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on Financial Development and Growth |
| By: | Wenli Cheng (Department of Economics, Monash University) |
| Abstract: | This paper presents a monetary model of economic growth that brings together 3 main growth drivers: real savings, entrepreneurship and finance. In addition to the familiar result that real savings and entrepreneurship are critical to capital formation and technology implementation, the model demonstrates how the quintessential bank – by issuing loans, taking deposits and providing payment services – plays a pivotal role in the sustainment and the growth of an economy. In particular, the bank creates purchasing power through loan issuance, which enables the entrepreneur to form capital and adopt new technologies. The bank also pays deposit interests to encourage real savings and provides payment services to facilitate monetary transactions. The model shows that following the adoption of new technologies, there is a discontinuous jump in economic output. Numerical simulations suggest that the economy will continue to grow for some time and will eventually reach a steady state. Sustained growth over the long term requires continued development and adoption of ever better technologies. |
| Keywords: | credit creation, finance, entrepreneurship, real savings, economic growth |
| JEL: | G21 D90 O40 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:mos:moswps:2024-14 |
| By: | Bhatta, Siddha Raj |
| Abstract: | This article attempts to analyze the nexus between financial inclusion, inequality in the distribution of financial services, economic growth and inequality by using a sample of 112 countries. It estimates financial inclusion index for the countries using a number of access and usage indicators and then investigates the linkages of such index with growth, financial inequality, and income inequality. Results show that even though Nepal has progressed a lot in expanding financial inclusion, it ranks 70 out of the 112 countries included in the study in a cross-country context implying that more need to be done in the future to come in the forefront. In addition, results from the growth and inequality regression demonstrate that in the presence of higher inequality in the distribution of financial services, the gains from financial inclusion might not be realized as expected. This calls for the attention of the policymakers to address the inequality in financial services so that financial inclusion can contribute to higher and equitable growth. |
| Keywords: | Financial inclusion, Growth, Inequality |
| JEL: | G2 G21 |
| Date: | 2024–08–19 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121795 |
| By: | Fang, Francis Haoyu; Vlaicu, Razvan |
| Abstract: | Private firms establish relationships with banks in local markets to obtain adequate financing for their operations through credit and loans. As major banks reduced their branch networks in recent years, many firms have lost access to their local bank. We evaluate the impact of a large number of branch closures on firm operations, wages and employment, and economic output in Brazil from 2011 to 2021. We adopt a difference-in-differences strategy with staggered treatment timing, employing both two-way fixed effects and Callaway-Sant'Anna estimators. Our study finds that bank branch closures result in a reduction in establishments with active operations from 1.2% initially to 8.1% within 4-7 years, a 0.5 decline in weekly hours of formal employment, and a compression in the real wage distribution. Micro firms, trade and service firms, and agricultural firms are found to be the most vulnerable. Our study highlights the importance of physical bank branches that provide financial access and meet the localized financial demand of several types of firms. |
| Keywords: | Bank branch closures;Employment;Firm activity;Economic Impact;Financial Access;Brazil;Firm operations |
| JEL: | G21 J21 R11 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:13645 |
| By: | Farroukh, Arafet; Mazioued, Manel; Pédussel Wu, Jennifer |
| Abstract: | We investigate the relationship between remittances inflow and economic growth in a sample of 65 emerging countries over the period 1988-2018 using the semi-parametric panel data model with fixed effects as proposed by Baltagi and Li (2002). Our empirical results show that the effect of remittances inflow on economic growth exhibits a highly nonlinear pattern, which sheds new light on the remittances-growth nexus and provides evidence of a nonlinear relationship. |
| Keywords: | Remittances, Growth, Nonlinear effects, Semi-parametric regression, Panel data, Emerging countries |
| JEL: | C14 O15 F43 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ipewps:301859 |
| By: | Nebenführ, Miriam |
| Abstract: | Wissenschaftler untersuchen seit langem den Einfluss institutioneller Faktoren des Gastlandes auf Standortentscheidungen multinationaler Unternehmen für ausländische Direktinvestitionen (FDI). In dieser Studie wird die Beziehung zwischen zwei institutionellen Faktoren, Demokratie und politische Stabilität, und ausländischen Direktinvestitionen anhand eines großen Paneldatensatzes von Sekundärdaten aus den Jahren 2003 bis 2021 empirisch untersucht. Neben der multiplen Regressionsanalyse wird in dieser Studie auch die neue Necessary Condition Analysis (NCA) angewandt. Auf der Grundlage des OLI-Modells von Dunning und der Institutionentheorie ist das Hauptergebnis, dass Demokratie einen signifikant positiven Effekt auf ausländische Direktinvestitionen hat, während politische Stabilität einen signifikant negativen Effekt hat. Außerdem sind beide Faktoren notwendige Bedingungen für ausländische Direktinvestitionen: Länder erhalten keine ausländischen Direktinvestitionen, wenn ein bestimmtes Niveau dieser Faktoren nicht erreicht wird. Die Ergebnisse tragen zum Verständnis bei, wie bestimmte institutionelle Faktoren Entscheidungen über die Ansiedlung ausländischer Direktinvestitionen beeinflussen, und bieten Einblicke in notwendige Bedingungen in der internationalen Wirtschaftsforschung. |
| Abstract: | Scholars have long examined the influence of host country institutional factors on foreign direct investment (FDI) location decisions by multinational enterprises (MNEs). This study empirically examines the relationship between two institutional factors, democracy and political stability, and FDI using a large panel dataset of secondary data covering the years 2003 to 2021. In addition to multiple regression analysis, this study also employs the new necessary condition analysis (NCA). Relying on Dunning's OLI model and institutional theory, the main finding is that democracy has a significantly positive effect on FDI, while political stability has a significantly negative effect. Moreover, both factors are necessary conditions for FDI: Countries do not receive FDI if certain levels of those factors are not reached. The results contribute to the understanding of how certain institutional factors influence FDI location decisions and provide insights into necessary conditions in international business research. |
| Keywords: | Democracy, Institutional Theory, International Investments, Necessary Condition Analysis, Political Stability |
| JEL: | C35 C46 D02 F21 F23 O16 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:umiodp:302546 |
| By: | Bence Bardóczy; Jae W. Sim; Andreas Tischbirek |
| Abstract: | We study the consequences of shocks to the household wealth distribution in dynamic general equilibrium by characterizing the rate at which excess wealth is depleted. Analytical results link the aggregate decumulation rate to the distribution of the additional balances, micro intertemporal marginal propensities to consume, and general equilibrium feedback. A quantitative heterogeneous agent New Keynesian model matches the depletion path of the excess savings built up during the COVID-19 pandemic across the income distribution. The model predicts a substantial but steadily waning boost to consumption and explains up to 40 percent of the surge in inflation observed in 2020 and 2021. |
| Keywords: | Excess savings; Heterogeneous agent New Keynesian (HANK) models; Incomplete markets; Household portfolios; Inflation dynamics; COVID-19 pandemic |
| JEL: | E21 E31 E32 E52 |
| Date: | 2024–08–09 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2024-62 |
| By: | Audoly, Richard; Paz-Pardo, Gonzalo; McGee, Rory; Ocampo, Sergio |
| Abstract: | We use 25 years of tax records for the Norwegian population to study the mobility of wealth over people’s lifetimes. We find considerable wealth mobility over the life cycle. To understand the underlying mobility patterns, we group individuals with similar wealth rank histories using agglomerative hierarchical clustering, a tool from statistical learning. The mobility patterns we elicit provide evidence of segmented mobility. Over 60 percent of the population remains at the top or bottom of the wealth distribution throughout their lives. Mobility is driven by the remaining 40 percent, who move only within the middle of the distribution. Movements are tied to differential income trajectories and business activities across groups. We show parental wealth is the key predictor of who is persistently rich or poor, while human capital is the main predictor of those who rise and fall through the middle of the distribution. JEL Classification: D31, E21, C23, C38, C55 |
| Keywords: | agglomerative hierarchical clustering, equality of opportunity, intergenerational links, life cycle, wealth dynamics |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20242976 |
| By: | Gregorio Impavido |
| Abstract: | This paper examines the role of financial cycle proxies in refining available estimates of the business cycle in Kazakhstan. It contributes to the existing literature by introducing a formal test for the stability of the mean of exogenous variables in the estimation set up, and by developing a self-contained statistical package to streamline the whole estimation process. The empirical strategy is designed to be parsimonious, aiming to avoid the pitfalls associated with overly complex models while achieving comparable results. Results have implications for the extent with which the authorities should manage the business and financial cycles, with which policies, for macroprudential policy calibration, and for the usefulness for policymaking of endsample estimates of the cycle. |
| Keywords: | Business cycle; financial cycle; HP filter; multivariate filter |
| Date: | 2024–08–23 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/182 |
| By: | Sander, Harald (RS: GSBE MSM, RS: GSBE other - not theme-related research, MSM Global Education - Academics); Kleimeier, Stefanie (RS: GSBE MORSE, Finance) |
| Abstract: | Cross-border finance matters for cross-border trade and, hence, the global financial conditions driven by a global financial cycle, in which the U.S. dollar’s nominal effective exchange rate plays a key role. Utilizing empirical gravity models for both trade and finance, we explore the relevance of cross-border loans for bilateral trade. We also detail how a global dollar cycle affects exports both directly and indirectly via a finance-trade channel. In line with the macroeconomic literature, we confirm that also on a bilateral level these effects are particularly strong if one trading partner is an emerging market or developing economy. By developing a finance-augmented trade gravity model, we are also shedding new light on the workings of classical gravity variables, such as physical distance and common borders, but also currency unions and regional trade agreements on the gravity of trade. |
| JEL: | F10 F30 G15 G21 |
| Date: | 2024–09–10 |
| URL: | https://d.repec.org/n?u=RePEc:unm:umagsb:2024012 |
| By: | Fourné, Marius; Li, Xiang |
| Abstract: | This study employs bilateral data on external assets to examine the impact of climate policies on the reallocation of international capital. We find that the stringency of climate policy in the destination country is significantly and positively associated with an increase in the allocation of portfolio equity and banking investment to that country. However, it does not show significant effects on the allocation of foreign direct investment and portfolio debt. Our findings are not driven by valuation effects, and we present evidence that suggests diversification, suasion, and uncertainty mitigation as possible underlying mechanisms. |
| Keywords: | capital flows, climate change policy, green investment, international asset allocation |
| JEL: | F21 F36 F64 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iwhdps:302560 |
| By: | Goldbach, Stefan; Nitsch, Volker |
| Abstract: | This paper explores a monetary experiment, the adoption of Bitcoin as legal tender in El Salvador in 2021, to analyze the impact of digital currencies on international capital flows. Using a difference-in-differences approach, we find that, instead of making transfers easier, El Salvador's official cross-border financial activity has decreased after the monetary change. This finding may reflect an increase in uncertainty. However, it is also in line with findings that link digital assets to illegal activity as previously officially recorded financial transfers may have been replaced by unrecorded activities. |
| Keywords: | crypto-assets, digital currency, legal tender, bitcoin |
| JEL: | E42 E58 F21 F32 F38 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:darddp:302552 |
| By: | Maarten R.C. van Oordt (Vrije Universiteit Amsterdam) |
| Abstract: | This paper investigates how cryptocurrencies relate to concepts such as bubbles, Ponzi-schemes and digital gold in a tractable model for cryptocurrency prices. Investors in the baseline equilibrium hold coins to sell them at a profit to future users if they anticipate in increase in transactional demand per coin. Investors in a bubble equilibrium hold the cryptocurrency because they expect its price to appreciate merely due to future investment inflows. Investors who participate in a bubble equilibrium for a cryptocurrency with non-negative money growth experience Ponzi-scheme equivalent payoffs in the aggregate. The net investment inflows required to sustain a bubble equilibrium are smaller for cryptocurrencies with less new issuance, a lower level of transactional demand and higher growth in transactional demand. Cryptocurrencies with negative issuance (e.g., that burn transaction fees) may generate positive aggregate cash flows to investors even if their price path follows a bubble trajectory. |
| Keywords: | Asset pricing, Bitcoin, crypto-asset, exchange rates, rational bubble |
| JEL: | E51 F31 G1 |
| Date: | 2024–08–06 |
| URL: | https://d.repec.org/n?u=RePEc:tin:wpaper:20240050 |
| By: | Carlos A. Arango-Arango; Yanneth Rocío Betancourt-García |
| Abstract: | In this paper, we study the coexistence of cash and electronic payments introducing some distortions in the payments markets to understand the widespread use of cash, specially in emerging countries. Following Lagos and Wright (2005) we model explicitly some frictions in the exchange process considering money as essential. We introduce in this theoretical framework, theft and informality (measured by tax evasion), as factors affecting cash usage and, therefore competition with an electronic payment method. In this paper, segmentation in the payments market is considered by introducing heterogeneity in the seller's side, assuming different levels of productivity to explain the preference for cash or for electronic payments. Considering the above, the provision of the electronic payment platform is modeled under three different market structures to identify the effects of the distortions comparing the results with the social planner solution. In the first case, the electronic payment platform is provided by a public firm as a free service; in the second case a private monopoly provides the platform at a positive cost, and in the third case the conditions for the existence of a mixed duopoly are derived. The existence of a public provider in the electronic payments market could lead private networks to provide these services at a lower cost than in the monopoly case, increasing the coverage of digital payments and reducing cash usage, which implies gains in social welfare. This paper gives a theoretical basis and key insights to the discussions regarding public provision of new payment services when the market is already served by private suppliers. **** RESUMEN: Este artículo analiza teóricamente la coexistencia de dos medios de pago, como el efectivo y los pagos electrónicos, considerando algunas distorsiones en el mercado de pagos. Siguiendo a Lagos y Wright (2005), se modelan explícitamente algunas fricciones existentes en el proceso de intercambio. En este marco teórico, que considera al dinero como esencial, se introduce el robo y la informalidad (medida por la evasión fiscal), como factores que afectan el uso de efectivo y, por tanto, la competencia con otro medio de pago. Adicionalmente, se considera la segmentación en el mercado de pagos mediante la heterogeneidad en el lado de los vendedores, suponiendo diferentes niveles de productividad, para explicar la preferencia por el efectivo o por los pagos electrónicos. Los efectos de estas distorsiones se modelan bajo tres estructuras de mercado diferentes en la provisión de los pagos electrónicos, las cuales se comparan con los resultados del planificador social. En el primer caso, la plataforma de pago electrónico es proporcionada por una empresa pública como un servicio gratuito; en el segundo caso, un monopolio privado proporciona la plataforma a un costo positivo, y en el tercer caso se analiza la existencia de un duopolio mixto en la provisión de estos servicios de pago. Se demuestra teóricamente que la existencia de un proveedor público en el mercado de pagos podría llevar a las redes privadas a proporcionar estos servicios a un costo menor que en el caso de un monopolio privado, aumentando la cobertura de los pagos digitales y reduciendo el uso de efectivo, lo que implica ganancias en el bienestar social. Este artículo proporciona una base teórica que puede ayudar a los debates actuales sobre la provisión pública de nuevos servicios de pago cuando el mercado ya cuenta con proveedores privados. |
| Keywords: | Cash, payment methods, payments services, electronic payments, instant payments, Efectivo, medios de pago, instrumentos de pago, servicios de pago, pagos electrónicos, pagos instantáneos, duopolio mixto. |
| JEL: | E40 E41 E42 E44 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:bdr:borrec:1280 |
| By: | Bindseil, Ulrich; Senner, Richard |
| Abstract: | Over the last decades, macro-economists have renewed their efforts to reduce the gap between monetary macroeconomics and real-world central banking. This paper reviews how macroeconomics has since 2016 approached the possible introduction of retail central bank digital currencies (CBDC). A review of the literature reveals that macroeconomic models of CBDC often rely on CBDC design features and narratives which are no longer in line with the one of central banks actually working on CBDC. In particular, the literature often (i) does not take into account the nature of central banks’ CBDC issuance plans as a “conservative” reaction to profound technological and preferential shifts in the use of money as a means of payments, (ii) does not start from design features communicated by central banks, such as no-remuneration, quantity limits, access restrictions, and automated sweeping functionality linking CBDC wallets with commercial bank accounts; (iii) does not explain well enough the difference between CBDC and banknotes within their macro-economic models, apart from remuneration (which central banks actually do not foresee); and (iv) assume that CBDC will lead to a significant increase in the total holdings of central bank money in the economy, although (i) and (ii) make this unlikely. JEL Classification: E3, E5, G1 |
| Keywords: | central bank digital currencies, central bank money, financial stability, macroeconomics |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20242978 |
| By: | Peter Bofinger |
| Abstract: | The paper discusses central digital currencies (CBDCs) with an analytical focus on the European Central Bank's Digital Euro (D€) project, which provides a unique lens for assessing the potential and challenges of CBDCs. The paper differs from the literature on CBDCs and the D€ by adopting a systemic perspective that distinguishes between the role of CBDCs as a new payment object and as a new payment system based on CBDC accounts. In a worst-case scenario, the D€ project could be a total flop, with people not opening accounts and the system failing to compete with existing platforms. This would be in line with the dismal experience of countries that have already introduced CBDCs. In a more positive scenario, many households would open D€ accounts alongside commercial bank accounts, potentially reducing the dominance of US platforms. However, even in this scenario, it is unlikely that there will be significant holdings of D€ deposits as a means of payment, making the D€ payment system an inefficient and costly detour between existing commercial bank accounts. The offline version remains difficult to justify. Our CBDC tracker shows that the ECB's strong commitment to the D€ is unique among central banks in advanced economies. Many of them, including the Federal Reserve, currently rule out the option of a retail CBDC. Thus, the ECB's unconditional commitment to the D€ carries a high risk of failure. It is therefore unclear why the ECB is not considering a scheme based on the existing SEPA infrastructures. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:imk:studie:95-2024 |
| By: | Yuqi Chen; Yifan Li; Kyrie Zhixuan Zhou; Xiaokang Fu; Lingbo Liu; Shuming Bao; Daniel Sui; Luyao Zhang |
| Abstract: | In the digital era, blockchain technology, cryptocurrencies, and non-fungible tokens (NFTs) have transformed financial and decentralized systems. However, existing research often neglects the spatiotemporal variations in public sentiment toward these technologies, limiting macro-level insights into their global impact. This study leverages Twitter data to explore public attention and sentiment across 150 countries, analyzing over 150 million geotagged tweets from 2012 to 2022. Sentiment scores were derived using a BERT-based multilingual sentiment model trained on 7.4 billion tweets. The analysis integrates global cryptocurrency regulations and economic indicators from the World Development Indicators database. Results reveal significant global sentiment variations influenced by economic factors, with more developed nations engaging more in discussions, while less developed countries show higher sentiment levels. Geographically weighted regression indicates that GDP-tweet engagement correlation intensifies following Bitcoin price surges. Topic modeling shows that countries within similar economic clusters share discussion trends, while different clusters focus on distinct topics. This study highlights global disparities in sentiment toward decentralized finance, shaped by economic and regional factors, with implications for poverty alleviation, cryptocurrency crime, and sustainable development. The dataset and code are publicly available on GitHub. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.00843 |
| By: | Sánchez Serrano, Antonio; Andersen, Isabel |
| Abstract: | We present a methodology based on quarterly sectoral accounts to build a map of the euro area financial system. The map can be used to visualise existing cross-sectoral interconnections and exposures, to analyse how the main bilateral positions have evolved over time, and to understand how past episodes of financial stress affected balance sheet structures and inter-sectoral flows. We find that the euro area financial system was essentially bank-centric when it entered the global financial crisis, and only afterwards has the importance of investment funds, government debt and central banks increased substantially. In particular, investment funds are used by euro area economic agents to gain exposure to the rest of the world and vice versa. We also document weak dynamics since the global financial crisis in lending between euro area banks and non-financial corporations. Next, we look at the financial system during the global financial crisis and the outbreak of the COVID-19 pandemic, a further four episodes of financial stress (sovereign debt crisis, the US taper tantrum, the Brexit referendum, the start of Russia’s invasion of Ukraine) and the monetary policy tightening between 2005 and 2007. While there are differences across them, we unveil interesting common features. The map can be useful in determining which sectors are resilient enough to absorb losses and whether they can serve as transmitters of stress. Finally, turning to liquidity, bank deposits, money market fund shares and securities financing transactions are key to ensure a smooth supply of liquidity and should continuously be on the radar of policymakers. JEL Classification: G01, G20, G10 |
| Keywords: | financial crisis, financial intermediation, flow of funds, Interconnections, liquidity |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:srk:srkops:202426 |
| By: | Beyer, Jürgen |
| Abstract: | Ten years after the collapse of investment bank Lehman Brothers and the onset of a global financial, economic, and debt crisis, this article reflects on the extent to which the economic crisis has brought about a turning point in societal terms. In light of the state of research on the relationship between financialization, democracy, and social conditions, it appears plausible that the processes of financialization, which contributed to the emergence of a crisis, were influenced by the financial crisis but not completely reversed. The changes in financial market regulation, which were implemented in response to the crisis, did not create pressure for a redesign of the financial system. Therefore, one cannot deduce a significant turning point in financial market regulation from the reform measures taken. However, there are clear indications that the financial crisis has had a lasting impact on the European integration process, trust in democracy, and the political culture. Accordingly, the financial crisis can be seen as a turning point in history, primarily due to its effects on social areas beyond the financial system. |
| Date: | 2024–08–29 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:jks8v |
| By: | Zhanli Li |
| Abstract: | This paper explores the relationship between ESG rating disagreement and total factor productivity (TFP) based on data from Chinese domestic ESG rating agencies and financial data of A-share listed companies in China from 2015 to 2022. On one hand, the empirical results show that ESG rating disagreement reduces corporate TFP, a conclusion that is validated through multiple robustness tests. The mechanism analysis reveals an interaction effect between green innovation and ESG rating disagreement. Specifically, in firms without ESG rating disagreement, green innovation promotes the improvement of TFP; however, in firms with disagreement, although ESG rating disagreement may drive green innovation, this does not lead to an increase in TFP. Furthermore, ESG rating disagreement lower corporate TFP by increasing financing constraints. The heterogeneity analysis indicates that this effect is more pronounced in non-state-owned, asset-intensive, and low-pollution enterprises. On the other hand, XGBoost regression demonstrates that ESG rating disagreement play a significant role in predicting TFP, with SHAP values showing that the main effects are more evident in firms with larger ESG rating disagreement. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.13895 |
| By: | Bednarek, Peter; Franke, Günter |
| Abstract: | Probabilities of default (PDs) of loans are of central importance for financial stability. We analyze the PDs, reported quarterly by German financial institutions to Deutsche Bundesbank. The development of PDs is modelled as an AR process of PD changes and an initial PD. Panel regressions show mean diversion of the PDs in the short-run and mean reversion to target-PDs over longer time intervals. The expected PD does not converge monotonically to the target PD, but overshoots and oscillates with declining amplitude. The PD converges faster to the target PD starting at a high relative to a low PD. The target PD is lower when more than one institution reports a PD, also in the case if the borrower exhibits unlimited liability. To bypass instabilities in PD time series, due to systematic factors, we also rank firms within an industry according to their PDs. This rank order is driven mostly by idiosyncratic firm factors and portrays competitiveness of debtors. Migrations are defined by changes in this rank order. We also find mean diversion of migrations in the short-run and mean reversion over longer time intervals. |
| Keywords: | Dynamics of probabilities of default, systematic and idiosyncratic factors, mean diversion and reversion, overshooting, oscillations |
| JEL: | D25 E51 G11 G14 G17 G21 G32 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bubdps:301864 |
| By: | Daniel Kaufmann; Rebecca Stuart |
| Keywords: | Switzerland, discount rates, money market, financial integration, monetary union, 19th century |
| JEL: | E43 E44 F33 F45 N13 N23 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:irn:wpaper:24-05 |