Why is there a large output gap in initial recovery stage?

A large, diversified economy recently instituted a substantial tax cut, primarily aimed at reducing business taxes. Some provisions of the new law were designed to stem the tide of domestic firms moving production facilities abroad and encourage an increase in ...

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Long-Run Equity Returns and Economic Growth In January 2000, Alena Bjornsdottir, CFA, was updating her firm’s projections for US equity returns. The firm had always used the historical average return with little adjustment. Bjornsdottir was aware that historical averages are ...

Sir please explain the part Time varying volatility ARCH Model

“As demonstrated by the Greek exit (“Grexit”) crisis, however, the situation changes sharply when the market perceives an imminent threat of devaluation (or a withdrawal from the common currency). Spreads then widen throughout the curve, but especially at the shortest ...