StudentShare solutions
Triangle menu

Trending and predicting movements of economic indicators - Dissertation Example

Nobody downloaded yet

Extract of sample
Trending and predicting movements of economic indicators

One financial instrument that is normally used by governments is the issuance of treasury bills or government bonds wherein the earning interest rates will generally be followed by the banks of that country. By using the interest rates that will define the treasury-bill holder’s earnings will slowly influence the financial market to adjust its interest rates. In the absence of other economic indicators, the treasury-bill interest rates will not only be adopted by the banks in their own financial transactions but it will also be used as the bench mark for the amount of money that will be available to borrowers. In theory, if the interest rates are low more people will borrow money from the banks. If the interest rates are high, the theory sustains that little to no borrower will loan money from the banks and most economic activity will be financed from in-house sources. Other instruments or means of conducting monetary policy includes making the government as the lender of last resort wherein the government will be the source of funds that will be available to borrowers normally a function provided by banks and other financial institutions. Another means of conducting monetary policy includes changing the reserve requirements in banks in order for them to operate. Another is where the government announces its intent to reduce or control inflation or by simply indicating the interest rates it wants for the money it intends to loan out. And last but not the least is moral suasions....
One financial instrument that is normally used by governments is the issuance of treasury bills or government bonds wherein the earning interest rates will generally be followed by the banks of that country. By using the interest rates that will define the treasury-bill holder’s earnings will slowly influence the financial market to adjust its interest rates. In the absence of other economic indicators the treasury-bill interest rates will not only be adopted by the banks in their own financial transactions but it will also be used as the bench mark for the amount of money that will be available to borrowers. In theory, if the interest rates are low more people will borrow money from the banks. If the interest rates are high the theory sustains that little no borrower will loan money from the banks and most economic activity will be financed from in-house sources. Other instruments or means of conducting monetary policy includes making the government as the lender of last resort wherein the government will be the source of funds that will be available to borrowers normally banks and other financial institutions. Another means of conducting monetary policy includes changing the reserve requirements in banks in order for them to operate. Another is where the government announces its intent to reduce or control inflation or by simply indicating the interest rates it wants for the money it intends to loan out. And last but not the least is moral suasions or influencing financial institutions about their operating onuses. This paper was primarily completed using secondary sources and some data made available by the professor. The support and anchor of this paper rests on the theories propounded in the literature review. Literature Review This research is ...Show more

Summary

This study “Trending and predicting movements of economic indicators ”  is anchored on the effectiveness of the Taylor Rule in determining the interest rates that controls the amount of money. The amount of money in circulation defines the inflationary rate of an economy…
Trending and predicting movements of economic indicators essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the dissertation on your topic
"Trending and predicting movements of economic indicators"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Implications of GCC currency union
The study first establishes the benefits and disadvantages that are associated with a unified regional currency and the issues attendant thereto. It then proceeds to determine whether the GCC monetary union as envisioned has a likelihood of success, what factors and attributes will determine this success.
56 pages (14000 words) Dissertation
Risks in the Oil Industry
The information considers the elements of the petroleum industry. Broad ranging conceptual models are examined as they relate to capital market connections between external events and rising or declining oil prices. An analysis considers political, supply and demand, operational, risk, and investor forecasting elements.
40 pages (11000 words) Dissertation
The strength of the economy of China and the future of the economy
The aim of the study is to analyze the economical condition of China, the developments made by the Chinese government, which made the country one of the most developed countries in the world. The researcher will also analyze that whether the future of the economy is also strong. To make the economy strong, the government has to make certain policies so that the base of the economy becomes strong.
6 pages (1500 words) Dissertation
Monetary Policy and the Stock Market

The author states that Japan and the United States are contrasts in terms of each country’s economic activity. The United States is a market based economy while Japan is an export based economy. Market based economy is deemed stronger since it is not solely dependent on its exports or imports to stimulate its economic activity.

26 pages (6000 words) Dissertation
ARCH modeling: forecasting the return in the UK stock market

The author of the paper states that for the purposes of economic statistics and econometric calculations a wide range of tools and theories are available. An area of considerable utility is the field of calculations pertaining to quantity or variants, at an arbitrary point within a particular series.

55 pages (10500 words) Dissertation
Investigation of evidence of the spread of the U.S. financial crisis and contagion to Europe, with focus on the UK
Despite the benefits, globalization has also created the phenomenon of the global financial crises and the worldwide economic recession that typically follows it. Prior to the globalization of the financial system, banking panics were usually contained within individual nations, and faulty national policies had little repercussions beyond the boundaries of that particular jurisdiction.
35 pages (8750 words) Dissertation
Sustainability and population density
There are possibilities of exhausting the available environmental resources, while environmental degradation, as seen in the case of worldwide overuse of the carbon sink, has led to grave dangers to the global sustainable development, a problem further aggravated by a persistent rise in the human population.
5 pages (1250 words) Dissertation
Prospects for a GCC common currency / Implications of GCC currency union
The year has come and gone, and the decade leading up to the deadline saw a flurry of studies on the likely success or failure of the union. Studies in the nineties and early in the new millennium tended to polarize views to either strongly favour or disfavour the eventual success of the union.
50 pages (12500 words) Dissertation
Predictability of Foreign Exchange Rates
Simultaneously, the implications of predictability of exchange rates have also been identified so that measures can be taken to reduce the erratic behavior of exchange rates. Acknowledgements I am thankful to all my faculty members, colleagues and the organization I am employed at for providing me with an opportunity to study the change in predictability of exchange rates in the Bretton Woods era and after it.
24 pages (6000 words) Dissertation
Uncertainty Avoidance and Country Risk Ratings
Recent research on the changing nature of country risk due to globalization and the inherent rise in the interconnectivity of national economies (Cleary & Malleret, 2007; Baytas & Leveen, 2009; Sheppard, 2002; GAO, 2010) has called attention to the requirement for reliable country risk ratings to guide investment as these ratings are utilized by financial analysts as a tool to indicate the likelihood of payment defaults by sovereign borrowers (Hoti, McAleer & Shareef, 2007).
4 pages (1000 words) Dissertation
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment
Contact Us