The Effects on Output of Money Growth and Interest Rate Volatility in the United States

1984 ◽  
Vol 92 (2) ◽  
pp. 204-222 ◽  
Author(s):  
Paul Evans
Keyword(s):  
United States ◽  
Interest Rate ◽  
The United States ◽  
Money Growth ◽  
Interest Rate Volatility

International Spillover of Risk and Return among Major Banking Institutions: A Bivariate GARCH Model

2003 ◽  
Vol 18 (2) ◽  
pp. 303-330 ◽  
Author(s):  
Elyas Elyasiani ◽  
Iqbal Mansur
Keyword(s):  
United States ◽  
Exchange Rate ◽  
Interest Rate ◽  
Financial Stability ◽  
Spillover Effects ◽  
The United States ◽  
Leadership Role ◽  
International Portfolio Diversification ◽  
Interest Rate Volatility ◽  
Bank Stock

Using the bivariate GARCH methodology, this study examines bank stock sensitivities to market, interest rate, and exchange rate, and investigates the spillover effects of interest rate volatility and unsystematic risk among the banking sectors of the United States and Japan, and the United States and Germany. Empirical results show that return-generating processes of the banking sectors considered can be properly described by GARCH models. Within this framework, banks are found to be highly sensitive to macroeconomic shocks such as the exchange rate and interest rate, with the latter exerting its impact at the volatility level. Moreover, stock volatilities in the banking sectors of the three countries are found to be highly interdependent. The direction and magnitude of the effects from interest rate volatility and unsystematic shocks in one country on other countries are sensitive to the origin of the shock, with the United States playing a leadership role. The findings have serious implications on international financial stability, international portfolio diversification, and policy formulation by central banks and fiscal authorities.

scholarly journals INTERVENSI KEBIJAKAN MONETER TERHADAP INVESTASI PORTOFOLIO: KASUS INDONESIA DAN AMERIKA SERIKAT

2020 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Nanda Alfarina ◽  
Hasdi Aimon
Keyword(s):  
United States ◽  
Interest Rate ◽  
Secondary Data ◽  
The United States ◽  
Portfolio Investment ◽  
Mechanism Analysis ◽  
Long Run ◽  
Negative Effect ◽  
The Difference ◽  
Effect Of Monetary Policy

This study aims to determine the effect of monetary policy measured by the central bank’s policy rate (X1) on portfolio investment (Y) in Indonesia and United States in the long run. The data used are secondary data seouced from SEKI BI, FRED The FEd, coinmarketcap.com, and investing.com, with the VECM (Vector Error Correction Mechanism) analysis methode. The study show The study shows the differences between the results that occur in Indonesia and the United States. The policy interest rate has a significant positive effect on portfolio investment in the long run in Indonesia, while in the United States the interest rate in the long run has a significant negative effect on portfolio investment. The difference in research results between the two countries shows the need for different treatment for monetary authorities in encouraging portfolio investment 

Floating Rate Notes

2019 ◽  
pp. 265-282
Author(s):  
Aby Abraham ◽  
John Casares ◽  
Jibran Ali Shah
Keyword(s):  
United States ◽  
Risk Factors ◽  
Interest Rate ◽  
Liquidity Risk ◽  
The United States ◽  
Interest Rate Risk ◽  
Flip Flop ◽  
Deposit Rate ◽  
Floating Rate ◽  
Prime Rate

This chapter provides an overview of floating rate notes (FRNs). Although FRNs originated in Europe, their first introduction in the United States came in 1974 when Citicorp sold $650 million worth of its 15-year notes. Since that time, FRNs have evolved into a variety of types. FRN types covered in the chapter include the plain, capped, floored, collared, reverse, super, deleveraged, perpetual, and flip-flop. An FRN can have a maturity of up to 30 years and include periodic interest rate adjustments throughout its life. An FRN uses a reference rate, such as London Interbank Offer Rate (LIBOR), Treasury bill (T-bill) rate, prime rate, or domestic certificate of deposit rate plus a spread to determine its coupon rate. The chapter provides a discussion of such risk factors as interest rate risk, credit risk, call/reinvestment risk, liquidity risk, and market risk. Additionally, it covers FRN valuation using spread for life, effective margin, total adjusted margin, discount margin, and option-adjusted spread methods.

ECB faces multiple challenges in withdrawing stimulus

2017 ◽  
Keyword(s):  
United States ◽  
Interest Rate ◽  
Futures Markets ◽  
The United States ◽  
Quantitative Easing ◽  
Inflation Target ◽  
Content Type ◽  
Financial Conditions ◽  
Multiple Challenges ◽  
Double Digit

Subject ECB policy deliberations. Significance At its latest interest rate-setting meeting on September 7, the ECB admitted that the euro's dramatic double-digit appreciation against the dollar this year has tightened financial conditions, making it more difficult for the central bank to meet its 2% inflation target. Yet despite the euro’s disinflationary effects, the ECB intends to announce its plans to begin scaling back its quantitative easing (QE) programme at its next policy meeting on October 26. Impacts Futures markets see a probability of more than 50% that the United States will increase rates in December, up from 20% in early September. Euro-area economic confidence is at the highest since July 2007, and positive in every country, putting pressure on the ECB to unwind. Market concerns over whether OPEC/non-OPEC oil cuts will be extended could rise ahead of the next OPEC meeting on November 30.

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