The Equity Premium Puzzle Intrinsic Growth And Monetary Policy

Author : Robert Shuler
Publisher : Lulu.com
Page : 234 pages
File Size : 44,8 Mb
Release : 2016-05-05
Category : Business & Economics
ISBN : 9781304655363

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The Equity Premium Puzzle, Intrinsic Growth & Monetary Policy An Unexpected Solution Theory & Strategy for the Coming Jobless Age by Robert Shuler Pdf

This book shows we must adjust money supply to account for productivity if deflation is to be avoided. The central banker is not profit oriented and can create money at will, not subject to rational investor constraints. Businesses leverage low interest rates enforced by the central bank to grow and increase employment, compensating for the reduced labor necessary for the former level of goods and services. This leveraged difference in returns is the equity premium. Even a one time productivity increase requires a corresponding permanent increase not in the money supply itself, but in the "rate of increase" of the money supply. Given the steady growth in productivity of the last 100 years, the world economy is now grossly under-stimulated and in danger of precipitous deflation. Both academic models and arguments based on historical events are presented, along with analysis of the meaning of money, investor behavior, and practical techniques for obtaining the equity premium in one's portfolio.

Author : Robert Shuler
Publisher : Unknown
Page : 272 pages
File Size : 53,5 Mb
Release : 2013-11
Category : Finance
ISBN : 0991113004

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The Equity Premium Puzzle, Intrinsic Growth and Monetary Policy an Unexpected Solution by Robert Shuler Pdf

The guy who discovered the equity premium does not invest in it. He is not the only one. High profile money managers routinely fail to measure up to the indexes they compare themselves to. That says a lot about why the equity "premium" is considered a puzzle. How would you get it if you wanted to? What is it? Stocks, also called equities, as a group not individually provide 7% to 8% higher returns than bonds or mortgages or most other kinds of investments whenever you look at periods 20 years or longer. How can the returns of a group of stocks be greater than the returns of individual stocks? It seems to violate arithmetic. The whole is greater than the sum of the parts because stock indexes are perpetual. They rotate in new companies which have achieved the requirements of the index (not flighty new issues) to replace older companies which are declining. You can do this. Change the lives of yourself and all your descendents. Might some of them live more than 20 years even if you don't? Learn how you can dramatically improve your investing style, why you should not worry about the FED, what you should have as long term goals instead of a career or retirement, why your career or small businesses is not diversified, the advantage of stocks over real estate or bonds, and how to rely more on being an investor. Learn the reasons behind market behavior, not simple prescriptions. Learn why stock picking is a bad idea, and what to do instead. Learn when and how to use credit, and why keeping your money in a bank may not be safe. Explore how your feelings about money and the origin of money influence you. Did you know the Roman Empire used almost no gold, and in the Bronze Age money was grain and you could eat it?

Author : Robert Shuler
Publisher : Unknown
Page : 230 pages
File Size : 43,9 Mb
Release : 2014-11-24
Category : Business & Economics
ISBN : 1312701617

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The Equity Premium Puzzle, Intrinsic Growth & Monetary Policy by Robert Shuler Pdf

Change the lives of yourself and all your descendents. Learn how you can dramatically improve your investing style, why you should not worry about the FED, what you should have as long term goals instead of a career or retirement, why your career or small businesses is not diversified, the advantage of stocks over real estate or bonds, and how to rely more on being an investor. Learn the reasons behind market behavior, not simple prescriptions. Learn why stock picking is a bad idea, and what to do instead. Learn when and how to use credit, and why keeping your money in a bank may not be safe. Explore how your feelings about money and the origin of money influence you. Did you know the Roman Empire used almost no gold, and in the Bronze Age money was grain and you could eat it?

Author : Robert Shuler
Publisher : CreateSpace
Page : 232 pages
File Size : 45,8 Mb
Release : 2015-01-07
Category : Electronic
ISBN : 1506144659

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The Equity Premium Puzzle, Intrinsic Growth and Monetary Policy by Robert Shuler Pdf

The book presents a theory of necessity to adjust money supply to account for productivity if deflation is to be avoided. The monetary agent (central banker) is a market participant who is not profit oriented and can create money at will, and thus not be subject to rational investor constraints. The monetary agent's power is similar to or greater than investor power in the market. Businesses leverage low interest rates enforced by the monetary agent to increase their activity, and growth rates, increasing employment to compensate for the reduced labor necessary to create the former level of goods and services. This leveraged difference in returns is the equity premium. Since productivity is a "rate" of production, even a one time increase requires a corresponding permanent increase not in the money supply itself, but in the "rate of increase" of the money supply. Given the steady growth in productivity of the last 100 years, the world economy is now grossly under-stimulated and in danger of precipitous deflation. Both academic models and arguments based on historical events are presented, along with analysis of the meaning of money, investor behavior, and practical techniques for obtaining the equity premium in one's portfolio.

Author : Rajnish Mehra
Publisher : Now Publishers Inc
Page : 97 pages
File Size : 46,6 Mb
Release : 2007-09-27
Category : Business & Economics
ISBN : 9781601980649

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The Equity Premium Puzzle by Rajnish Mehra Pdf

Over two decades ago, Mehra and Prescott (1985) challenged the finance profession with a poser: the historical US equity premium is an order of magnitude greater than can be rationalized in the context of the standard neoclassical paradigm of financial economics. This regularity, dubbed "the equity premium puzzle," has spawned a plethora of research efforts to explain it away. In this review, the author takes a retrospective look at the original paper and explains the conclusion that the equity premium is not a premium for bearing non-diversifiable risk

Author : Robert Shuler
Publisher : Unknown
Page : 324 pages
File Size : 51,5 Mb
Release : 2015-08-11
Category : Business & Economics
ISBN : 1681422522

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The Equity Premium Puzzle by Robert Shuler Pdf

The book presents a theory of a necessity to adjust money supply to account for productivity if deflation is to be avoided. The monetary agent (central banker) is a market participant who is not profit oriented and can create money at will, and thus not be subject to rational investor constraints. The monetary agent's power is similar to or greater than investor power in the market. Businesses leverage low interest rates enforced by the monetary agent to increase their activity, and growth rates, increasing employment to compensate for the reduced labor necessary to create the former level of goods and services. This leveraged difference in returns is the equity premium. Since productivity is a "rate" of production, even a one-time increase requires a corresponding permanent increase not in the money supply itself, but in the "rate of increase" of the money supply. Given the steady growth in productivity of the last 100 years, the world economy is now grossly under-stimulated and in danger of precipitous deflation. Both academic models and arguments based on historical events are presented, along with analysis of the meaning of money, investor behavior, and practical techniques for obtaining the equity premium in one's portfolio.

Author : Stephen J. Turnovsky
Publisher : MIT Press
Page : 698 pages
File Size : 54,8 Mb
Release : 2000
Category : Business & Economics
ISBN : 0262201232

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Methods of Macroeconomic Dynamics by Stephen J. Turnovsky Pdf

Just as macroeconomic models describe the overall economy within a changing, or dynamic, framework, the models themselves change over time. In this text Stephen J. Turnovsky reviews in depth several early models as well as a representation of more recent models. They include traditional (backward-looking) models, linear rational expectations (future-looking) models, intertemporal optimization models, endogenous growth models, and continuous time stochastic models. The author uses examples from both closed and open economies. Whereas others commonly introduce models in a closed context, tacking on a brief discussion of the model in an open economy, Turnovsky integrates the two perspectives throughout to reflect the increasingly international outlook of the field. This new edition has been extensively revised. It contains a new chapter on optimal monetary and fiscal policy, and the coverage of growth theory has been expanded substantially. The range of growth models considered has been extended, with particular attention devoted to transitional dynamics and nonscale growth. The book includes cutting-edge research and unpublished data, including much of the author's own work.

Author : ROMER
Publisher : McGraw Hill
Page : 738 pages
File Size : 55,7 Mb
Release : 2018-02-22
Category : Business & Economics
ISBN : 9781526864765

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EBOOK: Advanced Macroeconomics by ROMER Pdf

EBOOK: Advanced Macroeconomics

Author : Marzie Taheri Sanjani
Publisher : International Monetary Fund
Page : 33 pages
File Size : 46,5 Mb
Release : 2014-12-24
Category : Business & Economics
ISBN : 9781484336557

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Financial Frictions in Data by Marzie Taheri Sanjani Pdf

This paper investigates financial frictions in US postwar data to understand the interaction between the real business cycle and the credit market. A Bayesian estimation technique is used to estimate a large Vector Autoregression and New Keynesian models demonstrating how financial shocks can have a large and sluggish impact on the economy. I identify the default risk and the maturity mismatch channels of monetary policy transmission; I further employ a generalized-IRF to establish countercyclicality of risk spreads; and I show that the maturity mismatch shocks produce a stronger impact than the default risk shocks.

Author : William N. Goetzmann,Roger G. Ibbotson
Publisher : Oxford University Press
Page : 576 pages
File Size : 53,5 Mb
Release : 2006-11-16
Category : Business & Economics
ISBN : 9780199881970

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The Equity Risk Premium by William N. Goetzmann,Roger G. Ibbotson Pdf

What is the return to investing in the stock market? Can we predict future stock market returns? How have equities performed over the last two centuries? The authors in this volume are among the leading researchers in the study of these questions. This book draws upon their research on the stock market over the past two dozen years. It contains their major research articles on the equity risk premium and new contributions on measuring, forecasting, and timing stock market returns, together with new interpretive essays that explore critical issues and new research on the topic of stock market investing. This book is aimed at all readers interested in understanding the empirical basis for the equity risk premium. Through the analysis and interpretation of two scholars whose research contributions have been key factors in the modern debate over stock market perfomance, this volume engages the reader in many of the key issues of importance to investors. How large is the premium? Is history a reliable guide to predict future equity returns? Does the equity and cash flows of the market? Are global equity markets different from those in the United States? Do emerging markets offer higher or lower equity risk premia? The authors use the historical performance of the world's stock markets to address these issues.

Author : Bing Cheng
Publisher : World Scientific
Page : 91 pages
File Size : 42,9 Mb
Release : 2008
Category : Business & Economics
ISBN : 9789812832504

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Asset Pricing by Bing Cheng Pdf

Modern asset pricing models play a central role in finance and economic theory and applications. This book introduces a structural theory to evaluate these asset pricing models and throws light on the existence of Equity Premium Puzzle. Based on the structural theory, some algebraic (valuation-preserving) operations are developed in asset spaces and pricing kernel spaces. This has a very important implication leading to practical guidance in portfolio management and asset allocation in the global financial industry. The book also covers topics, such as the role of over-confidence in asset pricing modeling, relationship of the portfolio insurance with option and consumption-based asset pricing models, etc.

Author : Robert A. Meyers
Publisher : Springer Science & Business Media
Page : 919 pages
File Size : 50,7 Mb
Release : 2010-11-03
Category : Business & Economics
ISBN : 9781441977007

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Complex Systems in Finance and Econometrics by Robert A. Meyers Pdf

Finance, Econometrics and System Dynamics presents an overview of the concepts and tools for analyzing complex systems in a wide range of fields. The text integrates complexity with deterministic equations and concepts from real world examples, and appeals to a broad audience.

Author : Anonim
Publisher : Unknown
Page : 660 pages
File Size : 41,8 Mb
Release : 2006
Category : Dissertations, Academic
ISBN : STANFORD:36105123412996

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Index to Theses with Abstracts Accepted for Higher Degrees by the Universities of Great Britain and Ireland and the Council for National Academic Awards by Anonim Pdf

Author : John D. Stowe
Publisher : John Wiley & Sons
Page : 338 pages
File Size : 49,5 Mb
Release : 2007-01-22
Category : Business & Economics
ISBN : 9780470052822

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Equity Asset Valuation by John D. Stowe Pdf

"Here is an essential tool for the investor: clear, practical, insightful, and concise. This book should have a long, useful life in a professional's library." —Jeffrey P. Davis, CFA, Chief Investment Officer, Lee Munder Capital Group "This book provides a clear, comprehensive overview of equity valuation concepts and methods. It is well suited for finance practitioners who want to strengthen their understanding of equity asset valuation and as a supplemental reading in advanced undergraduate and graduate courses addressing security analysis and business valuation." —Professor Robert Parrino, CFA, PhD, Department of Finance, Red McCombs School of Business, The University of Texas at Austin "CFA Institute has done it again. This will be a 'must' reference book for anyone serious about the nuances of equity investment valuation." —Robert D. Arnott, Chairman, Research Affiliates "Equity Asset Valuation concisely and clearly explains the most widely used approaches to equity evaluation. In addition to thoroughly explaining the implementation of each valuation method, there is sophisticated discussion of the commonsense financial economics and accounting issues underlying the methods." —David Blackwell, Head and RepublicBank/James W. Aston Professor of Finance, Mays Business School, Texas A&M University

Author : Mr.Jaromir Benes,Mr.Michael Kumhof
Publisher : International Monetary Fund
Page : 71 pages
File Size : 53,8 Mb
Release : 2012-08-01
Category : Business & Economics
ISBN : 9781475505528

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The Chicago Plan Revisited by Mr.Jaromir Benes,Mr.Michael Kumhof Pdf

At the height of the Great Depression a number of leading U.S. economists advanced a proposal for monetary reform that became known as the Chicago Plan. It envisaged the separation of the monetary and credit functions of the banking system, by requiring 100% reserve backing for deposits. Irving Fisher (1936) claimed the following advantages for this plan: (1) Much better control of a major source of business cycle fluctuations, sudden increases and contractions of bank credit and of the supply of bank-created money. (2) Complete elimination of bank runs. (3) Dramatic reduction of the (net) public debt. (4) Dramatic reduction of private debt, as money creation no longer requires simultaneous debt creation. We study these claims by embedding a comprehensive and carefully calibrated model of the banking system in a DSGE model of the U.S. economy. We find support for all four of Fisher's claims. Furthermore, output gains approach 10 percent, and steady state inflation can drop to zero without posing problems for the conduct of monetary policy.