Financial crises, volatility and sovereign ratings: Do ratings really matter when they are needed most? The stability of Australian financial markets during the Asian financial crisis is a major economic success story. Subsequently, an important policy objective has been in enhancing the capacity of the financial infrastructure in regional financial markets to reduce their exposure to such crises. Recent financial market turmoil dramatically underscores the need to better understand the full myr ....Financial crises, volatility and sovereign ratings: Do ratings really matter when they are needed most? The stability of Australian financial markets during the Asian financial crisis is a major economic success story. Subsequently, an important policy objective has been in enhancing the capacity of the financial infrastructure in regional financial markets to reduce their exposure to such crises. Recent financial market turmoil dramatically underscores the need to better understand the full myriad of factors that feed into this challenging concern. One critical area of debate is whether or not rating agencies play a calming role. This project will deliver insights that aid development of the financial infrastructure to cope better with such crises and retain investor confidence.Read moreRead less
The Older Australian Twins Study (OATS) Of Healthy Brain Ageing And Age-related Neurocognitive Disorders
Funder
National Health and Medical Research Council
Funding Amount
$940,960.00
Summary
Ageing is associated with cognitive decline and dementia. It is still not completely understood what relative contributions genes and environment play in these. This project is an extension of the Older Australian Twins Study to examine genetic and environmental factors associated with late life brain changes and dementia, and will establish an internationally significant cohort for novel discovery.
Information Content of Order Flows in the Foreign Exchange and Commodities Markets. The Australian economy depends heavily on resources and commodities markets. The Australian dollar is the sixth most actively traded currency in the world and is more volatile than all other major currencies except the Japanese yen. The proposed study seeks to improve volatility forecasts and hedging effectiveness for foreign exchange and commodity risks, which will create significant benefits for the Australian ....Information Content of Order Flows in the Foreign Exchange and Commodities Markets. The Australian economy depends heavily on resources and commodities markets. The Australian dollar is the sixth most actively traded currency in the world and is more volatile than all other major currencies except the Japanese yen. The proposed study seeks to improve volatility forecasts and hedging effectiveness for foreign exchange and commodity risks, which will create significant benefits for the Australian economy, corporations, and investors. In addition, the project will enhance investment performance and risk management practice of financial institutions, improving the overall safety of our financial system. It will also foster research culture and increase research capacity of Australian financial institutions.Read moreRead less
Discovery Early Career Researcher Award - Grant ID: DE130100967
Funder
Australian Research Council
Funding Amount
$375,000.00
Summary
Understanding the effects of sovereign default risk on economic fluctuations in open economies. The recent financial crisis has shown that the possibility of sovereign default is no longer an exclusive feature of developing countries. This project incorporates default risk into structural modeling of how foreign disturbances affect the domestic economy. Our results will aid in developing policy responses to adverse macroeconomic events.
Noisy Parity Relationships in International Macroeconomic Models. Macroeconomic models of the Australian economy play a key role in the design of monetary and fiscal policy. Policymakers use these models either implicitly or explicitly, and usually begin to learn about them in principles courses. Parity relationships are foundation elements of these models, and have powerful implications for our understanding of macroeconomic dynamics. Classical statistical tests may have falsely led to an unhea ....Noisy Parity Relationships in International Macroeconomic Models. Macroeconomic models of the Australian economy play a key role in the design of monetary and fiscal policy. Policymakers use these models either implicitly or explicitly, and usually begin to learn about them in principles courses. Parity relationships are foundation elements of these models, and have powerful implications for our understanding of macroeconomic dynamics. Classical statistical tests may have falsely led to an unhealthy agnosticism regarding many of these relationships. This research will bring more appropriate statistical techniques to bear upon the problem, and if successful will restore confidence in decision-making processes and the relevance and applicability of macroeconomic models. Read moreRead less
Investing over the Life Cycle. This project will investigate efficiency questions raised by the private and public management of assets within defined contribution pension plans. Because investment risk in such plans falls on the contributing household, they need to be managed with care. The first phase of the project will examine optimal equity investments on behalf of contributing households. The second phase will consider the scope and limits of market-timing endeavours involving switches bet ....Investing over the Life Cycle. This project will investigate efficiency questions raised by the private and public management of assets within defined contribution pension plans. Because investment risk in such plans falls on the contributing household, they need to be managed with care. The first phase of the project will examine optimal equity investments on behalf of contributing households. The second phase will consider the scope and limits of market-timing endeavours involving switches between broad asset classes. The third phase will consider optimal currency hedging. The final phase will consider the optimal taxation of pension fund assets at different points in the household's life cycle.Read moreRead less
Risk Management for Bonds, Currencies and Commodities. Understanding maturity-structure policy is a neglected topic. It needs research before we can determine whether public debt policy should accommodate the emerging needs of self-funded retirees - for long-term debt, new issues of index bonds, and 'survivor' bonds. Planning for annuity-rate risk has lagged far behind the sales of complying pensions. Over 2003 the Australian dollar rose by 34 percent, revealing major deficiencies in the standar ....Risk Management for Bonds, Currencies and Commodities. Understanding maturity-structure policy is a neglected topic. It needs research before we can determine whether public debt policy should accommodate the emerging needs of self-funded retirees - for long-term debt, new issues of index bonds, and 'survivor' bonds. Planning for annuity-rate risk has lagged far behind the sales of complying pensions. Over 2003 the Australian dollar rose by 34 percent, revealing major deficiencies in the standard advice on managing currency risks to retirement incomes. Uninsured disruptions to electricity supply have been an issue (eg in California), and demonstrate a need for innovative financial instruments that cushion and spread the costs.Read moreRead less
Security in Retirement: Forecasting and Managing Macro Investment Risks. In his Boyer Lectures Ian Macfarlane, former RBA governor, observed that risks once borne by employers or governments are in the process of being transferred to households. Retirement incomes are a case in point. Not only do most households belong to accumulation funds which shift investment risks to members, but exposure to growth assets (equities and property) in the typical account is in the 60% - 70% range, even in the ....Security in Retirement: Forecasting and Managing Macro Investment Risks. In his Boyer Lectures Ian Macfarlane, former RBA governor, observed that risks once borne by employers or governments are in the process of being transferred to households. Retirement incomes are a case in point. Not only do most households belong to accumulation funds which shift investment risks to members, but exposure to growth assets (equities and property) in the typical account is in the 60% - 70% range, even in the case of retirees. Our project will focus on the forecasting and management of economy-wide risks, as distinct from the equity risks or credit risks attached to investments in particular companies.Read moreRead less
Molecular Regulation Of CRH Gene Expression In The Human Placenta
Funder
National Health and Medical Research Council
Funding Amount
$70,285.00
Summary
Approximately 70% of infant death is a result of premature birth. Preterm delivery occurs in 6-10% of pregnancies, and there has been no reduction in this rate in the last 30 years. This is largely because we remain ignorant of how normal and preterm birth is controlled. Understanding the physiology of human pregnancy is a critical step in the development of ways to detect and prevent preterm birth. Our group has demonstrated a link between production of a hormone (corticotropin releasing hormon ....Approximately 70% of infant death is a result of premature birth. Preterm delivery occurs in 6-10% of pregnancies, and there has been no reduction in this rate in the last 30 years. This is largely because we remain ignorant of how normal and preterm birth is controlled. Understanding the physiology of human pregnancy is a critical step in the development of ways to detect and prevent preterm birth. Our group has demonstrated a link between production of a hormone (corticotropin releasing hormone, CRH) in the placenta and the length of time the baby is carried in the mother. In women who will deliver prematurely the rise in CRH production occurs earlier and more rapidly, while in women who deliver late the rise occurs more slowly. This work has led to the concept of a biological clock that determines the length of time the fetus will be carried by the mother before birth, and in which production of CRH in the placenta plays a central role. We have been studying how the CRH gene is controlled in placental cells. We have discovered some regions in the DNA of the CRH gene which have important roles in controlling how much CRH is made by the placenta. The experiments described in this project will determine the molecular mechanisms that control the production of CRH in the human placenta. This will be done by examining the DNA sequences involved in controlling the CRH gene and by identifying the proteins that actually perform the regulating functions that result in either increased or decreased amounts of CRH being produced by the placenta. This important information will help us better understand how normal and preterm birth is controlled, and from that knowledge new ways to detect and prevent premature birth can be developed.Read moreRead less
BRIDGET: BRain Imaging, Cognition, Dementia And Next Generation GEnomics: A Transdisciplinary Approach To Search For Risk And Protective Factors Of Neurodegenerative Disease
Funder
National Health and Medical Research Council
Funding Amount
$1,081,489.00
Summary
Alzheimer’s disease (AD) begins many years before diagnosis and yet its aetiology is still poorly understood. The BRIDGET consortium aims to identify genetic variants that are associated with structural brain ageing, cognitive performance, and dementia risk in richly phenotyped international and Australian population-based samples. This work aims to provide crucial information on the molecular pathways leading to AD, potentially leading to improved health outcomes for our ageing population.