Demand and Supply for Financial Assets Mishkin ch.5: The Bond Market
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1 Demand and Supply for Financial Assets Mishkin ch.5: The Bond Market => DEFER [Mishkin ch.5 - P.1]
2 Perspective #1: Bonds as Financial Assets - 1. Expected return (+) 2. Risk (-) 3. Liquidity (+) - [Mishkin ch.5 - P.2]
3 all relative - negatively related relative relative relative - positive related - - Re-valuation new - New savings - - => Real - - [Mishkin ch.5 - P.3]
4 The Supply of Bonds defines => Real. => [Mishkin ch.5 - P.4]
5 Demand & Supply => Equilibrium Price and Volume - h [Mishkin ch.5 - P.5]
6 Application: Demand for other financial assets Same basic argument as for bonds: - provided - Additional issue for equity-type assets: future payments are uncertain I = => [Mishkin ch.5 - P.6]
7 Application: The Flight to Quality relative - -. Stock Market Bond Market Price Supply Price Supply Demand Stocks Demand Bonds [Mishkin ch.5 - P.7]
8 Related Perspectives Loanable Funds analysis = - Asset Pricing - s -.. [Mishkin ch.5 - P.8]
9 Systematic Analysis: Predict the Effect of hanges In Mishkin s [Mishkin ch.5 - P.9]
10 Overview #1: Demand [Mishkin ch.5 - P. ]
11 Overview #2: Supply [Mishkin ch.5 - P.11]
12 Expansion [Caution: Distinguish real and financial investments!] [Mishkin ch.5 - P.12]
13 Scenario: Increase in Expected Inflation Fisher effect. [Mishkin ch.5 - P.13]
14 Evidence on the Fisher Effect - - [Mishkin ch.5 - P.14]
15 Preview: More Applications of Financial Markets Analysis 1. The Risk-structure of interest rates - -. Y 2. The Term Structure of interest rates - 3. Demand and supply in the stock market 4. The Market for Foreign Exchange S D s. [Mishkin ch.5 - P.15]
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