Long run: Law of one price Purchasing Power Parity. Short run: Market for foreign exchange Factors affecting the market for foreign exchange

Size: px
Start display at page:

Download "Long run: Law of one price Purchasing Power Parity. Short run: Market for foreign exchange Factors affecting the market for foreign exchange"

Transcription

1 Lctur 6: Th Forign xchang Markt xchang Rats in th long run CON 34 Mony and Banking Profssor Yamin Ahmad xchang Rats in th Short Run Intrst Parity Big Concpts Long run: Law of on pric Purchasing Powr Parity Short run: Markt for forign xchang Factors affcting th markt for forign xchang Intrst t Parity Forign xchang I xchang rat: pric of on currncy in trms of anothr Forign xchang markt: th financial markt whr xchang rats ar dtrmind Spot transaction: immdiat (two-day) xchang of bank dposits Spot xchang rat Forward transaction: ti th xchang of bank dposits at som spcifid futur dat Forward xchang rat Forign xchang II Apprciation: a currncy riss in valu rlativ to anothr currncy Dprciation: a currncy falls in valu rlativ to anothr currncy Whn a country s currncy apprciats, th country s goods abroad bcom mor xpnsiv and forign goods in that country bcom lss xpnsiv and vic vrsa Currncy xchangd at ovr-th-countr markt mainly banks

2 xchang Rats, XCHANG RATS IN TH LONG RUN Sourc: Fdral Rsrv: xchang Rats in th Long Run Law of on pric Factors that Affct xchang Rats in th Long Run Rlativ pric lvls Thory of fpurchasing Powr Parity assumptions: All goods ar idntical in both countris Trad barrirs and transportation costs ar low Many goods and srvics ar not tradd across bordrs Trad barrirs Prfrncs for domstic vrsus forign goods Productivity

3 Purchasing Powr Parity, Unitd Stats/Unitd Kingdom, (Indx: Jan 73 = 00.) US-UK xchang rat CPIUS/CPIUK Summary Tabl Factors That Affct xchang Rats in th Long Run dx (73 = 00) Ind Sourc: Ahmad, Y. and W. Craighad (200), Tmporal Aggrgation and Purchasing Powr Parity Prsistnc XCHANG RATS IN TH SHORT RUN xchang Rats in th Short Run: A Supply ppy and Dmand Analysis An xchang rat is th pric of domstic assts in trms of forign assts Supply curv for domstic assts Assum amount of domstic assts is fixd (supply curv is vrtical) Dmand curv for domstic assts Most important dtrminant is th rlativ xpctd rturn of domstic assts At lowr currnt valus of th dollar (vrything ls qual), th quantity dmandd of dollar assts is highr

4 quilibrium in th Forign xchang Markt xplaining Changs in xchang Rats Shifts in th dmand for domstic assts Domstic intrst rat Forign i intrst rat xpctd futur xchang rat Rspons to an Incras in th Domstic Intrst Rat, i D Rspons to an Incras in th Forign Intrst Rat, i F

5 Rspons s to an Incras in th xpctd d Futur xchang Rat, t+ Summary Tabl 2 Factors That Shift th Dmand Curv for Domstic Assts and Affct th xchang Rat ffct of a Ris in th Domstic Intrst Rat as a Rsult of an Incras in xpctd Inflation Application: Changs in th quilibrium xchang Rat Changs in Intrst Rats Whn domstic ral intrst rats rais, th domstic currncy apprciats. Whn domstic intrst rats ris du to an xpctd incras in inflation, th domstic currncy dprciats. Changs in th Mony Supply A highr domstic mony supply lowrs th domstic intrst rat and causs th domstic currncy to dprciat.

6 Application: Changs in th quilibrium xchang Rat xchang Rat Ovrshooting Montary Nutrality In th long run, a on-tim prcntag ris in th mony supply is matchd by th sam on-tim prcntag ris in th pric lvl Th xchang rat falls by mor in th short run than in th long run Hlps to xplain why xchang rats xhibit so much volatility ffct of a Ris in th Mony Supply Application: Th Dollar and Intrst Rats Valu of th Dollar and Intrst Rats, Whil thr is a strong corrspondnc btwn ral intrst rats and th xchang rat, th rlationship btwn nominal intrst rats and xchang rat movmnts is not narly as pronouncd Sourcs: Fdral Rsrv:

7 Application: Th Subprim Crisis and th Dollar During 2007 intrst t rats fll in th Unitd Stats t and rmaind unchangd in urop. Th dollar dprciatd Starting in th summr of 2008 intrst ratd fll in urop. Incrasd dmand for U.S. Trasuris flight to quality Th dollar apprciatd INTRST PARITY Comparing xpctd Rturns I Dollar assts pay an intrst rat of i D and do not hav any capital gain Forign assts hav an intrst rat of i F and thr is no capital gain To compar th xpctd rturns on dollar assts and forign assts th rturns must b convrtd into th currncy unit usd th spot xchang rat + th xchang rat for th nxt priod t+ - th xpctd rat of apprciation for th dollar Comparing xpctd Rturns II Th xpctd rturn on dollar assts R D in trms of forign currncy is th sum of th intrst rat on dollar assts plus th xpctd apprciation of th dollar R D in trm of uros = i D t t Th xpctd rturn on forign assts R F is i F Rlativ R D i D i F t t As th rlativ xpctd rturn on dollar assts incrass, forignrs will want to hold mor dollar assts

8 Comparing xpctd Rturns III Th xpctd rturn on forign assts R F in trms of dollars is th intrst rat on forign assts i F plus th xpctd apprciation of th forign currncy, qual to minus th xpctd apprciation of th dollar R F in trms of dollars = i F t Th xpctd rturn on th dollar assts R D is i D Rlativ R D i D (i F t Which is th sam as prviously ) i D i F t t Rlativ xpctd rturn on dollar assts is th sam whthr it is calculatd in trms of uros or in trms of dollars As th rlativ xpctd rturn on dollar assts incrass, both forignrs and domstic rsidnts will want to hold mor dollar assts Intrst Parity Condition I i D i F t Capital mobility with similar risk and liquidity th assts ar prfct substituts Th domstic intrst rat quals th forign intrst rat minus th xpctd apprciation of th domstic currncy xpctd rturns ar th sam on both domstic and forign assts An quilibrium condition Intrst Parity Condition II F t t F i t t i i t F D i i D D i t t t t F D i i Th last xprssion can b usd to xplain th rsults obtaind with th supply and dmand analysis t

Econ 371: Answer Key for Problem Set 1 (Chapter 12-13)

Econ 371: Answer Key for Problem Set 1 (Chapter 12-13) con 37: Answr Ky for Problm St (Chaptr 2-3) Instructor: Kanda Naknoi Sptmbr 4, 2005. (2 points) Is it possibl for a country to hav a currnt account dficit at th sam tim and has a surplus in its balanc

More information

Foreign Exchange Markets and Exchange Rates

Foreign Exchange Markets and Exchange Rates Microconomics Topic 1: Explain why xchang rats indicat th pric of intrnational currncis and how xchang rats ar dtrmind by supply and dmand for currncis in intrnational markts. Rfrnc: Grgory Mankiw s Principls

More information

Lecture notes: 160B revised 9/28/06 Lecture 1: Exchange Rates and the Foreign Exchange Market FT chapter 13

Lecture notes: 160B revised 9/28/06 Lecture 1: Exchange Rates and the Foreign Exchange Market FT chapter 13 Lctur nots: 160B rvisd 9/28/06 Lctur 1: xchang Rats and th Forign xchang Markt FT chaptr 13 Topics: xchang Rats Forign xchang markt Asst approach to xchang rats Intrst Rat Parity Conditions 1) Dfinitions

More information

Intermediate Macroeconomic Theory / Macroeconomic Analysis (ECON 3560/5040) Final Exam (Answers)

Intermediate Macroeconomic Theory / Macroeconomic Analysis (ECON 3560/5040) Final Exam (Answers) Intrmdiat Macroconomic Thory / Macroconomic Analysis (ECON 3560/5040) Final Exam (Answrs) Part A (5 points) Stat whthr you think ach of th following qustions is tru (T), fals (F), or uncrtain (U) and brifly

More information

14.02 Principles of Macroeconomics Problem Set 4 Solutions Fall 2004

14.02 Principles of Macroeconomics Problem Set 4 Solutions Fall 2004 art I. Tru/Fals/Uncrtain Justify your answr with a short argumnt. 4.02 rincipls of Macroconomics roblm St 4 Solutions Fall 2004. High unmploymnt implis that th labor markt is sclrotic. Uncrtain. Th unmploymnt

More information

In the first years of the millennium, Americans flocked to Paris to enjoy French

In the first years of the millennium, Americans flocked to Paris to enjoy French 14 chaptr Exchang Rats and th Forign Exchang Markt: An Asst Approach 320 In th first yars of th millnnium, Amricans flockd to Paris to njoy Frnch cuisin whil shopping for dsignr clothing and othr spcialtis.

More information

Basis risk. When speaking about forward or futures contracts, basis risk is the market

Basis risk. When speaking about forward or futures contracts, basis risk is the market Basis risk Whn spaking about forward or futurs contracts, basis risk is th markt risk mismatch btwn a position in th spot asst and th corrsponding futurs contract. Mor broadly spaking, basis risk (also

More information

14.3 Area Between Curves

14.3 Area Between Curves 14. Ara Btwn Curvs Qustion 1: How is th ara btwn two functions calculatd? Qustion : What ar consumrs and producrs surplus? Earlir in this chaptr, w usd dfinit intgrals to find th ara undr a function and

More information

Economic Analysis of Floating Exchange Rate Systems

Economic Analysis of Floating Exchange Rate Systems Economic Analysis of Floating Rat Systms Th businss sction of any nwspapr will hav a tabl of spot s. Ths ar th s at which a prson could hav bought othr currncis or forign, such as th English Pound, Frnch

More information

High Interest Rates In Ghana,

High Interest Rates In Ghana, NO. 27 IEA MONOGRAPH High Intrst Rats In Ghana, A Critical Analysis IEA Ghana THE INSTITUTE OF ECONOMIC AFFAIRS A Public Policy Institut High Intrst Rats In Ghana, A Critical Analysis 1 by DR. J. K. KWAKYE

More information

IMES DISCUSSION PAPER SERIES

IMES DISCUSSION PAPER SERIES IMES DISCUSSIN PAPER SERIES Th Choic of Invoic Currncy in Intrnational Trad: Implications for th Intrnationalization of th Yn Hiroyuki I, Akira TANI, and Toyoichirou SHIRTA Discussion Papr No. 003-E-13

More information

Theoretical aspects of investment demand for gold

Theoretical aspects of investment demand for gold Victor Sazonov (Russia), Dmitry Nikolav (Russia) Thortical aspcts of invstmnt dmand for gold Abstract Th main objctiv of this articl is construction of a thortical modl of invstmnt in gold. Our modl is

More information

by John Donald, Lecturer, School of Accounting, Economics and Finance, Deakin University, Australia

by John Donald, Lecturer, School of Accounting, Economics and Finance, Deakin University, Australia Studnt Nots Cost Volum Profit Analysis by John Donald, Lcturr, School of Accounting, Economics and Financ, Dakin Univrsity, Australia As mntiond in th last st of Studnt Nots, th ability to catgoris costs

More information

Gold versus stock investment: An econometric analysis

Gold versus stock investment: An econometric analysis Intrnational Journal of Dvlopmnt and Sustainability Onlin ISSN: 268-8662 www.isdsnt.com/ijds Volum Numbr, Jun 202, Pag -7 ISDS Articl ID: IJDS20300 Gold vrsus stock invstmnt: An conomtric analysis Martin

More information

Question 3: How do you find the relative extrema of a function?

Question 3: How do you find the relative extrema of a function? ustion 3: How do you find th rlativ trma of a function? Th stratgy for tracking th sign of th drivativ is usful for mor than dtrmining whr a function is incrasing or dcrasing. It is also usful for locating

More information

Rural and Remote Broadband Access: Issues and Solutions in Australia

Rural and Remote Broadband Access: Issues and Solutions in Australia Rural and Rmot Broadband Accss: Issus and Solutions in Australia Dr Tony Warrn Group Managr Rgulatory Stratgy Tlstra Corp Pag 1 Tlstra in confidnc Ovrviw Australia s gographical siz and population dnsity

More information

Financial Mathematics

Financial Mathematics Financial Mathatics A ractical Guid for Actuaris and othr Businss rofssionals B Chris Ruckan, FSA & Jo Francis, FSA, CFA ublishd b B rofssional Education Solutions to practic qustions Chaptr 7 Solution

More information

Modern Portfolio Theory (MPT) Statistics

Modern Portfolio Theory (MPT) Statistics Modrn Portfolio Thory (MPT) Statistics Morningstar Mthodology Papr May 9, 009 009 Morningstar, Inc. All rights rsrvd. Th information in this documnt is th proprty of Morningstar, Inc. Rproduction or transcription

More information

Analysis of Trade Before and After the WTO: A Case Study of India

Analysis of Trade Before and After the WTO: A Case Study of India Global Journal of Financ and Managmnt. ISSN 0975-6477 Volum 6, Numbr 8 (2014), pp. 801-808 Rsarch India Publications http://www.ripublication.com Analysis of Trad Bfor and Aftr th WTO: A Cas Study of India

More information

Test of a V-Shaped Relationship between the Expected Real Effective Exchange Rate and Real Output: The Case of France

Test of a V-Shaped Relationship between the Expected Real Effective Exchange Rate and Real Output: The Case of France Journal of Economics and Businss Vol. II 2009, No 2 Tst of a V-Shapd lationship btwn th Expctd al Effctiv Exchang at and al Output: Th Cas of Franc u Hsing, SOUTHEASTEN LOUISIANA UNIVESIT Abstract Applying

More information

Dehumidifiers: A Major Consumer of Residential Electricity

Dehumidifiers: A Major Consumer of Residential Electricity Dhumidifirs: A Major Consumr of Rsidntial Elctricity Laurn Mattison and Dav Korn, Th Cadmus Group, Inc. ABSTRACT An stimatd 19% of U.S. homs hav dhumidifirs, and thy can account for a substantial portion

More information

FACULTY SALARIES FALL 2004. NKU CUPA Data Compared To Published National Data

FACULTY SALARIES FALL 2004. NKU CUPA Data Compared To Published National Data FACULTY SALARIES FALL 2004 NKU CUPA Data Compard To Publishd National Data May 2005 Fall 2004 NKU Faculty Salaris Compard To Fall 2004 Publishd CUPA Data In th fall 2004 Northrn Kntucky Univrsity was among

More information

Using the Aggregate Demand-Aggregate Supply Model to Identify Structural. Demand-Side and Supply-Side Shocks: Results Using a Bivariate VAR

Using the Aggregate Demand-Aggregate Supply Model to Identify Structural. Demand-Side and Supply-Side Shocks: Results Using a Bivariate VAR Fbruary, 4 Using th Aggrgat Dmand-Aggrgat Supply Modl to Idntify Structural Dmand-Sid and Supply-Sid Shocks: Rsults Using a Bivariat VAR Jams Pry Covr Univrsity of Alabama Waltr Endrs Univrsity of Alabama

More information

QUANTITATIVE METHODS CLASSES WEEK SEVEN

QUANTITATIVE METHODS CLASSES WEEK SEVEN QUANTITATIVE METHODS CLASSES WEEK SEVEN Th rgrssion modls studid in prvious classs assum that th rspons variabl is quantitativ. Oftn, howvr, w wish to study social procsss that lad to two diffrnt outcoms.

More information

CONCEPTS AND FORMULAE

CONCEPTS AND FORMULAE CHAPTER 4 Dividnd Dcisions BASIC CONCEPTS AND FORMULAE 1. Introduction Dividnd rfrs to that portion of profit (aftr tax) which is distributd among th ownrs/sharholdrs of th firm and th profit which is

More information

the so-called KOBOS system. 1 with the exception of a very small group of the most active stocks which also trade continuously through

the so-called KOBOS system. 1 with the exception of a very small group of the most active stocks which also trade continuously through Liquidity and Information-Basd Trading on th Ordr Drivn Capital Markt: Th Cas of th Pragu tock Exchang Libor 1ÀPH³HN Cntr for Economic Rsarch and Graduat Education, Charls Univrsity and Th Economic Institut

More information

The Theory of Employment and Unemployment

The Theory of Employment and Unemployment Carngi Mllon Univrsity Rsarch Showcas @ CMU Tppr School of Businss 5-1978 Th Thory of Employmnt and Unmploymnt Karl Brunnr Univrsity of Rochstr Allan H. Mltzr Carngi Mllon Univrsity, am05@andrw.cmu.du

More information

Wage Inflation and the Distribution of Output Gaps in Europe: Insiders vs. Outsiders

Wage Inflation and the Distribution of Output Gaps in Europe: Insiders vs. Outsiders Economtric Rsarch and Spcial Studis Dpartmnt Wag Inflation and th Distribution of Output Gaps in Europ: Insidrs vs. Outsidrs M. Dmrtzis and A. Hughs Halltt Rsarch Mmorandum WO&E no. 631 Sptmbr 2000 D Ndrlandsch

More information

HSBC Bank International Expat Explorer Survey 08

HSBC Bank International Expat Explorer Survey 08 HSBC Bank Intrnational Expat Explorr Survy 08 Rport On: Expat Existnc Th Survy Th Expat Explorr survy qustiond 2,155 xpatriats across four continnts about th opportunitis and challngs thy fac. Th survy

More information

Chi-Square. Hypothesis: There is an equal chance of flipping heads or tails on a coin. Coin A. Expected (e) (o e) (o e) 2 (o e) 2 e

Chi-Square. Hypothesis: There is an equal chance of flipping heads or tails on a coin. Coin A. Expected (e) (o e) (o e) 2 (o e) 2 e Why? Chi-Squar How do you know if your data is th rsult of random chanc or nvironmntal factors? Biologists and othr scintists us rlationships thy hav discovrd in th lab to prdict vnts that might happn

More information

Study of the Behavior of the Indonesian Rupiah/US Dollar Exchange Rate and Policy Implications

Study of the Behavior of the Indonesian Rupiah/US Dollar Exchange Rate and Policy Implications Hsih, Intrnational Journal of Applid Economics, 6(), Sptmbr 009, 41-50 41 Study of th Bhavior of th Indonsian Rupiah/US Dollar Exchang Rat and Policy Implications Wn-jn Hsih National Chng Kung Univrsity

More information

The example is taken from Sect. 1.2 of Vol. 1 of the CPN book.

The example is taken from Sect. 1.2 of Vol. 1 of the CPN book. Rsourc Allocation Abstract This is a small toy xampl which is wll-suitd as a first introduction to Cnts. Th CN modl is dscribd in grat dtail, xplaining th basic concpts of C-nts. Hnc, it can b rad by popl

More information

(Analytic Formula for the European Normal Black Scholes Formula)

(Analytic Formula for the European Normal Black Scholes Formula) (Analytic Formula for th Europan Normal Black Schols Formula) by Kazuhiro Iwasawa Dcmbr 2, 2001 In this short summary papr, a brif summary of Black Schols typ formula for Normal modl will b givn. Usually

More information

Adverse Selection and Moral Hazard in a Model With 2 States of the World

Adverse Selection and Moral Hazard in a Model With 2 States of the World Advrs Slction and Moral Hazard in a Modl With 2 Stats of th World A modl of a risky situation with two discrt stats of th world has th advantag that it can b natly rprsntd using indiffrnc curv diagrams,

More information

Fraud, Investments and Liability Regimes in Payment. Platforms

Fraud, Investments and Liability Regimes in Payment. Platforms Fraud, Invstmnts and Liability Rgims in Paymnt Platforms Anna Crti and Mariann Vrdir y ptmbr 25, 2011 Abstract In this papr, w discuss how fraud liability rgims impact th pric structur that is chosn by

More information

Noble gas configuration. Atoms of other elements seek to attain a noble gas electron configuration. Electron configuration of ions

Noble gas configuration. Atoms of other elements seek to attain a noble gas electron configuration. Electron configuration of ions Valnc lctron configuration dtrmins th charactristics of lmnts in a group Nobl gas configuration Th nobl gass (last column in th priodic tabl) ar charactrizd by compltly filld s and p orbitals this is a

More information

ME 612 Metal Forming and Theory of Plasticity. 6. Strain

ME 612 Metal Forming and Theory of Plasticity. 6. Strain Mtal Forming and Thory of Plasticity -mail: azsnalp@gyt.du.tr Makin Mühndisliği Bölümü Gbz Yüksk Tknoloji Enstitüsü 6.1. Uniaxial Strain Figur 6.1 Dfinition of th uniaxial strain (a) Tnsil and (b) Comprssiv.

More information

CHAPTER 5 INTERNATIONAL PARITY CONDITIONS: INTEREST RATE PARITY AND THE FISHER PARITIES

CHAPTER 5 INTERNATIONAL PARITY CONDITIONS: INTEREST RATE PARITY AND THE FISHER PARITIES CHAPTER 5 INTERNATIONAL PARITY CONDITIONS: INTEREST RATE PARITY AND THE FISHER PARITIES Chaptr Ovrviw Chaptr 5 focuss on th parity conditions that link th spot and forward xchang markts with th intrnational

More information

OPTIONS AND FUTURES: A TECHNICAL APPRAISAL

OPTIONS AND FUTURES: A TECHNICAL APPRAISAL Pag 15 OPTIONS AND FUTURES: A TECHNICAL APPRAISAL by David J.S. Rutldg Papr prsntd to Sminar on Trading in Options: Opportunitis in th Intrnational Markt sponsord by Th Sydny Stock Exchang and Th Scuritis

More information

B-285141. April 21, 2000. The Honorable Charles B. Rangel Ranking Minority Member Committee on Ways and Means House of Representatives

B-285141. April 21, 2000. The Honorable Charles B. Rangel Ranking Minority Member Committee on Ways and Means House of Representatives Unit Stats Gnral Accounting Offic Washington, DC 20548 Halth, Eucation, an Human Srvics Division B-285141 April 21, 2000 Th Honorabl Charls B. Rangl Ranking Minority Mmbr Committ on Ways an Mans Hous of

More information

Exponential Growth and Decay; Modeling Data

Exponential Growth and Decay; Modeling Data Exponntial Growth and Dcay; Modling Data In this sction, w will study som of th applications of xponntial and logarithmic functions. Logarithms wr invntd by John Napir. Originally, thy wr usd to liminat

More information

http://www.wwnorton.com/chemistry/tutorials/ch14.htm Repulsive Force

http://www.wwnorton.com/chemistry/tutorials/ch14.htm Repulsive Force ctivation nrgis http://www.wwnorton.com/chmistry/tutorials/ch14.htm (back to collision thory...) Potntial and Kintic nrgy during a collision + + ngativly chargd lctron cloud Rpulsiv Forc ngativly chargd

More information

[ ] These are the motor parameters that are needed: Motor voltage constant. J total (lb-in-sec^2)

[ ] These are the motor parameters that are needed: Motor voltage constant. J total (lb-in-sec^2) MEASURING MOOR PARAMEERS Fil: Motor paramtrs hs ar th motor paramtrs that ar ndd: Motor voltag constant (volts-sc/rad Motor torqu constant (lb-in/amp Motor rsistanc R a (ohms Motor inductanc L a (Hnris

More information

Settlement of a Soil Layer. One-dimensional Consolidation and Oedometer Test. What is Consolidation?

Settlement of a Soil Layer. One-dimensional Consolidation and Oedometer Test. What is Consolidation? On-dimnsional Consolidation and Odomtr Tst Lctur No. 12 Octobr 24, 22 Sttlmnt of a Soil Layr Th sttlmnt is dfind as th comprssion of a soil layr du to th loading applid at or nar its top surfac. Th total

More information

Parallel and Distributed Programming. Performance Metrics

Parallel and Distributed Programming. Performance Metrics Paralll and Distributd Programming Prformanc! wo main goals to b achivd with th dsign of aralll alications ar:! Prformanc: th caacity to rduc th tim to solv th roblm whn th comuting rsourcs incras;! Scalability:

More information

Poisson Distribution. Poisson Distribution Example

Poisson Distribution. Poisson Distribution Example Poisson Distribution Can b usd to valuat th probability of an isolatd vnt occurring a spcific numbr of tims in a givn tim intrval,.g. # of faults, # of lightning stroks tim intrval Rquirmnts: -Evnts must

More information

81-1-ISD Economic Considerations of Heat Transfer on Sheet Metal Duct

81-1-ISD Economic Considerations of Heat Transfer on Sheet Metal Duct Air Handling Systms Enginring & chnical Bulltin 81-1-ISD Economic Considrations of Hat ransfr on Sht Mtal Duct Othr bulltins hav dmonstratd th nd to add insulation to cooling/hating ducts in ordr to achiv

More information

Understanding the role that resource utilization a gauge of the balance

Understanding the role that resource utilization a gauge of the balance currnt FEDERAL RESERVE BANK OF NEW YORK issus IN ECONOMICS AND FINANCE Volum 7, Numbr www.nwyorkfd.org/rsarch/currnt_issus How Dos Slack Influnc Inflation? Richard Pach, Robrt Rich, and Anna Cororaton

More information

MONEY ILLUSION IN THE STOCK MARKET: THE MODIGLIANI-COHN HYPOTHESIS*

MONEY ILLUSION IN THE STOCK MARKET: THE MODIGLIANI-COHN HYPOTHESIS* MONEY ILLUSION IN THE STOCK MARKET: THE MODIGLIANI-COHN HYPOTHESIS* RANDOLPH B. COHEN CHRISTOPHER POLK TUOMO VUOLTEENAHO Modigliani and Cohn hypothsiz that th stock markt suffrs from mony illusion, discounting

More information

A Study of Budget Deficits and Interest Rates for Japan: Evidence from an Extended Loanable Funds Model

A Study of Budget Deficits and Interest Rates for Japan: Evidence from an Extended Loanable Funds Model Chn, Journal of Intrnational and Global Economic Studis, 4(1), Jun 2011, 11-27 11 A Study of Budgt Dficits and Intrst Rats for Japan: Evidnc from an Extndd Loanabl Funds Modl Yi-Chi Chn National Chng Kung

More information

Media Considerations Related to Puerto Rico s Fiscal Situation

Media Considerations Related to Puerto Rico s Fiscal Situation CUNY Graduat School of Journalism Jun, Mdia Considrations Rlatd to Purto Rico s Fiscal Situation Alan Schankl Managing Dirctor Municial Stratgy and Rsarch Economy is Stagnant and Dbt Continus to Grow.%.%.%

More information

TN Calculating Radiated Power and Field Strength for Conducted Power Measurements

TN Calculating Radiated Power and Field Strength for Conducted Power Measurements Calculating adiatd owr and Fild Strngth for Conductd owr Masurmnts TN100.04 Calculating adiatd owr and Fild Strngth for Conductd owr Masurmnts Copyright Smtch 007 1 of 9 www.smtch.com Calculating adiatd

More information

Lecture 3: Diffusion: Fick s first law

Lecture 3: Diffusion: Fick s first law Lctur 3: Diffusion: Fick s first law Today s topics What is diffusion? What drivs diffusion to occur? Undrstand why diffusion can surprisingly occur against th concntration gradint? Larn how to dduc th

More information

Increasing Net Debt as a percentage of Average Equalized ValuaOon

Increasing Net Debt as a percentage of Average Equalized ValuaOon City of Orang Township Warning Trnd: Incrasing Nt Dbt as a prcntag of avrag qualizd valuation Nt Dbt 3 yr. Avg. qualizd Valuation Incrasing Nt Dbt as a prcntag of Avrag Equalizd ValuaOon rc 1.20% 1.00%

More information

Applications of the compound interest formula

Applications of the compound interest formula Applications of th compound intrst formula Quit oftn, thr of th variabls usd in th compound intrst formula ar known and th fourth nds to b found. Finding P workd xampl 6 Aunt Frda lavs Thlma a lgacy som

More information

Remember you can apply online. It s quick and easy. Go to www.gov.uk/advancedlearningloans. Title. Forename(s) Surname. Sex. Male Date of birth D

Remember you can apply online. It s quick and easy. Go to www.gov.uk/advancedlearningloans. Title. Forename(s) Surname. Sex. Male Date of birth D 24+ Advancd Larning Loan Application form Rmmbr you can apply onlin. It s quick and asy. Go to www.gov.uk/advancdlarningloans About this form Complt this form if: you r studying an ligibl cours at an approvd

More information

Natural Gas & Electricity Prices

Natural Gas & Electricity Prices Click to dit Mastr titl styl Click to dit Mastr txt styls Scond lvl Third lvl Natural Gas & Elctricity Prics Fourth lvl» Fifth lvl Glnn S. Pool Manufacturing Support Mgr. Enrgy April 4, 2013 Click Vrso

More information

Economic Insecurity, Individual Behavior and Social Policy

Economic Insecurity, Individual Behavior and Social Policy Economic Inscurity, Individual Bhavior and Social Policy By Indrmit S. Gill igill@worldbank.org and Nadm Ilahi nilahi@worldbank.org Th World Bank Washington, DC 20433 First Draft: March 27, 2000 Papr writtn

More information

E X C H A N G E R U L E S A N D C L E A R I N G R U L E S O F N A S D A Q O M X D E R I V A T I V E S M A R K E T S

E X C H A N G E R U L E S A N D C L E A R I N G R U L E S O F N A S D A Q O M X D E R I V A T I V E S M A R K E T S E X C H A N G E R U L E S A N D C L E A R I N G R U L E S O F N A S D A Q O M X D E R I V A T I V E S M A R K E T S Fair Valu 1 Valuation Variabls Tabl 1 blow shows th variabls us in th rspctiv valuation

More information

Improving Managerial Accounting and Calculation of Labor Costs in the Context of Using Standard Cost

Improving Managerial Accounting and Calculation of Labor Costs in the Context of Using Standard Cost Economy Transdisciplinarity Cognition www.ugb.ro/tc Vol. 16, Issu 1/2013 50-54 Improving Managrial Accounting and Calculation of Labor Costs in th Contxt of Using Standard Cost Lucian OCNEANU, Constantin

More information

Genetic Drift and Gene Flow Illustration

Genetic Drift and Gene Flow Illustration Gntic Drift and Gn Flow Illustration This is a mor dtaild dscription of Activity Ida 4, Chaptr 3, If Not Rac, How do W Explain Biological Diffrncs? in: How Ral is Rac? A Sourcbook on Rac, Cultur, and Biology.

More information

Installation Saving Space-efficient Panel Enhanced Physical Durability Enhanced Performance Warranty The IRR Comparison

Installation Saving Space-efficient Panel Enhanced Physical Durability Enhanced Performance Warranty The IRR Comparison Contnts Tchnology Nwly Dvlopd Cllo Tchnology Cllo Tchnology : Improvd Absorption of Light Doubl-sidd Cll Structur Cllo Tchnology : Lss Powr Gnration Loss Extrmly Low LID Clls 3 3 4 4 4 Advantag Installation

More information

Essays on Adverse Selection and Moral Hazard in Insurance Market

Essays on Adverse Selection and Moral Hazard in Insurance Market Gorgia Stat Univrsity ScholarWorks @ Gorgia Stat Univrsity Risk Managmnt and Insuranc Dissrtations Dpartmnt of Risk Managmnt and Insuranc 8--00 Essays on Advrs Slction and Moral Hazard in Insuranc Markt

More information

Asset set Liability Management for

Asset set Liability Management for KSD -larning and rfrnc products for th global financ profssional Highlights Library of 29 Courss Availabl Products Upcoming Products Rply Form Asst st Liability Managmnt for Insuranc Companis A comprhnsiv

More information

Monetary Policy Shocks and Stock Returns: Evidence from the British Market

Monetary Policy Shocks and Stock Returns: Evidence from the British Market Montary Policy Shocks and Stock Rtrns: Evidnc from th British Markt A. Grgorio a, A. Kontonikas b*, R. MacDonald b, A. Montagnoli c a Norwich Bsinss School, Univrsity of East Anglia b Dpartmnt of Economics,

More information

Paper P4. Advanced Financial Management. Tuesday 2 June Professional Level Options Module. The Association of Chartered Certified Accountants

Paper P4. Advanced Financial Management. Tuesday 2 June Professional Level Options Module. The Association of Chartered Certified Accountants Profssional Lvl Options Modul Advancd Financial Managmnt Tusday 2 Jun 2015 Tim allowd Rading and planning: Writing: 15 minuts 3 hours This papr is dividd into two sctions: Sction A This ONE qustion is

More information

NAVAL POSTGRADUATE SCHOOL

NAVAL POSTGRADUATE SCHOOL NAVAL POSTGRADUATE SCHOOL MONTEREY, CALIFORNIA MBA PROFESSIONAL REPORT Th Survivor Bnfit Plan: A Cost-Bnfit Analysis By: Advisors: Scott E. Batty, and Tho Kang Dcmbr 2007 William R. Gats, Raymond E. Franck

More information

FACILITY MANAGEMENT SCHEMES FOR SCHOOLS IN THE UK:A STUDY OF VARIATIONS IN SUPPORT SERVICES COSTS AND CAPITAL EFFICIENCY RATIOS

FACILITY MANAGEMENT SCHEMES FOR SCHOOLS IN THE UK:A STUDY OF VARIATIONS IN SUPPORT SERVICES COSTS AND CAPITAL EFFICIENCY RATIOS FACILITY MANAGEMENT SCHEMES FOR SCHOOLS IN THE UK:A STUDY OF VARIATIONS IN SUPPORT SERVICES COSTS AND CAPITAL EFFICIENCY RATIOS By Rui PdroPrira Magalhas 1 Sptmbr 2013 A Dissrtation submittd in part fulfilmnt

More information

Expert-Mediated Search

Expert-Mediated Search Exprt-Mdiatd Sarch Mnal Chhabra Rnsslar Polytchnic Inst. Dpt. of Computr Scinc Troy, NY, USA chhabm@cs.rpi.du Sanmay Das Rnsslar Polytchnic Inst. Dpt. of Computr Scinc Troy, NY, USA sanmay@cs.rpi.du David

More information

1 Walrasian Equilibria and Market E ciency

1 Walrasian Equilibria and Market E ciency 1 Walrasian Equilibria and Markt E cincy Rading in Txtbook: Chaptr 3 in Stiglitz. 1.1 Motivation Whn thinking about th rol of govrnmnt w hav to considr a numbr of rathr fundamntal qustions, such as: What

More information

Modern Portfolio Theory (MPT) Statistics

Modern Portfolio Theory (MPT) Statistics Modrn Portfolo Thory (MPT) Statstcs Mornngstar Mthodology Papr Novmr 30, 007 007 Mornngstar, Inc. All rghts rsrvd. Th nformaton n ths documnt s th proprty of Mornngstar, Inc. Rproducton or transcrpton

More information

AN ACTUARIAL BALANCE SHEET FOR PAY-AS-YOU- GO FINANCE: SOLVENCY INDICATORS FOR SPAIN *

AN ACTUARIAL BALANCE SHEET FOR PAY-AS-YOU- GO FINANCE: SOLVENCY INDICATORS FOR SPAIN * CTURIL BLCE SHEET FOR PY-S-YOU- GO FICE: SOLVECY IDICTORS FOR SPI * MRÍ DEL CRME BODO-PES SLVDOR VLDÉS-PRIETO CRLOS VIDL-MELIÁ BSTRCT 24/4/7 Th solvncy and sustainability of pnsion systms financd by th

More information

Lecture 20: Emitter Follower and Differential Amplifiers

Lecture 20: Emitter Follower and Differential Amplifiers Whits, EE 3 Lctur 0 Pag of 8 Lctur 0: Emittr Followr and Diffrntial Amplifirs Th nxt two amplifir circuits w will discuss ar ry important to lctrical nginring in gnral, and to th NorCal 40A spcifically.

More information

Foreign Trade, Devaluation and Elasticities: A Model Approach. prof. Ing. Jaroslav Husar, CSc. Mgr. ek. University of Economics, Bratislava

Foreign Trade, Devaluation and Elasticities: A Model Approach. prof. Ing. Jaroslav Husar, CSc. Mgr. ek. University of Economics, Bratislava Forign Trad, Dvaluation and Elaticiti: A Modl Approach prof. Ing. Jarolav Huar, CSc. Mgr.. Univrity of Econoic, Bratilava Introduction Fro th thory of th intrnational conoic it i nowwn that th pnditur-witching

More information

A Derivation of Bill James Pythagorean Won-Loss Formula

A Derivation of Bill James Pythagorean Won-Loss Formula A Drivation of Bill Jams Pythagoran Won-Loss Formula Ths nots wr compild by John Paul Cook from a papr by Dr. Stphn J. Millr, an Assistant Profssor of Mathmatics at Williams Collg, for a talk givn to th

More information

Northern Ireland Petrol and Diesel prices data analysis

Northern Ireland Petrol and Diesel prices data analysis Rsarch and Information Srvic Papr 163/12 04 Octobr 2012 NIAR 720-12 Aidan Stnntt and Barbara Lov Northrn Irland Ptrol and Disl prics data analysis 1 Background On th 5 Sptmbr 2012, th Offic of Fair Trading

More information

Statistical Machine Translation

Statistical Machine Translation Statistical Machin Translation Sophi Arnoult, Gidon Mailltt d Buy Wnnigr and Andra Schuch Dcmbr 7, 2010 1 Introduction All th IBM modls, and Statistical Machin Translation (SMT) in gnral, modl th problm

More information

CHAPTER EIGHT. Making use of the limit formula developed in Chapter 1, it can be shown that

CHAPTER EIGHT. Making use of the limit formula developed in Chapter 1, it can be shown that CONTINUOUS COMPOUNDING CHAPTER EIGHT In prvious stions, th as of m ompoundings pr yar was disussd In th as of ontinuous ompounding, m is allowd to tnd to infinity Th mathmatial rlationships ar fairly asy

More information

Ethanolic Extraction of Soybean Oil: Oil Solubility Equilibria and Kinetic Studies

Ethanolic Extraction of Soybean Oil: Oil Solubility Equilibria and Kinetic Studies Ethanolic Extraction of Soyban Oil: Oil Solubility Equilibria and Kintic Studis Christiann E. C. Rodrigus*, Natália M. Longo, Cibl C. Silva, Kila K.. Aracava, Bruna R. Garavazo Sparation Enginring Laboratory

More information

The Constrained Ski-Rental Problem and its Application to Online Cloud Cost Optimization

The Constrained Ski-Rental Problem and its Application to Online Cloud Cost Optimization 3 Procdings IEEE INFOCOM Th Constraind Ski-Rntal Problm and its Application to Onlin Cloud Cost Optimization Ali Khanafr, Murali Kodialam, and Krishna P. N. Puttaswam Coordinatd Scinc Laborator, Univrsit

More information

Gas Radiation. MEL 725 Power-Plant Steam Generators (3-0-0) Dr. Prabal Talukdar Assistant Professor Department of Mechanical Engineering IIT Delhi

Gas Radiation. MEL 725 Power-Plant Steam Generators (3-0-0) Dr. Prabal Talukdar Assistant Professor Department of Mechanical Engineering IIT Delhi Gas Radiation ME 725 Powr-Plant Stam Gnrators (3-0-0) Dr. Prabal Talukdar Assistant Profssor Dpartmnt of Mchanical Enginring T Dlhi Radiation in absorbing-mitting mdia Whn a mdium is transparnt to radiation,

More information

Entity-Relationship Model

Entity-Relationship Model Entity-Rlationship Modl Kuang-hua Chn Dpartmnt of Library and Information Scinc National Taiwan Univrsity A Company Databas Kps track of a company s mploys, dpartmnts and projcts Aftr th rquirmnts collction

More information

Over-investment of free cash flow

Over-investment of free cash flow Rv Acc Stud (2006) 11:159 189 DOI 10.1007/s11142-006-9012-1 Ovr-invstmnt of fr cash flow Scott Richardson Publishd onlin: 23 Jun 2006 Ó Springr Scinc+Businss Mdia, LLC 2006 Abstract This papr xamins th

More information

Some Useful Integrals of Exponential Functions

Some Useful Integrals of Exponential Functions prvious indx nxt Som Usful Intgrls of Exponntil Functions Michl Fowlr W v shown tht diffrntiting th xponntil function just multiplis it by th constnt in th xponnt, tht is to sy, d x x Intgrting th xponntil

More information

EFFECT OF GEOMETRICAL PARAMETERS ON HEAT TRANSFER PERFORMACE OF RECTANGULAR CIRCUMFERENTIAL FINS

EFFECT OF GEOMETRICAL PARAMETERS ON HEAT TRANSFER PERFORMACE OF RECTANGULAR CIRCUMFERENTIAL FINS 25 Vol. 3 () January-March, pp.37-5/tripathi EFFECT OF GEOMETRICAL PARAMETERS ON HEAT TRANSFER PERFORMACE OF RECTANGULAR CIRCUMFERENTIAL FINS *Shilpa Tripathi Dpartmnt of Chmical Enginring, Indor Institut

More information

Deer: Predation or Starvation

Deer: Predation or Starvation : Prdation or Starvation National Scinc Contnt Standards: Lif Scinc: s and cosystms Rgulation and Bhavior Scinc in Prsonal and Social Prspctiv s, rsourcs and nvironmnts Unifying Concpts and Procsss Systms,

More information

Optimal Capital Structure in Real Estate Investment: A Real Options Approach

Optimal Capital Structure in Real Estate Investment: A Real Options Approach Optimal Capital Structur in Ral Estat Invstmnt INTERNATIONAL REAL ESTATE REVIEW Vol. 4 No. : pp. - 6 Optimal Capital Structur in Ral Estat Invstmnt: A Ral Options Approach Jh-Bang Jou School of Economics

More information

Traffic Flow Analysis (2)

Traffic Flow Analysis (2) Traffic Flow Analysis () Statistical Proprtis. Flow rat distributions. Hadway distributions. Spd distributions by Dr. Gang-Ln Chang, Profssor Dirctor of Traffic safty and Oprations Lab. Univrsity of Maryland,

More information

Optical Modulation Amplitude (OMA) and Extinction Ratio

Optical Modulation Amplitude (OMA) and Extinction Ratio Application Not: HFAN-.. Rv; 4/8 Optical Modulation Amplitud (OMA) and Extinction Ratio AVAILABLE Optical Modulation Amplitud (OMA) and Extinction Ratio Introduction Th optical modulation amplitud (OMA)

More information

Making and Using the Hertzsprung - Russell Diagram

Making and Using the Hertzsprung - Russell Diagram Making and Using th Hrtzsprung - Russll Diagram Nam In astronomy th Hrtzsprung-Russll Diagram is on of th main ways that w organiz data dscribing how stars volv, ags of star clustrs, masss of stars tc.

More information

Paper P4. Advanced Financial Management. Tuesday 4 June 2013. Professional Level Options Module. The Association of Chartered Certified Accountants

Paper P4. Advanced Financial Management. Tuesday 4 June 2013. Professional Level Options Module. The Association of Chartered Certified Accountants Profssional Lvl Options Modul Advancd Financial Managmnt Tusday 4 Jun 2013 Tim allowd Rading and planning: Writing: 15 minuts 3 hours This papr is dividd into two sctions: Sction A This ONE qustion is

More information

New Basis Functions. Section 8. Complex Fourier Series

New Basis Functions. Section 8. Complex Fourier Series Nw Basis Functions Sction 8 Complx Fourir Sris Th complx Fourir sris is prsntd first with priod 2, thn with gnral priod. Th connction with th ral-valud Fourir sris is xplaind and formula ar givn for convrting

More information

Performance Evaluation

Performance Evaluation Prformanc Evaluation ( ) Contnts lists availabl at ScincDirct Prformanc Evaluation journal hompag: www.lsvir.com/locat/pva Modling Bay-lik rputation systms: Analysis, charactrization and insuranc mchanism

More information

Production Costing (Chapter 8 of W&W)

Production Costing (Chapter 8 of W&W) Production Costing (Chaptr 8 of W&W).0 Introduction Production costs rfr to th oprational costs associatd with producing lctric nrgy. Th most significant componnt of production costs ar th ful costs ncssary

More information

Vibrational Spectroscopy

Vibrational Spectroscopy Vibrational Spctroscopy armonic scillator Potntial Enrgy Slction Ruls V( ) = k = R R whr R quilibrium bond lngth Th dipol momnt of a molcul can b pandd as a function of = R R. µ ( ) =µ ( ) + + + + 6 3

More information

Cisco Data Virtualization

Cisco Data Virtualization Cisco Data Virtualization Big Data Eco-systm Discussion with Bloor Group Bob Ev, David Bsmr July 2014 Cisco Data Virtualization Backgroundr Cisco Data Virtualization is agil data intgration softwar that

More information

content Fresh thinking for decision makers

content Fresh thinking for decision makers Roland Brgr Stratgy Consultants contnt Frsh thinking for dcision makrs Think your bank can maintain its liquidity vn undr xtrm strss? Fin, but thr's mor to stratgic liquidity managmnt than that Th prcis

More information

LG has introduced the NeON 2, with newly developed Cello Technology which improves performance and reliability. Up to 320W 300W

LG has introduced the NeON 2, with newly developed Cello Technology which improves performance and reliability. Up to 320W 300W Cllo Tchnology LG has introducd th NON 2, with nwly dvlopd Cllo Tchnology which improvs prformanc and rliability. Up to 320W 300W Cllo Tchnology Cll Connction Elctrically Low Loss Low Strss Optical Absorption

More information

Principles of Humidity Dalton s law

Principles of Humidity Dalton s law Principls of Humidity Dalton s law Air is a mixtur of diffrnt gass. Th main gas componnts ar: Gas componnt volum [%] wight [%] Nitrogn N 2 78,03 75,47 Oxygn O 2 20,99 23,20 Argon Ar 0,93 1,28 Carbon dioxid

More information

Simulated Radioactive Decay Using Dice Nuclei

Simulated Radioactive Decay Using Dice Nuclei Purpos: In a radioactiv sourc containing a vry larg numbr of radioactiv nucli, it is not possibl to prdict whn any on of th nucli will dcay. Although th dcay tim for any on particular nuclus cannot b prdictd,

More information