Archive for 'finance'
Historical International Investment Performance
So, how did investment into the stock markets of different countries perform historically? Table I.2 describes the performance of various MSCI stock market returns over the last 35 years and over the last 20 years. It also shows the performance of two more global indexes, one being the equal-weighted index of the preceding 14 countries [...]
Posted: October 13th, 2009 under finance.
Tags: emerging markets, stock market
Comments: none
Purchasing Power Parity
Forward exchange rates are exactly determined by interest rates through an arbitrage condition. But there is a deeper question here: why is the interest rate in euros higher than the interest rate in U.S. dollars? Economists are not sure, and here is why. The most important question is whether purchasing power parity (PPP) holds. The [...]
Posted: October 3rd, 2009 under finance.
Tags: commodities, currencies, economists, goods
Comments: none