The Equity Premium Puzzle Intrinsic Growth And Monetary Policy An Unexpected Solution

Author : Robert Shuler
Publisher : Lulu.com
Page : 234 pages
File Size : 43,5 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 : 43,5 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 : 43,7 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 : 40,6 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 : 40,9 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 : William N. Goetzmann,Roger G. Ibbotson
Publisher : Oxford University Press
Page : 576 pages
File Size : 44,6 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 : Robert Shuler
Publisher : Dog Ear Publishing
Page : 476 pages
File Size : 51,9 Mb
Release : 2012-02
Category : Electronic
ISBN : 9781457510229

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Fighting Bob Shuler of Los Angeles by Robert Shuler Pdf

Author : Mr.Stijn Claessens,Mr.Ayhan Kose
Publisher : International Monetary Fund
Page : 66 pages
File Size : 50,9 Mb
Release : 2013-01-30
Category : Business & Economics
ISBN : 9781475561005

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Financial Crises Explanations, Types, and Implications by Mr.Stijn Claessens,Mr.Ayhan Kose Pdf

This paper reviews the literature on financial crises focusing on three specific aspects. First, what are the main factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp fluctuations in asset and credit markets, the paper briefly reviews theoretical and empirical studies on developments in these markets around financial crises. Second, what are the major types of financial crises? The paper focuses on the main theoretical and empirical explanations of four types of financial crises—currency crises, sudden stops, debt crises, and banking crises—and presents a survey of the literature that attempts to identify these episodes. Third, what are the real and financial sector implications of crises? The paper briefly reviews the short- and medium-run implications of crises for the real economy and financial sector. It concludes with a summary of the main lessons from the literature and future research directions.

Author : Financial Crisis Inquiry Commission
Publisher : Cosimo, Inc.
Page : 692 pages
File Size : 48,8 Mb
Release : 2011-05-01
Category : Political Science
ISBN : 9781616405410

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The Financial Crisis Inquiry Report by Financial Crisis Inquiry Commission Pdf

The Financial Crisis Inquiry Report, published by the U.S. Government and the Financial Crisis Inquiry Commission in early 2011, is the official government report on the United States financial collapse and the review of major financial institutions that bankrupted and failed, or would have without help from the government. The commission and the report were implemented after Congress passed an act in 2009 to review and prevent fraudulent activity. The report details, among other things, the periods before, during, and after the crisis, what led up to it, and analyses of subprime mortgage lending, credit expansion and banking policies, the collapse of companies like Fannie Mae and Freddie Mac, and the federal bailouts of Lehman and AIG. It also discusses the aftermath of the fallout and our current state. This report should be of interest to anyone concerned about the financial situation in the U.S. and around the world.THE FINANCIAL CRISIS INQUIRY COMMISSION is an independent, bi-partisan, government-appointed panel of 10 people that was created to "examine the causes, domestic and global, of the current financial and economic crisis in the United States." It was established as part of the Fraud Enforcement and Recovery Act of 2009. The commission consisted of private citizens with expertise in economics and finance, banking, housing, market regulation, and consumer protection. They examined and reported on "the collapse of major financial institutions that failed or would have failed if not for exceptional assistance from the government."News Dissector DANNY SCHECHTER is a journalist, blogger and filmmaker. He has been reporting on economic crises since the 1980's when he was with ABC News. His film In Debt We Trust warned of the economic meltdown in 2006. He has since written three books on the subject including Plunder: Investigating Our Economic Calamity (Cosimo Books, 2008), and The Crime Of Our Time: Why Wall Street Is Not Too Big to Jail (Disinfo Books, 2011), a companion to his latest film Plunder The Crime Of Our Time. He can be reached online at www.newsdissector.com.

Author : Laurent Ferrara,Ignacio Hernando,Daniela Marconi
Publisher : Springer
Page : 298 pages
File Size : 41,7 Mb
Release : 2018-06-13
Category : Business & Economics
ISBN : 9783319790756

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International Macroeconomics in the Wake of the Global Financial Crisis by Laurent Ferrara,Ignacio Hernando,Daniela Marconi Pdf

This book collects selected articles addressing several currently debated issues in the field of international macroeconomics. They focus on the role of the central banks in the debate on how to come to terms with the long-term decline in productivity growth, insufficient aggregate demand, high economic uncertainty and growing inequalities following the global financial crisis. Central banks are of considerable importance in this debate since understanding the sluggishness of the recovery process as well as its implications for the natural interest rate are key to assessing output gaps and the monetary policy stance. The authors argue that a more dynamic domestic and external aggregate demand helps to raise the inflation rate, easing the constraint deriving from the zero lower bound and allowing monetary policy to depart from its current ultra-accommodative position. Beyond macroeconomic factors, the book also discusses a supportive financial environment as a precondition for the rebound of global economic activity, stressing that understanding capital flows is a prerequisite for economic-policy decisions.

Author : Mr.Jaromir Benes,Mr.Michael Kumhof
Publisher : International Monetary Fund
Page : 71 pages
File Size : 50,9 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.

Author : Mr.Stijn Claessens,Mr.Ayhan Kose,Mr.Luc Laeven,Mr.Fabian Valencia
Publisher : International Monetary Fund
Page : 670 pages
File Size : 46,6 Mb
Release : 2014-02-19
Category : Business & Economics
ISBN : 9781475543407

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Financial Crises by Mr.Stijn Claessens,Mr.Ayhan Kose,Mr.Luc Laeven,Mr.Fabian Valencia Pdf

The lingering effects of the economic crisis are still visible—this shows a clear need to improve our understanding of financial crises. This book surveys a wide range of crises, including banking, balance of payments, and sovereign debt crises. It begins with an overview of the various types of crises and introduces a comprehensive database of crises. Broad lessons on crisis prevention and management, as well as the short-term economic effects of crises, recessions, and recoveries, are discussed.

Author : Bing Cheng
Publisher : World Scientific
Page : 91 pages
File Size : 46,7 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 : Wing-Keung Wong
Publisher : Mdpi AG
Page : 232 pages
File Size : 48,5 Mb
Release : 2022-02-17
Category : Business & Economics
ISBN : 3036530800

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Efficiency and Anomalies in Stock Markets by Wing-Keung Wong Pdf

The Efficient Market Hypothesis believes that it is impossible for an investor to outperform the market because all available information is already built into stock prices. However, some anomalies could persist in stock markets while some other anomalies could appear, disappear and re-appear again without any warning. A Special Issue on "Efficiency and Anomalies in Stock Markets" will be devoted to advancements in the theoretical development of market efficiency and anomaly in the Stock Market, as well as applications in Stock Market efficiency and anomalies.

Author : William C. Brainard,George L. Perry
Publisher : Brookings Institution Press
Page : 368 pages
File Size : 46,9 Mb
Release : 2005-06-01
Category : Business & Economics
ISBN : 0815705891

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Brookings Papers on Economic Activity 2005 by William C. Brainard,George L. Perry Pdf

Topics include inflation dynamics and the distribution of income, underdiversification in 401(k) plans, gauging employment, and central bank transparency and the signal value of prices.