Research
Market Dynamics: Measuring Impact of Economic Events and Government Programs on Production and Employment
The impact of austerity, fiscal and monetary programs has been a subject of numerous studies and findings regarding the effectiveness of such government policies in combating economic downturns by stimulating growth, increasing employment, and promoting investment. The recently introduced Market Dynamics method has been extended to provide a dynamic Production model that incorporates employment, wages, consumption, investment, government spending, interest rate, taxes, and other related factors. The model is used to compare the impact of austerity, fiscal and monetary programs in response to an economic downturn and to measure the size and effectiveness of government actions including changes in spending, taxation and interest rates. A conservation of commerce principal is defined stating that money flow from wages, spending, borrowing and interest activities must match the change in production trades. The latter mechanism is responsible for a lag in response as the full impact of an event is gradually realized over its time horizon.
Market Dynamics: A Classical Approach to Security Price Movements
The recently introduced Market Dynamics method demonstrates parallelisms between security price indicators and their physical counterparts. Specifically, the security price is viewed as a potential energy density, and events such as earnings releases as forces that affect security prices. This dynamic representation of security price movements is extended and applied towards developing an event driven approach for measuring security price movements and the associated price charts. A conservation of capital principal further underlines the central role of capital flow in the formation of support levels. This classical approach to security price movements enables access to a vast pool of existing scientific knowledge and opens new insights into analyzing security price movements with potential applications in the fields of finance and investment management.
