Financial Economics

theory of storage

Theory of Storage

he Theory of Storage describes features observed in commodity markets. Here are some basic terminology that needs to be understood to understand the Theory of Storage. Commodity Market A commodity market is a market that trades in primary goods rather than manufactured products. Soft commodities are agricultural products such as wheat, coffee, cocoa and sugar….

The juglar cycle

The Juglar Cycle

he Juglar cycle is a fixed investment cycle of seven to eleven years identified in 1862 by Clement Juglar. He observed changes of investments in fixed capital that was not just correlated with the level of employment of the fixed capital. A 2010 research study employing spectral analysis confirmed the presence of Juglar Cycles in world GDP dynamics. The so-called Juglar cycle has often…

the volcker rule

The Volcker Rule

he Volcker Rule refers to § 619[1] (12 U.S.C. § 1851) of the Dodd–Frank Wall Street Reform and Consumer Protection Act, originally proposed by  former United States Federal Reserve Chairman Paul Volcker to restrict United States banks from making certain kinds of speculative investments that do not benefit their customers. Volcker argued that such speculative…

introduction to the stock market

Introduction to the Stock Market

n a long position, the owner benefits when the stock or share gains in value. The potential profit is unlimited. So the “long” position is said to be “bullish.” When the stock is down, the most that the owner can lose is the amount of money he has originally paid for it. Since it is impossible to lose…

theory of asset demand

Theory of Asset Demand

 firm or individual’s decision for allocating its wealth amongst assets is known as the Theory of Asset Demand or Portfolio-Choice Theory. Demand For An Asset Depends On Four Factors Wealth As wealth increases, the demand for financial assets also increases. There are two types of financial assets: Necessity assets: Ex: cash & checking accounts –…

introduction to the federal reserve

Introduction to the Federal Reserve

he Federal Reserve or the Fed is the central bank of the United States of America. The Federal Reserve is a network of 12 regional Federal Reserve banks, but the Fed’s power centre is in its New York bank. The Fed’s Liabilities: Commercial banks’ reserves, government deposits and mostly dollar bills The Fed Assets: Emergency discount loans to banks and government securities….

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