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Financial inclusion means that individuals and businesses have access to and use affordable financial products and services that meet their needs, which are delivered in a responsible and sustainable way. Financial inclusion is a catalyst for achieving seven of the 17 Sustainable Development Goals (SDGs)
It was argued that an expanding financial inclusion should contribute to the development of the financial market?
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Expanding financial inclusion contributes to building a robust financial market in several key ways:
1. Broadens the Investor Base
2. Enhances Capital Formation
3. Improves Risk Distribution
4. Promotes Financial Stability
5. Encourages Innovation and Competition
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كيف يتم تصنيفها
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It depends to some degree on how you define market efficiency. If you are defining it in terms of the price representing all publicly known information, really the only requirement is having sufficient trading volume. Surprisingly, the minimum volume needed is not as much as people think. There is evidence that US securities markets were already reasonably efficient by the late 1800s. If you read the book Common Stocks as Long Term Investments, which was published by Edgar Lawrence Smith in 1924, you may be surprised to see that his randomly selected portfolio outperformed portfolios that he constructed using quality screens. He did not highlight this because he did not appreciate the significance at the time. By the 1920s, however, it was crystal clear that markets were highly efficient in the United States. The SEC published a study in 1940 which revealed that most closed ended and open-ended mutual funds underperformed broad indexes in the mid 1920s and early 1930s. Again, they didn’t make a big deal out of it because they didn’t appreciate the significance at the time.
If your definition of marketing efficiency is fairness to the average investor, then the criteria change significantly. If this is the definition, effective regulation of market manipulation and insider trading is essential. It is also essential to require truthful disclosure from companies listing securities.
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ما هو الفرق ؟
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Based on my studies, it appears that in developed countries, the most significant factors affecting financial market efficiency are behavioral factors and technology. Behavioral biases among investors can lead to irrational decision-making, while advancements in technology enhance market processes and improve information dissemination, contributing significantly to overall market efficiency.
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The most effective types of indicators to measure the performance of the stock market
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enis-Jenis Indeks Pasar Keuangan
1. Indeks Saham
Mengukur kinerja sekelompok saham yang mewakili sektor, negara, atau tema tertentu.
Contoh paling terkenal:
  • 🏛️ Dow Jones Industrial Average (DJIA) – AS 30 perusahaan besar dan mapan di AS.
  • 📈 S&P 500 – AS 500 perusahaan publik terbesar di AS.
  • 📊 Nasdaq Composite – AS Fokus pada sektor teknologi.
  • 📉 Nikkei 225 – Jepang 225 perusahaan terbesar di Bursa Tokyo.
  • 🇬🇧 FTSE 100 – Inggris 100 perusahaan dengan kapitalisasi pasar terbesar di Bursa London.
  • 🇩🇪 DAX – Jerman 40 perusahaan utama di Bursa Frankfurt.
  • 🇫🇷 CAC 40 – Prancis 40 saham teratas di Euronext Paris.
  • 🇮🇩 IHSG (Indeks Harga Saham Gabungan) – Indonesia Semua saham di Bursa Efek Indonesia (BEI).
  • 🇮🇳 Nifty 50 – India 50 saham terbesar dan paling likuid di NSE India.
2. Indeks Obligasi
Mengukur kinerja harga dan yield sekumpulan obligasi.
Contoh:
  • Bloomberg Barclays Global Aggregate Bond Index
  • JP Morgan Emerging Markets Bond Index (EMBI)
3. Indeks Komoditas
Mengukur kinerja harga komoditas seperti minyak, emas, gandum.
Contoh:
  • S&P GSCI (Goldman Sachs Commodity Index)
  • Bloomberg Commodity Index
4. Indeks Mata Uang
Mengukur kekuatan relatif suatu mata uang terhadap sekeranjang mata uang lain.
Contoh:
  • U.S. Dollar Index (DXY)
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ما هي العوامل
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The historical development of any market may influence its current efficiency; mature markets may have established practices that foster efficiency, while newer markets may still be developing:
  • The speed and accuracy with which information is made available to market participants is critical. Markets are more efficient when information flows freely and quickly. The presence of information asymmetry, where some participants have access to information that others do not, can hinder efficiency.
  • The number and diversity of participants in the market can affect efficiency. A larger pool of investors leads to more viewpoints and better price discovery. Institutional versus retail investors can also have varying impacts; institutional investors typically have more resources and information analysis capabilities.
  • A market with high liquidity allows for easier buying and selling, which facilitates quicker price adjustments to new information. Lack of liquidity can result in larger price swings and delayed responses to information.
  • High transaction costs can discourage trading and limit the number of transactions, reducing market efficiency. Lack of liquidity can result in larger price swings and delayed responses to information.
Innovations in trading technology, analytics, and communication have a significant impact on market efficiency by speeding up transactions and improving information access.
Elaboration:
The tendency to ascribe to the market economy the characteristic of being something other than the events caused by the choices and actions of individuals is incorrect. The market arises as a result of the willingness of individuals to interact. Every development in the market is the outcome of purposive actions on the part of individuals who are seeking to improve their own state of affairs; this process of economic interaction and cooperation is the essence of the market; the market is not something physical but a process. Through the consummation of market transactions, individuals seek to improve their situations, i.e., enhance their own subjective satisfactions. The prices that emerge in the market are not unexplainable; they always are the result of subjective valuations expressed by individuals who choose to buy or sell or to abstain from either action.
In my opinion only, محمد سعد جودة , the most important factor is the free flow of information in the body economic,with lowest intervention by the body politic. in this sense, financial markets are extremely dependent on the dynamic interplay of central and commercial banking, i.e. the politics of money.
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There have been three great inventions since the beginning of time: fire, the wheel, and central banking.
American humorist Will Rogers (1879-1935)
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Are today's financial markets over-regulated, optimally normatively regulated or overly deregulated and liberalised in their functioning?
Since the commodity crisis of the 1970s, financial markets have been deregulated in many respects. The Bretton Woods international monetary system based on USD dollar parity collapsed (gold parity for the USD dollar was abolished). In the 1990s, many issues of the operation of deposit-credit commercial banks and investment banks were deregulated again.
It was made possible for the two types of banking to merge. This had its effects in generating the global financial crisis of 2007-2009. Due to the deregulation of financial markets, systemic credit risk increased significantly. The importance of improving the credit risk management process implemented in financial institutions, including commercial and investment banks, also increased. In many countries, the practice of money printing without coverage of manufactured products was practised, leading to increased inflation and, in some countries, to the occurrence of hyperinflation. Too low interest rates and government guarantees and other elements of a soft monetary policy led to too cheap money, too high a level of credit for economic activity and too high a level of credit risk, a decline in the repayment of bank loans and, as a consequence, to financial, economic and debt crises, etc. Derivatives specifically generated for this purpose, including credit derivatives such as subprime bonds, CDOs, etc., sold by investment banks to successive investors to generate additional money for unreliably (with practically no credit checks) granted mortgages, led to the major global financial crisis of 2008 in 2007-2009. I have been researching this issue. I have included the conclusions of my research in articles which, when published, I posted on my profile of this Research Gate portal. I invite research collaboration. I would like to hear your views on this issue.
In view of the above, the following question is topical:
Are the current financial markets over-regulated, optimally normatively regulated or are they too deregulated and liberalised in their functioning?
What do you think about this topic?
Please reply,
I invite you all to discuss,
Thank you very much,
Greetings,
Dariusz Prokopowicz
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Dear Researchers, Scientists, Friends,
The research question concerning the level of regulation in current financial markets – whether they are over-regulated, optimally regulated, or excessively deregulated – is fundamental to ensuring the stability and efficiency of the global financial system. The presented text rightly recalls the deregulatory trends since the 1970s and their potential link to the 2007-2009 financial crisis, emphasizing the increase in systemic risk and the importance of credit risk management. However, it is worth expanding this discussion to include new research questions, such as the analysis of the optimal level of regulation in the context of financial innovation (e.g., cryptocurrencies, decentralized finance), the study of the impact of regulation on market liquidity and efficiency, the identification of potential unintended consequences of excessive or insufficient regulation, the analysis of the role of international regulatory cooperation in preventing regulatory arbitrage and cross-border crises, and the assessment of the effectiveness of regulations introduced after the 2008 crisis in preventing future shocks. Future research could also focus on the use of new technologies (e.g., artificial intelligence, big data) to monitor systemic risk and assess the adequacy of regulations. I sincerely thank everyone for their past contributions to this crucial debate. I am open to scientific cooperation in this extremely important area and invite you to continue this significant discussion, which is of fundamental importance for the stability and development of the global economy.
Best wishes,
Dariusz Prokopowicz
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Do government regulations or market self-regulation mechanisms have a greater impact on the stability of financial markets?
Dear Researchers, Scientists, Friends,
Financial markets operate in a dynamic and complex environment in which both government regulation and self-regulation mechanisms play a key role. Countries introduce regulations on the functioning of banks, stock exchanges and investment funds, but some theories suggest that over-regulation can undermine the innovation and efficiency of financial markets. On the other hand, self-regulatory mechanisms, e.g. clearing institutions and liquidity rules, can stabilise markets, but without state supervision, there is a risk of abuse and speculation. For the purposes of this discussion, I have formulated the following research thesis: state regulation is crucial for the stability of financial markets, but excessive intervention can lead to a reduction in their effectiveness and innovation. Accordingly, this is a fundamental question of economic policy and financial stability affecting global capital markets. This problem can be analysed in the context of various financial crises, e.g. the 2008 crisis, where the lack of regulation of the derivatives market led to disastrous consequences. At the same time, research on economies with varying degrees of regulation can indicate which combination of state intervention and self-regulatory mechanisms provides the best market stability.
My articles below are related to the above issues in some aspects:
I have described the key aspects of the monetary policy pursued by central banks in recent years in the following article:
Comparisons of the monetary policy of the central banks of the Federal Reserve Bank and the European Central Bank and the National Bank of Poland
I have described the issue of economic globalisation as a significant factor in the systemic transformation of banking in Poland in the following article:
GLOBALIZATIONAL AND NORMATIVE DETERMINANTS OF THE IMPROVEMENT OF THE BANKING CREDIT RISK MANAGEMENT IN POLAND
I described crisis management in a company in the article:
CRISES IN THE ENVIRONMENT OF BUSINESS ENTITIES AND CRISIS MANAGEMENT
I have described the key issues of anti-crisis state intervention in my article below:
Anti-crisis state intervention and created in media images of global financial crisis
Globalisation and the process of the systemic and normative adaptation of the financial system in Poland to the European Union standards
And what do you think about this?
What is your opinion on this matter?
Please answer,
I invite everyone to the discussion,
Thank you very much,
Best regards,
I invite you to scientific cooperation,
Dariusz Prokopowicz
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Yes it has a positive impact on stability of Financial market.
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Does the development of autonomous decision-making systems based on artificial intelligence and big data analytics in financial institutions improve transaction security and market stability, or does it increase the risk of unpredictable crashes?
Financial institutions are increasingly implementing technologies based on artificial intelligence and big data analytics for real-time decision-making, trade automation and anomaly detection. However, the growing dependence on autonomous decision-making systems raises concerns about possible algorithmic errors, lack of human control and the risk of stock market crashes caused by AI malfunctions.
The use of artificial intelligence in finance can result in significant improvements in the efficiency and transparency of transactions, but these systems are not without their flaws. Errors in AI models, unforeseen interactions of algorithms on stock exchanges or market manipulation can lead to destabilisation. Well-known cases such as the so-called flash crashes show that even small algorithmic errors can have catastrophic consequences. The question is therefore whether the development of autonomous financial systems should be strictly regulated or whether they should be given more freedom to optimise the markets.
Autonomous decision-making systems may improve transaction security and minimise the risk of financial fraud. However, over-reliance on algorithms can lead to unpredictable market fluctuations and increase the risk of financial crises. Therefore, appropriate regulations and supervisory systems can enable the safe use of autonomous technologies in finance.
I have described the key issues of the opportunities and threats of the development of artificial intelligence technologies in my article below:
OPPORTUNITIES AND THREATS TO THE DEVELOPMENT OF ARTIFICIAL INTELLIGENCE APPLICATIONS AND THE NEED FOR NORMATIVE REGULATION OF THIS DEVELOPMENT
The issue of the role of information, information security, including business information transferred via social media, and the application of Industry 4.0/5.0 technologies to improve systems for the transfer and processing of data and information in social media is described in the following articles:
THE QUESTION OF THE SECURITY OF FACILITATING, COLLECTING AND PROCESSING INFORMATION IN DATA BASES OF SOCIAL NETWORKING
APPLICATION OF DATA BASE SYSTEMS BIG DATA AND BUSINESS INTELLIGENCE SOFTWARE IN INTEGRATED RISK MANAGEMENT IN ORGANISATION
The importance of Big Data Analytics technology in business management
Growing importance of ICT, Industry 4.0 and Big Data Analytics as key determinants of the development of The Financial Industry 4.0
Business Intelligence analytics based on the processing of large sets of information with the use of sentiment analysis and Big Data
The Big Data technologies as an important factor of electronic data processing and the development of computerised analytical platforms, Business Intelligence
The Technological Solutions Big Data and the Importance of Business Analysis According to the Business Intelligence Formula
And what do you think about this?
What is your opinion on this matter?
Please answer,
I invite everyone to the discussion,
Thank you very much,
Best regards,
I invite you to scientific cooperation,
Dariusz Prokopowicz
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Yes, the development of autonomous decision-making systems in financial institutions enhances transaction security by improving fraud detection, reducing human errors, and enabling real-time risk assessment. These systems use machine learning algorithms to identify suspicious activities, preventing unauthorized transactions more effectively than traditional methods. Additionally, automation ensures consistency in security protocols, minimizing vulnerabilities. However, challenges such as cybersecurity threats, regulatory compliance, and potential algorithmic biases must be addressed. Overall, while autonomous systems strengthen financial security, continuous monitoring and updates are essential to mitigate emerging risks.
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Is the issue of Central Bank Digital Currencies (CBDCs) still in the realm of concepts likely to be introduced in the future or has this solution already been implemented in some countries?
The Covid-19 pandemic has resulted in the acceleration of the digitization and Internetization of various aspects of the business activities of companies and enterprises, Internet-implemented processes for the sale of products and services, Internet-implemented payments and settlements, Internet-implemented marketing communications with customers, and so on. Much earlier, in the 1990s, in some countries, the first companies began to develop their business activities, including the sale of certain products and/or services via the Internet, the first Internet businesses began to operate, Internet startups, dotcoms growing rapidly, portals offering Internet information services, earning money from the sale of Internet advertising, and so on. At that time, electronic banking was already developing rapidly, offering its banking services remotely, first to institutional clients, and then to individual clients, to citizens. Electronic banking initially providing remote banking services in the form of so-called home banking, and then at the turn of the century transformed into online banking and then into mobile banking. Successively, therefore, the electronification, digitization and Internetization of banking is progressing year by year. In some countries, as early as the late 1990s, there were already considerations about the future of Internet banking development. The possibility of a full transition of banking to online banking was considered, as well as the full replacement of money existing in traditional form, i.e. in the form of banknotes and coins, to the form of electronic money. Already at that time there were theories suggesting that soon, in a few years, all banking will become Internet banking, that physically existing bank branches will disappear completely, physically existing money will disappear from citizens' wallets and will be completely replaced by its electronic counterpart. A continuation of this kind of considerations is the transition of central banks to a kind of form of electronic central banking and the replacement of traditional money with digital currency generated and introduced into the economy by central banks within the framework of shaped monetary policy. In a situation where the progressive processes of digitization and internetization would also apply to central banking then monetary policy could also be subject to these processes. Well, during the Covid-19 pandemic, there was also an increased interest in the development of central bank digital currencies (CBDCs) in some countries. Some countries have attempted to introduce digital currencies of central banks. An interesting issue is the possibility of involving Blockchain technology in the development of systems based on central banks' digital currencies, which could ensure a high level of security for these digital currencies. However, both the positive aspects of the introduction of central banks' digital currencies for the formation of monetary policy, which would also be implemented more digitally, are still not fully recognized. The negative aspects of the introduction of financial systems and their development based on central banks' digital currencies are also not diagnosed. It is not fully explored what new risks in financial markets can be generated by the introduction of central banks' digital currencies. It is not known how the introduction of digital currencies of central banks could affect the stability of financial systems, the situation in financial markets and the macroeconomic stability of the economy as a whole.
I have described the key issues of the central banking problem in my articles below:
Synergy of post-2008 Anti-Crisis Policy of the Mild Monetary Policy of the Federal Reserve Bank and the European Central Bank
Analysis of the effects of post-2008 anti-crisis mild monetary policy of the Federal Reserve Bank and the European Central Bank
A safe monetary central banking policy as a significant instrument for liquidity maintenance in the financial system
ACTIVATING INTERVENTIONIST MONETARY POLICY OF THE EUROPEAN CENTRAL BANK IN THE CONTEXT OF THE SECURITY OF THE EUROPEAN FINANCIAL SYSTEM
Anti-crisis state intervention and created in media images of global financial crisis
I invite you to get acquainted with the issues described in the above-mentioned publications and to scientific cooperation in these issues.
In view of the above, I address the following question to the esteemed community of scientists and researchers:
Is the issue of Central Bank Digital Currencies (CBDCs) still in the realm of concepts likely to be introduced in the future or has it already been implemented in some countries?
Is the issue of Central Bank Digital Currencies (CBDCs) still in the realm of concepts or has this solution already been implemented in some countries?
What do you think about this topic?
What is your opinion on this issue?
Please answer,
I invite everyone to join the discussion,
Thank you very much,
Best wishes,
Dariusz Prokopowicz
The above text is entirely my own work written by me on the basis of my research.
In writing this text, I did not use other sources or automatic text generation systems.
Copyright by Dariusz Prokopowicz
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Dear Ayu RETSI Lestari, Dear Chuck A Arize,
Thank you for your reply. You have pointed out important aspects of the Central Bank Digital Currencies (CBDCs) issue.
In the context of the above problematics, I would like to add the following important point to our present discussion on the issue of Central Bank Digital Currencies (CBDCs). Well, in the context of our discussion, the following question is relevant:
How might the introduction of Central Bank Digital Currencies (CBDCs) affect central banks' monetary policies, their role and their relevance?
What do you think about this?
In addition to the above, I would like to add the following relevant issue to our present discussion concerning the issue of central banking, the monetary policy pursued by central banks, including the periodic tightening and easing of monetary policy and the impact of these interventionist measures on the conjuncture in financial markets, on the situation in the economy, on the attempt to limit the scale of financial and economic crises and on the impact of certain strategies implemented as part of the monetary policy pursued by central banks and the genesis of these crises. I have described this issue in the following recent article of mine:
Comparisons of the monetary policy of the central banks of the Federal Reserve Bank and the European Central Bank and the National Bank of Poland
And what is your opinion on the subject?
What is your opinion on this subject?
Please respond,
I invite you all to discuss,
Thank you very much,
Best wishes,
I would like to invite you to scientific cooperation,
Dariusz Prokopowicz
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Traditional approaches to forecasting financial markets often rely on time-series algorithms to analyze candlestick chart data. I am exploring the potential of computer vision techniques to directly identify and classify complex patterns in candlestick charts.
Specifically, I am looking for:
  1. Recommendations for computer vision algorithms or architectures suitable for pattern recognition in candlestick charts.
  2. Techniques for preprocessing and augmenting candlestick chart images to improve model performance.
  3. Methods to handle overlapping or ambiguous patterns in chart data.
  4. Insights into the comparative advantages and limitations of using computer vision instead of time-series forecasting algorithms for this task.
Any shared experiences, references, or suggestions on how to effectively implement this approach would be greatly appreciated!
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Hello,
I am experienced in computer vision but new to finance, so my suggestion is to work with CNNs, combining CNNs with LSTMs is also possible and it will give a better performance if you have time series image data, and to support that I would like to suggest the following:
I hope these resources are useful, and according to my knowledge augmentation random flipping might be useful, and maybe scaling could help improve the performance of the model.
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Could the central bank's historical record net loss for 2022, in the context of its monetary policy and speculative transactions in international financial markets, mean a decrease in security in the banking system?
The main purpose of a central bank's activities is to take care of the value of money, its stability against other currencies and the security of the banking system. However, since the 1970s, since the period of the rise of monetarism developed in accordance with Milton Fredman's concept of monetarism, the increase in the scale of economic globalisation, the transition of international monetary systems from the USD-based system, the system established after the Second World War in Bretton Woods to a system of free market exchange rates, the abandonment in the USA of gold parity with the USD currency, the growth of multinational corporations, the increased importance of speculative financial transactions carried out on foreign capital markets, including securities markets, etc. Central banks are also involved in the processes of stabilising the economy as part of anti-crisis programmes and protecting national labour markets, with the aim of limiting the scale of the increase in unemployment. In some countries, these new, additional central bank functions are added to the legal regulations shaping the functioning of the central bank. In some countries, the issue of linking the central bank's monetary policy is implemented informally.
For years, the central bank in Poland has also been conducting speculative transactions on international financial markets using various currencies and securities. For many previous years, the bank generated a net profit of PLN 9-10 billion of which 95 per cent of this profit was transferred to the state budget by the politically connected central bank to the government, instead of feeding the central bank's reserves and increasing the security of the financial system. For 2021, the central bank in Poland, i.e. the National Bank of Poland, generated as much as PLN 11 billion in net profit thanks to speculative transactions on the international financial markets, almost all of which went to the state budget rather than to central bank reserves, as usual. The annual profit generated by the central bank in Poland until 2021 was a consequence of, among other things, the monetary policy pursued by the bank, which consisted in successive depreciation of the domestic currency PLN against other currencies. However, for 2022, the National Bank of Poland unexpectedly raked in a historically record loss of PLN 17 billion. Could it be that the speculative transactions carried out in 2022 on the international financial markets turned out to be wrong this time? In addition, another key question arises: to what extent will this kind of situation result in a decrease in the level of security of the entire banking system?
In view of the above, I address the following question to the esteemed community of scientists and researchers:
Could the historically record net loss of the central bank for 2022, in the context of the monetary policy pursued and the speculative transactions carried out on the international financial markets, mean a decrease in security in the banking system?
And what is your opinion on this?
What is your opinion on this subject?
Please respond,
I invite you all to discuss,
Thank you very much,
Best wishes,
Dariusz Prokopowicz
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A loss is, in principle, a possible outcome of central banking operations and can arise even in connection with the most basic of all central banking functions: currency issue. A loss will occur when the interest rate charged by the central bank on its loans is not sufficiently high to cover the printing, minting, and administrative costs of currency issue
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Financial markets are platforms where individuals trade various financial instruments. it is divided into the following categories: the capital market and the money market. under the capital market are the bond market which is the government securities traded for a long term. and also the stock market which involves the trading of shares either from a primary or secondary market. Under the money market are the Repo markets which are also known as the overnight markets and also the Forex markets.
over the years, people remain ignorant about this information. how would a country, especially a developing country use financial markets to increase economic growth?
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Countries can raise bonds and debt instruments from the financial market. The proceeds from the bonds and debt instruments can be used to build roads and infrastructure that stimulate economic growth.
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Dear Prospective Researcher,
I am seeking a Research Assistant who can commit 3 hours daily to projects related to corporate finance and/or financial markets. The ideal candidate should have a minimum of 2 SSCI articles as main author in the relevant domain.
Best regards,
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I am interested
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Is any validated questionnaire available to measure "House money effect" bias in the financial market (Likert scale)?
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1. Search academic databases like Google Scholar, JSTOR, or PubMed for relevant studies or articles.
2. Look for research papers that include the development or use of such questionnaires.
3. Review the appendices or supplementary materials of these papers, as they often contain the questionnaires.
4. Contact authors directly if the questionnaire is not included in the publication.
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What could be the potential consequences of the steadily perennially growing indebtedness of the state's public finance system, including the steadily growing budget deficit and public debt both in relative, indicator terms expressed against the Gross Domestic Product and in terms of absolute numbers expressed in money?
As the indebtedness of the state's public finance system has increased in many countries in recent years, it is increasingly important to consider what categories of risks this may lead to. The increase in the indebtedness of the system of state public finances has occurred mainly in connection with, on the one hand, objective factors such as the occurrence of financial and economic crises that are difficult to predict in advance, and, on the other hand, is the result of misguided economic policies, mistakes made in the framework of the management of the system of state public finances, the formation of the central budgets of the state and/or the financial budgets of local government units, the budgets of state public institutions, etc. Mistakes made in the framework of the formation of fiscal policy are due to, among other things, the mismatch of the expenditure side with the revenue side of the state budget and the specific structure of budget expenditures and receipts. On the other hand, the extent to which the mistakes made will manifest themselves and generate problems in public finances and the financial risks resulting therefrom is also largely likely to result from the economic and financial crises that are appearing with increasing frequency. Over the past few decades of time, the frequency and scale of emerging economic, financial, energy and other crises have been steadily increasing. The financial crisis of the late 20th century generated by the overvaluation and stock market crash of Internet dotcom stocks. Then the global financial crisis of 2008 derived from overly lax monetary policies, overly relaxed mortgage lending policies and moral gambling by financial institutions involved in the process of financing these loans carried out mainly through the issuance and sale of subprime bonds. After a little more than a decade, a pandemic economic crisis emerges in 2020, which is originally derived from the occurrence of panic in the capital markets, when the World Health Organization on March 11, 2020 declares the Covid-19 pandemic state and then the economic crisis and recession of the economy is aggravated by the introduced lockdowns imposed on economic entities operating in selected, service sectors of the economy and the so-called national quarantines also introduced in some countries. During the Covid-19 pandemic in some countries, in order to limit the scale of the increase in unemployment, historically record amounts of added money were introduced into the economy, which is described as a kind of interventionist financial anti-crisis measure. However, the inevitable result of this kind of ultra-lenient fiscal policy and at the same time the relaxed monetary policy also applied at the time with interest rates lowered by central banks was a strong increase in inflation. The increase in inflation caused an increase in the cost of economic activity and a decrease in the economic process activity of companies and enterprises. Then anti-inflationary central banks raised interest rates. The result was an increase in the cost of borrowed money in loans, advances and Treasury debt securities. This then generated a significant decline in the level of investment in many sectors of the economy, a process that worked most rapidly and on the largest scale in the cyclical sectors, i.e., the housing sector, for example. The decline in investment in the housing sector was also associated with a decline in the creditworthiness of potential borrowers interested in buying an apartment or house on credit. In 2022, there was an energy crisis, which was initially inspired by the outbreak of war in Ukraine and then by a strong increase in energy commodity prices. The energy crisis was particularly profound in those countries where, as in Poland, for example, the processes of green energy transition were carried out on a limited scale resulting in energy generation still from conventional combustion energy based on burning fossil fuels, mainly coal and/or lignite. The result of the economic crises of 2020-2022 was the occurrence of economic recession in a large part of the countries in the first half of 2023. During all these crises, many countries anti-crisis increased spending from the state's public finance system, and this despite the decline in tax revenues to the state budget. Thus, the obvious result of these processes and anti-crisis state financial interventionism was an increase in debt in the public finance systems of many countries. By 2024, in some countries, inflation had fallen around the inflation target and the rate of economic growth began to slowly recover from crisis and recessionary levels. However, the level of debt growth in a country's public finance system has been particularly high during this period, and it will probably take many years to reduce this level of debt to a level considered safe on an indicator basis (3 percent budget deficit to GDP and 50 percent public debt to GDP) even with certain restrictive fiscal policies and tightening monetary policy. The key issue of the problem of the growth of the debt of the public finance system of the state is that it is not a current problem, but, first of all, it is a prospective problem, the scale of which will grow in the future over the next decades of time, and not only in underdeveloped and developing countries but also in highly developed countries. The reason is the progressive process of changes in the demographic structure of society commonly referred to as population aging. Therefore, in the future, the scale of the risk of an increase in the indebtedness of the system of public finances of the state, the occurrence of a debt crisis of public finances and the deconstructive action of this process will unfortunately increase.
I have also described many of these above-mentioned aspects in my publications posted on my profile of this Research Gate portal.
I am researching this issue. I have published the results of my research in several publications, including the following chapters in a monograph:
“Recent economic crises and the prospective climate crisis of the 21st century and the green transformation of the economy” (Recent economic crises and the prospective climate crisis of the 21st century and the green transformation of the economy).
“Economic and financial crises in the 21st century and the anti-crisis state interventionism that prevents them” (Economic and financial crises in the 21st century and the anti-crisis state interventionism that prevents them)
The key issues of the problematic sources of Poland's exceptionally deep energy cross in 2022 are described in my co-authored article below:
POLAND'S 2022 ENERGY CRISIS AS A RESULT OF THE WAR IN UKRAINE AND YEARS OF NEGLECT TO CARRY OUT A GREEN TRANSFORMATION OF THE ENERGY SECTOR
I described the issue of the importance of activating entrepreneurship and innovation of business entities for economic development in the article:
In view of the above, I address the following question to the esteemed community of scientists and researchers:
What could be the potential consequences of the steadily increasing indebtedness of the state's public finance system over many years, including the steadily increasing budget deficit and public debt both in relative, indicator terms expressed against the Gross Domestic Product and in terms of absolute numbers expressed in money?
What could be the potential consequences of the steadily increasing debt of the state's public finance system in multi-year terms?
What do you think about this topic?
What is your opinion on this issue?
Please answer,
I invite everyone to join the discussion,
Thank you very much,
Thank you,
Best regards,
Dariusz Prokopowicz
The above text is entirely my own work written by me on the basis of my research.
In writing this text, I did not use other sources or automatic text generation systems.
Copyright by Dariusz Prokopowicz
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  • Higher Interest Costs: As public debt increases, the government has to pay more in interest, diverting funds from other essential services and investments.
  • Reduced Fiscal Space: A growing debt limits the government's ability to respond to economic crises and invest in growth-promoting areas, constraining future fiscal policies.
  • Increased Borrowing Costs: Persistent high debt can lead to higher borrowing costs for the government as investors demand higher yields on bonds to compensate for increased risk.
  • Crowding Out of Private Investment: High public debt can lead to higher interest rates overall, which might reduce private sector investment, negatively impacting economic growth.
  • Potential for Fiscal Crisis: Extremely high levels of debt can lead to loss of investor confidence, resulting in a fiscal crisis where the government might struggle to meet its debt obligations .
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Hi
I am trying to run TVP VAR model by Antonakakis, N., Chatziantoniou, I., & Gabauer, D. (2020). Refined measures of dynamic connectedness based on time-varying parameter vector autoregressions. Journal of Risk and Financial Management, 13(4), 84. and Spillover Asymmetry Measure (SAM) model by Baruník, J., Kočenda, E. and Vácha, L., (2016) Asymmetric connectedness on the U.S. stock market: Bad and good volatility spillovers Journal of Financial Markets, 27, 55–78.
I am not able to understand the codes given in the help section in R studio. It would be a great help if anyone can assist me in this regard.
Thanks
Pratibha
Research scholar
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Absolutely, R offers packages for time-varying parameter vector autoregressions (TVP VAR) and spillover analysis. Here's a general approach:
  1. Packages: Look into packages like "vars" or "TVPack" for TVP VAR modeling and potentially "urca" for spillover analysis.
  2. Documentation: These packages usually have detailed documentation. Once you pick a package, explore its documentation to understand its specific functions and usage.
  3. Examples: Many packages include examples that demonstrate how to run models. Look for examples related to TVP VAR or spillover analysis.
Here's an additional tip: Searching online for "R TVP VAR SAM" or similar terms can find resources that walk you through the process. Be sure to check the source and credibility of any information you find online.
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I want the data on India VIX (Volatility Index), Bank NIFTY, NIFTY 50 and some other India Stock market data for my research.
However, on the NSE website I can find only data since 2013.
When I check into historical data, it shows no data available.
Any help would be appreciated.
Researchers of financial markets in India- please help.
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You can get it from Bloomberg/Eikon. You can try NSE website as well with this link-https://www.nseindia.com/reports-indices-historical-vix
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Is this universally true: "Nuclear Uncertainty Threaten Financial Markets? The Attention Paid to North Korean Nuclear Threats and Its Impact on South Korea's Financial Markets... Moreover, the investor attention paid to the nuclear risk reduced stock prices, especially in the banking industry, during the entire sample period" (https://onlinelibrary.wiley.com/doi/abs/10.1111/asej.12142, First published: 25 March 2018).
If it was not, how about working together for being updated?
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Check ScienceDirect.
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Write your own opinion to make the article for better understanding
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Yes, stock market is the very important part of financial market and i don't think that stock market is a gambling although it has systematic risk or market risk and unsystematic risk of losing money. Unsystematic risk can be minimized by well diversified of portfolio but some market risk will always be there in every stocks. If you are properly analysing the fundamental parameters of a stocks and capital structure of a comapany then most of the time you will be beneficial but not everytime.
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If so can we apply the approach for Market Regime Detection?
Market regime detection is an important problem in finance, as it involves identifying shifts in the behavior of financial markets over time. Understanding these shifts can help investors to manage risk and develop more effective trading strategies. The research paper "Causal deconvolution by algorithmic generative models" describes a method for inferring causal relationships between variables using algorithmic generative models. This study proposes to apply this method to the problem of market regime detection, with the aim of identifying causal relationships between different market variables and detecting changes in market regimes.
First of all, what is the most optimal way to represent market information in a cell configuration?
Then, how do we auto-discover and extract features from such space-time diagrams?
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After reading the previous answers, one thing seems to be important to mention. Self-Organization and emergence are playing a great role in description of many complex systems observed in the Nature and even in those man-made.
I recommend you to study those processes in social systems. It gives you a completely different perspective.
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I am seeking professional input on addressing climate change. In my work, I have seen decades of debate or hesitation of buy in by financial markets to actually address the main problem at play: the anthropogenic over-production of carbon dioxide and destruction of planetary carbon sinks. When we address this anthropogenic problem we say human-caused climate change or global warming or climate crisis. So far, despite saying we need to change, little action, especially in finance, takes place, especially on the scale needed. Often, the problem itself is too confusing and too large of a problem to really tackle a solution that is obvious and measurable.
My scope of work is looking at changing the common vernacular use of climate change to address the exact problem at hand: the anthropogenic over-production of dissolved CO2 gas into the atmosphere and destruction of planetary carbon sinks. The goal is to call that Global Carbon Crisis vs. what we have been calling it with confusion, climate change. After all, climate change has been an ongoing, natural process since the advent of polar ice caps.
The additional piece I am looking to address is the effective measurability which is already an infrastructure in place, called the Global Carbon Index. Essentially measuring a specific location CO2 production by contrast to overall global production at time of measurement.
What I am hoping to accomplish is a discussion if climate change to address this real problem should be used any more and why or why not. Also, to discover if fellow researchers feel this work is warranted to develop a systematic means to solve this difficult problem to assist buy in with financial incentives by using a defined unit of measure, the Global Carbon Index, to incentivize or discourage current production.
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Man-made climate change is bunk. Tidal pumping - gravity of Sun out to Jupiter open our tectonic plates spilling huge amount of seismic heat into oceans. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4398306
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Could the failure of Silicon Valley Bank and Signature Bank be the start of a domino effect of failing financial system entities and the beginning of a new financial crisis?
Have credit procedures and risk management processes really improved after the global financial crisis of 2007-2009, since major banks are still failing, which may cause severe turbulence on the financial markets, including capital markets, securities markets and, consequently, may also deepen the already developing economic crises?
On Monday 13.03.2023, the situation shaping the capital markets was influenced by the developing news in many media that one of the largest banks in the USA, i.e. Silicon Valley Bank, had declared bankruptcy. The collapsed SVB bank was taken over by the state-owned Federal Deposit Insurance Corporation (FDIC, Federal Deposit Guarantee Corporation) on Friday 10.03.2023 after the bank was unable to pay out money to customers withdrawing their deposits in a panic. SVB is the 16th largest bank in the US and has served a significant proportion of Silicon Valley startups, companies and funds. Silicon Valley Bank was the largest collapse in the banking sector since the 2008 Lehman Brothers collapse and the onset of the 2007-2009 global financial crisis. At the end of 2022, SVB had more than $209 billion in assets. But the collapse of Silicon Valley Bank (SVB) is not the end of the problems in the financial markets. On Monday 13.03.2023, news hit the media that another bank is failing. Customers worried about their deposits also called many of their other banks to check that their money was safe. This second spectacular failure in the financial system is New York's Signature Bank, which was shut down by state market regulators on Sunday. According to the Reuters news agency, this is the third largest bank failure in US history. It is also another spectacular bankruptcy of a major financial institution overseas in just a few days. New York-based Signature Bank is a US financial institution that, at the end of 2022, had customer deposits worth almost USD 89 billion and USD 110.36 billion in assets. According to published official figures, almost a quarter of these funds came from cryptocurrencies. This raises a key issue to be resolved regarding the extent to which credit procedures and the credit risk management process at financial institutions have improved over the last 15 years, i.e. after the onset of the 2007-2009 global financial crisis. I have described the determinants and root factors of the 2007-2009 global financial crisis, including the mistakes made in credit risk management, in my articles on this issue, which I posted on my profile of this Research Gate portal after publication. I would like to invite those conducting research on this issue to join me in research collaboration on issues and factors for improving the credit risk management process in financial institutions.
In view of the above, I would like to address the following questions to the esteemed community of scholars and researchers:
Could the failure of Silicon Valley Bank and Signature Bank be the beginning of a domino effect of failing financial system entities and the start of a new financial crisis?
Have credit procedures and risk management processes really improved after the global financial crisis of 2007-2009, since major banks are still failing, which may cause severe turbulence on the financial markets, including capital markets, securities markets and, consequently, may also aggravate the already developing economic crises?
What do you think about this topic?
What is your opinion on this subject?
Please respond,
I invite you all to discuss,
The following articles are related to the above issues in some respects:
Comparisons of the monetary policy of the central banks of the Federal Reserve Bank and the European Central Bank and the National Bank of Poland
ACTIVATING INTERVENTIONIST MONETARY POLICY OF THE EUROPEAN CENTRAL BANK IN THE CONTEXT OF THE SECURITY OF THE EUROPEAN FINANCIAL SYSTEM
Analysis of the effects of post-2008 anti-crisis mild monetary policy of the Federal Reserve Bank and the European Central Bank
Synergy of post-2008 Anti-Crisis Policy of the Mild Monetary Policy of the Federal Reserve Bank and the European Central Bank
Determinants of credit risk management in the context of the development of the derivatives market and the cyclical conjuncture economic processes
IMPROVING MANAGING THE CREDIT RISK IN CONDITIONS SLOWING ECONOMIC GROWTH
THE IMPLEMENTATION OF AN INTEGRATED CREDIT RISK MANAGEMENT IN OPERATING IN POLAND COMMERCIAL BANKS
Importance and implementation of improvement process of prudential instruments in commercial banks on the background of anti-crisis socio-economic policy in Poland
GLOBALISATION AND NORMATIVE DETERMINANTS OF THE IMPROVEMENT OF BANKING CREDIT RISK MANAGEMENT IN POLAND
I invite you to collaborate with me on research projects.
Thank you very much,
Warm regards,
Dariusz Prokopowicz
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The credit procedures and the risk management process was not really the reason for the 2008 global crisis but it was because of financial wastage management (i.e. doing business with the customers who have already defaulted on their financial obligation). Though credit procedure and risk management process was not reason for the 2008 global crisis, risk management and credit procedure got a lot of attention across world post 2008 crisis. Various new techniques and courses related to the credit procedure and risk management got prominence across the world. It won't be judicious for me to comment on effectiveness of those techniques and courses.
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in most of studies in financial market, risk management and pricing, the recherchers propose models and measurement techniques, and they do not construct assumptions and report variables like other quantitative studies.
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Research methods and methodology in finance: exploring and interpreting data.modelling variation: probabilities, random variables, distributions. samples and populations. testing hypotheses.
Quantitative analysis (QA) in finance is an approach that emphasizes mathematical and statistical analysis to help determine the value of a financial asset, such as a stock or option.
In business and management, qualitative analysis uses subjective judgment to analyze a company's value or prospects based on non-quantifiable information, such as management expertise, industry cycles, strength of research and development, and labor relations.
Conclusion: The dominance of informed guesses, dear Chbili Sfia , seems to originate from the specific interests of private wealth management, where intuition seems to merge with logic more by the applied kitchen style.
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They are the two schools of thought when it comes to analysing financial markets
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Google "technical and fundamental analysis" to get multiple sources of information, all of which is better that that offered by the previous responder.
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Is it appropriate for the development of financial markets and the economy that above-average profits can be made by inducing financial and/or economic crises through speculative transactions carried out with the help of derivatives made in the capital markets liberalized in recent decades?
And if NOT, how should the standards and rules of financial markets be improved, so that in this way it is not possible to deliberately cause financial and/or economic crises and escalate the development of negative economic processes?
How should the standards and rules of operation of financial markets be improved, so that the scale of deliberate triggering of financial and/or economic crises through the use of speculative transactions carried out with the help of derivatives, transactions carried out in certain capital markets, is significantly reduced?
In the past, already since the commodity crises of the 1970s, the period of the beginning of the development of various new types of derivatives, the increase in the scale of deregulation and liberalization of the operation of financial markets, the change of international monetary systems through the replacement of the Bretton Woods system with free exchange rate systems, the scale of instability in financial markets, including capital markets, currency markets, stock exchanges has increased significantly. During the global financial crisis of 2007-2009, data emerged confirming the facts of speculative activities by some investment banks, which increased the scale of development of the aforementioned crisis. Also, at the beginning of March 2020, when the World Health Organization declared the state of the global epidemic, i.e. the so-called SARS-CoV-2 (Covid-19) coronavirus pandemic, this fact also triggered a strong increase in the volatility of asset valuations in the capital markets. When new events suddenly appear that generate uncertainty, fear then financial risks, credit risks, currency risks, liquidity risks, debt risks, etc.increase, which causes an increase in volatility in financial markets. Institutions that take advantage of this kind of situation, institutions that have sensitive information, use this kind of information and, on the basis of this information, carry out insider trading in certain capital markets are an example of imperfect functioning of financial markets. Such instances of imperfect functioning of financial markets, including capital markets, should be detected and limited by institutions established for this purpose, such as the Securities Commission, the Financial Supervision Commission, the Banking Supervision Commission, etc. The functioning of financial markets should be improved, and the rules, standards and procedures of individual institutions and segments of financial markets should be perfected. When it is the so-called small, small stock market investors then it is assumed that this is a positive factor in ensuring a certain level of liquidity in the capital market. However, when transactions are carried out by large financial institutions, including banks and investment funds with the involvement of large financial resources in an amount, for example, comparable to the value of the state budget of a small country, then there are quandaries about the possibility of deliberate not only exploitation of situations of instability in financial markets, but also about possible actions that amplify or even inspire these instabilities. For example, military actions and failures of critical infrastructure installations, high-risk system infrastructure, energy sector infrastructure can be factors that cause a significant increase in asset price volatility in capital markets, including energy commodity prices on commodity exchanges and securities prices on stock exchanges. A recent example would be failures, perhaps sabotage actions carried out on pipelines filled with natural gas causes destabilization in energy commodity price markets. This causes the currencies of small economies, i.e. Poland, for example, to fall. In addition, a significant increase in interest rates on the currencies of large economies like the US and the EU increases the scale of the decline in the currency of a small, developing economy and one that is highly exposed to the energy crisis. In addition, the war in Ukraine is taking place next to Poland. In addition, large, internationally operating investment banks can take advantage of this situation to conduct profitable speculative transactions using currencies characterized by a high level of exchange rate volatility and susceptibility to certain defined influencing factors. A decline in the exchange rate of the Polish national currency PLN will cause additional difficulties in the central bank's anti-inflationary, interventionist monetary policy. The topic of the need to improve the issues of the functioning of financial markets, including the improvement of the rules, standards and procedures for the operation of individual institutions and segments of financial markets is still relevant.
In view of the above, I address the following question to the esteemed community of researchers and scientists:
How should the standards and rules of operation of financial markets be improved, so as to significantly reduce the scale of deliberately causing financial and/or economic crises and escalating the development of negative economic processes?
How should the standards and rules of financial markets be improved so that it is not possible to deliberately cause financial and/or economic crises through the use of speculative transactions carried out with the help of derivatives, transactions made in certain capital markets?
How should the functioning of financial markets be improved systemically, institutionally, organizationally and normatively so as to reduce the scale of triggering financial and/or economic crises?
What are your thoughts on this topic?
What is your opinion on this issue?
Please answer,
I invite everyone to join the discussion,
Thank you very much,
The following articles are related to the above issues in some respects:
Comparisons of the monetary policy of the central banks of the Federal Reserve Bank and the European Central Bank and the National Bank of Poland
Analysis of the effects of post-2008 anti-crisis mild monetary policy of the Federal Reserve Bank and the European Central Bank
ACTIVATING INTERVENTIONIST MONETARY POLICY OF THE EUROPEAN CENTRAL BANK IN THE CONTEXT OF THE SECURITY OF THE EUROPEAN FINANCIAL SYSTEM
IMPACT OF THE CORONAVIRUS PANDEMIC (COVID-19) ON FINANCIAL MARKETS AND THE ECONOMY
CRISES IN THE ENVIRONMENT OF BUSINESS ENTITIES AND CRISIS MANAGEMENT
Anti-crisis state intervention and created in media images of global financial crisis
THE POST-COVID RISE IN INFLATION: COINCIDENCE OR THE RESULT OF MISGUIDED, EXCESSIVELY INTERVENTIONIST AND MONETARIST ECONOMIC POLICIES
I invite you to collaborate with me on research projects.
Warm regards,
Dariusz Prokopowicz
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The problem of financial and/or economic crises does not entirely rest on derivatives made in the capital markets liberalized in recent decades but on ethics. So, to improve the functioning of the financial markets to reduce the scale of triggering financial and/or economic crises, a set of ethical standards must be part of derivatives.
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What is the technique which I use to convert the annual ESG score data to (Monthly, weekly, or daily data) with good accuracy?
AND how can I apply via Python?!
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I agree with Yongkang Stanley Huang and Michel Charifzadeh. Because ESG score is not a periodic data ( such as contineous data) rather a score usually provied with symbols such as A, B and C...
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Though it has been a few decades since Chaos Theory made its way into Economics and Finance through the works of Baumol & Benhabib, Alison Butler, David Levy, Philip Mirowski, Michael McKenzie, Robert Gilmore and Blake LeBaron
(among others), it is observed that most of the mainstream economics and finance journals are reserved towards publishing empirical papers on chaos in financial markets. Publications to this end are very few and most of them are published in a handful of journals.
As I am looking forward to write empirical papers examining the evidence of chaos in commodity markets, I wish to know the odds of my work seeing the light of the day. Any useful suggestion/information in this regard would be highly appreciated.
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Using chaos theory, a change in price is determined through mathematical predictions of the following factors: a trader's personal motivations (such as doubt, desire, or hope, all of which are nonlinear and complex), changes in volume, the acceleration of changes, and momentum behind the changes.
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About Lend Tech (Lending Technologies) as one of the Fin Tech sections, do you know an article or scientific report to introduce? To discuss and conclude on the following topics.
Ways of developing Lend Tech, its effects, Its dimensions, Difficulties, challenges, opportunities it can create in the financial market, its effects on investment and so on.
thanks.
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there are articles about Fintech.
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When we forecast financial markets (such as stock returns), we may use a variable without transformation (i.e., level). However, a growing body of research uses first difference, log difference, regression residual, regression slope, and time trend instead of the level. That is, markets react to new or future information (innovations) instead of the expected information (such as the level). Please provide more explanations and discussions.
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Hi, stock prices, commodity prices and the alike are usually well described by unit-root processes. The same happens with the natural logarithm of these prices. In such case, a crude analysis involving variables in levels or log levels may be spurious. Please google "spurios regressions" for more details. Even the computation of simple correlations between trending variables or variables with unit roots may lead to the illusion of a strong linkage when in reality there is no relationship whatsoever.
When you transform the series to work with returns that do not display a trending behavior, the problem of a false discovery is minimized.
So I would say that in many cases researches avoid to work with series in levels to avoid the porblem of spurious regressions and correlations.
Hope it helps!
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i have to compute the average return of Nifty-50 Index of indian stock market for the financial year april,2016 to march,2017.
i calculated daily returns and took the average of the daily returns. but, it is just 1.34% because, abnormal positve and negative returns during the period
How to prepare a smoothened series of nifty returns and to compute year average of the index.
thanks in advance
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I've been trading stocks with no criteria. Hopefully it will still work.
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In my current research, I'm trying to describe the thinking of the people during the financial crack of 1929 in the united states, mainly in the times where the stock market bubble began its gestation.
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I think the following book will help you out in this regard:
The normal personality: A new way of thinking about people.
S Reiss - 2008 - psycnet.apa.org
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Hello, is there any way to obtain the Kyle lambda or a price impact parameter starting from the bid-ask spread if the traded volumes are not available? Unfortunately Refinitiv does not offer the OTC transactions data. Therefore, for corporate bonds we have plenty of information on bid-ask spread, but most of them have no volume. I am aware of the Back and Baruch (2004) paper (https://www.jstor.org/stable/3598909), however it gives an approximation of the Kyle lambda using the bid-ask spread when volumes are known.
Thanks a lot
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Dear Franscesco
May be this article will be helpful
regards
Imran
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I am learning ml, data science for data crunching of financial market data for my trading in financial market . I want to make a terminal which takes live data from NSE and do certain task(some calculation , graph representations ,ml model to run on data )but don't know is it possible with ml and python or have to go through whole software development road . so pls help me to figure out what i need to learn for this and how to do this .
Respectfully
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Does the influence, type, scope of economic and economic information on the current situation on the financial markets and the condition of macroeconomic determinants describing the entire economy and how they are presented in the media can have a significant impact on investors, especially the so-called small investors, including households, on investment decisions made on the capital markets and thus on the future situation on these markets?
The key issue is social psychology, the psychology of investors operating on capital markets, the ability to influence stock market trends by providing key information in the media on the macroeconomic situation of the country and information provided by rating agencies, large banks and investment funds, central banks, financial supervisors, research institutes and government agencies.
Is it possible to use the available classic and new media, including the Internet by large commercial financial institutions for their own needs, eg attempt to trigger certain changes in stock exchange trends by providing economic information to the media that may affect investment decisions made by investors?
Are there known, diagnosed, investigated such situations?
Do you agree with my opinion on this matter?
In view of the above, I am asking you the following question: Can economic news in the media influence the psychology of investor behavior in the capital markets?
Please reply
I invite you to the discussion
Thank you very much
This issue is described in the following publication:
I invite you to discussion and cooperation.
Best wishes
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Of course yes!. In fact, THEY ALREADY DO ... AND A LOT !!
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What kind of scientific research dominate in the field of global financial crisis?
In my opinion, globalization is leading to the Integration of Business Cycles.
In this way, globalization may deepen economic crises, including the global financial and debt crisis. An example was the global financial crisis, which appeared in mid-September 2008.
At that time bankruptcy was announced by one of the largest investment banks in the world.
As a result of unreliable credit risk management procedures, billions of USD of financial losses have been generated.
It turned out that the unwritten rule no longer works, that "big can not fall". However, it is the emergence of ever larger international corporations and financial institutions that is one of the main determinants of the processes of economic globalization that have been progressing in recent years these processes continue.
(The continuation of these considerations can be found in the comments below).
Do you agree with my opinion?
Please reply
I conduct research in key aspects of this issue. The results of these tests are described in the following publications:
I invite you to discussion and cooperation.
Best wishes
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Interesting question
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Does economic globalization have a significant impact on the development of international financial systems and on the operation of supranational capital markets?
Is the globalization of information related to the growing share of the Internet in the global dissemination of information on the situation on financial markets also related to economic globalization?
Dear Researchers, Scientists, Friends,
Key determinants of the impact of economic and informational globalization on international financial markets include the liberalization of capital flows, the deregulation of financial markets, and technological advancements in telecommunications and information technology, which have lowered transaction costs and increased the speed of information flow. Development factors include the growth of cross-border investments, the integration of financial markets, the emergence of new financial instruments, and the increase in the number of international financial institutions. Conditions for stability and efficiency include the harmonization of financial regulations at the international level, effective supervision of markets and financial institutions, and the transparency of capital flows. Problems include increased exchange rate volatility, the risk of contagion from financial crises, speculative capital flows, regulatory challenges related to financial innovations and dark pools, and the potential increase in inequality between countries. New research areas focus on the impact of fintech and cryptocurrencies on global capital flows, the role of artificial intelligence in algorithmic trading and market stability, the consequences of geopolitical fragmentation for financial markets, and the significance of sustainable finance and ESG investments in the context of global capital markets.
What is your opinion on this issue?
Please reply
Thank you very much
Dear Friends and Colleagues of RG
The issues of globalization of financial and banking systems are described in the publications:
I invite you to discussion and cooperation.
Thank you very much
Best wishes,
Dariusz Prokopowicz
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Financial flows would tend to suggest that the degree of internationalization of financial markets has increased over recent years to reach levels broadly comparable to those seen in the period of marked financial market integration which preceded World War I. As mentioned at the outset, however, quantities alone cannot be a good indicator of globalization because the law of one price may still not apply when cross-border financial flows become more widespread.
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What kind of information in the field of financial market psychology is in your opinion the most important, which should be taken into account when conducting technical analyzes of the valuation of securities listed on the stock exchange in order to achieve the best results from investing activities?
Please reply
Best wishes
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The impact of what is known as the psychology of the financial markets was seen during the initial phase 1 of the pandemic. When in March 2020 the World Health Organization announced the state of a global epidemic, i.e. the state of the SARS-CoV-2 (Covid-19) coronavirus pandemic, then there was a strong sell-off of stocks and commodities on commodity exchanges. The stock market crash resulted from the predominance of investors' fear and uncertainty about the situation in the markets and the economy. The aforementioned crash was characterized by a large amplitude of decline in stock exchange indices, but it was relatively short-lived. The declines in indices were halted as central banks cut interest rates. At that time, the situation in the markets calmed down and the trends were reversed from downward to upward.
Regards,
Dariusz Prokopowicz
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Could you please explain it in simple words in terms of trade competitiveness pressure, multinationalization of production and integration of financial markets. Also, exchange rates of state's currency.
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Globalization has been around for some time and has a strong impact on the economy
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Hi everyone! I would like to write my bachelor's thesis on a topic that's currently relevant in the sphere of finance, marketing or computer science (or if it's possible a topic concerning all the three fields of interest). Those fields are the same upon which my bachelor is based (Bachelor of Science in Economics, Management and Computer Science).
I've some broad ideas about the topics, for example: the link between brand equity and financial performance; the effects of aggressive marketing on financial markets; the new generation of traders (covid has increase the number of retail investors with no previous experience); machine learning applied to behavioral finance (I really enjoy those last two topics but have no idea on how to connect them).
Obviously any kind of suggestions, regarding new topic (broad or specific) or the development of cited ones would be greatly appreciated.
Thank you in advance!
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A good answer would be: Digital currencies and digital payment - an IT challenge for safe transactions.
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Hello,
I am estimating a time series of S&P 500 stock returns from 2013-2020 (monthly data) with OLS (specifically using CAPM, Fama French 3-factor and Cahart 4-factor models).There is a structural break in March (big fall in the stock prices) and April (big rise in stock prices) in 2020 because of the uncertainty on the financial markets. The dependent variable is monthly stock returns. I have tried to include dummy variables (one for the downturn and one for the up turn) to go around the problem with the structural breaks, however they are not significant (or significant, but often with the wrong coefficient sign: positive sign when downturn in March and negative when upturn in April). The reason for this is that one of the independent variables in the model (market risk premium) already accounts for the big fall in March and the rise in April.
Now, it seems like it does not make any sense to include dummy variables in my case. However, I'm in doubt whether it gives my model any major problems that an already included independent variable (market risk premium) takes this into account? Is it fine just to estimate my model as it is, or does this structural break give any (major) problems (econometrically) that I don't account for?
Thank you very much in advance!
Sincerely,
Edin
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that is a good question
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Has the scale and instances of dissonance increased since the 1970s, and the disparity between the macroeconomic situation and the economic situation of a particular national or global economy, including economic growth, etc., and the situation on capital markets, including securities markets?
The above discussion inspired me to the following considerations: Well, since the development of the deregulation process, the increase in the globalization of financial markets, the introduction to the financial markets of many derivatives without full supervision by financial supervision institutions, i.e. since the 1970s the frequency has increased and the scale of emerging financial and economic crises in various parts of the world. At the same time, perhaps the business cycles are increasingly influenced by the monetary policy of central banks and fiscal policies of governments mainly of the world's largest economies. The result may be a growing discrepancy, a growing disproportion between the macroeconomic situation and the situation of a particular national economy or global economy, including economic growth, etc., and the situation on capital markets, including securities markets.
What do you think about this topic?
What is your opinion on this topic?
Do you agree with me on the above matter?
In the context of the above issues, I am asking you the following question:
Has the scale and instances of dissonance increased since the 1970s, and the disparity between the macroeconomic situation and the economic situation of a particular national or global economy, including economic growth, etc., and the situation on capital markets, including securities markets?
Please reply
I invite you to discussion
Thank you very much
Best wishes
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Thank you for your detailed analysis.
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I will be grateful for your answers. Or if you have any suggestions in the field of finance, banking.
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I think blockchain technology diffusion and its impact on the financial
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Could you know what are Historical diseases / pandemics in the past reflected on Global economy and Financial markets in the past?
like Spanish influenza that spread in 1918 and reached peak in 1920 impacted on the global economy?
There were another pandemics in the past had significant impact on the global economy and/or financial markets ?
There were many and many pandemics (e.g., Ebola, SARS 2003, H1N1, .... etc)
So, which one or more of them have significant impact on Economy / financial market even globally or in specific countries (i.e., SARS 2003 impacted on China's Economy)
Kindly, Let's share and discuss
Thanks in advance
Ahmed
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The Spanish flu has a detrimental impact on the economy. Swine flu, although considered an epidemic instead of a pandemic, has an adverse effect on USA economy. Basically pandemics and epidemics resulted in deaths and unemployment which led to a reduction in consumer spending and thus an imminent decline in economics performance.
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Does the global financial crisis of 2008 still have significant importance on capital markets attributed to behavioral psychology of the behavior of investors operating in these markets?
Are the determinants of behavioral investors' factors still strong in recent years on the largest stock exchanges in the world, including the importance of financial market psychology in interpreting changes in stock exchange trends in these markets?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
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The sharp economic downturn and turmoil in the financial markets, commonly referred to as the “global financial crisis,” has spawned an impressive outpouring of blame. The efficient market hypothesis (EMH)—the idea that competitive financial markets exploit all available information when setting security prices—has been singled out for particular attention. Like all successful theories, the EMH has major limitations, even as it continues to provide the foundation for not only past accomplishment, but future advances in the field of finance.
Despite the theory's undoubted limitations, the claim that it is responsible for the current worldwide crisis seems wildly exaggerated. This essay shows the misreading of the theory and logical inconsistencies involved in popular arguments that EMH played a significant role in (1) the formation of the real estate and stock market bubbles, (2) investment practitioners' miscalculation of risks, and (3) the failure of regulators to recognize the bubbles and avert the crisis. At the same time, the author argues that the collapse of Lehman Brothers and other large financial institutions, far from resulting from excessive faith in efficient markets, reflects a failure to heed the lessons of efficient markets. In the author's words, “To me, Lehman's demise conclusively demonstrates that, in a competitive capital market, if you take massive risky positions financed with extraordinary leverage, you are bound to lose big one day—no matter how large and venerable you are.”
Finally, behavioral finance, widely considered as challenging and even supplanting efficient markets theory, is viewed in this article as complementing if not reinforcing efficient markets theory. As the author says, “it takes a theory to beat a theory.” Behavioralism, for all its important contributions to finance literature, is described as not a theory but rather “a collection of ideas and results”— one that depends for its existence on the theory of efficient markets.... Ball, R. (2009). The global financial crisis and the efficient market hypothesis: what have we learned?. Journal of Applied Corporate Finance, 21(4), 8-16.
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Dear Community,
Could you please suggest to me some journals that study emergent countries and/or emergent financial markets ?
I thank you all in advance.
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There are so many journals by different publishers like Emerald, Elsevier, Springer, World Bank in this area:
International Journal of Emerging Markets | Emerald Publishing
Emerald Emerging Markets Case Studies | Emerald Insight
Emerging Markets Finance and Trade
The Journal of Emerging Market Finance (JEMF)
Emerging Markets Review - Journal - Elsevier
Corporate governance and institutional transparency in emerging markets
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here I wanted to study each dimension of marketing efforts that online retailers use to reduce customers perceived risk categories as follows;
Financial marketing efforts like COD, payment options, least price guarantee, sales, discounts, buy one get two, etc
product/physical marketing effort like try and buy offer, no question return policy, quality assurance policy,etc
time/delivery marketing effort like fast delivery, order tracking, choice of delivery time,etc
here am I right to use term "marketing efforts" for those statements?
or can I get any measuring scale which can incorporate all prevailing offers that online retailers provide to their customers?
or how my study be designed to study those all offers and schemes by online retailers from how much they value to customers?
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Dear Bindu Tiwari,
This is a very interesting area... Congratulations!!
If you don't mind, I'd like to make some thoughtful contributions.
First of all, the models of consumer behavior have significant results in a specific context.
Probably, it may be very difficult to assess all the variables/indicators, for all products and all interested target groups.
In this sense, the suggestion is limiting the scope by identifying a segment (as well as defining a position) for a specific (kind of) product to develop a methodology aiming to assess the influence of all these variables.
Second of all, it is common to develop communication for the most important competitive advantage (the concept of the product or the price policy or the distribution, etc.) separately. This means that marketing should promote only the most important to the consumer (based on demand).
Finally, the options must be related to the product life cycle.
There should be some concern about price promotions because they may affect the perception of quality.
I hope these suggestions helped you!
All the best,
Oliva
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Do the significant revaluation of stock quotes on stock exchanges occurring every few or a dozen years is an objective specific feature of this type of financial market or rather it is imperfection of these markets resulting from too high a level of liberalization and deregulation of the mechanisms of these markets, including the reduction control functions of financial supervision institutions?
Since the 1970s, the functioning of individual segments of financial markets has been successively liberalized and deregulated, including primarily the issue of investment banking, international markets and exchange rate systems, rating agencies, financial adversity institutions and financial entities and instruments operating on the securities market. During this time, the scale of the re-valuation of valuations of securities, derivatives, commodities and other assets on the capital markets reached ever higher levels, then spectacularly transformed into a strong decline in these valuations leading to a financial and economic crisis. The last financial crisis in 2008 in many respects, including numerous negative aspects, generated the unruly records characterizing the highest level of investment risk and the scale of financial losses generated by many commercial financial institutions and industrial corporations, which then under the active, interventionist, anti-crisis monetary policy of banking were financed indirectly by public finance funds. Due to this cyclical nature of capital markets, characterized by the growing amplitude of economic fluctuations during periods of bull market and bear market at high levels of overvaluation and investment risk levels and deeper global financial and economic crises, large financial institutions, including investment banks, are becoming larger entities and costs neutralizing the negative aspects of crises is paid off by the whole society, especially by the relatively less-earning middle class.
In the light of the above, encouraging discussion, I turn to you with the following question: Has the time finally come to reform the functioning process and the system of financial markets by restoring former control functions of financial supervision institutions that have been abolished, reduced since the 1970s?
Are increasingly deep financial crises derived from the liberalization and deregulation of financial markets?
Please, answer, comments. I invite you to the discussion.
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Surely we cannot blame everthing on liberalization and deregulation. We cannot have the cake and eat it as well. Libralization and deregulation comes with strengths and weaknesses that we are well aware of. We have enjoyed the positives and the negatives is the outcome of what we went through. A volatile market is better than a flat market. Risk management is key to long-term survival and sustainability of any institution.
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Application of Big data analytics in banking and financial markets
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I propose the following topic: The use of Industry 4.0 technology, including Big Data Analytics, in order to improve credit risk management processes in commercial banks. In addition, an interesting topic is also: Directions of development of Industry 4.0 technology applications, including artificial intelligence in online banking. In addition, I propose research in the field of verifying the correlation analysis of the improvement of credit risk management processes and the probability of the appearance of another global financial crisis. I conduct research on the above-mentioned issues and encourage scientific cooperation. Below, I have provided a short argument for the proposed research topics. The directions of the development of the Industry 4.0 technology applications, including artificial intelligence in internet banking, including the development of internet and mobile electronic banking, are enormous. Has any of you conducted comparative research on the security of using internet mobile banking on smartphones with different operating systems and different security systems for data transfer via the Internet? Besides, maybe some of you are researching the issues of risk management of processing and transfer of classified data in electronic banking systems, including internet, mobile banking with access to bank accounts via a smartphone? If so, I invite you to discussion and cooperation, because I research this issue. Currently, I also conduct research on the correlation of integrated credit, operational, technological and data transfer security risk management systems in mobile internet banking. Some internet tech companies, including antivirus vendors for example, are researching cybercrime in mobile online banking. The financial sector belongs to those sectors in the national economy in which the possibilities of using ICT and Internet technologies, Industry 4.0, including artificial intelligence, learning machines, the Internet of Things, Business Intelligence, Big Data, Data Analytics, etc., are the greatest. Some of the ICT, Internet and Industry 4.0 information technologies have been implemented for many years in sales systems, electronic and mobile banking systems, banking analytics, financial risk management, etc. in financial institutions. On the other hand, the use of the enormous opportunities offered by artificial intelligence in the field of finance is just beginning, but the potential for this use is huge. Currently, an indirect but important for the development of financial systems competition has started between banks and other institutions of the financial sector and technology companies operating mainly or exclusively on the Internet, referred to as fintechs. one of the factors of this competition is the issue of the effective implementation of ICT and Internet information technologies into the conducted business, Internet billing, Industry 4.0, including artificial intelligence, learning machines, Internet of Things, Business Intelligence, Big Data, Data Analytics , besides blockchain technology, cryptocurrencies, cloud computing and other advanced data mining technologies, etc. I have described the issues of applying artificial intelligence in the financial sector in my Questions and Discussions conducted on this Research Gate discussion forum. On the other hand, the issues related to the use of other information technologies, ICT, Internet, Industry 4.0, including Big Data database technologies, analytical Business Intelligence and others in applications in financial institutions, are described in my scientific publications available on the Research Gate portal. I invite you to research cooperation in these development areas of finance and banking.
Best regards,
Dariusz Prokopowicz
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What are the possible factors that should be considered to explore the impact of COVID-19 on Financial markets and eventually on economy of a country.
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According to restrictions and the lower level of consumption and production; the fiscal incomes (VAT, excise duty, income tax, tourist tax) declined. Therefore the projected deficit could be higher.
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How to measure the political situation of a country to understand its impact on the country's economy and financial market.
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In democratic set up politics is singularly liable for ups and downs of economy in general.
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I need some panel data with some variables. Because I have to prepare for class projects. If someone gives panel data, I will be thankful to you.
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Hi everyone,
I have a daily, hourly, and weekly dataset of a stock chart that consists of date and price.
I would like to develop a program that takes some part of the daily dataset for example (for example 20 days) and finds similar charts in hourly, daily, weekly, etc datasets for me. What I mean by similar is the shape of the chart, not the prices. For example, we may have the same pattern in $10-$100 as the $800-$1500. I think it's about the computer vision field.
I actually look for fractals in the charts, self-similar data. Cause I believe what's going on now, somewhere happened before.
I hope I explained my purpose clearly.
Could anyone please recommend appropriate tools to use or any good introductory books/websites/tutorials?
Thank You
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Please refer to the following article:
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There are main categories of financial markets like stock markets, bond Markets, sukuk, .. Etc
Kindly, could you write what are all other categories of financial markets with the main references which discuss the details of financial markets or something if them
Thanks for your kind consideration
Regards
Ahmed
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Dear Ahmed,
The attached document is part of my class notes in Investments Course.
However, if you need some references, below are some potential ones (Research Papers, Books, and Textbooks):
1. Al Janabi, Mazin A. M., and Arreola Hernandez, Jose, Forecasting of dependence, market and investment risks of a global index portfolio”. Journal of Forecasting, Vol. 39, No. 3, pp. 512-532, 2020. [Publisher: Wiley-Blackwell].
2. Al Janabi, Mazin A. M., Ferrer, Roman, and Shahzad, Syed Jawad Hussain, “Liquidity-adjusted value-at-risk optimization of a multi-asset portfolio using a vine copula approach”. Physica A: Statistical
3. Al Janabi, Mazin A. M., Grillini, Stefano, Sharma, Abhijit, Ozkan, Aydin, “Pricing of time-varying illiquidity within the Eurozone: Evidence using a Markov switching liquidity-adjusted capital asset pricing model“. International Review of Financial Analysis, Vol. 64, pp. 145-158, 2019. [Publisher: Elsevier, Inc.]
4. Al Janabi, Mazin A. M., “Derivatives Securities in Emerging MENA Markets: Structuring Lessons from other Financial Markets”, Journal of Banking Regulation, Vol. 13, No. 1, pp. 73-85, 2012. [Publisher: Palgrave Macmillan Publishers Ltd.].
5. Al Janabi, Mazin A. M., “Internal Regulations and Procedures for Financial Trading Units”, Journal of Banking Regulation, Vol. 9, No.2, pp. 116-130, 2008. [Publisher: Palgrave Macmillan Publishers Ltd.].
6. Al Janabi, Mazin A. M., “On the Inception of Sound Derivative Products in Emerging Markets: Real-World Observations and Viable Solutions”, Journal of Financial Regulation and Compliance, Vol. 14, No. 2, pp. 151-164, 2006. [Publisher: Emerald Group Publishing Limited].
7. Al Janabi, Mazin A. M., “On the Use of Value-at-Risk for Managing Foreign Exchange Exposure in Large Portfolios”, Journal of Risk Finance, Vol. 8, No. 3, pp. 260-287, 2007. [Publisher: Emerald Group Publishing Limited].
8. Al Janabi, Mazin A. M., “Internal Risk Control Benchmark Setting for Foreign Exchange Exposure: The Case of the Moroccan Dirham”, Journal of Financial Regulation and Compliance, Vol. 14, No. 1, pp. 84-111, 2006. [Publisher: Emerald Group Publishing Limited]
9. Al Janabi, Mazin A. M., “Foreign Exchange Trading Risk Management with Value at Risk: Case Analysis of the Moroccan Market”, Journal of Risk Finance, Vol. 7, No. 3, pp. 273-291, 2006. [Publisher: Emerald Group Publishing Limited].
10. Al Janabi, Mazin A. M., “Optimal Commodity Asset Allocation with a Coherent Market Risk Modeling”, Review of Financial Economics, Vol. 21, No. 3, pp. 131-140, 2012. [Publisher: Elsevier, Inc.]
11. Al Janabi, Mazin A. M., “Optimal and Investable Portfolios: An Empirical Analysis with Scenario Optimization Algorithms under Crisis Market Prospects”, Economic Modelling, Vol. 40, pp. 369-381, 2014. [Publisher: Elsevier, Inc.]
12. Al Janabi, Mazin A. M., Arreola Hernandez, Jose, Berger, Theo, Khuong Nguyen, Duc, “Multivariate Dependence and Portfolio Optimization Algorithms under Illiquid Market Conditions”, European Journal of Operational Research, Vol. 259, No. 3, pp. 1121-1131, 2017. [Publisher: Elsevier, Inc.]
13. Al Janabi, Mazin A. M., Khuong Nguyen, Duc, Arreola Hernandez, Jose, Hammoudeh, Shawkat, Reboredo, Juan Carlos, “Global Financial Crisis and Dependence Risk Analytics of Sector Portfolios: A Vine Copula Approach”, Applied Economics, Vol. 49, No. 25, pp. 2409–2427, 2017.[Publisher: Routledge; Taylor & Francis Group].
14. Al Janabi, Mazin A. M., “Liquidity Risk Management in Emerging and Islamic Markets in Post-Financial Crisis in Gulf Cooperation Council”, in M. Kabir Hassan, University of New Orleans (Ed.), The Edward Elgar Handbook of Empirical Studies on Islam and Economic Life, 2017. [Publisher: Edward Elgar Publishing]
15. Al Janabi, Mazin A. M., “Value at Risk Prediction under Illiquid Market Conditions: A Comparison of Alternative Modeling Strategies”, in Buchanan, Bonnie, Nugyyen, Duc Khuong, and Boubaker, Sabri (Eds.), Risk Management in Emerging Markets: Issues, Framework and Modeling, 2016. [Publisher: Emerald Group Publishing Limited]
16. Al Janabi, Mazin A. M., Khuong Nguyen, Duc, Arreola Hernandez, Jose, Hammoudeh, Shawkat “Time lag dependence, cross-correlation and risk analysis of U.S. energy and non-energy stock portfolios”, Journal of Asset Management, Vol. 16, No. 7, pp. 467-483, 2015. [Publisher: Palgrave Macmillan Publishers Ltd.]
17. Al Janabi, Mazin A. M., “Scenario Optimization Technique for the Assessment of Downside-Risk and Investable Portfolios in Post-Financial Crisis”, Int. J. of Financial Engineering (Formerly, Journal of Financial Engineering), Vol. 2, No. 3, pp. 1550028-1 to 1550028-28, 2015.[Publisher: World Scientific Publishing Co., Inc.]
18. Al Janabi, Mazin A. M., “Tactical Risk Analysis in Emerging Markets in the Wake of the Credit Crunch and Ensuing Sub-prime Financial Crisis”, in Nugyyen, Duc Khuong, Arouri, Mohamed and Boubaker, Sabri (Eds.), Emerging Markets and the Global Economy: A Handbook, pp. 413-446, 2014. [Publisher: Elsevier, Inc.].
19. Al Janabi, Mazin A. M., “Risk Analysis, Reporting and Control of Equity Exposure: Viable Applications to the Mexican Financial Market”, Journal of Derivatives & Hedge Funds, Vol. 13, No. 1, pp. 33-58, 2007. [Publisher: Palgrave Macmillan Publishers Ltd.].
20. Al Janabi, Mazin A. M., “Trading Risk Management: Practical Applications to Emerging-Markets”, in Motamen-Samadian S. (Ed.), Risk Management in Emerging Markets, Palgrave/MacMillan, United Kingdom, pp. 91-136, 2005. [Publisher: Palgrave Macmillan Publishers Ltd.].
21. Al Janabi, Mazin A. M., “Financial Risk Management: Applications to the Moroccan Stock Market”. Consulting/Advisory Book in Financial Trading Risk Management, ISBN: 9954-413-47-2, Al Akhawayn University in Ifrane (AUI), Ifrane, Morocco, 2005. [Publisher: AUI University Press].
22. Al Janabi, Mazin A. M., “Formulation of Successful Derivatives Products in Emerging-Markets”. Consulting/Advisory Book in Financial Risk Management, ISBN: 9954-413-30-8, Al Akhawayn University in Ifrane (AUI), Ifrane, Morocco, 2003. [Publisher: AUI University Press].
23. Fundamentals of Investments: Valuation & Management, Jordan & Miller, 5th Edition (2010), McGraw-Hill International Edition.
24. Investments: Analysis and Management Charles P. Jones, (2007), 10th edition, John Wiley and Sons.
25. Benninga, Simon, Financial modeling, 3rd edition, The MIT Press, Cambridge, Massachusetts, 2008.
26. Robert Haugen, Modern Investment Theory, 5th Edition, Prentice Hall, 2001.
27. Alexander, Sharpe, Bailey, Fundamentals of Investments, 3rd Edition, Prentice Hall, 2001.
28. Reilly, Frank, Keith C. Brown, Investment analysis and portfolio management, South-Western College Pub; 10th edition, 2011.
29. Chincarini, Ludwig B., Quantitative Equity Portfolio Management: An Active Approach to Portfolio Construction and Management (McGraw-Hill Library of Investment and Finance), 2006.
30. Zvi. Bodie, Alex Kane, Investments, McGraw-Hill Education; 10th edition, 2013.
31. Burton, G., Malkiel, A Random Walk Down Wall Street, W. Norton & Company; 9 edition, 2007.
32. Edwin J. Elton, Martin J. Gruber, Stephen J. Brown, William N. Goetzmann, Modern portfolio theory and investment analysis, 9th edition. Wiley, 2014.
33. Saunders A. and Cornett M., Financial Markets and Institutions (The Mcgraw-Hill / Irwin Series in Finance, Insurance and Real Estate) 6th Edition, 2014.
34. Jacque, Management and Control of Foreign Exchange Risk, Kluwer Academic Publishers, 1996.
35. Giddy, Global Financial Markets, D.C. Heath, 1994.
36. Dufey and Giddy, The International Money Market, Prentace Hall, 2nd edition, 1994.
37. Brealey, Myers and Marcus, Fundamentals of Corporate Finance, McGraw-Hill.
38. Brealey and Myers, Principles of Corporate Finance, McGraw-Hill.
39. Ross, Westerfield and Jordan, Essentials of Corporate Finance, McGraw-Hill.
40. Chambers, Lacey, Modern Corporate Finance, Theory and Practice, Pearson Education, Addison Wesley.
41. Rao, Financial Management: Concepts and Applications, South-Western College Publishing.
Prof. Dr. Mazin A. M. Al Janabi
Full Professor of Finance & Banking and Financial Engineering
EGADE Business School, Tecnologico de Monterrey,
Santa Fe Campus, Mexico City, Mexico.
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We are looking at a pandemic that will have consequences both in the short and medium and long term. In particular, we need to understand the reaction of financial markets to an event that affects the whole world and not individual countries, as has happened in past years.
📷
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One of the consequences of Covid-19 is the lockdown effect on the economy. This will hit earnings and output of goods and services. Then there is also the liquidity aspect where market rebounds on liquidity provided by Govt to counter the lockdown effects. End result is volatility. Markets are not stable. The initial violent reaction could be a worst case scenario with current intermittent rebound not sustainable. A vaccine is the panacea that will provide a basis for a sustainable market rebound.
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I use Spectral Kurtosis and Kurtogram to study the turbulence of financial markets. I would like your advice concerning the intuition behind Spectral Kurtosis and Kurtogram.
- Financial Crisis
- Kurtogram
- Spectral Kurtosis
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I have made somce applications in finance. Could you help for comments and discussion on my results ?
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It is required to update the project of the Financial Market of the country.
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Dear Dr. Zakaria,
If your question is meant to ask whether the Black-Scholes model is an Equilibrium, Model of Pricing in the Options Market the answer is it is not simply because there is no mention of demand or supply built into it. However, Ku & Polemarchakis (1990). Journal of Mathematical Economics, has shown that roughly because the option writers gain is the option holders loss, of course with a lower bound, hence as proved by Radner (1972) in an abstract sense there will be an equilibrium in the derivatives market with the money flowing from the share market upon which the derivatives have been written. We have shown that when you integrate the two markets using Arrow-Debreu structure of money and states, you can arrive at equilibrium in the quantitative demand supply sense. Mallick (1993,2014). This however requires String Theory derivatives if you ask the Econophysics question, how will these markets be systems integrated. However, this is no criticism but just an extension to a new field of the Black-Scholes framework. For experimental and empirical proof see Mallick, Hamburger &
Mallick (2016) of the String Theory Econophysics. Sorry if I have given you unwanted lecture.
S.K.Mallick
for S.K.Mallick, S.Raychaudhury, S.Mallick and others,
IAS (USA) & RHMHM School
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Sometime our education system is working as sensex or NIFTY in financial market. After some years a mixed model emerges and we blindly follow it and do experiments in education and after few years, the person (mix model)may be outdated and we a mob or crowd follow new one?????
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I myself work at a pedagogical university. We are forbidden to change standards for five years. But it is not forbidden to introduce options that are fundamentally different from the previous standard, for example, standard 3, then 3+, then 3 ++, etc.
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What is the potential channel through which monetary policy affects the risk and uncertainty in the financial market?
Do the responses of financial market risk and uncertainty respond to monetary policy differently in different monetary policy regimes?
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Any type of monetary policy, i.e. the anti-crisis and / or pro-development model of mild or sharp monetary policy pursued by central banking may be associated with the risk or success of generating positive, pro-development effects supporting economic development or making mistakes and generating financial losses in many entities economic and financial and economic crisis. I wrote more about this in the comments, questions and answers on my Research Gate profile. I conduct research in this area. The conclusions of the research I published in scientific publications that are available on the Research Gate portal.
Have a nice day. Regards.
Dariusz Prokopowicz
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The financial markets have crashed assuming the worst possible impacts on world economies. Is this an overreaction? Are we going to see mass unemployment and several years to recovery?
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The paper currency will be wiped out from the economic system and digital currency will be the future.
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Esteemed colleagues,
I am working on a new project related to financial frictions. Since financial frictions refer to when financial markets are imperfect evidenced by tighter credit constraints can "lending rate" or "interest spread" be used as proxies?
I will appreciate constructive feedback and suggestions.
Thanks.
Ngozi
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Interest rate spread would be better than lending rate, as the latter can be affected by the demand and supply for loans in ways that are unrelated to financial friction (such as economic growth, management's risk appetite, monetary policy, inflation, etc.). By using a spread, you can remove some of these confounding influences. Another variable to consider is total loans or credit as a percentage of GDP where lower values represent greater financial friction in the economy. The IMF Int. Fin. Statistics database has the data to compute this variable and could be used as robustness check.
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Addressing climate change stimulated international financial organizations and institutions to provide the necessary financing for green financing that tries to counter severe climate change and try to adapt to it.
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Financial markets are affected by climate change and have previously studied studies that found that days rainy was the less easy to share. For green bonds, the international financial institutions supported by clean energy and infrastructure projects and agriculture, yes international institutions have to motivate investors to deal with and invest in green bonds, but some of the constraints are important to interest rates on this type of bond, the purpose of the green projects support .
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Anyone expert in bussines studies who can guide me that what is the best way to get started in financial market bussines and how could I educate myself and as biginner what would be your advise to me that how could I take initiative in stock market business.
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Try these if you're interested in value investing:
  • Seth Klarman, Margin of Safety: Risk-averse Value Investing Strategies for the Thoughtful Investor (1991)
  • Benjamin Graham, David Dodd, Security Analysis (2008)
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There is a really strange phenomenon in Chinese stock markets. When the regulation institution decides to get some new companies listed (it is noteworthy that IPO has to get permission from Securities Regulatory Commission in China), the stock market drastic falls and the Chinese investors sell out their stocks crazily.
Some argue that more stocks listed means that more money is needed by the market, but the supply is constant in the short term. So the stock price falls. But I don't think it explains well what we observe.
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This is an interesting phenomenon. I hope by now (2020), the situation has much improved.
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In connection with the use of computerized, automated transaction systems, does the scale of the issue of the psychology of securities markets decrease?
Please reply
Best wishes
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Dear Colleagues and Friends from RG,
The above discussion inspired me to formulate the following question:
What are the main determinants of research on behavioral reactions of investors on capital markets and consumer behavior on consumer goods markets?
On the basis of the above considerations and conclusions from the discussion on interesting issues discussed, I formulated the following thesis that in recent years the importance and applications of economics and behavioral finance have been growing. Therefore, it is crucial to define the dominant research determinants regarding behavioral reactions of investors on capital markets and consumer behavior on consumer goods markets.
Below I have described the key determinants confirming the formulated research thesis. To the above discussion I would like to add the following conclusion formulated as a summary of my previous considerations on this topic: Determinants of research on behavioral reactions of investors on capital markets and consumer behavior on consumer goods markets.
Economics due to the social issues of many subjects and problems in this field of knowledge, which it deals with is classified in many science centers in the field of social sciences. Social issues related to the economic conditions of people's lives, social determinants of economic development of economic entities and states, social policies led by states, behavioral factors of changes in economic situations in individual markets, etc. constitute a significant part of issues that are studied and described in the field of economics. Therefore, economics, even if not all of the issues it deals with, however, in most of the studied economic and financial issues falls within the scope of social sciences. In recent years, the importance of research in the field of behavioral economics, behavioral finance, etc. has grown.
In recent years, there has been an increase in the importance of behavioral economics and finance, including an analysis of the determinants of media shaping consumer opinions regarding company brand recognition, product and service offerings, etc. by increasing the importance of online information services, including social media portals. The growing importance of financial market psychology, the growing significance of behavioral factors influencing investment decisions of individual investors operating on capital markets and consumers making purchasing decisions on markets of popular products and services.
Therefore, the key questions that need to be answered are: Are investors active in the securities markets more cautious in making investment decisions after the global financial crisis, or are they more thoroughly analyzing the investment risk of investing in capital markets? Did any of you conduct research aimed at determining possible changes in the significance of financial market psychology and behavioral economics in capital markets, including securities markets, after the global financial crisis of 2008? If research shows that the importance of financial market psychology and behavioral economics in capital markets is decreasing, what is this mainly determined by? Is it the result of post-crisis greater awareness of investment risk among investors, or also a change in the structure of the dominant segments of investors operating on capital markets, or is it also the result of an increase in the number of transactions carried out by computerized transaction systems?
Business and economics are connected or determined to a significant degree with psychology. Examples of the most often cited, described and researched are emotionally determined behavioral behaviors of both consumers in consumer product and service markets as well as stock market investors in capital markets, including securities markets, in addition also currency markets, etc. Issues of the influence of psychological factors on economics can be found also within the scope of marketing activity directed at potential consumers of certain products or services. Supported by intensively conducted advertising campaigns, the sale of certain types of products and services is particularly determined by psychological issues used in advertising campaigns, which increase the scale of appearance and fashion activities for specific types of products or services. Sometimes the effectiveness of advertising campaigns depends to a large extent on whether the information message contained in advertising spots acts on human emotions and thus generates smaller or larger revenues from the sale of specific products or services. In financial markets, on the other hand, the impact of psychology on investment decisions of individual investors can be significant. Periodically, in situations of increased speculation in capital markets, imbalances in securities markets, there is a period of investment euphoria, sheep's momentum, investing fashion and, as a consequence, a strong revaluation of securities valuation (bull market) and periods of strong stock market recession, during which there is fear of investing, panic, getting rid of already undervalued shares, bonds, derivatives, etc. (bear market). Bull market and bear market phases appear periodically, sometimes cyclically in succession. If in capital markets, including securities, the importance of emotions can be an important factor influencing the decisions of individual investors, then the issue of financial market psychology may be an important topic of scientific research. Another interesting research issue is the determination of the importance of increasing the automation of the process of placing stock exchange orders in connection with the use of automated transaction systems by investment banks. Therefore, in the context of the above issues, it may be important to verify the research thesis that the growing importance of automated IT transaction systems used for computer orders for the purchase and sale of securities may reduce the impact of financial market psychology. If it was possible to examine this correlation, then another research issue for which a research project could be launched would be to determine the impact of automated IT transaction systems used by investment banks on the issue of stabilizing the stock market situation, the period of recovery after the emergence of the stock market crash, etc.
What research methods are used to analyze the behavioral and pragmatic behavior of individual investors operating in financial markets, including capital and securities markets? In addition, in related issues it is also interesting to find the answer to the following question: What currently dominate research methods are used to analyze behavioral and pragmatic consumer behavior in specific markets? Are there methods for precisely measuring consumers' pragmatic attitudes? The key is to distinguish the determinants that shape consumer behavior in market conditions. In my opinion, a good method of collecting data for the needs of this type of analysis are survey research methods, which cover consumers of a specific, cross-sectional group, segment of citizens, with specific characteristics. Then statistical elaboration of the results of conducted research should provide analytical material for the formulation of specific assessments and characteristics of both behavioral and pragmatism of specific actions undertaken by a selected segment of participants in a specific market, e.g. consumers of specific types of products and services.
In addition, advertising of consumer products and services serves to increase the demand for the advertised offer, and thus significantly affects the increase in consumption and also indirectly to change the behavioral behavior of social behavior and also to increase consumerism. In developed and developing economies, advertising is largely responsible for the rise in consumerism, but it is not easy to investigate to determine precisely what quantitative dimension this impact is. In connection with the above, in recent years the importance of the issues of data sentiment analysis obtained from social media portals has been growing in Big Data systems. For many companies, social media portals such as Facebook, Tweeter and others are a source of data on shopping and behavioral preferences used by companies operating in various industries and sectors for the purposes of marketing activities.
In line with the above, in my opinion the importance and applications of economics and behavioral finance have been growing in recent years. The above considerations show that many determinants are currently operating that shape changes in behavioral responses of investors in capital markets and consumer behavior in consumer goods markets.
Do you agree with me on the above matter?
I conduct research in this area. The conclusions of the research I published in scientific publications that are available on the Research Gate portal.
In view of the above, I am asking you the following questions:
- What research methods are used to analyze behavioral and pragmatic consumer behavior in specific markets?
- What research methods are used to analyze the behavioral and pragmatic behavior of individual investors operating on financial markets, including capital and securities markets?
- What are currently theories of the development of emotional intelligence and logical intelligence in the context of research conducted in the field of behavioral finance?
- What are the main determinants of research on behavioral reactions of investors on capital markets and consumer behavior on consumer goods markets?
- Do advertisements of consumer products and services increase consumption and increase consumption?
- Is the importance of psychology of financial markets and behavioral economics in securities markets decreasing after the global financial crisis?
- Is capital market behavioral psychology still very important for capital markets?
- After the global financial crisis of 2008, is the capital behavioral psychology of the behavior of investors operating on these markets still important in capital markets?
- Are the determinants of investor behavioral factors still strong in recent years on the world's largest stock exchanges, including psychology of financial markets in interpreting changes in stock market trends on these markets?
- After the global financial crisis, are investors operating in the securities markets more cautious in making investment decisions, or do they more thoroughly analyze the investment risk of investing in capital markets?
- Were studies previously conducted to determine possible changes in the significance of financial market psychology and behavioral economics in capital markets, including securities markets, after the global financial crisis of 2008?
- If research shows that the importance of financial market psychology and behavioral economics on capital markets is decreasing, what is this mainly determined by?
- Is it the result of post-crisis greater awareness of investment risk among investors, or also a change in the structure of the dominant segments of investors operating on capital markets, or is it also the result of an increase in the number of transactions carried out by computerized transaction systems?
- How are behavioral finances related to behavioral behavior of investors operating on the securities markets changing due to the increasing use of ICT and Industry 4.0 in the scope of development and increasing the share in concluded automatic transactions, computerized transaction systems used by banks and investment funds performing short-term transactions , speculative, lasting even fractions of a second but with the use of large funds, so large that they are inaccessible to the average individual investor?
- What are the dominant, model behavioral reactions of investors operating on the securities markets?
- To what extent do changes in the behavior of individual investors in securities markets correlate with periodically occurring in these markets overvaluation (bull market) and undervaluation (bear market) valuation of securities?
- Do strong correlations of changes in behavioral responses of individual investors, i.e. periodically overvaluing (bull market) and undervaluing (bear market) valuation of certain assets also apply to other financial, capital and other markets? (e.g. derivative markets, currency markets, real estate markets, etc.)
What do you think about this topic?
What is your opinion on this topic?
Please reply
I invite you to discussion
thank you very much
Best wishes
Dariusz Prokopowicz
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Financial inclusion ... is a big concept ... that can give us a lot of indicators .... I think that indicator is linked to many variables
1- Financial stability
2 - The efficiency of financial markets
3. Sustainable development
Economic development
In addition to the determinants ........... waiting for your discussion
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WSBI is doing a lot for financial inclusion and they have leading experience in this field
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Do you prefer to run money in banks through deposit and get interest or invest money in financial markets through the available financial instruments?
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I prefer to invest money in financial markets through the available financial instruments
Best Regards Aya Adel
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are you interested in analysis of financial market? So let us know for you what is the best scientific method for capturing liquidity on financial market?
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Matthieu Garcin Thank you for these. Now I want an exemple on how calculate amihud Indicator with these datas from this link http://bfin.brvm.org/default.aspx
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Why is the impact of financial institutions inclusion /access and efficiency is positive on Investment but the impact of financial markets inclusion/ access and efficiency is negative on Investment in many developing countries?
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Let me expose what I think is the rationale of the assertion included in the question:
- International financial market access tends to be achieved by capital account liberalization (hint: it could be more complicated than that https://academic.oup.com/isq/article-abstract/58/2/308/1789417 ; https://www.degruyter.com/view/j/jgd.2014.5.issue-1/jgd-2013-0028/jgd-2013-0028.xml )
- Capital account liberalization is related with capital volatility
- Volatility means short-term profitability (financial assets, imports) is preferred against long-term profitability (production, factories)
- Short-term profitability might rise FDI flows ( http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.477.4511&rep=rep1&type=pdf ), but FDI is not the same as fixed capital formation ( https://dolarizacion.ec/2018/02/27/inversion-extranjera-vs-inversion-extranjera-directa/ ) which tends to fall because of long-term profitability.
- P.S. FDI doesn't necessarily promote growth ( http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.494.5205&rep=rep1&type=pdf ) , but, without fixed capital formation (actual investment), economies don't grow
Of course, trying to access to international markets, there could be tools and policies that reduce volatility and promote fixed capital formation. I think Kevin Gallagher "Regulating capital" is a superb intro to it.
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DSGE Model and Financial Market Friction.....
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The term premium in standard macroeconomic DSGE models is far too small and stable relative to the data—an example of the “bond premium puzzle.”
If theory-consistent DSGE models are to be used for forecasting, they will have to match data that are noisy and unbalanced
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How can the level and importance of the psychology of financial markets be measured on the situation on the stock exchange market?
How to measure the level of positive emotions (euphoria of investing during the bull market) and / or negative (fear and panic of sales in the situation of collapse of the stock market, in the bear market situation) of individual investors?
What are the tools, measures that allow you to objectively measure the level of emotions among individual investors operating on the stock exchange market?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
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Dariusz Prokopowicz Nice Question.
The study could be done
1) by undertaking a primary study on investor sentiment
2) by studying market efficiency to information
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Hi,
Is any of you have a suggestion of a paper or a data set tracking the financialization of the economy (EU, US, or Canada) since 2008? Is there any evidence of the growing importance of financial markets and financialization of corporations since the Great Recession?
Thanks.
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Thank you for sharing your idea
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Thank you so much! I will, it looks really interesting.
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I have recently read a lot of papers that proceeds to comment on inefficiencies in financial markets purely based on empirical evidence derived from methodologies grounded on nonlinear serial dependence. For this matter, isn't non-linearity a stylised fact across financial assets? Why and how does evidence of non-linearity disprove EMH?
Given that there can be several other non-fundamental reasons for the presence of non-linearity in an asset series (such as imperfect markets, exogenous shocks, clustered information arrivals, bubble components, active speculation, geopolitical as well as political factors among others), is it fair to conclude that a particular market is inefficient based on such evidence?
More importantly, can a theory be disproved based on the examination of real world data that does not exactly mimic/reflect the underlying assumptions against which the theory is built upon?
It would be very helpful to all if you could suggest some supporting literature that could further stimulate this discussion along with your invaluable comments.
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This evidence and model need further replication to make conclusion or generalisation on the theory. But they may be possible explanation for the results depends on the economy event of that period.
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This question is based on a study investigating the influence of firm leverage on market performance in high intangible growth prospects.
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Interesting..
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The evolution of world economy is strongly conditioned by the financial system, and specially by the behaviour of the numerous and diverse financial markets (stocks, money market, forex, interbank, bonds, derivatives, commodities, etc.). For this reason, financial variables determine consumption, investment, foreign trade and public spending.
I propose this question, in which I would like to know if you agree or consider open some additional points of view of the economy that may condition new economic crises. Thank you.
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I agree with Carmelo Ferlito note, that I suppose is quite near to the Schumpeterian analysis you may find in Business Cycles: the structural economic dynamics is always at the beginning of a major financial crisis. In a certain sense it is also at the beginning of the 2008 financial crisis, that - IMHO - cannot be understood without considering the ICT technological revolutions in the '90s which have addressed increasing amount of liquidity in financial markets.
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I have to use "Merton Jump diffusion model" for estimating the price of options for my research work.
i am using VBA as a back-end program for MS-Excel.
I have calcualted all the variables required for the model except the two variables
1. Number of jumps per year and
2. % of the total volatility explained by the jumps.
how to estimate those two variables.
i read program manual, but no information is available about it.
can anybody help in in this regard
thanks in advance
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I teach Merton's model among others at Copenhagen University. My notes are freely available on slideshare:
Slide 139 to 149 are dedicated to Merton's jump model.
In addition, I explain the model and its implementation in C++ in my book:
Chapter 13, section 13.2.
Finally, I would advise to avoid VBA, instead, code models in C++ and export your code to Excel. I wrote a tutorial to show how to do this quickly and with minimal pain:
You can also download my Merton code in:
I hope it helps. Kind regards.
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Public debt has continued to grow in 2017 until breaking historical records in most Western economies. This problem will force governments to consider the need to review the revenue and public expenditure models, especially if we take into account the added problem of the sustainability of the pension model in countries whose population pyramids are inverse. Based on these premises, and considering the influence of financial markets and central banks, how should public finances evolve to achieve sustainability? Increase in tax burden, reduction of social expenditures or search for efficiency?
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We have taken an Econophysics approach - more precisely Network Econophysics to solve somne of the problems, and I can tell you all of the above. Building a country is not easy especially in Emerging Economies and you have to even consider Astrophysical impact.
S.K.Mallick
for RHMHM School
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Let me know, please, about latest research in forecasting of dynamic of nonlinear and nonstationary information processes.
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Dear Artem Volkov:
Hope all is well.
As per my previous reply, another potential area to focus on is related to Hawkes processes modeling in finance. This is a new emerging area in finance with many potential applications to financial markets and institutions.
In fact, Hawkes processes modeling have emerged in a number of areas of finance such as investment sentiment, market jumps, and order book dynamics, etc. All these recently surfaced potential research areas in finance show that Hawkes processes have significant benefits in approximating and understanding the microstructure of complex financial markets and diverse financial events and phenomena.
Best regards
Prof. Dr. Mazin A. M. Al Janabi
Full Professor of Finance & Banking and Financial Engineering
Tecnologico de Monterrey, EGADE Business School,
Santa Fe Campus, Mexico City, Mexico.
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Hi,
An article written by undersigned is published in the research journal “Financial Markets, Institutions and Risks” - by ARMG Publishing, Sumy State University, Ukraine. The link is given here bellow. It is free down Load.
I hope you might find it interesting with some innovative thoughts there in.
It will be my pleasure to hear from you with necessary tips and criticism if any and that will help me to refine it a step further towards its meaningfulness.
Regards,
Harshad Dave
Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Research Journal: Financial Markets, Institutions and Risks (FMIR)
Title: “Preliminary contemplation on Exchange Value”
Abstract: Exchange Value is a vital term of economics. Exchange Value is born by an exchange process and the exchange process is the life line of the human society. Exchange value gets influenced by various parameters. These parameters are discussed here. It is also tried to investigate on the linkages among human characteristics and economics through the process of exchange. The nature of influence of the parameters gets transformed into unethical ways and means as and when time and circumstances permit so. Today, a dense flow of exchange processes incessantly flows through our society and has become a life line for the existence of the society. Unfortunately the flow is polluted with unethical influence on the process of exchange and this subject matter is discussed in this article. Successful application of abilities in unethical ways and means to secure a favourable exchange ratio could be realized only with the help of government brasses and public servants and ruling politicians. The application of abilities on unethical ways during the process of exchange returns with an advantageous exchange ratio on either side party who is more unethical. The wealth/resources accumulated with unethical part of exchange process become a special influencing parameter (Capitalistic parameter) to undermine opposite party in future exchange. Ultimately, it turns into a race to hold maximum unethical resources to dictate most advantageous exchange ratio in all future exchange processes. This is one of the prime causes that drag our society into downfall to ugly peril.
DOI: 10.21272/fmir.2(2).69-92.2018
Journal Link [Financial Markets, Institutions and Risks (FMIR)]: http://armgpublishing.sumdu.edu.ua/journals/fmir/current-issue-of-fmir/
xxxxx
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Dear Mr. Dave,
It is interesting that a senior person like you has drawn attention to the important concept of value in society and that exchange can give rise to that value. In his monograph "Theory of Value" Gerard Debreu has solved this problem. However, as I published in a research paper titled "Subscription to digital libraries and corresponding journal impact: A value-based approach to demand for digital research data" with two American Professors T. Krichel and M. Novarese in the Journal of Digital Asset Management we have empirically and through mathematical modelling solved the problem of value of digital research libraries, which is a long outstanding problem in the literature () . I will be presenting a lecture paper on a further extension of the field with Confucian and Vedic philosophy methodology at the World Education Day 2018 conference in Jinan, China in September. This paper although I have referred to my collaborators has been appropriated by me you may say and will be presented in my sole name and title, however I have derived the results for this paper. So your point on contemplating on this value problem, especially as I grow older, is well taken. But it has a lot of literature before and certainly Indian and emerging markets need value change to say the least. The older NIC s needed value change also by Chiang Kishek's regime say or Pol Pot's. We cannot stay back in backwardness and need to manage change for our own good. Thanks for this opportunity to discuss with you.
Soumitra Kumar Mallick
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The crypto-currency market witnessed a huge bull run in 2017 with Bitcoin touching $20,000. However, Since Mid Jan 2018 to June, it seems people have lost interest in the crypto markets.
Please provide your thoughts, opinions, data etc on how you see the future of Crypto currencies.
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Dear Bhaskar,
It is true that the future of cryptocurrency is uncertain yet and depends on many factors, such as, legal and regulatory framework, cybersecurity, exchanging cryptocurrency to real money, etc. However, there are important events and conferences going on this issue.
For instance, there is an important symposium that will take place very soon (6th Crowdinvesting Symposium Blockchain and Initial Coin Offerings, 20 July 2018, Max Planck Institute for Innovation and Competition, Munich, Germany).
Please find attached the full program in PDF format and the weblink, where one of my coauthors will be presenting a joint paper on Blockchain and the future of securities exchanges.
The symposium offers academics and practitioners platform to exchange ideas about the latest developments in this field, including, but not limited to, new legislative proposals and legal reform projects.
Weblink:
Best Regards
Prof. Dr. Mazin A. M. Al Janabi
Full Professor of Finance & Banking and Financial Engineering
Tecnologico de Monterrey, EGADE Business School,
Santa Fe Campus, Mexico City, Mexico.
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I am planning to do reserach on the impact of oil prices on the economic integration of the stocks markets in BRICS countries.
i would like to work along with the learned researchers from the BRICS countries.
if anybody is interested to work along with me in thsi research work, please let me know.
thanks in advance
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Hii, i have recently completed my PhD with keen interest in research related to stock market, trading, financial analysis, etc.
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which expands theory of solitons to new domains - similar to your project.
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Hi Dimitri, can you download the paper from the link above?
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I have recently noticed this paradox in Pakistan's economy.
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if a company declares buy back of shares, what type of signals it provides to the stock market.
if promoters also participate in the buy back, does it indicate negative future prospects of the company?
thanks in advance.
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A buyback of shares indicates that the company has excess funds for which they do not have any immediate profitable investment opportunity available. At times, there is nothing more to be read into a buyback other than the company's intention to use such funds for repurchase rather than payment of dividends. Since buyback reduces the capital base, it will increase the EPS & DPS even with same amount of profits. Also, since buyback is often done at a premium to prevailing market price, a high premium sends signal to the market that the company perceives that its shares are undervalued.
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can anybody suggest a best seminal works on the relationship between macroeconomic variables and stock price?
thanks in advance
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Hi Jasman,
It may be worth checking also country-specific research (in addition to the APT suggested in the first response). This is due to the fact that influence will differ across the world. You can have a look at the following for example:
Best regards,
Veneta
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how to understand intuitively the Inter-temporal CAPM model? what is the appropriate econometric model to empirical test the inter-temporal CAPM model?
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hi,
I thinks the following links and articles can be useful
Merton, R. C. (1973). An intertemporal capital asset pricing model. Econometrica: Journal of the Econometric Society, 867-887.‏
Stehle, R. (1977). An empirical test of the alternative hypotheses of national and international pricing of risky assets. The Journal of Finance, 32(2), 493-502.‏
Jagannathan, R., & Wang, Z. (1996). The conditional CAPM and the cross‐section of expected returns. The Journal of finance, 51(1), 3-53.‏
CHEN, N. F. (1983). Some empirical tests of the theory of arbitrage pricing. The Journal of Finance, 38(5), 1393-1414.‏
Dempsey, M. (2013). The capital asset pricing model (CAPM): the history of a failed revolutionary idea in finance?. Abacus, 49(S1), 7-23.‏
Machado, O. P., Bortoluzzo, A. B., Martins, S. R., & Sanvicente, A. Z. (2013). Inter-temporal CAPM: An Empirical Test with Brazilian Market Data (CAPM Intertemporal: Um Teste Empírico Utilizando Dados Brasileiros). Revista Brasileira de Finanças, 11(2), 149.‏
Good Luck
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I would like to undertake a research on empirical testing of international CAPM. how to develop the methodology for testing international CAPM.
can you please suggest best guiding articles on international CAPM?
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Dear Srikanth:
Abbreviated CAPM methodology
After the review of the suggested literature above.
Please choose the appropriate risk free (Rf) instrument, i.e. Government Bond and whether this variable (the constant or intercept in the CAPM model) will affect the return of a given financial asset (Ri - Rf) or be part of the estimation per se (Rf +(ErMkt-Rf)*β).
Make sure you use the same frequency on data: daily (suggested) or monthly. If you employ daily frequency for company and market returns you may use LN returns, bond yields are usually expressed as EAR, therefore don’t forget to transform them into daily returns.
All the best,
Oscar.
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My study on financial innovations and their implications for investing in the financial market... The problem in finding the appropriate standard model for this study or a new idea that can be applied in such a study
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For Impact Study : (1) You need an outcome that you want to measure. Impact on what? (2) Impact studies require a Base line and an End line survey/data about investment, or behavior or return or trading and an estimate of true counterfactual. Doing before-after kind of study or with-without kind of study does not provide robust analysis.
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what are the sources and how we can handle them in the financial analysis?
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Thank yo to all and especially to Zubair Khan, But I specifically search for a research which analyze different kinds of mathematical explanation of shocks and represent a classification of different shocks. I know that the concept of shocks are varied in different markets, but I want a comprehensive mathematical overview of the Financial shocks.
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In their quest for innovation, financial private actors are eager to use artificial intelligence, big-data & data-mining and several others technologies. As a result, financial markets are now focusing on Fintech, which represents  a new challenge for regulators. However, using these financial technologies, the regulatory framework could be enhanced too. But how ? And what are the current analysis among private actors, regulators, and scholars regarding the rise of Regtech ?
Many thanks !
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RegTech could improve the effectiveness and the efficiency of compliance. The cost of non-compliance, e.g. legal bills and compensation is estimated at £19.5 billion over the past year for the UK alone )Standard & Poor's). Similarly, the cost of compliance is a heavy burden on the industry,
.
RegTech solutions can help in several ways. They can be adopted to anticipate potential issues and risks, e.g. real-time tracking of risk issues, to detect and deter non-compliant conduct
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For my research paper, i have to study the relationship between stock returns and macroeconomic variabels by using a suitable regression model. (stock return is DV and macroeconomic variabels IVs)
the stock returns data is available daily-wise and that of macroeconomic variables monthwise.
how to resolve the problem of different frequencies of the stock returns and macroeconomic variables?
thanks in advance
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Hi Srikanth,
If you do not have to stick to the regression model (I am not sure if it is the best tool to analyse daily time series of financia data), you may find the spline-GARCH model of Engle and Rangel useful. See: Engle, R.F., Rangel J.G."The spline-GARCH Model for Low Frequncy Volatility and Its Global Macroeconomic Causes".
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A financial asset is a set of contractual promises traded through different institutional arrangements (markets). They are offered, always as “good”, in the primary markets. Then, they perform in accordance to expectations in the secondary markets. And finally, some of them (broken promises) are discarded into the distress or tertiary arrays. Please, look at the attached chart just as an idea of the size of these markets in terms of US firms  (2015).   
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Victor, just a final comment.
As a financial markets researcher i would say that trying to improve the liquidity and efficiency of the market for distressed securities is a fantastic goal. So, please, do not understand from my words that I do not get the point. I think that if you find a way to improve (even slightly) the current situation, it would be a fantastic outcome for the financial community.
Maybe some people desagree, but at the end of the day I would say that finding a better exit point for legitimate owners of claims on securities that become distressed is a better equilibrium for the vast majority of investors.
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Hi everyone! I'm evaluating, with the HRV methodology, which are the most important constraints for the development in Brazil. Actually, I'm studying the saving, investment and financial markets (internal and external) to determinate if these elements are economic barriers for the development process of the country.
Which indicators and/or variables are suggested to study these topics? In which data sets i will be able to find information?
Thanks for all the possible answers! 
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Good day,
Perhaps, the underpinning theory and the relevant literature can best answer for choosing the right indicators for studying the good indicators of aforementioned economic indicators. For the data, you may consult the central bank data bank or world bank development indicators, IMF data sets. 
Best Wishes
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Any good article about informal economy in BoP markets? 
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Dear Ardlan
hope you might find useful references here:
Best regards
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Here is a macro-view of the hierarchy of debt/money in the Western financial-monetary system; plus two image extracts of papers relating to the hierarchy of money - for which links are provided. Any comments please?
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Dear Prof. Aitken,
                            One of the reasons Indians have gotten heavily into gold purchase by devaluing their currency reserves and other banking assets is to give effect to the IMF-World Bank-US determined twin policies of globalisation and privatisation which has made our policies more liberal by importing such technologies as nuclear power, satellite communication, television, internet, computer driven cars, modern medicines and so on. This has had the twin impacts of diluting old equity and making us strong in new equity so to say by creating all these new types of companies many of which are multinationals and/or trading companies. This has been a very political economic way of development through financial asset markets (Mallick (2014), Mallick, Hamburger, Mallick (2016),Sarkar, Mallick, Roy (2003)) for examples on www.resrachgate.net/Soumitra K. Mallick. This newly created equity which has resulted in booming stock and other financial markets   is backed with new democracy in the form of improved communication, voting technology and so on. So gold has in some sense, to speak of Econophysically, acted as a space translational Einstein Rikki Tensor in the Stock Exchange Management Engineering Actions by summarily increasing the time velocity of cybernetic algorithm driven actions. This is in the random background of inflational nuclear energy and coal energy. So the "Nobel Potential" has been the translational Accelerator. However, India's case is clearly solvable by Dbranes String Functor Algebra Calculus Stock and Flows (Mallick, Hamburger, Mallick (2016, 2017) which works in Lie Algebras and also in Gauss-Markov Riemann Algebra if (not only if) the space vector functor diffeotopy uses Laplace Transforms, which is happening to some extent, individual houses are giving rise to more community oriented multistoried housing for example. Inequality is being reduced with the world (although marginally) and people are going places. So here is a workable model for all to see with gold tarnsfers although the fiat money is relatively quite strong after losing some initial ground especially FAC coupled with the Stock Market index. I hope it answers your question to some extent.
Soumitra K. Mallick
for Soumitra K. Mallick, Nick Hamburger, Sandipan Mallick
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The JJ test for establishing a long run co integrating relationship and the EGARCH for verifying  short run dynamic linkages.
Would DCC-MGARCH be preferable to EGARCH and if so , why?
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JJ test  only captures when there is a linear association between  sets data, however to assess linear and nonlinear association between sets of data, I advise using nonlinear cointegration test approach , like rank test  of Breitung.
best luck
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Financial assets can fail. An asset (share, loan, bond, mutual fund, etc.) is a contract promising some return in the future for your cash today. Some people, firms, states, etc. cannot fulfill their promises due to unexpected events or excess of confidence. They destroy value since evaporated your cash. The problem then is that these broken contracts need to be repriced and sold. Please, help me to gather literature on this matter. Any suggestion or comment is highly welcomed.
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Thanks Emeka. A financial asset is a contract between creditors and a given person, firm or state. The original clauses were broken, but the claims persist. At its original market asset value was $ 100 and now trades at $ 20. The new buyers see a yield and they know how to make it happen. The enforcement of contracts is a key factor behind these markets.  
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I want to apply the PSY method (Phillips et al, 2015) to Euronext indices but I'm struggling to access the data that I need. I already contacted Euronext Lisbon. Any other suggestions about how can I perform that study?
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Thank you Hasret, however this method need information about the dividends and the information provided by the website is unsufficient. I'm going to apply now to the ETF's that replicate the indices because I need to move on with my work. Thank you anyway.
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I am looking for impacts of ETFs on market competition. I am writing a research paper on that. But I cannot find relevent data about it. 
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HI,
Here is a new one:
.
The dynamics of leveraged ETFs returns: a panel data study.
By: Giannetti, Antoine. Quantitative Finance. May2017, Vol. 17 Issue 5, p745-761. 17p. 6 Charts, 5 Graphs. DOI: 10.1080/14697688.2016.1237035.
Best regards