Saving and interest rates in Japan: Why they have fallen and why they will remain low. Unpublished working paper. Univer- sity of Southern California, Los Angeles, CA.Braun, R.A., D. Ikeda, and D.H. Joines (2007), "Saving and Interest Rates in Japan: Why They have Fallen and Why ...
Some central banks have set a negative interest rate policy (NIRP) in order to stimulate economic growth in the financial sector, or else to protect the value of a local currency against exchange-rate increases due to large inflows of foreign investment. Countries including Japan, Switzerland, Sw...
Japan’s central bank did it in January. The European Central Bank took the plunge in 2014. And the U.S. may need to drop interest rates into negative territory, if the steam runs out of our seven-year recovery. Going negative is often portrayed as a frantic effort by central banker...
Why is LIBOR increasing when central banks across the world (Japan, Germany, etc.) are charging negative interest rates?London Interbank Offered Rate (LIBOR):London Interbank Offered Rate refers to the benchmark set for the interest rate, which is us...
While the ECB was the first major central bank to experiment with negative interest rates, a number of central banks in Europe, including those of Sweden, Denmark, and Switzerland, have pushed their benchmark interest rates below the zero bound.16What will be the consequences of such unconventio...
It is possible but unlikely that a bond may have a negative yield. When investors purchase bonds, they are fundamentally lending money to the issuers of bonds. In return, the issues reach an agreement to pay investors in...
In Ukraine, the United States did everything it could to bring about this conflict, and now it's doing everything it can to keep the conflict going -- to "fight Russia to the last Ukrainian." China, in coordination with Brazil, the African Union and others, is leading efforts to find...
(1991) test the UIP using long-run interest rates. However, these studies did not find any evidence of UIP. Later, Lothain and Wu (2011) employed both short-term and long-term interest rates for UIP estimation. The study finds that while in the short-run UIP deviates a lot, in the ...
The last two years have been characterized by a considerable increase in the number of national and local regulations to contain and fight the spread of th
bankruptcy would have been inevitable. The purpose of this paper is to investigate why zombie firms recovered in Japan. In the paper, we first extended the method of Caballero, Hoshi, and Kashyap (2008) and identified zombies from among the listed firms. Subsequently, we investigated the ...