Term of the Day: Draghi Effect

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	INVESTOPEDIA Term Of The Day September 8, 2015 Draghi Effect The calming effect of European Central Bank President, Mario Draghi, on global financial markets. When the Draghi effect is at play, yields on bonds of embattled European nations, such as Greece and Spain, recede from historic high levels, reducing their cost of borrowing and indicating that there is buyer demand for their sovereign bonds. The euro also tends to rise under the Draghi effect, while risk appetite returns and equity markets rally. In short, the Draghi effect causes the European sovereign debt crisis to look less gloomy and the global macroeconomic more positive. Breaking It Down: The Draghi effect is made possible by the enormous credibility that Mario Draghi possesses in... Read More Related to "Draghi Effect" How U.S. Firms Benefit When The Dollar Falls Many investors are programmed to believe that a decline in the value of the U.S. dollar is a bad thing. But what's interesting about a weak dollar is... Read More Citadel And Bernanke, The Perfect Relationship? Ben Bernanke is one of the best known Federal Reserve chairmen, having navigated the U.S. through the Great Recession... Read More Baby Boomer Baby boomer is a descriptive term for a person who was born between the years 1946 and 1964. This generation makes up a substantial... Read More Recently Added Definitions Earnings Before Interest & Tax - EBIT An indicator of a company's profitability, calculated as revenue minus expenses... Read More Implied Volatility - IV Implied volatility is the estimated volatility of a security's price. In general, implied volatility increases... Read More Related Definitions Euro European Sovereign Debt Crisis European Union - EU European Central Bank - ECB Mobile First Strategy Past Terms of the Day Robin Hood Effect Economic Depreciation Depreciation Recession Bubble Theory You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Unsubscribe From All | Manage Profile Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: