Evidence on the effectiveness of foreign exchange (FX) interventions is either limited to short horizons or hampered by debatable identification. We address these limitations by identifying a structural vector autoregressive model for the daily frequency with an external instrument. Generally we find, for freely floating currencies, that FX intervention shocks significantly affect exchange rates and ...
We quantify the causal link between exchange rate movements and sovereign risk of 16 major emerging market economies (EMEs) by means of structural vector autoregressive models (SVARs) and conditional on data from 10/2004 through 12/2016. We apply a novel data-based identification approach of the structural shocks that allows to account for the complex interrelations within the triad of exchange rates, ...
Deutsche Aktienquote im internationalen Vergleich trotz seit Jahren steigender Aktienkurse gering – T-Aktien-Desaster hält Deutsche auch noch 20 Jahre später von der Börse fern – Vermögensaufbau und Altersvorsorge werden so erschwert – Vertrauen muss durch bessere Regulierung und Finanzaufsicht zurückgewonnen werden – Finanzielle Bildung sollte schon ...
Negative interest rates remain a controversial policy for central banks. We study a novel signalling channel and ask under what conditions negative rates should exist in an optimal policymaker’s toolkit. We prove two necessary conditions for the optimality of negative rates: a time-consistent policy setting and a preference for policy smoothing. These conditions allow negative rates to signal policy ...
Der Deka-S-Finanzklima wurde in der Coronapandemie entwickelt und ermöglicht durchdie breite Erhebung auf Top-Managementebene eine Reflektion bzgl. der Einschätzung zur Wirtschaftslage inDeutschland. Insgesamt zeigt sich, dass die Folgen der Coronapandemie zwar belasten, die weiteren Umfeldbedingungen(insbesondere die Negativzins-Beeinträchtigungen) hinterließen und hinterlassen jedoch deutlichereSpuren. ...
The system of capital taxation consists of two instruments, namely a tax on profits and a depreciation allowance on investment. We will show in this paper that by acting on both instruments simultaneously it is possible to achieve both a growth and a fiscal net revenue target even in cases when a trade off prevails when each instrument is used individually. This is an application of the Tinbergen rule ...
We study the state-dependent trading behavior of financial institutions in the oil futures market, using structural vector autoregressions with Markov switching in heteroskedasticity. We consider two states of the world: tranquil and turbulent. We decompose the observable time-varying price volatility during the period 2006M6–2016M5 into changes in the slopes of traders’ demand curves and into changes ...