CRISES AND THE FLEXIBLE PRICE MONETARY MODEL. Sarantis Kalyvitis

Size: px
Start display at page:

Download "CRISES AND THE FLEXIBLE PRICE MONETARY MODEL. Sarantis Kalyvitis"

Transcription

1 CRISES AND THE FLEXIBLE PRICE MONETARY MODEL Saranis Kalyviis

2 Currency Crises In fixed exchange rae regimes, counries rarely abandon he regime volunarily. In mos cases, raders (or speculaors) exchange domesic currency for foreign one a he fixed rae, leading o an exhausion of reserves and o a new floaing- rae ha is depreciaed ( currency crisis ). How is a currency crisis iniiaed? Inconsisen fundamenals In he 1970's 's a series of crises affliced Lain America. The underlying problem was ha counries were running fiscal deficis financed by expanding domesic credi whils simulaneously fixing he exchange rae. These policies are inconsisen. Expecaions abou fuure depreciaion During he 1990's here were a number of occasions in which foreign exchange dealers under panic sold paricular currencies (because hey fel ha a devaluaion is imminen) causing large depreciaion's of nominal exchange raes by heir own behavior. 1

3 Firs-Generaion Models The analysis is based on he he flexible price moneary model: s = m φ y + λi p + λe ds d The firs explanaion focuses primarily on he money supply and so simplify we use he following 'reduced form' of he moneary model: s = m + E ( s ) λ (1) m + = c r (2) c = domesic credi, = r foreign exchange reserves, s = ds d 2

4 Domesic Policy Suppose ha o finance a fiscal defici (excess of governmen expendiure over ax revenue) domesic credi grows a a consan rae: c = µ (3) So ha a ime : c c + µ = 0 (3)' 3

5 Exernal/Exchange Rae Policy Now suppose he governmen fixes he exchange rae. The expeced depreciaion of he exchange rae equals he expeced change in fundamenals. Since he only fundamenal is he money supply E ( s) = E( f ) = E( m) If he exchange rae is credibly fixed i canno be expeced o depreciae: E ( s) = E( m) = 0 Subsiuion of he above ino (1) yields he fixed rae, s = m (4) To fix he exchange rae he governmen mus fix he money supply. 4

6 However o finance he fiscal defici he governmen expands domesic credi. For he money supply and exchange rae o be fixed reserves mus be falling by he same amoun. E ( m) = E( c) + E( r) = 0 E ( r) = E( c) = µ (5) Under a rising domesic credi: c i capial ouflow s > 0 So, he only way o keep he exchange rae fixed is: r = c m = m s = 0 The governmen prevens he ineres rae from falling by buying up he excess domesic currency using is foreign reserves. Ulimaely running down foreign reserves finances he defici. 5

7 From (5): r r µ = 0 (5)' If he governmen has limied reserves hey will run ou and he fixed exchange rae will collapse. The ime ha reserves run ou can be calculaed by solving: rt N = N r0 µ T = 0 r T 0 N = (6) µ The lifeime of he fixed rae equals he size of he iniial reserve sock divided by he rae reserves are los. Example: if he iniial reserve sock were 10 imes he rae of domesic credi expansion he fixed rae would las for 10 years. 6

8 Figure 1. The money supply and he exchange rae m c = m r 0,c 0 m Time s s s = m T N Time 7

9 The Jump Depreciaion There is a problem wih Figure 1 hough. Up unil T N he expeced depreciaion is zero and he exchange rae equals, s = m A T N he exchange rae sars o depreciae and he expeced depreciaion jumps from zero o µ: E ( s) = E( m) = E( c) = µ From (1) he exchange rae afer reserves run ou is s = m λµ (7) + Exacly a ime i is, s = m (8) The pah of he exchange rae is no ha shown in Figure 1! 8

10 Figure 2. Pah of he exchange rae wih jump depreciaion s floaing s λµ T TN Time 9

11 Bu wha is wrong wih his? A he ime ha reserves run ou he exchange rae jump depreciaes by λµ. Currency raders suffer a predicable capial loss equal o λµ imes he amoun of domesic currency held. This violaes he no-arbirage condiion. Wha really happens? Consider he UIP relaionship i = ds i + E d Whils he exchange rae is fixed he expeced depreciaion is zero and, i = i A he ime he fixed rae collapses he expeced depreciaion jumps o µ and he ineres rae o i = i + µ 10

12 Now consider he domesic money marke. m p = φy λi An increase in he ineres rae of µ reduces money demand by λµ. So ha a he ime of collapse here is a discree reducion in money demand of, m d = λµ How does his ake place? If currency raders do nohing a he ime of collapse hey suffer a discree capial loss equal o λµ imes currency held. To avoid his hey aack (swap domesic currency for reserves) he domesic currency before reserves would oherwise run ou. The size of his aack is jus sufficien o eliminae he jump. Tha is he domesic currency in circulaion is reduced by an amoun ha appreciaes he exchange rae by λµ relaive o he no-aack scenario. 11

13 The fixed rae collapses wih a speculaive aack ha wipes ou λµ of reserves. This aack occurs when: r = λµ (9) A speculaive aack wipes ou all remaining reserves. The ime he aack occurs solves: r T 0 = r µ T = λµ T = r0 µ λ (10) which is smaller han r T 0 N = given by (6). µ 12

14 Summary of he firs-generaion model The roo cause of he problem is an inconsisency beween domesic policy and exchange rae policy. The linkage beween fiscal deficis and moneary policy are emphasised especially for Lain American economies. The same scenario could apply o wider se of fundamenals. A currency crisis is bound o end in a speculaive aack as raders seek o avoid capial losses. Collapse is no ineviable. If fundamenals are no inconsisen hen he exchange rae does no collapse. This model worked well up unil he 1990's. 13

15 The European Moneary Sysem The EMS was an inermediae sysem. I allowed exchange raes o flucuae wihin cerain symmeric limis. s s u s l f 14

16 The exchange rae is free o move inside he limis bu would be prevened from passing he limis by appropriae adjusmen of he money supply and ineres raes. Inervenion was mean o be bilaeral bu in pracice was unilaeral. Given symmeric limis if he /DM rae was a s u he DM/ rae would be a s l. Boh Germany and he UK were mean o inervene bu in pracice only he counry whose currency was a s u inervened. The sysem funcioned as a DM zone. The DM ended o appreciae relaive o he majoriy of oher currencies. This mean he oher counries had o operae high ineres raes. Why were hey happy o do his? Because hey believed i would give heir moneary policy a similar credibiliy o Germany. In effec hey viewed his as a way of appoining a conservaive cenral banker. 15

17 The EMS Crisis In 1990 German reunificaion occurred amids he backdrop of a deep recession afflicing Wesern Europe. In deciding o swap 1 Osermark for 1 DM Chancellor Kohl boosed purchasing power bu no producive capaciy in he old Eas Germany. The resul was inflaion. This creaed a conflic beween exernal and inernal objecives. Germany waned o lower inflaion by ighening he money supply and raising ineres raes. The majoriy of oher counries waned o offse he recession by lowering ineres raes. UIP: i = ds i + E d Germany waned o increase i whils oher counries waned o lower i. The currency markes sared o expec a discree depreciaion of currencies relaive o he DM. Bu he expecaion of depreciaion increases he domesic ineres rae sill furher. Since hese oher counries would have preferred o lower ineres raes his jus makes he depreciaion sill more likely. The sysem los credibiliy and even as in he case of he UK an economy did raise he ineres rae his did no pacify currency dealer's who coninued o exchange 's and oher currencies for DM's. 16

18 The key poin is ha expecaions are self-fulfilling. Evenually he cycle becomes oo much and he EMS collapsed in 1992/3. Is his consisen wih he firs generaion model? A conracion of domesic credi in Germany is equivalen o an expansion in he home counry. I did end in a big aack and massive losses of reserves. (G. Soros was repued o have made more han 1 billion serling). However: The UK did no run ou of reserves. Moreover if Germany had been willing o inervene on behalf of he hen no size of aack would have been sufficien o offse he collapse. The self-fulfilling naure of expecaions was imporan. In paricular even hough mos counries ook he appropriae acions heir exchange raes sill collapsed. The problem is he inconsisency beween inernal and exernal objecives. Germany waned he DM o appreciae and he UK, Ialy e al waned heir currencies o depreciae. 17

19 Self-fulfilling aacks and policy The firs generaion model of currency crises cerainly did no cover all he feaures of he EMS crisis. In paricular he idea ha self-fulfilling aacks could lead fixed (or managed) exchange raes o collapse even if fundamenals were consisen wih he regime is imporan. A Speculaive Game Assumpions: Traders have 6 unis of domesic currency each. Trading coss are 1 per ransacion (for each one) If an aack succeeds he domesic currency is devalued by 50%. So if a rader sells all heir currency and he aack succeeds hey gain (in domesic currency): (6X0.5)-1= 3-1 = 2 18

20 Consider hree differen games based on having differen socks of foreign exchange reserves (or, oherwise, differen willingness of a counry o defend he exchange rae) 1 High Reserve Game R=20 2 Hold Sell Hold 0,0 0,-1 Sell -1,0-1,-1 boh speculaors have an ineres o remain inacive (if he buy, hey will pay he ransacion cos wihou any profi) 1 Low Reserve Game R= 6 2 Hold Sell H 0,0 0,2 S 2,0 1/2,1/2 boh speculaors will profi from buying now (since he foreign reserves will cerainly be depleed!) 1 Inermediae Reserve Game R= 10 2 Hold Sell H 0,0 0,-1 S -1,0 3/2, 3/2 if boh buy (each one 10/2=5 unis) hey will gain, bu if only one does, he will suffer a loss relaive o remaining inacive, so he oucome is uncerain (muliple equilibria!) 19

21 Mechanisms ha migh give rise o self-fulfilling aacks Example 1: Temporary Capial Conrols I is ofen suggesed ha o preven currency crises a Tax on Foreign Exchange ( Tobin Tax ) dealings should be applied. Suppose his Tax is emporary and is applied only in imes of crisis. (Noice policy is coningen on here being a crisis) If speculaors wai for he crisis hen eiher hey: Hold domesic currency and suffer capial losses, or Sell he currency and pay he Tax. Why no ry o avoid he Τax by selling he currency before he crisis? Bu if everyone does his i simply leads o an earlier crisis. The measure designed o preven he crisis migh acually cause he crisis. If he Tobin Tax is permanen his argumen does no apply. The key poin abou his is ha policy is coningen on here being a crisis. 20

22 We now reconsider he UK in he ERM crisis. Prior o he collapse he UK ran a igh moneary policy (impor high ineres raes from Germany) o defend he /DM rae. However, once he sysem collapsed he UK expanded he money supply, a policy ha was no consisen wih he EMS. Again noe ha policy was coningen on he exisence of he EMS. How would policy coningency change he earlier model? Le he pre-crisis rae of moneary growh be µ 0 bu if an aack is successful he rae of moneary growh may rise o µ 1. Τhe rae of domesic credi growh is coningen on he aack. This complicaes maers because i creaes wo possibiliies for he exchange rae should he fixed rae collapse. 21

23 Figure 3: Policy Coningency and Speculaive Aack s s ( µ 1 ) s ( µ 0 ) T A T B Time There is no raional aack before <T A T B is he laes ime a which a raional aack can occur T A < < TB an aack may or may no occur. A coordinaed aack will be successful. Suppose µ 0 = 0. Pre-crisis fundamenals are consisen wih he mainenance of he fixed rae forever. However he possibiliy ha a successful aack migh lead o an inconsisen pos-collapse policy can rigger an aack. Clearly he closer we are o T A he more likely is he aack. 22

24 A Problem wih he basic model: "Serilisaion" of he Money supply In he Mexican crisis of 1994 he moneary auhoriy serilised he money supply during he crisis. This means ha a he ime of he crisis he cenral bank expanded domesic credi o offse he money supply effecs of he reserve loss. This means he money supply of he shadow rae equals he money supply of he fixed rae. and s = + δ s m = λµ + m + δ s s = λµ > 0 If he governmen is expanding domesic credi he exchange rae will always depreciae in he pos collapse regime. The raional aack is jus sufficien o reduce he money supply sufficienly o force he domesic ineres rae up enough o compensae remaining asse holders for he depreciaion. If he money supply is consan he ineres rae will no rise and he exchange rae will always jump depreciae. When does he raional aack occur now? I occurs he insan he fixed rae is se up and equals he iniial sock of reserves. Despie his he exchange rae sill jump depreciaes. 23

25 Summary There are wo sors of currency crises depending on wheher hey are riggered by inconsisen fundamenals or beliefs by speculaors. One aspec deals wih an anicipaed change in fundamenals, which is inconsisen wih he curren fixed exchange rae. Speculaors realize ha hey will suffer expeced capial losses and aach he currency now, leading o he collapse a he ime of realizaion (and no of acual policy change). Anoher aspec deals wih he self-fulfilling characer of currency crises. Speculaors may aack a any ime hey believe ha he fixed rae regime is no susainable, which will ex pos confirm heir expecaions. Cenral Banks have various ools o preven speculaive aacks: he level of heir reserves is no officially disclosed, shor-erm ineres raes may rise sharply o preven speculaive borrowing, and inernaional coordinaion beween CBs may be agreed and announced in order o raise he pool of reserves and heir credibiliy, and show heir willingness in defending he exchange rae. There are many oher aspecs of currency crises depending on he naure of expecaions, he pos-collapse regime ec. 24

4. International Parity Conditions

4. International Parity Conditions 4. Inernaional ariy ondiions 4.1 urchasing ower ariy he urchasing ower ariy ( heory is one of he early heories of exchange rae deerminaion. his heory is based on he concep ha he demand for a counry's currency

More information

Economics Honors Exam 2008 Solutions Question 5

Economics Honors Exam 2008 Solutions Question 5 Economics Honors Exam 2008 Soluions Quesion 5 (a) (2 poins) Oupu can be decomposed as Y = C + I + G. And we can solve for i by subsiuing in equaions given in he quesion, Y = C + I + G = c 0 + c Y D + I

More information

What is a swap? A swap is a contract between two counter-parties who agree to exchange a stream of payments over an agreed period of several years.

What is a swap? A swap is a contract between two counter-parties who agree to exchange a stream of payments over an agreed period of several years. Currency swaps Wha is a swap? A swap is a conrac beween wo couner-paries who agree o exchange a sream of paymens over an agreed period of several years. Types of swap equiy swaps (or equiy-index-linked

More information

PROFIT TEST MODELLING IN LIFE ASSURANCE USING SPREADSHEETS PART ONE

PROFIT TEST MODELLING IN LIFE ASSURANCE USING SPREADSHEETS PART ONE Profi Tes Modelling in Life Assurance Using Spreadshees PROFIT TEST MODELLING IN LIFE ASSURANCE USING SPREADSHEETS PART ONE Erik Alm Peer Millingon 2004 Profi Tes Modelling in Life Assurance Using Spreadshees

More information

Morningstar Investor Return

Morningstar Investor Return Morningsar Invesor Reurn Morningsar Mehodology Paper Augus 31, 2010 2010 Morningsar, Inc. All righs reserved. The informaion in his documen is he propery of Morningsar, Inc. Reproducion or ranscripion

More information

I. Basic Concepts (Ch. 1-4)

I. Basic Concepts (Ch. 1-4) (Ch. 1-4) A. Real vs. Financial Asses (Ch 1.2) Real asses (buildings, machinery, ec.) appear on he asse side of he balance shee. Financial asses (bonds, socks) appear on boh sides of he balance shee. Creaing

More information

Why Did the Demand for Cash Decrease Recently in Korea?

Why Did the Demand for Cash Decrease Recently in Korea? Why Did he Demand for Cash Decrease Recenly in Korea? Byoung Hark Yoo Bank of Korea 26. 5 Absrac We explores why cash demand have decreased recenly in Korea. The raio of cash o consumpion fell o 4.7% in

More information

11/6/2013. Chapter 14: Dynamic AD-AS. Introduction. Introduction. Keeping track of time. The model s elements

11/6/2013. Chapter 14: Dynamic AD-AS. Introduction. Introduction. Keeping track of time. The model s elements Inroducion Chaper 14: Dynamic D-S dynamic model of aggregae and aggregae supply gives us more insigh ino how he economy works in he shor run. I is a simplified version of a DSGE model, used in cuing-edge

More information

Chapter 6: Business Valuation (Income Approach)

Chapter 6: Business Valuation (Income Approach) Chaper 6: Business Valuaion (Income Approach) Cash flow deerminaion is one of he mos criical elemens o a business valuaion. Everyhing may be secondary. If cash flow is high, hen he value is high; if he

More information

Individual Health Insurance April 30, 2008 Pages 167-170

Individual Health Insurance April 30, 2008 Pages 167-170 Individual Healh Insurance April 30, 2008 Pages 167-170 We have received feedback ha his secion of he e is confusing because some of he defined noaion is inconsisen wih comparable life insurance reserve

More information

Chapter 8: Regression with Lagged Explanatory Variables

Chapter 8: Regression with Lagged Explanatory Variables Chaper 8: Regression wih Lagged Explanaory Variables Time series daa: Y for =1,..,T End goal: Regression model relaing a dependen variable o explanaory variables. Wih ime series new issues arise: 1. One

More information

Double Entry System of Accounting

Double Entry System of Accounting CHAPTER 2 Double Enry Sysem of Accouning Sysem of Accouning \ The following are he main sysem of accouning for recording he business ransacions: (a) Cash Sysem of Accouning. (b) Mercanile or Accrual Sysem

More information

Duration and Convexity ( ) 20 = Bond B has a maturity of 5 years and also has a required rate of return of 10%. Its price is $613.

Duration and Convexity ( ) 20 = Bond B has a maturity of 5 years and also has a required rate of return of 10%. Its price is $613. Graduae School of Business Adminisraion Universiy of Virginia UVA-F-38 Duraion and Convexiy he price of a bond is a funcion of he promised paymens and he marke required rae of reurn. Since he promised

More information

Lecture Note on the Real Exchange Rate

Lecture Note on the Real Exchange Rate Lecure Noe on he Real Exchange Rae Barry W. Ickes Fall 2004 0.1 Inroducion The real exchange rae is he criical variable (along wih he rae of ineres) in deermining he capial accoun. As we shall see, his

More information

The Grantor Retained Annuity Trust (GRAT)

The Grantor Retained Annuity Trust (GRAT) WEALTH ADVISORY Esae Planning Sraegies for closely-held, family businesses The Granor Reained Annuiy Trus (GRAT) An efficien wealh ransfer sraegy, paricularly in a low ineres rae environmen Family business

More information

WHAT ARE OPTION CONTRACTS?

WHAT ARE OPTION CONTRACTS? WHAT ARE OTION CONTRACTS? By rof. Ashok anekar An oion conrac is a derivaive which gives he righ o he holder of he conrac o do 'Somehing' bu wihou he obligaion o do ha 'Somehing'. The 'Somehing' can be

More information

Appendix D Flexibility Factor/Margin of Choice Desktop Research

Appendix D Flexibility Factor/Margin of Choice Desktop Research Appendix D Flexibiliy Facor/Margin of Choice Deskop Research Cheshire Eas Council Cheshire Eas Employmen Land Review Conens D1 Flexibiliy Facor/Margin of Choice Deskop Research 2 Final Ocober 2012 \\GLOBAL.ARUP.COM\EUROPE\MANCHESTER\JOBS\200000\223489-00\4

More information

Present Value Methodology

Present Value Methodology Presen Value Mehodology Econ 422 Invesmen, Capial & Finance Universiy of Washingon Eric Zivo Las updaed: April 11, 2010 Presen Value Concep Wealh in Fisher Model: W = Y 0 + Y 1 /(1+r) The consumer/producer

More information

The Greek financial crisis: growing imbalances and sovereign spreads. Heather D. Gibson, Stephan G. Hall and George S. Tavlas

The Greek financial crisis: growing imbalances and sovereign spreads. Heather D. Gibson, Stephan G. Hall and George S. Tavlas The Greek financial crisis: growing imbalances and sovereign spreads Heaher D. Gibson, Sephan G. Hall and George S. Tavlas The enry The enry of Greece ino he Eurozone in 2001 produced a dividend in he

More information

BALANCE OF PAYMENTS. First quarter 2008. Balance of payments

BALANCE OF PAYMENTS. First quarter 2008. Balance of payments BALANCE OF PAYMENTS DATE: 2008-05-30 PUBLISHER: Balance of Paymens and Financial Markes (BFM) Lena Finn + 46 8 506 944 09, lena.finn@scb.se Camilla Bergeling +46 8 506 942 06, camilla.bergeling@scb.se

More information

THE FIRM'S INVESTMENT DECISION UNDER CERTAINTY: CAPITAL BUDGETING AND RANKING OF NEW INVESTMENT PROJECTS

THE FIRM'S INVESTMENT DECISION UNDER CERTAINTY: CAPITAL BUDGETING AND RANKING OF NEW INVESTMENT PROJECTS VII. THE FIRM'S INVESTMENT DECISION UNDER CERTAINTY: CAPITAL BUDGETING AND RANKING OF NEW INVESTMENT PROJECTS The mos imporan decisions for a firm's managemen are is invesmen decisions. While i is surely

More information

II.1. Debt reduction and fiscal multipliers. dbt da dpbal da dg. bal

II.1. Debt reduction and fiscal multipliers. dbt da dpbal da dg. bal Quarerly Repor on he Euro Area 3/202 II.. Deb reducion and fiscal mulipliers The deerioraion of public finances in he firs years of he crisis has led mos Member Saes o adop sizeable consolidaion packages.

More information

Table of contents Chapter 1 Interest rates and factors Chapter 2 Level annuities Chapter 3 Varying annuities

Table of contents Chapter 1 Interest rates and factors Chapter 2 Level annuities Chapter 3 Varying annuities Table of conens Chaper 1 Ineres raes and facors 1 1.1 Ineres 2 1.2 Simple ineres 4 1.3 Compound ineres 6 1.4 Accumulaed value 10 1.5 Presen value 11 1.6 Rae of discoun 13 1.7 Consan force of ineres 17

More information

OPERATION MANUAL. Indoor unit for air to water heat pump system and options EKHBRD011ABV1 EKHBRD014ABV1 EKHBRD016ABV1

OPERATION MANUAL. Indoor unit for air to water heat pump system and options EKHBRD011ABV1 EKHBRD014ABV1 EKHBRD016ABV1 OPERAION MANUAL Indoor uni for air o waer hea pump sysem and opions EKHBRD011ABV1 EKHBRD014ABV1 EKHBRD016ABV1 EKHBRD011ABY1 EKHBRD014ABY1 EKHBRD016ABY1 EKHBRD011ACV1 EKHBRD014ACV1 EKHBRD016ACV1 EKHBRD011ACY1

More information

LEASING VERSUSBUYING

LEASING VERSUSBUYING LEASNG VERSUSBUYNG Conribued by James D. Blum and LeRoy D. Brooks Assisan Professors of Business Adminisraion Deparmen of Business Adminisraion Universiy of Delaware Newark, Delaware The auhors discuss

More information

Graduate Macro Theory II: Notes on Neoclassical Growth Model

Graduate Macro Theory II: Notes on Neoclassical Growth Model Graduae Macro Theory II: Noes on Neoclassical Growh Model Eric Sims Universiy of Nore Dame Spring 2011 1 Basic Neoclassical Growh Model The economy is populaed by a large number of infiniely lived agens.

More information

Option Put-Call Parity Relations When the Underlying Security Pays Dividends

Option Put-Call Parity Relations When the Underlying Security Pays Dividends Inernaional Journal of Business and conomics, 26, Vol. 5, No. 3, 225-23 Opion Pu-all Pariy Relaions When he Underlying Securiy Pays Dividends Weiyu Guo Deparmen of Finance, Universiy of Nebraska Omaha,

More information

Random Walk in 1-D. 3 possible paths x vs n. -5 For our random walk, we assume the probabilities p,q do not depend on time (n) - stationary

Random Walk in 1-D. 3 possible paths x vs n. -5 For our random walk, we assume the probabilities p,q do not depend on time (n) - stationary Random Walk in -D Random walks appear in many cones: diffusion is a random walk process undersanding buffering, waiing imes, queuing more generally he heory of sochasic processes gambling choosing he bes

More information

The Transport Equation

The Transport Equation The Transpor Equaion Consider a fluid, flowing wih velociy, V, in a hin sraigh ube whose cross secion will be denoed by A. Suppose he fluid conains a conaminan whose concenraion a posiion a ime will be

More information

Self-fulfilling risk predictions: an application to speculative attacks

Self-fulfilling risk predictions: an application to speculative attacks Journal of Inernaional Economics 50 (2000) 245 268 www.elsevier.nl/ locae/ econbase Self-fulfilling risk predicions: an applicaion o speculaive aacks a b, * Rober P. Flood, Nancy P. Marion a Inernaional

More information

One dictionary: Native language - English/English - native language or English - English

One dictionary: Native language - English/English - native language or English - English Faculy of Social Sciences School of Business Corporae Finance Examinaion December 03 English Dae: Monday 09 December, 03 Time: 4 hours/ 9:00-3:00 Toal number of pages including he cover page: 5 Toal number

More information

Chapter 7. Response of First-Order RL and RC Circuits

Chapter 7. Response of First-Order RL and RC Circuits Chaper 7. esponse of Firs-Order L and C Circuis 7.1. The Naural esponse of an L Circui 7.2. The Naural esponse of an C Circui 7.3. The ep esponse of L and C Circuis 7.4. A General oluion for ep and Naural

More information

Hedging with Forwards and Futures

Hedging with Forwards and Futures Hedging wih orwards and uures Hedging in mos cases is sraighforward. You plan o buy 10,000 barrels of oil in six monhs and you wish o eliminae he price risk. If you ake he buy-side of a forward/fuures

More information

Equities: Positions and Portfolio Returns

Equities: Positions and Portfolio Returns Foundaions of Finance: Equiies: osiions and orfolio Reurns rof. Alex Shapiro Lecure oes 4b Equiies: osiions and orfolio Reurns I. Readings and Suggesed racice roblems II. Sock Transacions Involving Credi

More information

The Dot-Com Bubble, the Bush Deficits, and the US Current Account

The Dot-Com Bubble, the Bush Deficits, and the US Current Account The Do-Com Bubble, he Bush Deficis, and he US Curren Accoun Aar Kraay The World Bank Jaume Venura CREI and Universia Pompeu Fabra December 2005 Absrac: Over he pas decade he US has experienced widening

More information

LECTURE: SOCIAL SECURITY HILARY HOYNES UC DAVIS EC230 OUTLINE OF LECTURE:

LECTURE: SOCIAL SECURITY HILARY HOYNES UC DAVIS EC230 OUTLINE OF LECTURE: LECTURE: SOCIAL SECURITY HILARY HOYNES UC DAVIS EC230 OUTLINE OF LECTURE: 1. Inroducion and definiions 2. Insiuional Deails in Social Securiy 3. Social Securiy and Redisribuion 4. Jusificaion for Governmen

More information

Diagnostic Examination

Diagnostic Examination Diagnosic Examinaion TOPIC XV: ENGINEERING ECONOMICS TIME LIMIT: 45 MINUTES 1. Approximaely how many years will i ake o double an invesmen a a 6% effecive annual rae? (A) 10 yr (B) 12 yr (C) 15 yr (D)

More information

A Note on Using the Svensson procedure to estimate the risk free rate in corporate valuation

A Note on Using the Svensson procedure to estimate the risk free rate in corporate valuation A Noe on Using he Svensson procedure o esimae he risk free rae in corporae valuaion By Sven Arnold, Alexander Lahmann and Bernhard Schwezler Ocober 2011 1. The risk free ineres rae in corporae valuaion

More information

C Fast-Dealing Property Trading Game C

C Fast-Dealing Property Trading Game C AGES 8+ C Fas-Dealing Propery Trading Game C Y Collecor s Ediion Original MONOPOLY Game Rules plus Special Rules for his Ediion. CONTENTS Game board, 6 Collecible okens, 28 Tile Deed cards, 16 Wha he Deuce?

More information

The Real Business Cycle paradigm. The RBC model emphasizes supply (technology) disturbances as the main source of

The Real Business Cycle paradigm. The RBC model emphasizes supply (technology) disturbances as the main source of Prof. Harris Dellas Advanced Macroeconomics Winer 2001/01 The Real Business Cycle paradigm The RBC model emphasizes supply (echnology) disurbances as he main source of macroeconomic flucuaions in a world

More information

Caring for trees and your service

Caring for trees and your service Caring for rees and your service Line clearing helps preven ouages FPL is commied o delivering safe, reliable elecric service o our cusomers. Trees, especially palm rees, can inerfere wih power lines and

More information

Analysis of tax effects on consolidated household/government debts of a nation in a monetary union under classical dichotomy

Analysis of tax effects on consolidated household/government debts of a nation in a monetary union under classical dichotomy MPRA Munich Personal RePEc Archive Analysis of ax effecs on consolidaed household/governmen debs of a naion in a moneary union under classical dichoomy Minseong Kim 8 April 016 Online a hps://mpra.ub.uni-muenchen.de/71016/

More information

Central Bank interventions in Iceland s foreign exchange market and its effect on the exchange rate of the króna

Central Bank interventions in Iceland s foreign exchange market and its effect on the exchange rate of the króna Gerdur Ísberg and Thórarinn G. Péursson 1 Cenral Bank inervenions in Iceland s foreign exchange marke and is effec on he exchange rae of he króna Since he esablishmen of an organised foreign exchange marke

More information

Working Paper No. 482. Net Intergenerational Transfers from an Increase in Social Security Benefits

Working Paper No. 482. Net Intergenerational Transfers from an Increase in Social Security Benefits Working Paper No. 482 Ne Inergeneraional Transfers from an Increase in Social Securiy Benefis By Li Gan Texas A&M and NBER Guan Gong Shanghai Universiy of Finance and Economics Michael Hurd RAND Corporaion

More information

Debt Relief and Fiscal Sustainability for HIPCs *

Debt Relief and Fiscal Sustainability for HIPCs * Deb Relief and Fiscal Susainabiliy for HIPCs * Craig Burnside and Domenico Fanizza December 24 Absrac The enhanced HIPC iniiaive is disinguished from previous deb relief programs by is condiionaliy ha

More information

Chapter 1.6 Financial Management

Chapter 1.6 Financial Management Chaper 1.6 Financial Managemen Par I: Objecive ype quesions and answers 1. Simple pay back period is equal o: a) Raio of Firs cos/ne yearly savings b) Raio of Annual gross cash flow/capial cos n c) = (1

More information

Entropy: From the Boltzmann equation to the Maxwell Boltzmann distribution

Entropy: From the Boltzmann equation to the Maxwell Boltzmann distribution Enropy: From he Bolzmann equaion o he Maxwell Bolzmann disribuion A formula o relae enropy o probabiliy Ofen i is a lo more useful o hink abou enropy in erms of he probabiliy wih which differen saes are

More information

RC (Resistor-Capacitor) Circuits. AP Physics C

RC (Resistor-Capacitor) Circuits. AP Physics C (Resisor-Capacior Circuis AP Physics C Circui Iniial Condiions An circui is one where you have a capacior and resisor in he same circui. Suppose we have he following circui: Iniially, he capacior is UNCHARGED

More information

Markit Excess Return Credit Indices Guide for price based indices

Markit Excess Return Credit Indices Guide for price based indices Marki Excess Reurn Credi Indices Guide for price based indices Sepember 2011 Marki Excess Reurn Credi Indices Guide for price based indices Conens Inroducion...3 Index Calculaion Mehodology...4 Semi-annual

More information

Risk Modelling of Collateralised Lending

Risk Modelling of Collateralised Lending Risk Modelling of Collaeralised Lending Dae: 4-11-2008 Number: 8/18 Inroducion This noe explains how i is possible o handle collaeralised lending wihin Risk Conroller. The approach draws on he faciliies

More information

Longevity 11 Lyon 7-9 September 2015

Longevity 11 Lyon 7-9 September 2015 Longeviy 11 Lyon 7-9 Sepember 2015 RISK SHARING IN LIFE INSURANCE AND PENSIONS wihin and across generaions Ragnar Norberg ISFA Universié Lyon 1/London School of Economics Email: ragnar.norberg@univ-lyon1.fr

More information

BALANCE OF PAYMENTS AND FINANCIAL MA REPORT 2015. All officiell statistik finns på: www.scb.se Statistikservice: tfn 08-506 948 01

BALANCE OF PAYMENTS AND FINANCIAL MA REPORT 2015. All officiell statistik finns på: www.scb.se Statistikservice: tfn 08-506 948 01 RKET BALANCE OF PAYMENTS AND FINANCIAL MA REPORT 2015 All officiell saisik finns på: www.scb.se Saisikservice: fn 08-506 948 01 All official saisics can be found a: www.scb.se Saisics service, phone +46

More information

CALCULATION OF OMX TALLINN

CALCULATION OF OMX TALLINN CALCULATION OF OMX TALLINN CALCULATION OF OMX TALLINN 1. OMX Tallinn index...3 2. Terms in use...3 3. Comuaion rules of OMX Tallinn...3 3.1. Oening, real-ime and closing value of he Index...3 3.2. Index

More information

Debt Accumulation, Debt Reduction, and Debt Spillovers in Canada, 1974-98*

Debt Accumulation, Debt Reduction, and Debt Spillovers in Canada, 1974-98* Deb Accumulaion, Deb Reducion, and Deb Spillovers in Canada, 1974-98* Ron Kneebone Deparmen of Economics Universiy of Calgary John Leach Deparmen of Economics McMaser Universiy Ocober, 2000 Absrac Wha

More information

MACROECONOMIC FORECASTS AT THE MOF A LOOK INTO THE REAR VIEW MIRROR

MACROECONOMIC FORECASTS AT THE MOF A LOOK INTO THE REAR VIEW MIRROR MACROECONOMIC FORECASTS AT THE MOF A LOOK INTO THE REAR VIEW MIRROR The firs experimenal publicaion, which summarised pas and expeced fuure developmen of basic economic indicaors, was published by he Minisry

More information

Chapter 10 Social Security 1

Chapter 10 Social Security 1 Chaper 0 Social Securiy 0. Inroducion A ypical social securiy sysem provides income during periods of unemploymen, ill-healh or disabiliy, and financial suppor, in he form of pensions, o he reired. Alhough

More information

Estimating Time-Varying Equity Risk Premium The Japanese Stock Market 1980-2012

Estimating Time-Varying Equity Risk Premium The Japanese Stock Market 1980-2012 Norhfield Asia Research Seminar Hong Kong, November 19, 2013 Esimaing Time-Varying Equiy Risk Premium The Japanese Sock Marke 1980-2012 Ibboson Associaes Japan Presiden Kasunari Yamaguchi, PhD/CFA/CMA

More information

Answer, Key Homework 2 David McIntyre 45123 Mar 25, 2004 1

Answer, Key Homework 2 David McIntyre 45123 Mar 25, 2004 1 Answer, Key Homework 2 Daid McInyre 4123 Mar 2, 2004 1 This prin-ou should hae 1 quesions. Muliple-choice quesions may coninue on he ne column or page find all choices before making your selecion. The

More information

Price elasticity of demand for crude oil: estimates for 23 countries

Price elasticity of demand for crude oil: estimates for 23 countries Price elasiciy of demand for crude oil: esimaes for 23 counries John C.B. Cooper Absrac This paper uses a muliple regression model derived from an adapaion of Nerlove s parial adjusmen model o esimae boh

More information

Price Controls and Banking in Emissions Trading: An Experimental Evaluation

Price Controls and Banking in Emissions Trading: An Experimental Evaluation This version: March 2014 Price Conrols and Banking in Emissions Trading: An Experimenal Evaluaion John K. Sranlund Deparmen of Resource Economics Universiy of Massachuses-Amhers James J. Murphy Deparmen

More information

Vector Autoregressions (VARs): Operational Perspectives

Vector Autoregressions (VARs): Operational Perspectives Vecor Auoregressions (VARs): Operaional Perspecives Primary Source: Sock, James H., and Mark W. Wason, Vecor Auoregressions, Journal of Economic Perspecives, Vol. 15 No. 4 (Fall 2001), 101-115. Macroeconomericians

More information

Chapter 4: Exponential and Logarithmic Functions

Chapter 4: Exponential and Logarithmic Functions Chaper 4: Eponenial and Logarihmic Funcions Secion 4.1 Eponenial Funcions... 15 Secion 4. Graphs of Eponenial Funcions... 3 Secion 4.3 Logarihmic Funcions... 4 Secion 4.4 Logarihmic Properies... 53 Secion

More information

Aggregate Output. Aggregate Output. Topics. Aggregate Output. Aggregate Output. Aggregate Output

Aggregate Output. Aggregate Output. Topics. Aggregate Output. Aggregate Output. Aggregate Output Topics (Sandard Measure) GDP vs GPI discussion Macroeconomic Variables (Unemploymen and Inflaion Rae) (naional income and produc accouns, or NIPA) Gross Domesic Produc (GDP) The value of he final goods

More information

Single-machine Scheduling with Periodic Maintenance and both Preemptive and. Non-preemptive jobs in Remanufacturing System 1

Single-machine Scheduling with Periodic Maintenance and both Preemptive and. Non-preemptive jobs in Remanufacturing System 1 Absrac number: 05-0407 Single-machine Scheduling wih Periodic Mainenance and boh Preempive and Non-preempive jobs in Remanufacuring Sysem Liu Biyu hen Weida (School of Economics and Managemen Souheas Universiy

More information

UNDERSTANDING THE DEATH BENEFIT SWITCH OPTION IN UNIVERSAL LIFE POLICIES. Nadine Gatzert

UNDERSTANDING THE DEATH BENEFIT SWITCH OPTION IN UNIVERSAL LIFE POLICIES. Nadine Gatzert UNDERSTANDING THE DEATH BENEFIT SWITCH OPTION IN UNIVERSAL LIFE POLICIES Nadine Gazer Conac (has changed since iniial submission): Chair for Insurance Managemen Universiy of Erlangen-Nuremberg Lange Gasse

More information

Chapter 9 Bond Prices and Yield

Chapter 9 Bond Prices and Yield Chaper 9 Bond Prices and Yield Deb Classes: Paymen ype A securiy obligaing issuer o pay ineress and principal o he holder on specified daes, Coupon rae or ineres rae, e.g. 4%, 5 3/4%, ec. Face, par value

More information

Mathematics in Pharmacokinetics What and Why (A second attempt to make it clearer)

Mathematics in Pharmacokinetics What and Why (A second attempt to make it clearer) Mahemaics in Pharmacokineics Wha and Why (A second aemp o make i clearer) We have used equaions for concenraion () as a funcion of ime (). We will coninue o use hese equaions since he plasma concenraions

More information

How Much Life Insurance Do You Need?

How Much Life Insurance Do You Need? How Much Life Insurance o You Need? Chris Robinson 1 and Vicoria Zaremba 2 Augus 14, 2012 Absrac We presen formal models of he differen mehods of esimaing a person s required life insurance coverage. The

More information

GoRA. For more information on genetics and on Rheumatoid Arthritis: Genetics of Rheumatoid Arthritis. Published work referred to in the results:

GoRA. For more information on genetics and on Rheumatoid Arthritis: Genetics of Rheumatoid Arthritis. Published work referred to in the results: For more informaion on geneics and on Rheumaoid Arhriis: Published work referred o in he resuls: The geneics revoluion and he assaul on rheumaoid arhriis. A review by Michael Seldin, Crisopher Amos, Ryk

More information

Topic Overview. Learning Objectives. Capital Budgeting Steps: WHAT IS CAPITAL BUDGETING?

Topic Overview. Learning Objectives. Capital Budgeting Steps: WHAT IS CAPITAL BUDGETING? Chaper 10: THE BASICS OF CAPITAL BUDGETING Should we build his plan? Topic Overview Projec Types Capial Budgeing Decision Crieria Payback Period Discouned Payback Period Ne Presen Value () Inernal Rae

More information

Stock Trading with Recurrent Reinforcement Learning (RRL) CS229 Application Project Gabriel Molina, SUID 5055783

Stock Trading with Recurrent Reinforcement Learning (RRL) CS229 Application Project Gabriel Molina, SUID 5055783 Sock raing wih Recurren Reinforcemen Learning (RRL) CS9 Applicaion Projec Gabriel Molina, SUID 555783 I. INRODUCION One relaively new approach o financial raing is o use machine learning algorihms o preic

More information

NORTHWESTERN UNIVERSITY J.L. KELLOGG GRADUATE SCHOOL OF MANAGEMENT

NORTHWESTERN UNIVERSITY J.L. KELLOGG GRADUATE SCHOOL OF MANAGEMENT NORTHWESTERN UNIVERSITY J.L. KELLOGG GRADUATE SCHOOL OF MANAGEMENT Tim Thompson Finance D30 Teaching Noe: Projec Cash Flow Analysis Inroducion We have discussed applying he discouned cash flow framework

More information

Capital Budgeting and Initial Cash Outlay (ICO) Uncertainty

Capital Budgeting and Initial Cash Outlay (ICO) Uncertainty Financial Decisions, Summer 006, Aricle Capial Budgeing and Iniial Cash Oulay (ICO) Uncerainy Michael C. Ehrhard and John M. Wachowicz, Jr. * * The Paul and Beverly Casagna Professor of Finance and Professor

More information

Working Paper Managed floating: Understanding the new international monetary order

Working Paper Managed floating: Understanding the new international monetary order econsor www.econsor.eu Der Open-Access-Publikaionsserver der ZBW Leibniz-Informaionszenrum Wirschaf The Open Access Publicaion Server of he ZBW Leibniz Informaion Cenre for Economics Bofinger, Peer; Wollmershäuser,

More information

17 Laplace transform. Solving linear ODE with piecewise continuous right hand sides

17 Laplace transform. Solving linear ODE with piecewise continuous right hand sides 7 Laplace ransform. Solving linear ODE wih piecewise coninuous righ hand sides In his lecure I will show how o apply he Laplace ransform o he ODE Ly = f wih piecewise coninuous f. Definiion. A funcion

More information

Tax Externalities of Equity Mutual Funds

Tax Externalities of Equity Mutual Funds Tax Exernaliies of Equiy Muual Funds Joel M. Dickson The Vanguard Group, Inc. John B. Shoven Sanford Universiy and NBER Clemens Sialm Sanford Universiy December 1999 Absrac: Invesors holding muual funds

More information

Section 7.1 Angles and Their Measure

Section 7.1 Angles and Their Measure Secion 7.1 Angles and Their Measure Greek Leers Commonly Used in Trigonomery Quadran II Quadran III Quadran I Quadran IV α = alpha β = bea θ = hea δ = dela ω = omega γ = gamma DEGREES The angle formed

More information

Can Individual Investors Use Technical Trading Rules to Beat the Asian Markets?

Can Individual Investors Use Technical Trading Rules to Beat the Asian Markets? Can Individual Invesors Use Technical Trading Rules o Bea he Asian Markes? INTRODUCTION In radiional ess of he weak-form of he Efficien Markes Hypohesis, price reurn differences are found o be insufficien

More information

Inflation Accounting. Advanced Financial Accounting

Inflation Accounting. Advanced Financial Accounting Inflaion Accouning Advanced Financial Accouning Inflaion: Definiions Decrease in purchasing power of money due o an increase in he general price level A process of seadily rising prices resuling in diminishing

More information

Explaining the NZ-Australian exchange rate occasional paper

Explaining the NZ-Australian exchange rate occasional paper Wespac $ Insiuional Bank April 2002 Explaining he NZ-Ausralian exchange rae occasional paper Paul Conway and Richard Franulovich Wespac Insiuional Bank PO Box 691 Wellingon New Zealand Phone (644) 381-1414

More information

Two Compartment Body Model and V d Terms by Jeff Stark

Two Compartment Body Model and V d Terms by Jeff Stark Two Comparmen Body Model and V d Terms by Jeff Sark In a one-comparmen model, we make wo imporan assumpions: (1) Linear pharmacokineics - By his, we mean ha eliminaion is firs order and ha pharmacokineic

More information

cooking trajectory boiling water B (t) microwave 0 2 4 6 8 101214161820 time t (mins)

cooking trajectory boiling water B (t) microwave 0 2 4 6 8 101214161820 time t (mins) Alligaor egg wih calculus We have a large alligaor egg jus ou of he fridge (1 ) which we need o hea o 9. Now here are wo accepable mehods for heaing alligaor eggs, one is o immerse hem in boiling waer

More information

Journal Of Business & Economics Research September 2005 Volume 3, Number 9

Journal Of Business & Economics Research September 2005 Volume 3, Number 9 Opion Pricing And Mone Carlo Simulaions George M. Jabbour, (Email: jabbour@gwu.edu), George Washingon Universiy Yi-Kang Liu, (yikang@gwu.edu), George Washingon Universiy ABSTRACT The advanage of Mone Carlo

More information

The effects of stock market movements on consumption and investment: does the shock matter?

The effects of stock market movements on consumption and investment: does the shock matter? The effecs of sock marke movemens on consumpion and invesmen: does he shock maer? Sephen Millard and John Power Working paper no. 236 Bank of England, Threadneedle Sree, London, EC2R 8AH. E-mail: sephen.millard@bankofengland.co.uk

More information

Chapter 2 Problems. 3600s = 25m / s d = s t = 25m / s 0.5s = 12.5m. Δx = x(4) x(0) =12m 0m =12m

Chapter 2 Problems. 3600s = 25m / s d = s t = 25m / s 0.5s = 12.5m. Δx = x(4) x(0) =12m 0m =12m Chaper 2 Problems 2.1 During a hard sneeze, your eyes migh shu for 0.5s. If you are driving a car a 90km/h during such a sneeze, how far does he car move during ha ime s = 90km 1000m h 1km 1h 3600s = 25m

More information

Density Dependence. births are a decreasing function of density b(n) and deaths are an increasing function of density d(n).

Density Dependence. births are a decreasing function of density b(n) and deaths are an increasing function of density d(n). FW 662 Densiy-dependen populaion models In he previous lecure we considered densiy independen populaion models ha assumed ha birh and deah raes were consan and no a funcion of populaion size. Long-erm

More information

July 27, 2007. only due to developments in the USA but is also the upshot of investment decisions in the surplus countries.

July 27, 2007. only due to developments in the USA but is also the upshot of investment decisions in the surplus countries. Inernaional opics Curren Issues July 7, 7 US curren accoun defici: No reason o panic! Las year he US curren accoun closed wih a record defici of USD 811 bn or 6.1% of GDP. In 1991 i had sill been in balance.

More information

INSTITUTE OF ECONOMIC STUDIES

INSTITUTE OF ECONOMIC STUDIES INIU O CONOMIC UDI aculy of social sciences of Charles Universiy uures Conracs Lecurer s Noes No. Course: inancial Marke Insrumens I eacher: Oldřich Dědek I. BAIC AUR O ORWARD AND UUR CONRAC. Classificaion

More information

Optimal Monetary Policy When Lump-Sum Taxes Are Unavailable: A Reconsideration of the Outcomes Under Commitment and Discretion*

Optimal Monetary Policy When Lump-Sum Taxes Are Unavailable: A Reconsideration of the Outcomes Under Commitment and Discretion* Opimal Moneary Policy When Lump-Sum Taxes Are Unavailable: A Reconsideraion of he Oucomes Under Commimen and Discreion* Marin Ellison Dep of Economics Universiy of Warwick Covenry CV4 7AL UK m.ellison@warwick.ac.uk

More information

FORWARD AND FUTURES CONTRACTS

FORWARD AND FUTURES CONTRACTS Page1 C H A P T E R 2 FORWARD AND FUTURES CONTRACTS 2.1 INTRODUCTION The main purpose of forward and fuures conracs is he managemen of risk. The exposure o risk as a resul of ransacing in he spo marke

More information

Research. Michigan. Center. Retirement. Behavioral Effects of Social Security Policies on Benefit Claiming, Retirement and Saving.

Research. Michigan. Center. Retirement. Behavioral Effects of Social Security Policies on Benefit Claiming, Retirement and Saving. Michigan Universiy of Reiremen Research Cener Working Paper WP 2012-263 Behavioral Effecs of Social Securiy Policies on Benefi Claiming, Reiremen and Saving Alan L. Gusman and Thomas L. Seinmeier M R R

More information

Chabot College Physics Lab RC Circuits Scott Hildreth

Chabot College Physics Lab RC Circuits Scott Hildreth Chabo College Physics Lab Circuis Sco Hildreh Goals: Coninue o advance your undersanding of circuis, measuring resisances, currens, and volages across muliple componens. Exend your skills in making breadboard

More information

INSTRUMENTS OF MONETARY POLICY*

INSTRUMENTS OF MONETARY POLICY* Aricles INSTRUMENTS OF MONETARY POLICY* Bernardino Adão** Isabel Correia** Pedro Teles**. INTRODUCTION A classic quesion in moneary economics is wheher he ineres rae or he money supply is he beer insrumen

More information

Fear of Floating and the External Effects of Currency Unions

Fear of Floating and the External Effects of Currency Unions Fear of Floaing and he Exernal Effecs of Currency Unions Thomas Plümper and Vera E. Troeger Universiy of Essex Deparmen of Governmen Wivenhoe Park Colcheser CO4 3SQ, UK E-Mail: pluem@essex.ac.uk and vroeg@essex.ac.uk

More information

Chapter 4 Corporate Taxation

Chapter 4 Corporate Taxation Chaper 4 Corporae Taxaion 4.1 Inroducion The corporaion is reaed as a separae eniy for ax purposes in all developed counries. I has been subjec of numerous ax insrumens wih a variey of differen moivaions.

More information

The yield curve, and spot and forward interest rates Moorad Choudhry

The yield curve, and spot and forward interest rates Moorad Choudhry he yield curve, and spo and forward ineres raes Moorad Choudhry In his primer we consider he zero-coupon or spo ineres rae and he forward rae. We also look a he yield curve. Invesors consider a bond yield

More information

Task is a schedulable entity, i.e., a thread

Task is a schedulable entity, i.e., a thread Real-Time Scheduling Sysem Model Task is a schedulable eniy, i.e., a hread Time consrains of periodic ask T: - s: saring poin - e: processing ime of T - d: deadline of T - p: period of T Periodic ask T

More information

An Analytical Framework

An Analytical Framework WPS4369 Policy Research Woring Paper 4369 Coordinaing Public Deb Managemen wih Fiscal and Moneary Policies: An Analyical Framewor Erio Togo The World Ban Baning and Deb Managemen Deparmen Deb Managemen

More information

CHARGE AND DISCHARGE OF A CAPACITOR

CHARGE AND DISCHARGE OF A CAPACITOR REFERENCES RC Circuis: Elecrical Insrumens: Mos Inroducory Physics exs (e.g. A. Halliday and Resnick, Physics ; M. Sernheim and J. Kane, General Physics.) This Laboraory Manual: Commonly Used Insrumens:

More information

Depreciation and Corporate Taxes

Depreciation and Corporate Taxes 205 Depreciaion and Corporae Taxes Chris Hendrickson Carnegie Mellon Universiy Tung Au Carnegie Mellon Universiy 205.1 Depreciaion as Tax Deducion 205.2 Tax Laws and Tax Planning 205.3 Decision Crieria

More information