Economics for Financial Markets
- Brian Kettell, Policy Advisor, Bahrain Monetary Agency.
Successful trading, speculating or simply making informed decisions about financial markets means it is essential to have a firm grasp of economics. Financial market behaviour revolves around economic concepts, however the majority of economic textbooks do not tell the full story.To fully understand the behaviour of financial markets it is essential to have a model that enables new information to be absorbed and analysed with some predictive implications. That model is provided by the business cycle. 'Economics for Financial Markets' takes the reader from the basics of financial market valuation to a more sophisticated understanding of the actions that traders take which ultimately drives the volatility in the financial markets. The author shows traders, investment managers, risk managers and finance professionals how to distil the flow of information and show what needs to be concentrated on, covering topics such as:* Why are financial markets subject to economic fashions?* How has the New Economy changed financial market behaviour? * Does the creation of the euro fundamentally change the behaviour of the currency markets?View full description
Traders; Investment Managers; Risk Managers; Finance Professionals.
- Published: November 2001
- Imprint: BUTTERWORTH HEINEMANN
- ISBN: 978-0-7506-5384-8
Table of ContentsWhat do you need to know about macroeconomics to interpret financial market volatility?; The time value of money: the key to the valuation of financial markets; The term structure of interest rates and financial markets; How can you forecast the future behaviour of financial markets? the role of the business cycles; Which economic indicators will really move the financial markets?; Consumer expenditure, investment spending, government spending and foreign trade: the big picture; So where does consumer confidence and consumer sentiment help in interpreting financial market volatility?; The global exchange rate system and the euroisation of the currency markets; Why are exchange rates so volatile: the fundamental approach and the asset market approach; How can you predict the direction of US interest rates: what do fed watchers watch?; Derivatives: what do you need to know about them to understand their role in financial markets?; The new economic paradigm: how does it affect the valuation of financial markets?; Bubbleology and financial markets; Bibliography; Statistical tables; Appendix: useful web addresses.