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If a sufficient fraction of market participants follow technical analysis it can work as self-fulfilling prophecy. If some pattern occurs that technical analysis interprets as signalling an imminent drop in prices these people will sell, which will cause the prices to actually drop. As is obvious from the above argument, whether an interpretation of the data ...


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You cannot obtain that information with the data provided. You would need periodic samples throughout the day.


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Investment ultimately comes from households through savings. From a macroeconomic perspective savings is equal to to investment ($S=I$). Investment comes from income because saving is portion of income that is not consumed. For example, if your income is $\\\$1000$ and you consume $\\\$700$ of it the $\\\$300$ you are left it is by definition saving and ...


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First of all that is not a theory but result/implication from Mundell–Fleming model (which is the theory that gives rise to the result). Second the description you are using is lacking one caveat that this is an equilibrium result from the Mundell–Fleming model (Mundell 1963; Fleming 1962). Of course country can have all three policies at the same time for ...


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Question 1: Was the financial crash of 2008 caused by top graduates of the American Ivy Leagues working at wall street banks? No for several reasons. First financial crises are unavoidable, no matter what system we have. Good systems mitigate the likelihood of financial crises and can soften the blow of financial crises but there is no way how one can ...


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The abstract of EVIDENCE FOR AND AGAINST THE VALIDITY OF EFFICIENT MARKET HYPOTHESIS by Milјan Leković: The concept of an efficient financial market, in literature known as efficient market hypothesis (EMH), has had a long and difficult development path from the idea itself to its final conception, as one of the central paradigms in modern finance. It has ...


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I’d start by briefly noting that “the Fed” didn’t say anything; that’s a research paper (by some smart people), but it’s disclaimed and doesn’t necessarily reflect the views of anyone other than the authors. Having said that, I would then rephrase your question as follows: “what happens if everyone decides to cash in their retirement funds at once?” The ...


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Economists already consider South Korea to be developed economy. In fact some scholars already argued that Korea was a developed economy already sometime in late 90s - 2000s (see Kim, 1988; Kim, 2011). Opinions might differ because there is no precise definition of what developed country is but quite often in literature this is proxied with whether economy ...


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This is actually one of the more exciting development in DSGE modelling since financial crisis. Including financial sector or friction is definitely a growing area of research and interest. Unfortunately its quite a new development so there are not that many papers yet out there (however if you consider doing research in this field that also means there is a ...


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Shares, and many other financial instruments as well, are financial assets assets, through which people save not consumption of goods and services. Consequently, neither GST (goods and services tax) or value added tax (which is in economics a type of consumption tax) can apply to stocks or many other financial instruments as they do not represent ...


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Federal funds rate is a rate at which banks can borrow extra money at an overnight market. This can be viewed as 'banks' cost' since when people want to lend from certain bank, the bank will often get the money not from some new deposits it itself attracts but from the overnight market. Consequently if the Fed funds rate drops they can afford to lend money ...


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I would use A = (low + high)/2. I am not aware of this being a common technical indicator. In regard to common practices "VWAP" refers to any algorithm that calculates a volume weighted average price. I have seen a few references that define simple VWAP = volume x (low + high + close)/3. https://www.investopedia.com/ask/answers/031115/what-common-...


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