We study the yields in the German treasury bills market. We take a detailed look at the yield banks require to buy treasury bills in the primary market, and we also examine the yield households and nonbank firms demand to buy these bills in the secondary market. We use data from real world...

This paper examines the determinants of the South African rand/US dollar (ZAR/USD) exchange rate based on demand and supply analysis. Applying the EGARCH method, the paper finds that the ZAR/USD exchange rate is positively associated with the South African government bond yield, US real GDP, the...

A major difficulty in determining the appropriate risk premium for lending to small businesses is the lack of market value information. This paper develops a mean-variance model that uses available failure rate data to establish a benchmark risk premium for lending to firms in specific...

This paper investigates evidence of a Fisher effect in Nigeria by employing quarterly CPI inflation and Nominal interest rates data. For a more robust result we conducted integration and cointegration tests in order to examine time-series properties of the variables. Using Co-integration and...

This paper addresses the question of whether and how easy monetary policy may lead to excesses in financial and real asset markets and ultimately result in financial dislocation. It presents evidence suggesting that periods when short-term interest rates were persistently and significantly below...

Cochrane (2014) shows that high-powered money balances and short-term government bonds can be considered as perfect substitutes for the U.S economy during the past twenty years. We build on this claim and consider a variant of the standard cashless new-Keynesian model with two types of...

This paper investigates the relationship between changes in interest rates and the Spanish stock market at the industry level over the period from January 1993 to December 2012 using a wavelet-based approach. The empirical results indicate that Spanish industries exhibit, in general, a...

World Economic Climate: World Economic Climate improves - Economic Expectations: Economic expectations point to recovery - Inflation: Stabilization of price trend expected - Interest rates: Increase of long-term interest rates expected - Currencies: Euro appears overvalued - Special topic:...

World Economic Climate: World Economic Climate brightens - Economic Expectations: Optimism prevails in economic expectations - Inflation: Moderate pick-up of inflation expected - Interest rates: Interest rates expected to increase somewhat - Currencies: Euro appears increasingly overvalued -...

World Economic Climate: World Economic Climate improves - Economic Expectations: Economic expectations remain optimistic - Inflation: Moderate pick-up of inflation expected - Interest Rates: Interest rates expected to rise - Currencies: US dollar appears undervalued - Special Topic: G20 – the...