FX Options and Structured Products
... client perspective. It contains actually traded deals with corresponding motivations explaining why the structures have been traded. This way the reader gets a feeling how to build new structures to suit clients’ needs. The exercises are meant to practice the material. Several of them are actually d ...
... client perspective. It contains actually traded deals with corresponding motivations explaining why the structures have been traded. This way the reader gets a feeling how to build new structures to suit clients’ needs. The exercises are meant to practice the material. Several of them are actually d ...
2
... per cent of the cases of foreign direct investment, but less than 10 per cent of the value of such investment. ...
... per cent of the cases of foreign direct investment, but less than 10 per cent of the value of such investment. ...
NBER WORKING PAPER SERIES Russell Cooper Hubert Kempf
... of risk. In this case, monetary union creates benefits of reduced transactions costs without jeopardizing stabilization policy: the supposed trade-off does not exist and monetary union is welfare improving. ...
... of risk. In this case, monetary union creates benefits of reduced transactions costs without jeopardizing stabilization policy: the supposed trade-off does not exist and monetary union is welfare improving. ...
Business cycle synchronization - Erasmus Universiteit Rotterdam
... emerging economies because of the increasing economic interrelations among countries in the past is not the case anymore. So according to the decoupling theory emerging economies have developed the mechanisms that allow them to detach from the advanced economies’ business cycles and become less depe ...
... emerging economies because of the increasing economic interrelations among countries in the past is not the case anymore. So according to the decoupling theory emerging economies have developed the mechanisms that allow them to detach from the advanced economies’ business cycles and become less depe ...
Document
... increase in the base rate may cause the base currency to appreciate against all other currencies (that float) meaning that any floating country will depreciate against the base. While interest rates in base countries may have an effect on other countries’ real economies, this impact only exists for ...
... increase in the base rate may cause the base currency to appreciate against all other currencies (that float) meaning that any floating country will depreciate against the base. While interest rates in base countries may have an effect on other countries’ real economies, this impact only exists for ...
exchange rate
... Imports and Exports and the Trade Feedback Effect Export prices of other countries affect U.S. import prices. The general rate of inflation abroad is likely to affect U.S. import prices. If the inflation rate abroad is high, U.S. import prices are likely to rise. The Price Feedback Effect price feed ...
... Imports and Exports and the Trade Feedback Effect Export prices of other countries affect U.S. import prices. The general rate of inflation abroad is likely to affect U.S. import prices. If the inflation rate abroad is high, U.S. import prices are likely to rise. The Price Feedback Effect price feed ...
Bitcoin: A Search-Theoretic Approach
... problem (mining). The math problem gets harder as more coins are mined. The math problem is so hard that miners use computers for mining; hence, the money supply is constrained by the progress of computing technologies. Once a coin is mined, it can circulate as an ordinary coin within the Internet. ...
... problem (mining). The math problem gets harder as more coins are mined. The math problem is so hard that miners use computers for mining; hence, the money supply is constrained by the progress of computing technologies. Once a coin is mined, it can circulate as an ordinary coin within the Internet. ...
Reforming the International Monetary System in the 1970s and 2000s
... system of using national currencies as reserve assets concerned many observers. Most prominently, the Triffin dilemma predicted a loss of confidence in the US dollar’s gold link as the value of official liquid claims on the United States increased. More generally, Triffin argued for the need to choose t ...
... system of using national currencies as reserve assets concerned many observers. Most prominently, the Triffin dilemma predicted a loss of confidence in the US dollar’s gold link as the value of official liquid claims on the United States increased. More generally, Triffin argued for the need to choose t ...
Can Foreign Exchange Intervention Stem Exchange Rate Pressures
... The left panel shows the effect of intervention on the exchange rate. Intervention dampens the effect of the external shock on the exchange rate, so long as private domestic investors do not fully play that offsetting role themselves (i.e., ρ >-1). In the limiting case of ρ =-1, where domestic inves ...
... The left panel shows the effect of intervention on the exchange rate. Intervention dampens the effect of the external shock on the exchange rate, so long as private domestic investors do not fully play that offsetting role themselves (i.e., ρ >-1). In the limiting case of ρ =-1, where domestic inves ...
Day Trading the Currency Market
... Praise for the First Edition “I thought this was one of the best books that I had read on FX. The book should be required reading not only for traders new to the foreign exchange markets, but also for seasoned professionals. I’ll definitely be keeping it on my desk for reference. The book is very re ...
... Praise for the First Edition “I thought this was one of the best books that I had read on FX. The book should be required reading not only for traders new to the foreign exchange markets, but also for seasoned professionals. I’ll definitely be keeping it on my desk for reference. The book is very re ...
currency boards for developing countries
... sound currency is one that is stable, credible, and fully convertible. Stability means that current annual inflation is relatively low, usually in single digits. Credibility means that the issuer creates confidence that it will keep future inflation low. Full convertibility means that the currency c ...
... sound currency is one that is stable, credible, and fully convertible. Stability means that current annual inflation is relatively low, usually in single digits. Credibility means that the issuer creates confidence that it will keep future inflation low. Full convertibility means that the currency c ...
The transmission of US shocks to Latin America
... Third, these countries provide a wide spectrum of experiences, as far as domestic and international monetary arrangements are concerned, covering situations with flexible rates, partial inflation targeting and no dollarization (Chile, Mexico) at one extreme, complete dollarization (Panama, and start ...
... Third, these countries provide a wide spectrum of experiences, as far as domestic and international monetary arrangements are concerned, covering situations with flexible rates, partial inflation targeting and no dollarization (Chile, Mexico) at one extreme, complete dollarization (Panama, and start ...
Currency Boards for Developing Countries
... sound currency is one that is stable, credible, and fully convertible. Stability means that current annual inflation is relatively low, usually in single digits. Credibility means that the issuer creates confidence that it will keep future inflation low. Full convertibility means that the currency c ...
... sound currency is one that is stable, credible, and fully convertible. Stability means that current annual inflation is relatively low, usually in single digits. Credibility means that the issuer creates confidence that it will keep future inflation low. Full convertibility means that the currency c ...
Modelling the rand and commodity prices: A Granger causality and
... prices to the exchange rate, findings consistent with Chen and Rogoff (2003). Another attempt at analysing the joint working of the two markets was done by Swift (2004). The author starts with the analysis of Ridler and Yandle (1972) that deals with the dependence of the world price of a certain com ...
... prices to the exchange rate, findings consistent with Chen and Rogoff (2003). Another attempt at analysing the joint working of the two markets was done by Swift (2004). The author starts with the analysis of Ridler and Yandle (1972) that deals with the dependence of the world price of a certain com ...
IE-UFRJ Discussion Paper - Instituto de Economia
... accelerates the rate of inflation. This distinction is useful to briefly discuss the distinction of stable and high (and accelerating, or highly unstable) inflation. According to Pazos’s “..rapid accelerations are usually associated with foreign currency crisis.”(Pazos 1972: 136). In this context, o ...
... accelerates the rate of inflation. This distinction is useful to briefly discuss the distinction of stable and high (and accelerating, or highly unstable) inflation. According to Pazos’s “..rapid accelerations are usually associated with foreign currency crisis.”(Pazos 1972: 136). In this context, o ...
Carl Menger`s contributions to the Austrian currency reform debate
... gold content of the guilder at an exchange rate of 2,102 ffr for 1 fl (or 1,051 ffr for 1 K) which was almost identical with the actual rate at the time of the final debate and slightly higher than the 13 year-average (1879/91), Menger pleaded for a lower gold content (“light guilder”) equivalent to ...
... gold content of the guilder at an exchange rate of 2,102 ffr for 1 fl (or 1,051 ffr for 1 K) which was almost identical with the actual rate at the time of the final debate and slightly higher than the 13 year-average (1879/91), Menger pleaded for a lower gold content (“light guilder”) equivalent to ...
Macroeconomics Chamberlin and Yueh
... • Effective Exchange Rate: The effective exchange rate (also known as the multilateral exchange rate) is the exchange rate against a basket of various currencies. This is a weighted average of bilateral exchange rates and provides a more realistic idea of a currency’s strength. The weights attached ...
... • Effective Exchange Rate: The effective exchange rate (also known as the multilateral exchange rate) is the exchange rate against a basket of various currencies. This is a weighted average of bilateral exchange rates and provides a more realistic idea of a currency’s strength. The weights attached ...
Promoting active learning
... – if r is allowed to fall financial account deficit – money supply must be reduced to prevent this happening this allows r to rise ...
... – if r is allowed to fall financial account deficit – money supply must be reduced to prevent this happening this allows r to rise ...
Opening discussion on banking sector risk
... environments. The remainder of the paper will clearly outline why we hold this belief. In this paper, we attempt to begin to isolate the main drivers of Operational Risk’s embedded in virtual and crypto currencies, to highlight some of their consequences in terms of operational events and losses for ...
... environments. The remainder of the paper will clearly outline why we hold this belief. In this paper, we attempt to begin to isolate the main drivers of Operational Risk’s embedded in virtual and crypto currencies, to highlight some of their consequences in terms of operational events and losses for ...
Chap11_12q_for print..
... C) expansionary shift in the LM curve. D) contractionary shift in the LM curve. 7. An increase in the money supply shifts the ______ curve to the right, and the aggregate demand curve ______ ______. A) IS; shifts to the right B) IS; does not shift C) LM: shifts to the right D) LM; does not ...
... C) expansionary shift in the LM curve. D) contractionary shift in the LM curve. 7. An increase in the money supply shifts the ______ curve to the right, and the aggregate demand curve ______ ______. A) IS; shifts to the right B) IS; does not shift C) LM: shifts to the right D) LM; does not ...
Final notice: JPMorgan Chase Bank NA
... seek to manipulate the fix rate to its benefit and to the potential detriment of certain of its clients. For example, there is a risk that a firm with net client orders to buy a particular currency at the fix rate might deliberately trade in a manner designed to manipulate the fix rate higher. This ...
... seek to manipulate the fix rate to its benefit and to the potential detriment of certain of its clients. For example, there is a risk that a firm with net client orders to buy a particular currency at the fix rate might deliberately trade in a manner designed to manipulate the fix rate higher. This ...
Principles of Economics Third Edition by Fred Gottheil
... Exhibit 3: Historical Record of Money Velocity How might the use of credit cards have explained the change in M1 velocity from the 1950s to the 1980s? • Increased use of credit cards during this period allowed people to buy more goods and services with less cash and lower demand deposit balances re ...
... Exhibit 3: Historical Record of Money Velocity How might the use of credit cards have explained the change in M1 velocity from the 1950s to the 1980s? • Increased use of credit cards during this period allowed people to buy more goods and services with less cash and lower demand deposit balances re ...
current politics and economics of europe
... in response to economic uncertainty resulting from increased capital mobility and global economic instability. Concerns over instability have been exacerbated since the so-called ‘Tequila crisis’ (Mexican currency crisis of 1994), the South East Asian currency crisis of 1997-98, the several more min ...
... in response to economic uncertainty resulting from increased capital mobility and global economic instability. Concerns over instability have been exacerbated since the so-called ‘Tequila crisis’ (Mexican currency crisis of 1994), the South East Asian currency crisis of 1997-98, the several more min ...
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.