Evaluation of the effect of the oil prices on the economy. Introduction: From many decades oil is discovered and considered as the essential base in every part of people lives. It is the energy source and raw material that drives development. Oil is currently the most important commodity (EL-Sarif et. al. 2005). It is vital to transport (air, sea, road and rail) and also the production of goods for example, tar and plastic. With the demand for energy has risen relentlessly over the last 150 years
1. Background of the study 1.1. A study on the factors that influenced Malaysian stock market index is carry out in order to measure the movement of Malaysian stock market with the concern of macroeconomic variables which include the money supply (M2), exchange rate (EXR), inflation rate (CPI) and also industrial production index (IPI). 2. Problem Statement 2.1 The demand for investing in Malaysia stock market rise up recently. It shows that, investors are more attracted to invest with the purpose
power parity (PPP) was developed as the theory of exchange rate determination, which was the basis for the relationship between product price levels and exchange rates and is now primarily used to compare living standards across countries (CFA, 2015). The foundation version of PPP was based on the assumption that identical goods should trade at the same price across countries when valued in terms of a common currency. This is known as the “law of one price” and derived from the no arbitrage assumption
do not have predictive ability for future prices and that the returns generated using these rules are greater than those generated by a buy- and – hold strategy before accounting for transaction cost. Gallant et.al (1992): Has pointed out the price volume co-movement using daily NYSE data from 1928 to 1987. The Non-parametric methods was used through out to avoid bias due to specification error. It examining the contemporaneous price - volume relationship. Movements are associated with usually high
Exchange Rate Volatility: Impact on Industry Portfolios in Indian Stock Market K N Badhani*, Rajani Chhimwal** and Janki Suyal*** This study examines the interaction between changes in the exchange rate of Indian Rupee and returns on different BSE-based indices representing the firms of different sizes and industries. In absolute sense, the returns on all the stock portfolios are found to be positively correlated with the external value of Indian Rupee. However, the analysis with an extended market
The global economy and the stages of recovery: As is known, there has been a decline in global GPD growth rates during the last two years due to the global financial crisis which began in August 2007; it is considered one of the most serious crises experienced by the global economy since World War II. According to the latest update to the World Economic Outlook by the International Monetary Fund (January 26, 2010), global GDP growth fell from 5% p.a. in 2007 to 3.2% in 2008, dropping to -.08%
Exchange rate regime in Indian Context History of Indian Rupee as an exchange rate Only once as an independent nation India had choice of a exchange rate being defined as Indian rupee with reference to its foreign country trade partners. After successful independence and followed by constitution of India effect from 26th January 1950, India followed an exchange rate system which Indian Rupee linked to the British Pound Sterling. This system of exchange rate regime continues until mid- 1970’s, this
Running Head: IMPACT OF GLOBAL FINANCIAL CRISIS (S&P 500) AND EMERGING MARKETS (BRIC) 1 IMPACT OF GLOBAL FINANCIAL CRISIS: DEVELOPED (S&P 500) AND EMERGING MARKETS (BRIC) 23 Impact of Global Financial Crisis: (S&P 500) & Emerging Markets (Bric) Name Institution TABLE OF CONTENTS CHAPTER PAGE ABSTRACT 3 CHAPTERS CHAPTER 1 – Introduction 1 CHAPTER 2 – Methodology 6 CHAPTER 3 –Literature Review 24 CHAPTER 4 – Analysis and Results 38 CHAPTER 5 –
How exchange rate policies and systems characterize the countries of South America: Exchange rate plays a key role in development of South American economy. The exchange rate has enormously influenced the economy of these regions particularly from 1960’s when the economy was mostly characterized by import substitution, and 1970’s when foreign debt was significantly increased. Exchange rate has been very instrumental in formulation of government policies in these regions. In fact, “many analysts
culturally diverse people, situated between the Equator and the tropic of cancer, its climate and vegetation can afford the growth of many tropical commodities such as cocoa, groundnuts, palm produce and rubber. Starting from a low technological base after political independence in 1960, the country embarked on the arduous task of building a state with one identity by integrating the different ethnicities and transforming the barter economy into financial exchange economy. The country provided infrastructure