Currency Futures Presentation January 2014
... What are Currency Futures: Contracts that allow investors to trade an exchange rate for sometime into the future A futures contract gives the buyer exposure to the underlying asset immediately but only has to pay a deposit as opposed to the full value of the transaction. If the buyer keeps the cont ...
... What are Currency Futures: Contracts that allow investors to trade an exchange rate for sometime into the future A futures contract gives the buyer exposure to the underlying asset immediately but only has to pay a deposit as opposed to the full value of the transaction. If the buyer keeps the cont ...
HOW TO STOP THE DEPRESSION
... other world-class goods. At present these prices are unstable precisely because the value of the irredeemable dollar financing world trade is increasingly uncertain. The new payments system emerging in this way would fall short of a fully-fledged international gold standard, as central banks would r ...
... other world-class goods. At present these prices are unstable precisely because the value of the irredeemable dollar financing world trade is increasingly uncertain. The new payments system emerging in this way would fall short of a fully-fledged international gold standard, as central banks would r ...
Money
... Example: Price of gasoline up in U.S. 2007: 4.6% of personal expenditures on gas; in 1997: 2.6% Where does the extra money spent on gas (2% of personal income) come from? Less spending on other goods, especially nice things. ...
... Example: Price of gasoline up in U.S. 2007: 4.6% of personal expenditures on gas; in 1997: 2.6% Where does the extra money spent on gas (2% of personal income) come from? Less spending on other goods, especially nice things. ...
Exercise Set 10_Answers
... a. long run until the interest rate is roughly the same in both countries. b. long run until real GDP is roughly the same in both countries. c. long run until the average price of goods is roughly the same in both countries. d. short run until the average price of goods is roughly the same in both c ...
... a. long run until the interest rate is roughly the same in both countries. b. long run until real GDP is roughly the same in both countries. c. long run until the average price of goods is roughly the same in both countries. d. short run until the average price of goods is roughly the same in both c ...
Kuwait Kicks Sand on The Dollar
... I think this reflects global fundamentals. The U.S. economy is less dominant in the global economy today, with the rise of China, India and the European Union, than it was in, say, 1980. The size of the U.S. trade deficit also argues for a gradual depreciation of the dollar in order to bring global ...
... I think this reflects global fundamentals. The U.S. economy is less dominant in the global economy today, with the rise of China, India and the European Union, than it was in, say, 1980. The size of the U.S. trade deficit also argues for a gradual depreciation of the dollar in order to bring global ...
Chapter 9:
... Monetary and Portfolio Approaches to Exchange-Rate and Balance-of-Payments Determination CHAPTER OVERVIEW Chapter 9 is devoted to explaining the monetary and portfolio approaches to exchange rate and balance of payments determination. The chapter begins with a discussion of central banks’ balance sh ...
... Monetary and Portfolio Approaches to Exchange-Rate and Balance-of-Payments Determination CHAPTER OVERVIEW Chapter 9 is devoted to explaining the monetary and portfolio approaches to exchange rate and balance of payments determination. The chapter begins with a discussion of central banks’ balance sh ...
Seminar Question 1 Slides
... – Labor mobility is a poor substitute for exchange rate flexibility – The standard theory implicitly assumes an ability to set up institutions that will assure a fixed exchange rate – Presumes that a time-consistent choice is made on the exchange rate regime, whereas in many countries, the exchange ...
... – Labor mobility is a poor substitute for exchange rate flexibility – The standard theory implicitly assumes an ability to set up institutions that will assure a fixed exchange rate – Presumes that a time-consistent choice is made on the exchange rate regime, whereas in many countries, the exchange ...
Making Sense Of A New Currency: An Exploration Of Ghanaian
... Currencies in Ghana Prior to Independence, West African pounds, shillings and pence were the official legal tender in the country. In 1958, the country outdoored it’s first national currency, Ghana pounds, shillings and pence. In 1965, Cedi notes and Pesewa coins were introduced, marking Ghana’s dep ...
... Currencies in Ghana Prior to Independence, West African pounds, shillings and pence were the official legal tender in the country. In 1958, the country outdoored it’s first national currency, Ghana pounds, shillings and pence. In 1965, Cedi notes and Pesewa coins were introduced, marking Ghana’s dep ...
NBER WORKING PAPER SERIES Bennett T. McCallum
... characteristics, then their marginal yields (rates of return) will be equal, when both pecuniary and non-pecuniary returns are considered. In the much-discussed case of short-term government securities and government sanctioned fiat money, for example, the rate of interest on the security will equa ...
... characteristics, then their marginal yields (rates of return) will be equal, when both pecuniary and non-pecuniary returns are considered. In the much-discussed case of short-term government securities and government sanctioned fiat money, for example, the rate of interest on the security will equa ...
ECONOMICS
... TARIFF – tax on imported goods – Tariffs raise prices on foreign goods. This makes it less profitable for countries to sell their goods in foreign markets. QUOTA – limit on trade – Quotas restrict the amount of a foreign good that may be imported in a given amount of time. ...
... TARIFF – tax on imported goods – Tariffs raise prices on foreign goods. This makes it less profitable for countries to sell their goods in foreign markets. QUOTA – limit on trade – Quotas restrict the amount of a foreign good that may be imported in a given amount of time. ...
Quarter Presentation
... Develop Local Capital Markets Local capital market financings can reduce FX and other risks Need to develop corporate and municipal bond as well as equity markets ...
... Develop Local Capital Markets Local capital market financings can reduce FX and other risks Need to develop corporate and municipal bond as well as equity markets ...
SP125: Can Central Banking Survive the IT Revolution?
... notes/deposits would be competitive; no higher rate could be sustained ...
... notes/deposits would be competitive; no higher rate could be sustained ...
Fixed versus floating exchange rates and the role of central bank
... parity against the $US. However, leading up to the end of 1994, there were several underlying weaknesses in the Mexican economy which led speculators to question the sustainability of the peg. Including: (1) PPP calculations which indicated that prices/costs had risen in excess of trading partners, ...
... parity against the $US. However, leading up to the end of 1994, there were several underlying weaknesses in the Mexican economy which led speculators to question the sustainability of the peg. Including: (1) PPP calculations which indicated that prices/costs had risen in excess of trading partners, ...
Argentina: Where To Go From Here?
... indisciplined government would alter its behavior merely because of a change in currency? Would such a government not simply get rid of dollarization at the first strong desire to inflate? Alternatively, would a government that has solved its fundamental fiscal problems not be as prepared to stick to d ...
... indisciplined government would alter its behavior merely because of a change in currency? Would such a government not simply get rid of dollarization at the first strong desire to inflate? Alternatively, would a government that has solved its fundamental fiscal problems not be as prepared to stick to d ...
Discussions over the Currency Policy in the NEP Period
... Russian and British/American commodities indexes on the pre-war basis and the changes in pound sterling and dollar exchange rate to the pre-war parity, the authors concluded that the export is profitable. They also pointed out that the importance of the currency policy for the development of export ...
... Russian and British/American commodities indexes on the pre-war basis and the changes in pound sterling and dollar exchange rate to the pre-war parity, the authors concluded that the export is profitable. They also pointed out that the importance of the currency policy for the development of export ...
No Slide Title
... Comparison with other outs? Literature highlights 4 (measurable) factors that determines economic costs/benefits of Currency union Euro Adoption Ranking Iceland ...
... Comparison with other outs? Literature highlights 4 (measurable) factors that determines economic costs/benefits of Currency union Euro Adoption Ranking Iceland ...
mancosa internationa..
... All else being equal, the greater the capital investment in an economy, the more favourable its future prospects are. So, FDI can be seen as an important source of capital investment and a determinant of the future growth rate of an economy ...
... All else being equal, the greater the capital investment in an economy, the more favourable its future prospects are. So, FDI can be seen as an important source of capital investment and a determinant of the future growth rate of an economy ...
F570 International Corporate Finance
... monetary policy boost economic growth Central Bank uses open market operations: buy T-bills (DA) means banks have more to lend Bank Deposits increase, and money supply rises: m*(DA + IR) rises ...
... monetary policy boost economic growth Central Bank uses open market operations: buy T-bills (DA) means banks have more to lend Bank Deposits increase, and money supply rises: m*(DA + IR) rises ...
Currency war
Currency war, also known as competitive devaluation, is a condition in international affairs where countries compete against each other to achieve a relatively low exchange rate for their own currency. As the price to buy a country's currency falls so too does the price of exports. Imports to the country become more expensive. So domestic industry, and thus employment, receives a boost in demand from both domestic and foreign markets. However, the price increase for imports can harm citizens' purchasing power. The policy can also trigger retaliatory action by other countries which in turn can lead to a general decline in international trade, harming all countries.Competitive devaluation has been rare through most of history as countries have generally preferred to maintain a high value for their currency. Countries have generally allowed market forces to work, or have participated in systems of managed exchanges rates. An exception occurred when currency war broke out in the 1930s. As countries abandoned the Gold Standard during the Great Depression, they used currency devaluations to stimulate their economies. Since this effectively pushes unemployment overseas, trading partners quickly retaliated with their own devaluations. The period is considered to have been an adverse situation for all concerned, as unpredictable changes in exchange rates reduced overall international trade.According to Guido Mantega, the Brazilian Minister for Finance, a global currency war broke out in 2010. This view was echoed by numerous other government officials and financial journalists from around the world. Other senior policy makers and journalists suggested the phrase ""currency war"" overstated the extent of hostility. With a few exceptions, such as Mantega, even commentators who agreed there had been a currency war in 2010 generally concluded that it had fizzled out by mid-2011.States engaging in possible competitive devaluation since 2010 have used a mix of policy tools, including direct government intervention, the imposition of capital controls, and, indirectly, quantitative easing. While many countries experienced undesirable upward pressure on their exchange rates and took part in the ongoing arguments, the most notable dimension of the 2010–11 episode was the rhetorical conflict between the United States and China over the valuation of the yuan. In January 2013, measures announced by Japan which were expected to devalue its currency sparked concern of a possible second 21st century currency war breaking out, this time with the principal source of tension being not China versus the US, but Japan versus the Eurozone. By late February, concerns of a new outbreak of currency war had been mostly allayed, after the G7 and G20 issued statements committing to avoid competitive devaluation. After the European Central Bank launched a fresh programme of quantitative easing in January 2015, there was once again an intensification of discussion about currency war.