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Structuralist economics is an approach to economics that emphasizes the importance of taking into account structural features (typically) when undertaking economic analysis. The approach originated with the work of the Economic Commission for Latin America (ECLA or CEPAL) and is primarily associated with its director Raúl Prebisch and ...
In practice, this means that a central bank should seek a rate of inflation or deflation equal to the real interest rate on government bonds and other safe assets, to make the nominal interest rate zero. The result of this policy is that those who hold money do not suffer any loss in the value of that money due to inflation.
When unpacking the recent market volatility, however, long-term bond yields are the place to start, Ross Mayfield, an investment strategist at Baird Private Wealth Management, said in a note Friday.
While the structuralist period led to rapid expansion of domestically manufactured goods and high rates of economic growth, there were also some major shortcomings such as stagnating exports, elevated fiscal deficit, very high rates of inflation and the crowding out of private investments. [17]
Inflation has been a feature of history during the entire period when money has been used as a means of payment. One of the earliest documented inflations occurred in Alexander the Great's empire 330 BCE. [26] Historically, when commodity money was used, periods of inflation and deflation would alternate depending on the condition of the ...
Purchasing individual bonds might be a better fit for someone who has a higher risk tolerance, longer time horizon and/or the desire to actively manage their own investments. Bottom line
To see whether you’re better off holding the bond until maturity or if it’s called early, you can calculate the yield to call. The bond’s original yield (coupon rate) is 5%.
Individual bonds provide the ability to match the cash flows needed, which is why the term "cash flow matching" is sometimes used to describe this strategy. Because the bonds are dedicated to providing the cash flows, the term "dedicated portfolio" or “asset dedication” is sometimes used to describe the strategy.