Abstract This paper analyses determinants of household savings in a model based on an extension the disequilibrium theory. These extensions follow from life-cycle, permanent-income and Ricardian-equivalence theories. Based panel data 20 countries period 2000–2020, fixed-effect least squares estimation procedures are used. The analysis provides evidence that negative interest rates lead to stati...

MARCH 1995 Hedging interest rate risk has become one of the most common and important types of a financial manager's risk management activities. A classic example is for a firm to hedge its cost of funds by using an interest rate cap to place an upper bound on its borrowing costs. The hedge typically consists of a sequence of individual call options on the interest rate, with option expiration ...

Black’s (1995) model of interest rates as options assumes that there is a shadow instantaneous interest rate that can become negative, while the nominal instantaneous interest rate is a positive part of the shadow rate due to the option to convert to currency. As a result of this currency option, all term rates are strictly positive. A similar model was independently discussed by Rogers (1995)....

This paper investigates the wealth effects of consumer price index, interest rate, domestic credit and real economic activity on Amman Stock Exchange performance. Over period 1991–2020 using autoregressive distributed lag (ARDL) bounds test. While rate is a powerful monetary tool to fight inflation recession, it can be detrimental investors. The target variables, index (CPI) (IDR), are both hig...