Wealth and Asset Price Effects on Economic Activity

The Colombian economy has a strong dependence on the export of commodities. Different studies show that the prices of these products are exogenous, which have originated direct effects on the national economic activity. Therefore, this paper studies the shock effects produced by mining and energy commodity price variations like oil, coal and nickel on Colombian economy. We used 129 variables for 2001-2016 period and estimated a FAVAR model (Factor Augmented VAR) to observe commodity price effects on different economic aggregates, the results show that price fluctuations have significant effects on variables such as economic activity, investment, the trade balance, the real exchange rate and external debt.

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Symposium on the Monetary Transmission Mechanism

The Journal of Economic Perspectives ◽

10.1257/jep.9.4.3 ◽

1995 ◽

Vol 9 (4) ◽

pp. 3-10 ◽

Cited By ~ 265

Author(s):

Frederic S Mishkin

Keyword(s):

Exchange Rate ◽

Asset Price ◽

Transmission Mechanism ◽

Monetary Transmission ◽

Credit Channel ◽

Monetary Transmission Mechanism ◽

Transmission Mechanisms ◽

Price Effects ◽

Rate Effects ◽

Monetary Transmission Mechanisms

Understanding of monetary transmission mechanisms is crucial to answering a broad range of questions. These transmission mechanisms include interest-rate effects, exchange-rate effects, other asset price effects, and the so-called credit channel. This introduction to the symposium provides an overview of the main types of monetary transmission mechanisms found in the literature and a perspective on how the papers in the symposium relate to the overall literature and to each other.

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A Review of Textual Analysis in Economics and Finance

Advances in Linguistics and Communication Studies - Communication and Language Analysis in the Corporate World ◽

10.4018/978-1-4666-4999-6.ch008 ◽

2014 ◽

pp. 122-139 ◽

Cited By ~ 1

Author(s):

Carissa L. Tudor ◽

Clara Vega

Keyword(s):

Economic Activity ◽

Asset Prices ◽

Textual Analysis ◽

Asset Price ◽

Price Volatility ◽

Informational Content ◽

Message Board ◽

Firm Level ◽

Message Boards ◽

Cash Flow Volatility

This chapter provides an overview of studies in finance and economics that use automated textual analysis algorithms to analyze the informational content of a wide variety of texts, including journalist’s coverage of news events, management-issued statements, and Internet stock message boards. In these studies, researchers quantify qualitative information with one or more of the following textual tone variables: textual negativity, positivity, and uncertainty. The studies show that textual negativity and positivity conveyed by managers and journalists helps predict future firm level and aggregate economic activity. Textual negativity and positivity, in turn, affect asset prices, although the information is sometimes incorporated with some delay. Textual uncertainty of management-issued information is associated with future cash flow volatility and asset price volatility. In contrast, the textual tone of stock market message board postings is, on average, not very informative in explaining asset prices. The use of automated textual analysis algorithms in finance and economics is a relatively new phenomenon and research in this area is expected to continue to grow.

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