arbitrage and the theories of interest rate parity purchasing power parity and international fisher effect

The Role of Interest Rate Swaps in Corporate Finance doc

The Role of Interest Rate Swaps in Corporate Finance doc

Ngày tải lên : 22/03/2014, 17:20
... financing just equals the floating rate on the interest rate swap plus the difference between the interest rate the firm pays on its outstanding fixed -rate debt and the fixed interest rate it receives ... growth of interest rate derivatives to the desire on the part of firms to hedge cash flows against the effects of interest rate volatility The timing of the appearance of interest rate swaps, coming ... floating -rate debt at the outset? The next two sections explore the rationales that have been offered to explain the widespread use of interest rate swaps INTEREST RATE SWAPS, ARBITRAGE, AND THE THEORY...
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Emerging Market Liberalization and the Impact on Uncovered Interest Rate Parity potx

Emerging Market Liberalization and the Impact on Uncovered Interest Rate Parity potx

Ngày tải lên : 06/03/2014, 14:20
... Malaysia after the Asian crisis) The scope for a successful interest rate defense” of a fixed exchange rate depends on the extent of the deviation from interest rate parity (e.g., Flood and Rose (2001)) ... currency at the spot exchange rate against the U.S dollar and deposited in the country of reference At the end of the month the local currency proceeds are converted to U.S dollars at the end -of- month ... including the elimination of exchange controls, stabilization of exchange rates, control of inflation, removal of restrictions on capital inflows and outflows, removal of interest rate restrictions, and...
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international parity conditions interest rate parity and the fisher parities

international parity conditions interest rate parity and the fisher parities

Ngày tải lên : 12/07/2014, 10:57
... iforeign These effects unambiguously cause a decrease in the deviation from interest rate parity Define the Fisher Effect and the Fisher International Effect (Uncovered Interest Parity) How are these ... these effects similar and how are they different? The Fisher Effect states that the nominal interest rate reflects a real interest rate and an anticipated rate of inflation The Fisher International ... International Effect (Uncovered Interest Parity) states that the nominal interest rate differential between two countries reflects the anticipated rate of currency depreciation of the exchange rate The...
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Tài liệu The importance of interest rates for forecasting the exchange rate doc

Tài liệu The importance of interest rates for forecasting the exchange rate doc

Ngày tải lên : 15/02/2014, 05:20
... proxy for the annual interest rate, we therefore need to multiply the quarterly interest rate by four Hence, if we had used an annual interest rate, the coefficient for the interest rate difference ... ∆vte+1 is the expected depreciation rate from period t to t+1, it is the domestic interest rate and it* is the foreign interest rate Hence, an interest rate differential at time t, will then lead ... namely that of UIP According to the UIP condition, the interest rate differential will be an optimal predictor of the rate of depreciation, providing the conditions of rational expectations and risk...
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Research " On Fiscal Discipline and the Choice of Exchange Rate Regine " pptx

Research " On Fiscal Discipline and the Choice of Exchange Rate Regine " pptx

Ngày tải lên : 07/03/2014, 02:20
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What is the neutral real interest rate, and how can we use it? doc

What is the neutral real interest rate, and how can we use it? doc

Ngày tải lên : 15/03/2014, 01:20
... good, the interest rate can be thought of as the mechanism impediments to capital flows, the shape and position of these which equates the demand for, and supply of, loanable funds world savings and ... large they may be offset by incorrect assumptions elsewhere in movements in the policy rate – the OCR in the case of New the model Furthermore, when using the model for Zealand) The advantage of ... to consumption, the higher the interest rate they will require in fall, as the cost of borrowing increases, since fewer order to induce them to save, and the further to the left the investment...
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The effect of interest rate changes on bank stock returns doc

The effect of interest rate changes on bank stock returns doc

Ngày tải lên : 15/03/2014, 01:20
... three theories, in the CAPM context, to examine the expected impacts on banks stock returns in the face of announced interest rate changes: Stiglitz and Weiss (1981) Optimal Interest Rate Theory and ... on the nature of the interest rate sensitivity Stone's work was built on and further enhanced by Lynge and Zumwalt (1980) who found that interest rate sensitivity varied depending on the term of ... measure the impact of these cash rate changes, by examining the average abnormal and the cumulative abnormal returns of the common stock prices of non-financial stocks using an index of their daily...
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REGULATION OF INTEREST RATE BY THE STATE BANK OF VIETNAM (SBV) potx

REGULATION OF INTEREST RATE BY THE STATE BANK OF VIETNAM (SBV) potx

Ngày tải lên : 15/03/2014, 01:20
... of Interest Rate by the State Bank of Vietnam (SBV) 1.2 Interest Rate and Inflation Following the quantity theory of money, as the interest rate increases, the money supply decreases, and the ... principally, the refinancing rate and the discount rate save only the outflow of money from the SBV to the other banks, which results in the increase of money supply and the interest - - Do not use the ... of the wrong interest rates policy 2.1 The shock of interest rates during 1990s In 1994, instead of lowering the interest rate according to the policy adopted by the Conference of Bankers at the...
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The financial crisis and the pricing of interest rates in the Irish mortgage market: 2003-2011 ppt

The financial crisis and the pricing of interest rates in the Irish mortgage market: 2003-2011 ppt

Ngày tải lên : 15/03/2014, 14:20
... log of the interest rate, which is positive and highly significant The inclusion of the interest rate variable reverses the sign on the variable rate dummy variable, which is now negative and ... in the modelling The price lenders have to pay for their funding is a key variable of interest in the analysis In the case of Ireland up to the end of 2008, lenders tended to use the ECB base rate ... shows a cross-plot of the standard variable rate against the arrears rate for the 2009 to 2011 period A cross-plot of variable rates and arrears for the earlier period up to the end of 2008 would...
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WORKING PAPER SERIES NO. 546 / NOVEMBER 2005: THE NATURAL REAL INTEREST RATE AND THE OUTPUT GAP IN THE EURO AREA A JOINT ESTIMATION doc

WORKING PAPER SERIES NO. 546 / NOVEMBER 2005: THE NATURAL REAL INTEREST RATE AND THE OUTPUT GAP IN THE EURO AREA A JOINT ESTIMATION doc

Ngày tải lên : 22/03/2014, 23:20
... as the difference between the real short term interest rate and estimates of the natural real interest rate In addition, the natural real interest rate is linked to the potential growth rate of ... to as the "Wicksellian" denition of the natural rate of interest The real interest rate gap is related to the business cycle and reects the existence of nominal rigidities in the economy The available ... correlation between the actual real interest rate and the real interest rate gap are high and their standard deviations are roughly identical In other words, the variation in the real interest rate is not...
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Fiscal Dominance and the Long-Term Interest Rate: FINANCIAL MARKETS GROUP SPECIAL PAPER SERIES doc

Fiscal Dominance and the Long-Term Interest Rate: FINANCIAL MARKETS GROUP SPECIAL PAPER SERIES doc

Ngày tải lên : 29/03/2014, 13:20
... least the near end of the yield curve Transmission of policy rate changes to the whole structure of interest rates is thus effective But uncertainty about the path of future interest rates (and ... sense; (b) the effects of Government policy on the market for borrowing by the private sector and the problem of controlling the desired rate of investment; and (c) to the burden of interest charges ... about the future path of interest rates This will reduce the degree of asset substitutability between short-dated and long-dated paper, impairing the effectiveness of changes to the policy rate and...
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whitaker - history of the theories of aether and electricity vol 1

whitaker - history of the theories of aether and electricity vol 1

Ngày tải lên : 04/06/2014, 12:38
... which is by differentiated THE ORCE RF THE ORCE RF THEORIES OF AETHER AND ELECTRICITY CHAPTEK I THE THEORY OF THE AETHER IN THE SEVENTEENTH CENTURY THE observation of the heavens, which has been ... RF The Theory of the Aether the line along which the needle set itself Then laying the needle on other parts of the stone, he obtained more lines in the same way When the entire surface of the ... discovery of the prevalent conceptions of the world which he America, the circumnavigation of the globe by Drake, the overthrow of the Ptolemaic system of astronomy, and the invention of the telescope,...
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whitaker - history of the theories of aether and electricity vol 2

whitaker - history of the theories of aether and electricity vol 2

Ngày tải lên : 04/06/2014, 12:39
... THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE ... RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE ... RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE RF THE ORCE...
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a basic course in the theory of interest and derivatives markets

a basic course in the theory of interest and derivatives markets

Ngày tải lên : 05/11/2014, 13:29
... amount in the fund at the beginning of the period) Thus, the effective rate of interest in is the ratio of the amount of interest earned during the period to the amount of principal invested at the ... amount of interest earned in one period divided by the principal at the beginning of the period One can define the effective rate of interest for any period: The effective rate of interest in the nth ... that annual interest rate changes from one year to the next Let i1 be the interest rate for the first year, i2 the interest rate for the second year,· · · , in the interest rate for the nth year...
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the choice of exchange-rate regime and speculative attacks

the choice of exchange-rate regime and speculative attacks

Ngày tải lên : 28/11/2014, 17:18
... observes x and the fraction of speculators who decide to attack the band, α, and then decides whether or not to defend the band If he does, the exchange rate stays at the boundary of the band and the ... the policymaker exits the band and the exchange rate jumps to e > e If the ¯ policymaker successfully defends the band, the payoff is −t If the speculator does not attack the band, his payoff ... exchange -rate bands The paper focuses on the trade-offs that determine the optimal band width by analyzing the strategic interaction between the ex ante choice of exchange -rate regime and the behavior...
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the choice of exchange-rate regime and speculative attacks

the choice of exchange-rate regime and speculative attacks

Ngày tải lên : 29/11/2014, 11:26
... observes x and the fraction of speculators who decide to attack the band, α, and then decides whether or not to defend the band If he does, the exchange rate stays at the boundary of the band and the ... the policymaker exits the band and the exchange rate jumps to e > e If the ¯ policymaker successfully defends the band, the payoff is −t If the speculator does not attack the band, his payoff ... exchange -rate bands The paper focuses on the trade-offs that determine the optimal band width by analyzing the strategic interaction between the ex ante choice of exchange -rate regime and the behavior...
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The impact of exchange rate policy on trade balance and inflation in Vietnam = Tác động của chính sách tỷ giá hối đoái đối với cán cân thương mại và lạm phát ở Việt Nam

The impact of exchange rate policy on trade balance and inflation in Vietnam = Tác động của chính sách tỷ giá hối đoái đối với cán cân thương mại và lạm phát ở Việt Nam

Ngày tải lên : 05/03/2015, 09:08
... understand the role of exchange rate in the variance of trade balance and inflation For empirical study, the thesis uses monthly data from 2000 to 2012 1.5 Structure of the Thesis The thesis ... to the factor For instance, most of floating exchange rate models supports the Purchasing Power Parity theory and as a result the exchange rate pass-through has complete effect Purchasing Power ... interest rates of different currencies of open economies would be equalized We define if (%/period of time) as the interest rate of USD deposits in the U.S, i d (%/period of time) as the interest rate...
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Mind and body the theories of their relation (Alexander bain)

Mind and body the theories of their relation (Alexander bain)

Ngày tải lên : 16/02/2016, 14:59
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the behaviour of interest rates

the behaviour of interest rates

Ngày tải lên : 05/01/2014, 16:56
... causes the demand for money at each interest rate to increase and the demand curve to shift to the right • Price-Level Effect - a rise in the price level causes the demand for money at each interest ... Supply and Interest Rates I • Income effect of an increase in the money supply is a rise in the interest rate in response to a higher level of income • Price-Level effect of an increase in the money ... engineered by the Bank of Canada will shift the supply curve for money to the right Shifts in the Demand and Supply of Money II Changes in the Demand for Money Changes in the Supply of Money Money...
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Tài liệu Is the long-term interest rate a policy victim, a policy variable or a policy lodestar? docx

Tài liệu Is the long-term interest rate a policy victim, a policy variable or a policy lodestar? docx

Ngày tải lên : 17/02/2014, 03:20
... quantity of money.” The Radcliffe Report sided with the economists – and against the Treasury A key conclusion was that the structure of interest rates rather than the supply of money [was] the centre ... statement of the importance of the long-term interest rate as an objective of monetary policy “There is no doubt that … monetary policy … can … influence the structure of interest rates through the ... lengthen the maturity of their mortgages will force their lenders to cover their new interest rate exposures This will set off price movements in interest rate markets Wholesale investors in the...
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