This term structure can be extracted from a parsimonious model of return dynamics, which was illustrated with data from the stock market in Nigeria using the VAR model in the light of the reforms in the financial services sector coupled with the stock market crash and the global financial crisis. Using annual returns over the period of 1981 to 2008, volatility persistence, asymmetric properties and riskreturn relationship are investigated for the Nigerian stock market visà-vis the calendar effects
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March of 2012, Air Asia has decided to scrap the long-haul flights (Hassan, 2012). This is the result from the late-2000s financial crisis, also known as the Global Financial Crisis, is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s (Pendery, 2009). The other airlines are also encountering the impact from the global economic crisis. Such as the Indian airlines Air India, Jet Airways, and Kingfisher Airlines, are all seeking for the help and incentive
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Macroeconomics – Case 1.3 1 Analysis of National Income Trend since 1951 Rate of Change of National Income 12% 10% 8% 6% 4% 2% 0% -2% -4% -6% Rate of Change of National Income 1951-1965: Post independence the country was wrought with economic stagnation and extreme poverty, as a result this phase witnessed rapid industrialization. While the agricultural sector contributed more than 50% to the GDP, the consumer goods industry were completely neglected. As a result the growth rate kept fluctuating
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STRATEGY in the SPECIAL ISSUE NEW WORLD The 10 Trends You Have to Watch | by Eric Beinhocker, Ian Davis, and Lenny Mendonca AFTER A FULL YEAR in heads-down crisis mode, to the evolving role of business in society. Here we discuss how the crisis may affect their trajectories, and we address the implications for strategy. Some trends, we argue, remain firmly on track, but uncertainties are cropping up around others. We also see signs of new forces emerging, which we will be exploring
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answer The main macroeconomic cause of gfc US households actually reduced their savings from 2000. The household savings rate in the US actually became negative! Graphs ppt People save more when higher IR, Spend more when low IR 1. Monetary policy (low short term IR) The literature has identified a number of channels through which monetary policy might have contributed to the build-up in financial imbalances. Most of these are thought to have worked through policy rates that were kept low for
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The Subprime Mortgage crisis ECO 2072 Principles of Macroeconomics In the beginning One of the first indications of the late 2000 financial crisis that led to downward spiral known as the “Recession” was the subprime mortgages; known as the “mortgage mess”. A few years earlier the substantial boom of the housing market led to the uprising of mortgage loans. Because interest rates were low, investors took advantage of the low rates to buy homes that they could in return ‘flip’ (reselling) and
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Although there are some points of similarity, the 2007-08 financial crisis is not tied to the same narrative as the 1929 Great Depression that Karl Polanyi analysed (1933). However, the most recent financial bust reveals the same incessant pull between proponents of laissez faire and the movement of protection of society as the Great Depression did. Indeed, “the dire consequences of the 2007-08 crisis are a testament to the power of Polanyi’s insights on the perils of the market” (Gemici, 2014, p
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EUROPEAN DEBT CRISIS – ORIGIN, CONSEQUENCES AND POTENTIAL SOLUTIONS F RA N TI Š E K N E M E T H Abstract What is the European debt crisis? As the head of the Bank of England referred to it in October 2011, it is “the most serious financial crisis at least since the 1930s, if not ever.”1 In fact, the European debt crisis is the shorthand term for the region’s struggle to pay the debts it has built up in recent decades. Five of the region’s countries – Greece, Portugal, Ireland, Italy, and Spain
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Preliminary draft: please do not quote or cite India’s Trilemma: Financial Liberalization, Exchange Rates and Monetary Policy∗ August 22, 2010 Michael M. Hutchison Department of Economics University of California Santa Cruz, CA 95064 USA Rajeswari Sengupta Department of Economics University of California Santa Cruz, CA 95064 USA Nirvikar Singh Department of Economics University of California Santa Cruz, CA 95064 Abstract A key challenge for macroeconomic policy in open economies
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The Euro Debt Crisis: Greece’s and its Next Move Matthew Schrock Financial Markets & Institutions Dr. Victoria Geyfman December 6, 2012 “The Euro Crisis and Greece’s Next Move” The Euro currency, during its original preparation and issuance, had been seen with optimism. It was presumed that the new union of European markets would create a new economic power within Europe, matching it with other economic leaders such as the U.S. and other powers. At this point in history, the Euro
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