Economics for financial markets / Brian Kettell.

Format:

Book

Author/Creator:

Kettell, Brian.

Series:

Quantitative finance series.

Quantitative finance series

Language:

English

Subjects (All):

Money market.

Physical Description:

1 online resource (375 p.)

Edition:

1st ed.

Place of Publication:

Oxford ; Boston : Butterworth-Heinemann, 2002.

Language Note:

English

Summary:

Successful trading, speculating or simply making informed decisions about financial markets means it is essential to have a firm grasp of economics. Financial market behaviour revolves around economic concepts, however the majority of economic textbooks do not tell the full story.To fully understand the behaviour of financial markets it is essential to have a model that enables new information to be absorbed and analysed with some predictive implications. That model is provided by the business cycle. 'Economics for Financial Markets' takes the reader from the basics of financia

Contents:

Front Cover; Economics for Financial Markets; Copyright Page; Contents; Preface; Chapter 1. What do you need to know about macroeconomics to make sense of financial market volatility?; The big picture; Financial markets and the economy; Gross national product and gross domestic product; Monetarism and financial markets; The quantity theory of money - the basis of monetarism; How money affects the economy - the transmission mechanism; The modern quantity theory - modern monetarism; Monetarism and Federal Reserve operating targets from 1970 to the present

The Non-Accelerating Inflation Rate of Unemployment (NAIRU)Chapter 2. The time value of money: the key to the valuation of financial markets; Future values - compounding; Present values - discounting; Bond and stock valuation; Simple interest and compound interest; Nominal and effective rates of interest; Chapter 3. The term structure of interest rates and financial markets; Functions of interest rates; Determination of interest rates, demand and supply of funds; International factors affecting interest rates; Price and yield - a key relationship; The term structure of interest rates

Determination of forward interest ratesThe yield curve; Unbiased expectations theory; Liquidity preference theory; The market segmentation theory; The preferred habitat theory; Chapter 4. How can investors forecast the behaviour of financial markets? The role of business cycles; The cyclical behaviour of economic variables: direction and timing; The stages of the business cycle; The role of inventories in recessions; The business cycle and monetary policy; How does monetary policy affect the economy?; Fundamental analysis, the business cycle, and financial markets

The NBER and business cyclesHow do you identify a recession?; The American business cycle: the historical record; The Non-Accelerating Inflation Rate of Unemployment (NAIRU) - a new target for the Federal Reserve; What is the future of the business cycle?; Chapter 5. Which US economic indicators really move the financial markets?; Gross national product and gross domestic product; GDP deflator; Producer price index (PPI); The index of industrial production; Capacity utilization rate; Commodity prices; Crude oil prices; Food prices; Commodity price indicators: a checklist

Consumer price index (CPI)Average hourly earnings; The employment cost index (ECI); Index of leading indicators (LEI); Vendor deliveries index; Chapter 6. Consumer expenditure, investment, government spending and foreign trade: the big picture; Car sales; The employment report; The quit rate; Retail sales; Personal income and consumer expenditure; Consumer instalment credit; Investment spending, government spending and foreign trade; Residential fixed investment; Non-residential fixed investment; Inventory investment; Government spending and taxation; Budget deficits and financial markets

Foreign trade

Notes:

Description based upon print version of record.

Includes bibliographical references (p. [335]-359) and index.

ISBN:

9786611013837

9781281013835

1281013838

9780080494630

0080494633

OCLC:

213298443