effort of monetary policy at influencing the finance of government fiscal deficit through the determination of the inflationtax rate affects both the rate of inflation and the real exchange rate‚ thereby causing volatility in their rates. The paper reveals that inflation affects volatility of its own rate as well as in the rate of real exchange. The policy import of the paper is that monetary policy should be set in such a way that the objective it is to achieve is well defined. Key words: Monetary
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CHAPTER TWO 2.1 INTRODUCTION The crude oil price and exchange rates are key research subjects‚ and both variables generate considerable impacts on macroeconomic conditions such as economic growth‚ international trade‚ inflation‚ and energy management. The relationships between the two have been studied‚ mainly for guidelines of interaction and causality. In past decades‚ changes in the price of crude oil have been shown to be a key factor in explaining movements of foreign exchange rates‚ particularly
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] Analysis of Design: It is noted that the Rectifying Section has more trays (12) than the Stripping Section (3‚ including the feed tray but excluding the reboiler). This is because the relative volatility of ethanol decreases sharply with increase in ethanol concentration. The relative volatility is very high
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Portfolio Optimization A Selection of Stocks from the Heng Seng Index 17 August 2012 Introduction A typical investor purchases an asset with the hope that it will generate income or appreciate in the future. Given the plethora of choices in the market‚ a rational investor would choose an investment with the highest expected return. The Hong Kong Stock Exchange is the sixth largest stock exchange in the world with 1‚477 listed companies and a combined market capitalization of HKD 17 trillion
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Strategic Management Financial & Political Risk David Warnock-Smith Strategic Management Programme • • • • Introduction to “risk” and “risk management” Sources of risk Risk classification Overview and management of: – Financial risk – Political risk – (Business / operational risk) Strategic Management Risk - Definition “The fact that the results of any action are not certain‚ but may take more than one value. Risk is usually used to describe the form of uncertainty where‚ while
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2011. Following a consolidation in January‚ gold ended the quarter on a firm footing‚ returning 2.4% over the period. Price trends The gold price rose by 2.4% during Q1 2011 to US$1‚439.00/oz by 31 March‚ on the London PM fix. However‚ gold’s volatility continued to diminish‚ a testament to its measured price appreciation. Gold prices rose to 28-year highs in yen terms by the end of the quarter‚ despite a temporary currency spike in March in the wake of Japan’s crises. In other countries‚ gold
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and Funke‚ Norbert. "Stock Market Liberalizations: Financial and Macroeconomic Implications." Review of World Economics‚ Vol. 139‚ No 4 (2003): 730-761. Web. 18 March. 2012. Hassler‚ John. "Does International Influence Cause Higher Stock Market Volatility?." The Scandinavian Journal of Economics‚ Vol. 101‚ No. 1 (1999): 1-9. Web. 18 March. 2012. Hong Harrison‚ Kubik D. Jeffrey and Stein C. Jeremy. "Social Interaction and Stock-Market Participation." The Journal of Finiance‚ Vol. 59‚ NO 1 (2004):
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) Describe the environment in which Skype competes based on the three characteristics of high tech markets. The three characteristics of high tech markets are 1. Market Uncertainty 2. Technological Uncertainty 3. Competitive Volatility Lets analyze all the above three for the Skype case: 1. The market uncertainty occurs as consumer needs are keep changing‚ neither the technology producer nor consumer are able to predict the market trend. Consumer will always enquire for more advances
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spreadsheet or a calculator with a linear regression function to estimate beta. β = 0.62 b. Give a verbal interpretation of what the regression line and the beta coefficient show about stock Y’s volatility and relative risk as compared with those of other stocks. This graph shows that stock Y’s volatility follows the basic trend of the market (NYSE). The regression line and beta coefficient shows a positive correlation between stock Y and the market with an upward trending regression line and positive
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firms in the period 1988–2002 in a model where common equity is viewed as a down-and-out barrier option on the firm’s assets. Asset values and volatilities as well as firm-specific bankruptcy barriers are simultaneously backed out from the prices of traded equity. Implied barriers are significantly positive and monotonic in the firm’s leverage and asset volatility. Our default probabilities display better calibration and discriminatory power than the ones inferred in a standard Black and Scholes [Black
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