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In early 2022 inflation reemerged and gave concern that the Federal Reserve would increase short-term interest rates and threaten common stock values. To gain insights on what may happen to stocks, this article reviews the key factors that influenced common stock pricing since 1920, namely...
Persistent link: https://www.econbiz.de/10013295532
Following a period of subdued consumer price changes, inflation has recently surged to levels that are significantly impacting the behavior of households and firms. Although the underlying sources of inflation differ across major advanced economies, central banks have progressively tightened...
Persistent link: https://www.econbiz.de/10014351176
Persistent link: https://www.econbiz.de/10013101377
This paper inspects the types and the sizes of the unconventional interventions of monetary authorities in the UK, the US, and the EU after the collapse of Lehman Brothers in 2008. It also describes the transmission channels through which the impact of the unconventional monetary policies is...
Persistent link: https://www.econbiz.de/10012988401
This paper studies whether and how the central bank should prick asset price bubbles, if the effect of interest rate policy on bubbles can significantly vary across periods. For this purpose, I first construct a financial accelerator model with an agent-based financial market that can...
Persistent link: https://www.econbiz.de/10012932004
The failure of Lehman Brothers highlighted the severe lapses in risk management and regulatory oversight that brought on and intensified the global financial crisis. This paper presents a structural credit risk model that provides useful early warning signals that regulators could have used to...
Persistent link: https://www.econbiz.de/10013035485
literature. This paper seeks to study the determinants of bank asset quality and profitability using panel data techniques and … allows them to finish with lower levels of NPAs. Further, this study investigates the effect of determinants on profitability …, and establishes that while capital adequacy and investment activity significantly affect the profitability of commercial …
Persistent link: https://www.econbiz.de/10010507831
This paper analyzes the potential effect of a European Central Bank Digital Currency (CBDC) on banks’ profitability. We … CBDC, there might be substantial challenges for the profitability of banks, especially for small banks, that mostly rely on …
Persistent link: https://www.econbiz.de/10014349743
Using a unique bank-level dataset, we assess the impact of the Term Auction Facility program on bank liquidity risk. The change in the US housing price index at state levels between 2002:Q1 and 2006:Q3 is the exclusion restriction to control for potential selection bias. On average, TAF banks...
Persistent link: https://www.econbiz.de/10011410417
This paper gives an account of the Swedish financial crisis covering the period 1985-2000, dealing with financial deregulation and the boom in the late 1980s, the bust and the financial crisis in the early 1990s, the recovery from the crisis and the bank resolution policy adopted during the...
Persistent link: https://www.econbiz.de/10003901578