Lessons from the great crashes

Article Abstract:

Instability on world financial markets in 1929 and 1987 offers some valuable lessons for those considering how to deal with the current financial market crisis. The intensity of the recent crisis is comparable with that of 1987, but the central banks have initially responded very cautiously. There is a danger of a severe credit crunch, mainly having an impact on large companies and with the Federal Reserve losing control of monetary conditions, as was the case in 1929. It is clear that the Federal Reserve is now prepared to help the private sector, but more dramatic action may be required if the world economy is to avoid recession.

Administration of General Economic Programs, Intnl Economic Policy, International economic relations

---

This global bull market could run and run

Article Abstract:

The 15% rise in global equities in 1998 has taken place without any substantial rise in corporate earnings and without a large decline in bond yields. The equity risk premium has thus fallen, giving some backing to those who argue that equities are becoming expensive. However, the mis-match between bond and equity valuations is not yet a real cause for concern, and will probably not in itself put an end to the bull market. The future of the world's financial markets will be very strongly determined by whether existing extremely low bond yields can be sustained.

---

Bond yields suggest that EMU is a fair bet

Article Abstract:

Recent developments in financial markets seem to indicate that analysts believe that European monetary union (Emu) will go ahead. This is made particularly clear in the fact that forward bond yields in the core countries of France, the Netherlands, Germany and a small number of others collapse to the same rate for the years after 1999, when Emu is due to have come into effect. After this time, the implied forward bond yields currently built into the market are almost exactly the same.

Forecasts and trends, Monetary unions

Similar abstracts:

• Abstracts: Fears of hard landing start to recede. This windfall disaster could have been prevented. The golden rule of borrowing
• Abstracts: A word from the maestro herself. The reluctant maestro. Gestures speak louder than words
• Abstracts: After the hype, the scientists' verdict: CJD to kill hundreds. Should ours be the only children in the world to eat British beef?
• Abstracts: Parents confused, Brussels baffled. Britain defeated again in battle to end beef ban
• Abstracts: Hague has lost the vital glue of compromise. Cabinet struggle to preserve unity. EU poll backs Major view as seats tumble

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.