Measures of Investor and Consumer Confidence and Policy Actions in the Current Crisis
The current financial crisis has highlighted the danger that declines in confidence can have a self-fulfilling effect on economic activity. In this paper, the authors consider ways of measuring investor and consumer confidence, and try to explain t...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090720145703 http://hdl.handle.net/10986/4198 |
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okr-10986-4198 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CAPITAL ACCESS TO CAPITAL MARKETS ADVANCED COUNTRIES AGGREGATE DEMAND APR ASSET CLASSES AUCTION BALANCE OF PAYMENTS BALANCE SHEETS BANK LIQUIDITY BANK SUPERVISION BANKING INDUSTRY BANKING SYSTEMS BASIS POINTS BEST PRACTICES BOND BOND PRICES BORROWING COSTS BUSINESS COMMUNITY BUSINESS CONFIDENCE CALCULATIONS CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS COMMERCIAL BANK COMMERCIAL BANKS COMMODITIES COMMODITY COMMODITY PRICES CONFIDENCE INDEX CONFIDENCE INDICES CONSUMER CONSUMER CONFIDENCE CREDIBILITY CREDIT FACILITY CREDIT MARKETS CREDIT SPREADS CURRENCY DEBT DEBT ISSUANCE DEPOSIT DEPOSIT INSURANCE DEPOSITS DEPRESSION DEREGULATION DETERIORATION IN CREDIT DEVELOPING COUNTRIES DIVIDEND DIVIDEND POLICY DOMESTIC BANKS DURABLE ECONOMIC ACTIVITY ECONOMIC FUTURE ECONOMIC SECURITY EFFECT OF LIQUIDITY EMERGING MARKETS EMERGING STOCK MARKETS EQUITIES EQUITY FLOWS EQUITY INSTRUMENTS EQUITY MARKET EQUITY MARKETS EQUITY PRICES EXCHANGE RATE EXCHANGE RATES EXPORT GROWTH FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL ASSETS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DATA FINANCIAL DISCLOSURE FINANCIAL INTEGRATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL POLICIES FINANCIAL POLICY FINANCIAL REFORM FINANCIAL REGULATION FINANCIAL SECTORS FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL VOLATILITY FISCAL POLICY FISCAL SUSTAINABILITY FOREIGN BANKS FOREIGN EXCHANGE FOREIGN EXCHANGE MARKETS FOREIGN EXCHANGE RESERVE FOREIGN EXCHANGE RESERVES GLOBAL ECONOMY GLOBAL EQUITY GLOBAL EQUITY MARKETS GLOBAL FINANCIAL SYSTEM GLOBAL MARKETS GLOBALIZATION GOVERNMENT ACTIONS GOVERNMENT BORROWING GOVERNMENT DEBT GOVERNMENT FINANCING GOVERNMENT POLICY GOVERNMENT SECURITIES GROWTH RATES HARMONIZATION HOLDINGS INDUSTRIAL COUNTRIES INFORMATION ASYMMETRIES INSTITUTIONAL ENVIRONMENTS INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSTRUMENT INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL FINANCE INTERNATIONAL INVESTORS INTERNATIONAL POLITICS INTERNATIONAL PORTFOLIO INTERNATIONAL SETTLEMENTS INVESTING INVESTMENT BANKS INVESTMENT PERFORMANCE INVESTOR BEHAVIOR INVESTOR CONFIDENCE LENDER LENDER OF LAST RESORT LIQUIDITY LIQUIDITY FACILITIES LOAN LOAN PORTFOLIO LOCAL CAPITAL MARKET LOCAL CAPITAL MARKETS LOSS OF CONFIDENCE MACROECONOMIC CONDITIONS MACROECONOMIC DATA MACROECONOMIC INDICATORS MACROECONOMIC POLICY MARKET CAP MARKET INFORMATION MARKET MAKERS MARKET PARTICIPANTS MARKET PERFORMANCE MARKET PRICES MARKET RATE OF RETURN MARKET VALUATION MARKET VOLATILITY MONETARY AUTHORITIES MONETARY POLICIES MONETARY POLICY MONEY SUPPLY MORTGAGE MORTGAGE-BACKED SECURITIES MORTGAGES OPEN MARKETS OPEN-MARKET OPERATIONS OTHER ASSETS PERSONAL INCOME POLICY RESPONSE POLICY RESPONSES POLITICAL INSTABILITY PORTFOLIO FLOWS POSTWAR PERIOD PRESS COVERAGE PRICE DISCOVERY PRICE INDEX PRIMARY DEALER PRIMARY DEALERS PRIVATE BORROWERS PRIVATE CREDIT PRIVATE EQUITY PRIVATE EQUITY INVESTORS PURCHASES RAPID GROWTH RECESSION REGULATOR REGULATORS REGULATORY AUTHORITIES REGULATORY AUTHORITY REGULATORY ENVIRONMENT REGULATORY REFORM REGULATORY SYSTEM RESEARCH ASSISTANCE RISK AVERSION RISKY ASSETS SALES SCANDAL SCANDALS SECURITIES SECURITIES AS COLLATERAL SECURITY MARKET SECURITY MARKETS SOVEREIGN BOND SOVEREIGN BOND MARKETS SOVEREIGN GUARANTEES STANDARD DEVIATIONS STOCK MARKET STOCK MARKETS SWAP TAX TOTAL MARKET TRADE DATA TRADES TRANSPARENCY TREASURIES TREASURY TREASURY SECURITIES UNCERTAINTY VALUATION VOLATILITIES WEALTH CREATION WORLD ECONOMY WORLD MARKET YIELD CURVE |
| spellingShingle |
ACCESS TO CAPITAL ACCESS TO CAPITAL MARKETS ADVANCED COUNTRIES AGGREGATE DEMAND APR ASSET CLASSES AUCTION BALANCE OF PAYMENTS BALANCE SHEETS BANK LIQUIDITY BANK SUPERVISION BANKING INDUSTRY BANKING SYSTEMS BASIS POINTS BEST PRACTICES BOND BOND PRICES BORROWING COSTS BUSINESS COMMUNITY BUSINESS CONFIDENCE CALCULATIONS CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS COMMERCIAL BANK COMMERCIAL BANKS COMMODITIES COMMODITY COMMODITY PRICES CONFIDENCE INDEX CONFIDENCE INDICES CONSUMER CONSUMER CONFIDENCE CREDIBILITY CREDIT FACILITY CREDIT MARKETS CREDIT SPREADS CURRENCY DEBT DEBT ISSUANCE DEPOSIT DEPOSIT INSURANCE DEPOSITS DEPRESSION DEREGULATION DETERIORATION IN CREDIT DEVELOPING COUNTRIES DIVIDEND DIVIDEND POLICY DOMESTIC BANKS DURABLE ECONOMIC ACTIVITY ECONOMIC FUTURE ECONOMIC SECURITY EFFECT OF LIQUIDITY EMERGING MARKETS EMERGING STOCK MARKETS EQUITIES EQUITY FLOWS EQUITY INSTRUMENTS EQUITY MARKET EQUITY MARKETS EQUITY PRICES EXCHANGE RATE EXCHANGE RATES EXPORT GROWTH FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL ASSETS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DATA FINANCIAL DISCLOSURE FINANCIAL INTEGRATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL POLICIES FINANCIAL POLICY FINANCIAL REFORM FINANCIAL REGULATION FINANCIAL SECTORS FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL VOLATILITY FISCAL POLICY FISCAL SUSTAINABILITY FOREIGN BANKS FOREIGN EXCHANGE FOREIGN EXCHANGE MARKETS FOREIGN EXCHANGE RESERVE FOREIGN EXCHANGE RESERVES GLOBAL ECONOMY GLOBAL EQUITY GLOBAL EQUITY MARKETS GLOBAL FINANCIAL SYSTEM GLOBAL MARKETS GLOBALIZATION GOVERNMENT ACTIONS GOVERNMENT BORROWING GOVERNMENT DEBT GOVERNMENT FINANCING GOVERNMENT POLICY GOVERNMENT SECURITIES GROWTH RATES HARMONIZATION HOLDINGS INDUSTRIAL COUNTRIES INFORMATION ASYMMETRIES INSTITUTIONAL ENVIRONMENTS INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSTRUMENT INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL FINANCE INTERNATIONAL INVESTORS INTERNATIONAL POLITICS INTERNATIONAL PORTFOLIO INTERNATIONAL SETTLEMENTS INVESTING INVESTMENT BANKS INVESTMENT PERFORMANCE INVESTOR BEHAVIOR INVESTOR CONFIDENCE LENDER LENDER OF LAST RESORT LIQUIDITY LIQUIDITY FACILITIES LOAN LOAN PORTFOLIO LOCAL CAPITAL MARKET LOCAL CAPITAL MARKETS LOSS OF CONFIDENCE MACROECONOMIC CONDITIONS MACROECONOMIC DATA MACROECONOMIC INDICATORS MACROECONOMIC POLICY MARKET CAP MARKET INFORMATION MARKET MAKERS MARKET PARTICIPANTS MARKET PERFORMANCE MARKET PRICES MARKET RATE OF RETURN MARKET VALUATION MARKET VOLATILITY MONETARY AUTHORITIES MONETARY POLICIES MONETARY POLICY MONEY SUPPLY MORTGAGE MORTGAGE-BACKED SECURITIES MORTGAGES OPEN MARKETS OPEN-MARKET OPERATIONS OTHER ASSETS PERSONAL INCOME POLICY RESPONSE POLICY RESPONSES POLITICAL INSTABILITY PORTFOLIO FLOWS POSTWAR PERIOD PRESS COVERAGE PRICE DISCOVERY PRICE INDEX PRIMARY DEALER PRIMARY DEALERS PRIVATE BORROWERS PRIVATE CREDIT PRIVATE EQUITY PRIVATE EQUITY INVESTORS PURCHASES RAPID GROWTH RECESSION REGULATOR REGULATORS REGULATORY AUTHORITIES REGULATORY AUTHORITY REGULATORY ENVIRONMENT REGULATORY REFORM REGULATORY SYSTEM RESEARCH ASSISTANCE RISK AVERSION RISKY ASSETS SALES SCANDAL SCANDALS SECURITIES SECURITIES AS COLLATERAL SECURITY MARKET SECURITY MARKETS SOVEREIGN BOND SOVEREIGN BOND MARKETS SOVEREIGN GUARANTEES STANDARD DEVIATIONS STOCK MARKET STOCK MARKETS SWAP TAX TOTAL MARKET TRADE DATA TRADES TRANSPARENCY TREASURIES TREASURY TREASURY SECURITIES UNCERTAINTY VALUATION VOLATILITIES WEALTH CREATION WORLD ECONOMY WORLD MARKET YIELD CURVE Dailami, Mansoor Masson, Paul Measures of Investor and Consumer Confidence and Policy Actions in the Current Crisis |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5007 |
| description |
The current financial crisis has
highlighted the danger that declines in confidence can have
a self-fulfilling effect on economic activity. In this
paper, the authors consider ways of measuring investor and
consumer confidence, and try to explain the evolution of
confidence using measures of financial volatility,
investment performance, macroeconomic outcomes, and policy
actions. They identify a link between investor and consumer
confidence. Finally, they show that liquidity provision and
easing of interest rates had only a limited effect on
financial market spreads during the crisis, arguing for
additional measures to address the loss of confidence. The
paper focuses on the need for financial regulatory reform,
and shows how the incentives to cooperate in this area are
stimulated by a common shock to confidence. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Dailami, Mansoor Masson, Paul |
| author_facet |
Dailami, Mansoor Masson, Paul |
| author_sort |
Dailami, Mansoor |
| title |
Measures of Investor and Consumer Confidence and Policy Actions in the Current Crisis |
| title_short |
Measures of Investor and Consumer Confidence and Policy Actions in the Current Crisis |
| title_full |
Measures of Investor and Consumer Confidence and Policy Actions in the Current Crisis |
| title_fullStr |
Measures of Investor and Consumer Confidence and Policy Actions in the Current Crisis |
| title_full_unstemmed |
Measures of Investor and Consumer Confidence and Policy Actions in the Current Crisis |
| title_sort |
measures of investor and consumer confidence and policy actions in the current crisis |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090720145703 http://hdl.handle.net/10986/4198 |
| _version_ |
1764390368979189760 |
| spelling |
okr-10986-41982021-04-23T14:02:16Z Measures of Investor and Consumer Confidence and Policy Actions in the Current Crisis Dailami, Mansoor Masson, Paul ACCESS TO CAPITAL ACCESS TO CAPITAL MARKETS ADVANCED COUNTRIES AGGREGATE DEMAND APR ASSET CLASSES AUCTION BALANCE OF PAYMENTS BALANCE SHEETS BANK LIQUIDITY BANK SUPERVISION BANKING INDUSTRY BANKING SYSTEMS BASIS POINTS BEST PRACTICES BOND BOND PRICES BORROWING COSTS BUSINESS COMMUNITY BUSINESS CONFIDENCE CALCULATIONS CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS COMMERCIAL BANK COMMERCIAL BANKS COMMODITIES COMMODITY COMMODITY PRICES CONFIDENCE INDEX CONFIDENCE INDICES CONSUMER CONSUMER CONFIDENCE CREDIBILITY CREDIT FACILITY CREDIT MARKETS CREDIT SPREADS CURRENCY DEBT DEBT ISSUANCE DEPOSIT DEPOSIT INSURANCE DEPOSITS DEPRESSION DEREGULATION DETERIORATION IN CREDIT DEVELOPING COUNTRIES DIVIDEND DIVIDEND POLICY DOMESTIC BANKS DURABLE ECONOMIC ACTIVITY ECONOMIC FUTURE ECONOMIC SECURITY EFFECT OF LIQUIDITY EMERGING MARKETS EMERGING STOCK MARKETS EQUITIES EQUITY FLOWS EQUITY INSTRUMENTS EQUITY MARKET EQUITY MARKETS EQUITY PRICES EXCHANGE RATE EXCHANGE RATES EXPORT GROWTH FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL ASSETS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DATA FINANCIAL DISCLOSURE FINANCIAL INTEGRATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL POLICIES FINANCIAL POLICY FINANCIAL REFORM FINANCIAL REGULATION FINANCIAL SECTORS FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL VOLATILITY FISCAL POLICY FISCAL SUSTAINABILITY FOREIGN BANKS FOREIGN EXCHANGE FOREIGN EXCHANGE MARKETS FOREIGN EXCHANGE RESERVE FOREIGN EXCHANGE RESERVES GLOBAL ECONOMY GLOBAL EQUITY GLOBAL EQUITY MARKETS GLOBAL FINANCIAL SYSTEM GLOBAL MARKETS GLOBALIZATION GOVERNMENT ACTIONS GOVERNMENT BORROWING GOVERNMENT DEBT GOVERNMENT FINANCING GOVERNMENT POLICY GOVERNMENT SECURITIES GROWTH RATES HARMONIZATION HOLDINGS INDUSTRIAL COUNTRIES INFORMATION ASYMMETRIES INSTITUTIONAL ENVIRONMENTS INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSTRUMENT INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL FINANCE INTERNATIONAL INVESTORS INTERNATIONAL POLITICS INTERNATIONAL PORTFOLIO INTERNATIONAL SETTLEMENTS INVESTING INVESTMENT BANKS INVESTMENT PERFORMANCE INVESTOR BEHAVIOR INVESTOR CONFIDENCE LENDER LENDER OF LAST RESORT LIQUIDITY LIQUIDITY FACILITIES LOAN LOAN PORTFOLIO LOCAL CAPITAL MARKET LOCAL CAPITAL MARKETS LOSS OF CONFIDENCE MACROECONOMIC CONDITIONS MACROECONOMIC DATA MACROECONOMIC INDICATORS MACROECONOMIC POLICY MARKET CAP MARKET INFORMATION MARKET MAKERS MARKET PARTICIPANTS MARKET PERFORMANCE MARKET PRICES MARKET RATE OF RETURN MARKET VALUATION MARKET VOLATILITY MONETARY AUTHORITIES MONETARY POLICIES MONETARY POLICY MONEY SUPPLY MORTGAGE MORTGAGE-BACKED SECURITIES MORTGAGES OPEN MARKETS OPEN-MARKET OPERATIONS OTHER ASSETS PERSONAL INCOME POLICY RESPONSE POLICY RESPONSES POLITICAL INSTABILITY PORTFOLIO FLOWS POSTWAR PERIOD PRESS COVERAGE PRICE DISCOVERY PRICE INDEX PRIMARY DEALER PRIMARY DEALERS PRIVATE BORROWERS PRIVATE CREDIT PRIVATE EQUITY PRIVATE EQUITY INVESTORS PURCHASES RAPID GROWTH RECESSION REGULATOR REGULATORS REGULATORY AUTHORITIES REGULATORY AUTHORITY REGULATORY ENVIRONMENT REGULATORY REFORM REGULATORY SYSTEM RESEARCH ASSISTANCE RISK AVERSION RISKY ASSETS SALES SCANDAL SCANDALS SECURITIES SECURITIES AS COLLATERAL SECURITY MARKET SECURITY MARKETS SOVEREIGN BOND SOVEREIGN BOND MARKETS SOVEREIGN GUARANTEES STANDARD DEVIATIONS STOCK MARKET STOCK MARKETS SWAP TAX TOTAL MARKET TRADE DATA TRADES TRANSPARENCY TREASURIES TREASURY TREASURY SECURITIES UNCERTAINTY VALUATION VOLATILITIES WEALTH CREATION WORLD ECONOMY WORLD MARKET YIELD CURVE The current financial crisis has highlighted the danger that declines in confidence can have a self-fulfilling effect on economic activity. In this paper, the authors consider ways of measuring investor and consumer confidence, and try to explain the evolution of confidence using measures of financial volatility, investment performance, macroeconomic outcomes, and policy actions. They identify a link between investor and consumer confidence. Finally, they show that liquidity provision and easing of interest rates had only a limited effect on financial market spreads during the crisis, arguing for additional measures to address the loss of confidence. The paper focuses on the need for financial regulatory reform, and shows how the incentives to cooperate in this area are stimulated by a common shock to confidence. 2012-03-19T19:11:40Z 2012-03-19T19:11:40Z 2009-07-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090720145703 http://hdl.handle.net/10986/4198 English Policy Research working paper ; no. WPS 5007 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |