carried out. For this consideration, the capital’s structure and their medium cost is an important profit source for the company, so the profit comes from this source, and not from the exploitation activity or other financial sources or traditional exceptive. In conclusion, the cost of the capital has to be previewed; the company has to build an adequate strategy and tactical procedures to accomplish this challenge. Besides the capital’s cost, in this paper we present some other criteria that can interfere in the choice of the fi…
ANALYZING THE EUROPEAN MARKET OF INTEREST RATE SWAP INDICES
2012
The interest rate risk is the most important risk that derives from the OTC transactions, taking into consideration both the notional amounts and the market value of the financial derivatives that relies on interest rate contracts. Open positions on interest rate derivatives represents more than 75% of the OTC market. In the European banking market interest rate swaps prices are strongly dependent on the interbank interest rates. In this paper we want to analyze the behavior of the Eoniaswap indices and their impact on the interest rate swaps between banks.
Household Leverage and Fiscal Multipliers
2011
We study the size of fiscal multipliers in response to a government spending shock under different household leverage conditions in a general equilibrium setting with search and matching frictions. We allow for different levels of household indebtedness by changing the intensive margin of borrowing (loan-to-value ratio), as well as the extensive margin, defined as the number of borrowers over total population. The interaction between the consumption decisions of agents with limited access to credit and the process of wage bargaining and vacancy posting delivers two main results: (a) higher initial leverage makes it more likely to find output multipliers higher than one; and (b) a positive g…