A growing empirical and theoretical literature argues in favor of specifying monetary policy in the form of Taylor-type interest rate feedback rules. That is, rules whereby the nominal interest rate is set as an increasing function of inflation with a slope greater than one around an intended inflation target. This paper shows that because of the zero bound on nominal interest rates, such rules...

The stock versus flow effect of the federal debt/deficit on a real interest rate is examined in a reduced-form equation. The evidence shows a positive and significant linkage between the federal debt and an ex-post, taxadjusted, short-term, real interest rate.

Spot Rate Models 3 Equivalent Martingale Measure (Reference Only) . . . . . . . . . . . . . . . . . . 3 Spot Rate Models: Ideas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The Bond Price Equation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Inversion of the Yield Curve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Affine Term Structure Mo...

We consider a classical risk model and its diffusion approximation, where the individual claims are reinsured by a reinsurance treaty with deductible b ∈ [0, b̃]. Here b = b̃means ‘no reinsurance’and b = 0 means ‘full reinsurance’. In addition, the insurer is allowed to invest in a riskless asset with some constant interest ratem > 0. The cedent can choose an adapted reinsurance strategy {bt }t≥0...

This paper investigates the ultimate ruin probability of a discrete time risk model with a positive constant interest rate. Under the assumption that the gross loss of the company within one year is subexponentially distributed, a simple asymptotic relation for the ruin probability is derived and compared to existing results.

Monetary policy is sometimes formulated in terms of a target level of inflation, a fixed time horizon and a constant interest rate that is anticipated to achieve the target at the specified horizon under rational expectations These requirements lead to instrument rules for interest rate setting that can be called CIP (constant interest rate projections) rules. We consider the twin questions of ...

in this study, the stability of trinitroglycerin (tng) in polyethylene (peg) 400 was investigated according to arrhenius approach. the reaction rate constant (k) for the thermal disintegration of tng in peg 400 at various temperatures was counted based on the percents of remaining tng at different intervals of time at a specific temperature. the results showed that “k” at 40, 50, 60, 70, 80 and...