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Economics Notes Macroeconomic Principles Notes

Financial Markets And Banks Notes

Updated Financial Markets And Banks Notes

Macroeconomic Principles Notes

Macroeconomic Principles

Approximately 260 pages

In depth, typed notes covering the Macroeconomic Principles (EC210) course at LSE (London School of Economics). Covers the full content of the course including the following topics:

- Economic Measurement
- Economic Growth
- The Malthusian Model
- The Solow Model
- Endogenous Growth Models
- Consumption
- Ricardian Equivalence
- Credit Market Imperfections
- Investment
- Unemployment
- Issues in the Labour Market
- The Dynamic Macroeconomic Model
- The Dynamic Monetary Model
- Bus...

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The following is a more accessible plain text extract of the PDF sample above, taken from our Macroeconomic Principles Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

Financial Markets and Banks Summary * Present Discounted Values * Bonds Present Discounted Values Bonds The Stock Market * Firms raise funds in two ways: * Debt finance: bonds and loans * Equity finance: through issues of stocks (shares) * Stocks pay dividends of an amount decided by the firm Graph showing the S&P composite index since 1950 * Stock prices * Price of a stock must equal the PV of future expected dividends * In real terms: * This relation has two important implications: * Expected future real dividends | Real stock price | * Current and expected future one-year real interest rate | Real stock price | Stock market & economic activity Graph demonstrating the effect of an unanticipated monetary expansion * * LM curve shifts to the right * Output | Profits and Dividends | * Interest rate | Effect of discounting | Stock prices unexpectedly | Course Notes Page 64

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