The impact of central bank independence on the performance of inflation targeting regimes* Sami Alpandaa‚ Adam Honiga** a Amherst College‚ Amherst‚ MA 01002 May‚ 2011 ______________________________________________________________________________ Abstract This paper examines the benefits of inflation targeting in both advanced and emerging economies. We do not detect significant effects in advanced economies and only find small benefits in emerging economies‚ in line with previous studies
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tend to display persistence. Therefore‚ an interesting question in finance is: what derives stock market volatility? Understanding the nature of stock market volatility gives some important implications for policy makers‚ economic forecasters and investors. Studying the impact of MacroEconomic factors such as Inflation‚ Interest Rate‚ Dollar Value and FII on conditional stock market volatility also has important implications for investors and policymakers. In many ways the performance of the economy
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This document contains the technical analysis of the ICICI bank stock as per the movement of the stock in NSE Nifty. The analysis covers Moving Average‚ MACD‚ ROC‚ RSI‚ and Parabolic SAR‚ each indicator provided a detailed technical understanding of the sock over the period of past one year. It is intended to aid the analysis of ICICI stock as a potential candidate for a securities portfolio. Technical Charts The graphs below depict the plots of various technical indicators for the ICICI bank
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consideration since it’s the system that mostly affect our economy and being supported by BSP adopted since 1970. In the cases when the demand and supply is not stable‚ the BSP has the authority to enter and provide guidance in the market to prevent the volatility effects in the exchange rate fluctuations that affects inflation. They also fixed firmly the demands for foreign currency by providing liquidity when required. This system applied in the Philippines is consistent with its goal to aim external competitiveness
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BUFFER STOCK SCHEMES The prices of agricultural products such as wheat‚ cotton‚ cocoa‚ tea and coffee tend to fluctuate more than prices of manufactured products and services. This is largely due to the volatility in the market supply of agricultural products coupled with the fact that demand and supply are price inelastic. Products with unstable conditions of supply and demand will experience price fluctuations. Agricultural (farm) prices tend to be volatile because: Supply changes because
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time value of an option = difference between actual call price and intrinsic value as time approaches expiration date‚ time value goes to zero 21-2 Determinants of Option Values Call + – + + + – Put – + + + – + Stock price Exercise price Volatility of stock price Time to expiration Interest rate Dividend rate of stock 21-3 Binomial Option Pricing consider a stock that currently sells at S0 the price an either increase by a factor u or fall by a factor d (probabilities are irrelevant)
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The Impact of two agency problems on the cost of capital Tung-Hsiao Yang* Current Version: September 10‚ 2008 * Assistant Professor of Finance‚ National Chung Hsing University‚ Department of Finance‚ No. 250‚ Kuo Kuang Rd.‚ Taichung 40227‚ Taiwan‚ tyang1@nchu.edu.tw. The author thanks National Science Council for financial support in this project‚ NSC96-2416-H-005-026. The Impact of two agency problems on the cost of capital Abstract We test the relation between the cost of capital
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upstream in the supply chain from the retailer to the distributor to Barilla’s central distribution centers (CDC) to Barilla’s plants – the farther one moves upstream‚ the greater the volatility in demand. This demand fluctuation can be attributed to a number of factors. One of the main factors that affected the demand volatility is Barilla’s trade promotion strategy‚ which includes price‚ transportation‚ and volume discounts. Barilla would divide the year into 10 to 12 canvass periods to where certain
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whether this is a financially worthwhile project. In order to calculate the WACC‚ Bair must consider the betas from Boeing’s commercial sector as well as the defense sector. One beta cannot be used for the whole company due to the vast difference in volatility between the two sectors. Once these two separate betas are calculated‚ they can be weighted based on the % revenue which each industry contributes to the company and then a WACC can be calculated for Boeing as a whole. This number is then compared
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GLOSSARY/KEYWORDS Political volatility; economic volatility; legal risks; corruption; expropriation risk; risk mitigation. 3.1 The nature of risks Even though previous chapter’s discussions on the current trend in emerging markets highlight many good opportunities for Multinational Firms (MNCs) to explore‚ there are also a risks and challenges that firms will encounter. Among the most significant risks are political volatility‚ economic policy volatility and also legal risks. Firms
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