scholarly journals ANALYSIS OF IMPACT OF YIELD, INTEREST RATES, U.S FED RATES, AND INFLATION ON PRICE OF GOVERNMENT BONDS IN INDONESIA

2020 ◽  
Vol 6 (2) ◽  
pp. 59-74
Author(s):  
Antonius Siahaan ◽  
Julius Peter Panahatan
Keyword(s):  
Emerging Markets ◽  
Interest Rates ◽  
Federal Reserve ◽  
Emerging Market ◽  
Bond Prices ◽  
Government Bonds ◽  
Federal Reserve Bank ◽  
Reserve Bank ◽  
Critical Issues ◽  
Negative Effect

Global factors are increasingly important as a cause of international capital flows. It is almost impossible for emerging markets to protect themselves from external influences on their financial markets. Indonesia as emerging market is influenced by some monetary policies adopted by the U.S Federal Reserve Bank. The plan of tapering and Fed rate increase adopted by the Federal Reserve Bank in the last three years made local currencies turned into the depreciation stage, increasing capital outflow from emerging markets. It created huge impact on government bond prices in Indonesia and can be seen through the relationship of some factors with bond prices. This research analyzes the impacts of BI rates, Fed rates, and inflation rates on six government bonds classified into three periods during November 2013 to October 2016 when tapering and Fed rates became critical issues. It finds that in all periods bond prices are significantly influenced by only BI rates, but BI rates, Fed rates and inflation rate have negative effect on bond prices during the observation period.

scholarly journals Why Are Interest Rates So Low?

2013 ◽  
pp. 1-4
Author(s):  
Joseph G. Haubrich
Keyword(s):  
Interest Rates ◽  
Recent Work ◽  
Federal Reserve ◽  
Federal Reserve Bank ◽  
Reserve Bank ◽  
Work Done ◽  
Near Future

Interest rates have been at historical lows for some time now. There are many possible reasons why that is so. We make use of recent work done at the Federal Reserve Bank of Cleveland that allows us to look at individual components of interest rates and see which are exerting the biggest influence. Knowing why rates are where they are now helps to predict where interest rates will likely be in the near future.

scholarly journals The Spillover Effects of Fed’s Policies with Emphasis to the Fragile Five

2014 ◽  
Vol 6 (12) ◽  
pp. 1011-1020
Author(s):  
Mehmet ORHAN ◽  
Halil İbrahim ÇELİKEL .
Keyword(s):  
Interest Rates ◽  
Foreign Exchange ◽  
Federal Reserve ◽  
Stock Exchange ◽  
Spillover Effects ◽  
Wall Street ◽  
Federal Reserve Bank ◽  
Reserve Bank ◽  
Almost All

Since the Bretton Woods Agreement, the U.S. dollar has played the role of dominant global currency. As a result, the Federal Reserve Bank has many privileges such as the ability to run trade deficits without foreign exchange reserves. In the world, foreign exchange rates of currencies are quoted against the dollar, and majority of currency trading involves the dollar. Besides, international trade in primary commodities, such as oil, wheat, gold and coffee are bought and sold in U.S. dollar. The central banks of countries hold major positions of their international reserves in dollars. Any changes in its interest rates automatically alter the revenues of all world assets. With deregulated financial markets, the spillover effects of the Federal Reserve Bank’s decisions have increased. In this paper, we examine the impacts of Federal Reserve Bank policies over the Fragile Five that is a sub group of the weaker emerging markets namely Brazil, India, Indonesia, South Africa and Turkey. We are mainly focusing on the consequences of changes in Fed’s policies on the fragile five’s basic indicators; exchange rate, interest rate, and the stock exchange indices. All Fragile Five currencies have been depreciated by about 10 to 25% after the Fed tapering decisions. In addition we test for mean and volatility spillover of Wall Street on stock exchange indices of the Fragile Five in GARCH in mean framework and document the existence of such spillovers in almost all cases.

scholarly journals Kritik Buku : MANAGING CAPITAL FLOWS AND EXCHANGE RATES PERSPECTIVE FROM THE PASIFIC BASIC Oleh Rueven Glick (Editor), Federal Reserve Bank of San Fransisco

2003 ◽  
Vol 2 (4) ◽  
pp. 230-233
Author(s):  
Syamsul Arifin
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Capital Flows ◽  
Federal Reserve ◽  
Emerging Market ◽  
Capital Inflow ◽  
Capital Flow ◽  
Cambridge University ◽  
Federal Reserve Bank ◽  
Reserve Bank

Buku terbitan Cambridge University Press tahun 1998 ini ditulis untuk mengkaji aspek teoritis dan kebijakan berkaitan dengan capital flow dan exchange rate di negara-negara emerging market di sekitar kawasan Pasifik, khususnya negaranegara Asia Timur dan Amerika latin. dari krisis nilai tukar yang ditimbulkan karena tingginga capital inflow di kawasan tersebut, penulis terdorong untuk memetik pelajaran yang sangat berharga dari krisis tersebut.

scholarly journals Liquidity Synchronization, Its Determinants and Outcomes under Economic Growth Volatility: Evidence from Emerging Asian Economies

Risks ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 43
Author(s):  
Syeda Hina Zaidi ◽  
Ramona Rupeika-Apoga
Keyword(s):  
Economic Growth ◽  
Emerging Markets ◽  
Interest Rates ◽  
Emerging Market ◽  
The Philippines ◽  
Country Level ◽  
Market Index ◽  
High Inflation ◽  
Asian Emerging Markets ◽  
Growth Volatility

This study investigates the country-level determinants of liquidity synchronization and degrees of liquidity synchronization during economic growth volatility. As a non-diversifiable risk factor, liquidity co-movement shock spreads market-wide and thus disrupts the overall functioning of the financial market. Firms in Asian markets operate in legal and regulatory environments distinct from those of firms analyzed in the previous literature. Comprehensive analyses of liquidity synchronicity in emerging markets are limited. A major knowledge gap pertaining to Asian emerging markets serves as the primary motivation for this study. Seven Asian emerging economies are selected from the MSCI emerging market index: Bangladesh, China, India, Indonesia, Malaysia, Pakistan and the Philippines for analysis from 2010 to 2019. The empirical findings show high levels of liquidity synchronicity in weaker economic and financial environments with low GDP growth, high inflation and interest rates and underdeveloped financial systems taking the form of low levels of private credit. Liquidity synchronicity is also affected by poor investor protection, political instability, weak rule of law and government ineffectiveness. Moreover, levels of liquidity synchronicity are higher in a period of economic growth volatility.

The Federal Reserve Bank of Richmond

1942 ◽  
Vol 22 (4) ◽  
pp. 431
Author(s):  
S. Donald Southworth ◽  
C. G. Coit
Keyword(s):  
Federal Reserve ◽  
Federal Reserve Bank ◽  
Reserve Bank
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