Tag: Hypothesis

The somatic-marker hypothesis: how decision are made in the face of an uncertain outcome

Introduction Swift decisions are made by an individual when they are in a situation where they face the uncertainty about whether their decisions will lead to benefit or harm. The somatic marker hypothesis attempts to explain how decisions are made in the face of an uncertain outcome, this hypothesis’ central theological affirmation is that decisions …

Testing the hypothesis that monetary policy responds to stock market movements

Abstract This paper highlights a problem in using the OLS model of Taylor’s rule, including lagged value of fed funds rate and stock index’s return to address whether the monetary policy should respond to asset prices movement or not. However, to know more exactly about the direct or indirect relationship between stock prices and the …