Real Interest RateElasticity of Intertemporal SubstitutionOutput Euler equations (OEE) for the US deliver slope estimates that are not significantly different from zero. This finding is counterintuitive as it implies a zero elasticity of intertemporal substitution (EIS) and aggregate demand movements that...
Now move the inflation rate to 7% and compute what is left for real growth after the financing of the mandatory inflation component. The answer is nothing — if dividend policies and leverage ratios remain unchanged. After half of the 12% earnings are paid out, the same 6% is left, but i...
BEIJING, July 8 (TMTPOST) The financial market jittered for quite a while when the Renminbi (RMB) exchange rate slipped above the threshold of 7 to the U.S. dollar in August 2019. That was a stunning spike since 2008. Two popular interrelated narratives conjured up to explain this protrus...
Fisher's equation for the determination of the real rate of interest is studied from a fresh econometric perspective. Some new methods of data description for nonstationary time series are introduced. The methods provide a nonparametric mechanism for modelling the spatial densities of a time series ...
67, where a similar shift was observed in the framework of a model for the propagation of fast pulses in a fiber which goes beyond the rate equation approximation, although it neglects gain coherent dynamics. Our theory also captures well the changes in the shape of the pulses that are ...
(A.15) accounts for the rate of change of mass at the point, the second term accounts for the net outward flow of mass per unit time from the point, and the term in the RHS accounts for mass generation or loss. Now, we phase average the individual terms of Eq. (A.15) over the...
can meet its bills each month, plus some extra. Businesses with rising or high free cash flow numbers are usually doing well and may want to expand. Investors are attracted to companies with rising free cash flow. These firms have excess cash to invest, which can produce a rate of return...
28One sees that when the volatilities and the interest rate are constant, the operator L˜ has constant coefficients. In that case, calling v the vector of Rd such that vi = σi2/2 - rand P¯(y, t) = ert P˜(y + tv, T - t), we have (4.10)∂P˜∂t-12Σi=1d...
They have also a keen interest in understanding determinants of the equilibrium real exchange rate and the factors behind implied misalignments of the actual rate from its equilibrium level. The real exchange rate is viewed as a key indicator of external competitiveness. Hence, a real appreciation ...
real interest rates have little upside but a lot of downside from here, plus the persistent risk of new and untested unconventional easing measures by central banks, leave the outlook for gold prices skewed sharply to the upside. In other words, there is a strong asymmetry ...