We examine exchange rate pass-through into aggregate import prices for several industrialized countries in view of Taylor's (2000) suggestion that the degree of pass-through is dependent on importing country inflation. Extending the standard mark-up pricing model under monopolistic competition...

The role of stock and currency market information in a forward-looking Taylor rule is analysed for monthly data from 13 OECD countries and the U.S. during the years 1988-2012. Based on a simple set of partial equilibrium conditions we fi nd that the stock market information in the form of...

This study uses a sample of Western European banks to examine the development in bank asset liquidity during the era of low interest rates. The results suggest that asset liquidity has converged during this period; the least liquid banks have improved their liquidity whereas the most liquid banks...

In the new Benchmark Determination Methodology (BDM), the calculation of Euro Interbank Offered Rates (EURIBOR) should be based on fully comprehensive euro unsecured money market transactions. As this set of eligible transactions contains a number of different instruments, it cannot be...

Based on quarterly data from the US commercial real estate market we find that a short position on the Dow-Jones US Real Estate index (DJUSRE) can serve as a useful and effective hedge against the price risk of U.S. direct commercial real estate investments. According to our results, when...

We analyse the effects of sovereign risk premium on bank profitability amongst 154 Eurozone banks during the period 2005 – 2019. In contrast to some of the results in the previous literature, we find that the euro area banks have not suffered too much from the extremely low and negative...

Via the use of rolling regression technique and a specific procedure for analyzing strong structural breaks in a univariate time series model, we forecast the rate of future inflation in Finland for the time period of unregulated financial markets since the beginning of 1987. We are able to...

In this paper we augment the famous Fisher hypothesis by introducing foreign interest rate and exchange rate variables to a tradional Fisherian test equation for the Finnish money market interest rates. Theoretically this augmentation is based on the use of uncovered interest rate parity for...

Contrary to expectations, the continuous decline in money market interest rates between 2009 and 2014, and the following negative era for European interbank markets, has positively affected profitability of Finnish cooperative banks. We obtain these results that contrast sharply with previous...

We analyse how the future real economic activity is discounted to the current value of stocks in the US and European markets, and find that the extraordinary threat on future real GDP growth caused by the COVID-19 pandemic was obviously one of the main factors that affected the deep dive in the...