External Sector - Bilkent University
... Turkish treasury TL bonds: i = 10%, German treasury Euro bonds: i* = 8% Which one will the investors prefer? What if during this period it is expected that e will increase by 5 %, that is TL depreciates by 5 %, will you still prefer to buy Turkish Bonds.? ...
... Turkish treasury TL bonds: i = 10%, German treasury Euro bonds: i* = 8% Which one will the investors prefer? What if during this period it is expected that e will increase by 5 %, that is TL depreciates by 5 %, will you still prefer to buy Turkish Bonds.? ...
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... Price competition: Businesses compete with each other to make sales. The greater the competition the closer the prices charge by rivals. Perfect competition The idea of perfect competition help economists to understand what an absolutely competitive market would be like. Perfect competition does not ...
... Price competition: Businesses compete with each other to make sales. The greater the competition the closer the prices charge by rivals. Perfect competition The idea of perfect competition help economists to understand what an absolutely competitive market would be like. Perfect competition does not ...
Irving Fisher (1867-1947)
... - contributed studies of index numbers and distributed lags to statistical theory - his important economic contributions include the quantity equation of money, indifference curve analysis, and theory of interest 1892 - published foundations of indifference curve analysis 1907 - published The Rate o ...
... - contributed studies of index numbers and distributed lags to statistical theory - his important economic contributions include the quantity equation of money, indifference curve analysis, and theory of interest 1892 - published foundations of indifference curve analysis 1907 - published The Rate o ...
International Insolvency Law Organisational matters
... context: key ECB interest rates are already at their lower bound ( „pushing on a string”) ...
... context: key ECB interest rates are already at their lower bound ( „pushing on a string”) ...
Foreign Exchange
... USD depreciates and Yen appreciates USD depreciates and Yen appreciates USD appreciates and Yen depreciates USD depreciates and Yen appreciates USD depreciates (Demand Falls) and Yen appreciates (Supply Falls) 6. USD appreciates (Supply Falls) and Yen depreciates (Demand Falls) 7. USD appreciates an ...
... USD depreciates and Yen appreciates USD depreciates and Yen appreciates USD appreciates and Yen depreciates USD depreciates and Yen appreciates USD depreciates (Demand Falls) and Yen appreciates (Supply Falls) 6. USD appreciates (Supply Falls) and Yen depreciates (Demand Falls) 7. USD appreciates an ...
15110 Economics Competition question book.indd
... (D) Tax revenue increases and government expenditure increases ...
... (D) Tax revenue increases and government expenditure increases ...
The data refer to the Hong Kong Special Administrative Region
... Source S index, weights reference period: September 1992. Data are based on the Labor Earnings Survey and refer to nominal wage indices for September of each year. Data cover a similar range of remuneration as the payroll per person index but only for normal work time. Manufacturing Production: Sour ...
... Source S index, weights reference period: September 1992. Data are based on the Labor Earnings Survey and refer to nominal wage indices for September of each year. Data cover a similar range of remuneration as the payroll per person index but only for normal work time. Manufacturing Production: Sour ...
exchange rate
... currency (interventions) on the foreign exchange market in return for the currency to which it is pegged (more vulnerable) In order to maintain the rate, the central bank must keep a high level of foreign reserves. This is a reserved amount of foreign currency held by the central bank that it can us ...
... currency (interventions) on the foreign exchange market in return for the currency to which it is pegged (more vulnerable) In order to maintain the rate, the central bank must keep a high level of foreign reserves. This is a reserved amount of foreign currency held by the central bank that it can us ...
Martin Feldstein Avoiding Currency Crises
... First, borrowing in a foreign currency is only a problem if there is too much such foreign debt and if corporate debt-capital ratios are too high. Since domestic saving typically finances between 80 percent and 90 percent of domestic investment in emerging market countries and some of the remaining ...
... First, borrowing in a foreign currency is only a problem if there is too much such foreign debt and if corporate debt-capital ratios are too high. Since domestic saving typically finances between 80 percent and 90 percent of domestic investment in emerging market countries and some of the remaining ...
Class 7: Economic Globalization
... • Unlike the dollar, the euro or the yen, whose values fluctuate freely, China’s currency is pegged by official policy at about 6.8 yuan to the dollar. At this exchange rate, Chinese manufacturing has a large cost advantage over its rivals, leading to huge trade surpluses. • Under normal circumstanc ...
... • Unlike the dollar, the euro or the yen, whose values fluctuate freely, China’s currency is pegged by official policy at about 6.8 yuan to the dollar. At this exchange rate, Chinese manufacturing has a large cost advantage over its rivals, leading to huge trade surpluses. • Under normal circumstanc ...
One Market, One Money? Well, Maybe . . . Sometimes
... questions are well known. To begin with, within the typical nation-state, some symbolic importance is still attached to the maintenance of a distinct national currency, which is a traditional trapping of national sovereignty. Economics does not help us to understand this matter, but it should not, f ...
... questions are well known. To begin with, within the typical nation-state, some symbolic importance is still attached to the maintenance of a distinct national currency, which is a traditional trapping of national sovereignty. Economics does not help us to understand this matter, but it should not, f ...
PANEL
... adverse cyclical movements at home and abroad, as for example in the years 1958-59. Secondly, there has been an adverse effect at times from domestic excess demand, particularly evident during the period of the Vietnam ...
... adverse cyclical movements at home and abroad, as for example in the years 1958-59. Secondly, there has been an adverse effect at times from domestic excess demand, particularly evident during the period of the Vietnam ...
Currency Derivatives
... The views expressed in these lessons are for information purposes only and do not construe to be of any investment, legal or taxation advice. The contents are topical in nature & held true at the time of creation of the lesson. They are not indicative of future market trends, nor is Tata Asset Manag ...
... The views expressed in these lessons are for information purposes only and do not construe to be of any investment, legal or taxation advice. The contents are topical in nature & held true at the time of creation of the lesson. They are not indicative of future market trends, nor is Tata Asset Manag ...
Exchange Rate Regimes
... market, each side trying to second-guess the other. Speculators are concerned with assessing the pressures on the government and its likely reaction to them. The government for its part is assessing the likely effect of its actions on market sentiment. ...
... market, each side trying to second-guess the other. Speculators are concerned with assessing the pressures on the government and its likely reaction to them. The government for its part is assessing the likely effect of its actions on market sentiment. ...
Chapter 1 Notes
... Marketplace: where goods and services exchange hands Dollar votes: when you build demand for a product by making a purchase ...
... Marketplace: where goods and services exchange hands Dollar votes: when you build demand for a product by making a purchase ...
Chapter 13 -- Determining Aggregate Demand (AD)
... Formalizing the Demand for Financial Capital (DI) Graph DI against one of its causes -- the nominal interest rate (r). Inverse relationship implies that the curve is downward sloping. Changes in r are described as a movement along the curve. Graph is drawn assuming that ...
... Formalizing the Demand for Financial Capital (DI) Graph DI against one of its causes -- the nominal interest rate (r). Inverse relationship implies that the curve is downward sloping. Changes in r are described as a movement along the curve. Graph is drawn assuming that ...
Purchasing power parity
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Purchasing power parity (PPP) is a component of some economic theories and is a technique used to determine the relative value of different currencies.Theories that invoke purchasing power parity assume that in some circumstances (for example, as a long-run tendency) it would cost exactly the same number of, say, US dollars to buy euros and then to use the proceeds to buy a market basket of goods as it would cost to use those dollars directly in purchasing the market basket of goods.The concept of purchasing power parity allows one to estimate what the exchange rate between two currencies would have to be in order for the exchange to be at par with the purchasing power of the two countries' currencies. Using that PPP rate for hypothetical currency conversions, a given amount of one currency thus has the same purchasing power whether used directly to purchase a market basket of goods or used to convert at the PPP rate to the other currency and then purchase the market basket using that currency. Observed deviations of the exchange rate from purchasing power parity are measured by deviations of the real exchange rate from its PPP value of 1.PPP exchange rates help to minimize misleading international comparisons that can arise with the use of market exchange rates. For example, suppose that two countries produce the same physical amounts of goods as each other in each of two different years. Since market exchange rates fluctuate substantially, when the GDP of one country measured in its own currency is converted to the other country's currency using market exchange rates, one country might be inferred to have higher real GDP than the other country in one year but lower in the other; both of these inferences would fail to reflect the reality of their relative levels of production. But if one country's GDP is converted into the other country's currency using PPP exchange rates instead of observed market exchange rates, the false inference will not occur.