Authors adds threshold values of total credit to the private sector and deposit money bank assets, above which the total effect of remittance on growth is positive. Azam and khan (2011) Running the linear regression of two remittance receiving and same features countries i.e. Azerbaijan and Arminia. They empirically proves that workers remittance are significant for the acceleration of growth in the field of study. Recommending to formulate the policies and encouraging to utilize more efficiently in order to improve society living standard.
The recent financial crisis is attributed in many ways to financial innovations in the mortgage market that made it easier for people with high risk of default to access credit. Although these financial innovations gave millions of Americans an opportunity to purchase a home, their overall social benefit is questionable (Johnson, Kwak 2012). In his address at the Federal Reserve Bank in Atlanta in March 2007 Ben Bernanke pointed out, that despite "the challenges and the risks that financial innovation may create, we should also always keep in view the enormous economic benefits that flow from a healthy and innovative financial sector" (Bernanke 2007). The goal of financial innovations is to make financial intermediation easier, moving capital to where it is needed most. Bernanke continued to state that financial innovations promoted economic growth, and made the economy more resilient to busts.
This part is just an expansion and emphasis from the preceding part of the paper to illustrate the importance of flat tax. Under the flat tax system, the foreseeable future indicates that there would be less barriers and constrains of the liquidation of funds. Moreover, under the background of global economic and political environment, it is the time for the nation to stimulate the gloomy economy. Stimulating the gloomy economy is to increase value of the total society instead of simply move the cash from one class to another. As a result, flat tax is more favorable compared to progressive tax under this global economic
Payback method is concerned with short term profitability. American managers are more concerned with short term profitability as they value money earned at the earliest. They consider money earned at a later stage as not something to which a great value can be attached with. According to them economy is continuously changing and conditions at a later stage cannot be predicted with certainty. In addition, it is observed that near future conditions are at a better control under them than far future conditions.
Fannie Mae and Freddie Mac, who were government-sponsored enterprise (GSE) and acted as a secondary market for mortgages, were mandated to insure these high risk loans with the government so that the mortgages could be repackaged and sold. The financial products, also known as derivatives were manufactured in large quantities. Major rating agencies were paid with a handsome sum of money for rating their financial products, which in turn became easier sales and greater profits for the
This would mean transforming from their present position where they simply operate in the money market into a deeper involvement in the country’s overall financial infrastructure. The discount houses would be transformed into an unquestionable pathway through which monetary policy actions can be carried out and also contribute to the overall growth of the financial sector. The viability of discount houses on the long run would depend on their capability to obtain plausible money market based products that would exceed what banks can provide. This kind of venture would be profitable with the involvement of treasury securities-based products and the liquidity profile of discount houses. Having High Net worth Individuals (HNI’s) and corporate organizations invest in treasury securities backed instruments could dictate impending survival of discount houses.
As defined by Filipovic (2005) privatization is a process of reallocating public assets and functions to the private sector. According to Lopez-Calva and Sheshinski (2003), the number of privatization transactions, both in developed and developing countries has been increasing over the years. Privatization programs implemented in a country aim to: achieve higher allocative and productive efficiency; strengthen the role of the private sector in the economy; improve the public sector’s financial health; and to free resources for allocation in other areas of government activity (Lopez-Calva and Sheshinski, 2003). Selling of state-owned enterprises to private investors has been one of the most common methods of privatization (Filipovic, 2005). Several scholars argued that privatization caters the increase in government’s revenues and strengthens the incentives in maximizing the profits which can lead to productive and allocative efficiency (Guriev and Megginson, 2006).
Because, it is timely relevant. Since reasonable esteem bookkeeping uses data particularly for the time and current economic situations, it endeavors to give the most applicable assessments conceivable. It has an extraordinary enlightening an incentive for a firm itself and energizes provoke remedial activities. Also, More data in the financial statements than historical cost. Reasonable esteem accounting upgrades the instructive energy of a budgetary proclamation rather than the other bookkeeping technique - the authentic cost.
In this coursework we are going to analyze the stock market anomalies concerning the Efficient Market Hypothesis (EMH). To begin with, many researchers have reached this topic since Eugene Fama (1965) published his work concerning the Efficient Market Hypothesis. More extensively, in the modern academic literature of finance market anomalies have gained even more supporters and constitute one of the most popular phenomena for research. Market anomalies play a significant role in the modern economy theory since both investors and academics wish to testify and conclude to the reasons they exist and how they can be forecasted. Before we proceed deeper to the analysis of the market anomalies we first have to define them.
Kharas explains that the middle-class is the backbone of societies and conquers market spending. Through line and bar graphs, he explains through GDP and PPP (in trillions) the emerging success of economies throughout the 2000s. Kharas also gives analytical data on the size of the middle class and its counterparts, with estimates into 2030. The data analyzed shows that the middle-class will continue to expand, changing the distribution of middle-class spending, effecting global markets. Kharas concludes with stating, with this inclusive growth there will be continued widening of income and opportunity inequality.