This chapter discusses open-economy macroeconomics and the balance of payments. It defines key terms like the balance of payments, current account, capital account, and exchange rates. It also explains the relationship between exchange rates, imports/exports, and domestic output and prices in an open economy. Flexible exchange rates are determined by supply and demand in the foreign exchange market. The value of a currency is influenced by factors like inflation rates, interest rates, and purchasing power parity across countries.
The document summarizes how the Federal Reserve System controls the money supply through three main tools:
1) Changing the required reserve ratio that commercial banks must hold, allowing them to create more or fewer deposits.
2) Adjusting the discount rate that influences how much banks borrow from the Fed, thereby affecting reserves and money creation.
3) Conducting open market operations by buying and selling Treasury securities, which adds to or drains reserves from the banking system.
These tools work by altering bank reserves and their ability to make loans and expand the money supply.
The document provides an overview of the Mundell-Fleming model, which analyzes the effects of fiscal and monetary policy in a small open economy with perfect capital mobility. It describes the IS* and LM* curves and how they determine equilibrium income and exchange rates. Key points covered include: fiscal policy cannot affect output, while monetary policy impacts output by changing the exchange rate; floating exchange rates allow monetary policy flexibility; and fixed rates make fiscal policy more effective at changing output.
This document presents an overview of the IS-LM model in an open economy context. It extends the basic IS-LM model to include an additional variable - the real exchange rate - and introduces a balance of payments equilibrium condition.
Under the model, there are three equilibrium conditions: the goods market (IS curve), money market (LM curve), and foreign exchange market (BOP curve). The effectiveness of monetary policy depends on the exchange rate regime - it has a greater impact under flexible rates through exchange rate movements, while under fixed rates the money supply must adjust to maintain the fixed rate.
Banco Popular's CFO discussed the bank's short-term priorities which included capital management, integrating the acquisition of Banco Pastor, and managing asset quality. The CFO outlined measures to comply with new capital standards by mid-2012 and emphasized that Banco Popular has a solid and profitable franchise, with high capital levels and operating margins compared to peers. The acquisition of Banco Pastor was described as strategically and financially beneficial, increasing scale and profitability.
The document discusses exchange rates between sterling and the US dollar and euro over recent years. It shows that the UK has a floating exchange rate system where the value of the currency is determined by market forces. Charts demonstrate monthly fluctuations in sterling's value against these other currencies from 2014 to 2015. The text also analyzes how changes in exchange rates can impact a country's trade balance, exports and imports, inflation, and economic growth.
A study on Exchange Rates and its impact on stock pricesDaksh Bhatnagar
This document is a summer training project report submitted by Daksh Bhatnagar, an MBA student, on the topic of a study on currency exchange rates and their impact on stock prices. The report provides details about Daksh Bhatnagar's 6-week summer internship at Bonanza Portfolio Limited, including certificates of completion. It also includes an executive summary of the report and contents listing chapters on the organization and the topic of study.
This chapter discusses open-economy macroeconomics and the balance of payments between countries. It defines key terms like exchange rates, foreign exchange, and the balance of payments. The balance of payments records a country's transactions in goods, services, and assets with other countries, and shows the sources and uses of foreign exchange. It has a current account covering exports, imports, and investment income, and a capital account.
The document summarizes the relationship between the goods market and the money market. There are two key links: 1) Income determined in the goods market influences money demand in the money market. 2) The interest rate determined in the money market significantly affects planned investment in the goods market. A change in the interest rate impacts planned aggregate expenditure and thus equilibrium output through its effect on investment spending. Specifically, a higher interest rate decreases planned investment and output, while a lower rate increases investment and output.
The document summarizes how the Federal Reserve System controls the money supply through three main tools:
1) Changing the required reserve ratio that commercial banks must hold, allowing them to create more or fewer deposits.
2) Adjusting the discount rate that influences how much banks borrow from the Fed, thereby affecting reserves and money creation.
3) Conducting open market operations by buying and selling Treasury securities, which adds to or drains reserves from the banking system.
These tools work by altering bank reserves and their ability to make loans and expand the money supply.
The document provides an overview of the Mundell-Fleming model, which analyzes the effects of fiscal and monetary policy in a small open economy with perfect capital mobility. It describes the IS* and LM* curves and how they determine equilibrium income and exchange rates. Key points covered include: fiscal policy cannot affect output, while monetary policy impacts output by changing the exchange rate; floating exchange rates allow monetary policy flexibility; and fixed rates make fiscal policy more effective at changing output.
This document presents an overview of the IS-LM model in an open economy context. It extends the basic IS-LM model to include an additional variable - the real exchange rate - and introduces a balance of payments equilibrium condition.
Under the model, there are three equilibrium conditions: the goods market (IS curve), money market (LM curve), and foreign exchange market (BOP curve). The effectiveness of monetary policy depends on the exchange rate regime - it has a greater impact under flexible rates through exchange rate movements, while under fixed rates the money supply must adjust to maintain the fixed rate.
Banco Popular's CFO discussed the bank's short-term priorities which included capital management, integrating the acquisition of Banco Pastor, and managing asset quality. The CFO outlined measures to comply with new capital standards by mid-2012 and emphasized that Banco Popular has a solid and profitable franchise, with high capital levels and operating margins compared to peers. The acquisition of Banco Pastor was described as strategically and financially beneficial, increasing scale and profitability.
The document discusses exchange rates between sterling and the US dollar and euro over recent years. It shows that the UK has a floating exchange rate system where the value of the currency is determined by market forces. Charts demonstrate monthly fluctuations in sterling's value against these other currencies from 2014 to 2015. The text also analyzes how changes in exchange rates can impact a country's trade balance, exports and imports, inflation, and economic growth.
A study on Exchange Rates and its impact on stock pricesDaksh Bhatnagar
This document is a summer training project report submitted by Daksh Bhatnagar, an MBA student, on the topic of a study on currency exchange rates and their impact on stock prices. The report provides details about Daksh Bhatnagar's 6-week summer internship at Bonanza Portfolio Limited, including certificates of completion. It also includes an executive summary of the report and contents listing chapters on the organization and the topic of study.
This chapter discusses open-economy macroeconomics and the balance of payments between countries. It defines key terms like exchange rates, foreign exchange, and the balance of payments. The balance of payments records a country's transactions in goods, services, and assets with other countries, and shows the sources and uses of foreign exchange. It has a current account covering exports, imports, and investment income, and a capital account.
The document summarizes the relationship between the goods market and the money market. There are two key links: 1) Income determined in the goods market influences money demand in the money market. 2) The interest rate determined in the money market significantly affects planned investment in the goods market. A change in the interest rate impacts planned aggregate expenditure and thus equilibrium output through its effect on investment spending. Specifically, a higher interest rate decreases planned investment and output, while a lower rate increases investment and output.
The document provides information on report writing, including the definition, purpose, and steps involved. It defines a report as an account or testimonial of some happening based on observation and analysis. Reports are used to make plans, solve problems, and provide information. The steps outlined include identifying the objective, collecting material, examining facts, planning the structure, drafting, editing, and getting feedback. Details are also provided on structuring the report, collecting information, organizing data, and the overall process.
This chapter introduces macroeconomics and its key concepts. It discusses the development of macroeconomics in response to the Great Depression and failures of classical models. The chapter outlines the three main concerns of macroeconomics: inflation, output growth, and unemployment. It also describes the components of the macroeconomy including households, firms, government and the rest of the world. Government policies, such as fiscal and monetary policy, that impact the macroeconomy are introduced. Aggregate demand and supply models are presented as the fundamental methodology in macroeconomics. Business cycles and trends in the US economy since 1900 are reviewed.
This chapter discusses money demand, the equilibrium interest rate, and monetary policy. It covers the transaction and speculation motives for demanding money, how money demand is determined by transactions volume and the price level, and how the money supply affects the equilibrium interest rate in the money market. The chapter also examines how the Federal Reserve conducts monetary policy to influence the money supply and interest rates.
The document summarizes key aspects of fiscal policy and the government budget. It defines fiscal policy as the government's spending and taxing policies. It also defines the government spending multiplier, tax multiplier, and balanced-budget multiplier. The multipliers measure the impact of changes in government spending, taxes, and balanced changes to spending and taxes on equilibrium output. The document also discusses the federal budget, including tax revenues, government expenditures, the surplus or deficit, and how the economy can influence the budget.
This chapter discusses aggregate expenditure and equilibrium output in the economy. It explains key concepts such as aggregate output, aggregate income, consumption, saving, planned investment, and aggregate expenditure. The chapter also covers how the economy adjusts to equilibrium through the multiplier process, and provides an example of this during the Great Depression recovery.
1) The document discusses methods of measuring national output and income, including gross domestic product (GDP), gross national product (GNP), and national income.
2) GDP is the total market value of all final goods and services produced within a country in a given period of time. It can be calculated using the expenditure approach by adding up personal consumption, gross private investment, government spending, and net exports.
3) The income approach measures GDP by totaling compensation of employees, proprietors' income, rental income, corporate profits, and net interest in the economy.
This chapter introduces macroeconomics and its key concepts. It discusses the roots of macroeconomics in the Great Depression and John Maynard Keynes' work. The chapter outlines the three main concerns of macroeconomics: inflation, output growth, and unemployment. It also describes the components of the macroeconomy including households, firms, government, and the rest of the world. Government policies like fiscal and monetary policy that impact the macroeconomy are introduced. Aggregate demand and supply and the methodology of using microeconomic foundations for macroeconomic analysis are summarized. Business cycles, expansion/contraction, and trends in the US economy since 1900 and 1970 are briefly outlined.
This chapter discusses aggregate demand, aggregate supply, and inflation. It introduces the aggregate demand curve, which slopes downward, showing an inverse relationship between the price level and output. The aggregate supply curve can be drawn to represent the economy's price and output responses in both the short run and long run. The intersection of the aggregate demand and supply curves determines the equilibrium price level in the economy. The chapter also examines causes of inflation, including demand-pull inflation and cost-push inflation, and how monetary and fiscal policy can impact price levels and output.
The document discusses the key concepts of business management and planning. It covers 1) the meaning of management and principles, 2) planning as a primary function of management, and 3) an overview of the planning process which involves setting objectives and developing different types of plans.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
The Impact of Generative AI and 4th Industrial RevolutionPaolo Maresca
This infographic explores the transformative power of Generative AI, a key driver of the 4th Industrial Revolution. Discover how Generative AI is revolutionizing industries, accelerating innovation, and shaping the future of work.
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...Donc Test
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
The document provides information on report writing, including the definition, purpose, and steps involved. It defines a report as an account or testimonial of some happening based on observation and analysis. Reports are used to make plans, solve problems, and provide information. The steps outlined include identifying the objective, collecting material, examining facts, planning the structure, drafting, editing, and getting feedback. Details are also provided on structuring the report, collecting information, organizing data, and the overall process.
This chapter introduces macroeconomics and its key concepts. It discusses the development of macroeconomics in response to the Great Depression and failures of classical models. The chapter outlines the three main concerns of macroeconomics: inflation, output growth, and unemployment. It also describes the components of the macroeconomy including households, firms, government and the rest of the world. Government policies, such as fiscal and monetary policy, that impact the macroeconomy are introduced. Aggregate demand and supply models are presented as the fundamental methodology in macroeconomics. Business cycles and trends in the US economy since 1900 are reviewed.
This chapter discusses money demand, the equilibrium interest rate, and monetary policy. It covers the transaction and speculation motives for demanding money, how money demand is determined by transactions volume and the price level, and how the money supply affects the equilibrium interest rate in the money market. The chapter also examines how the Federal Reserve conducts monetary policy to influence the money supply and interest rates.
The document summarizes key aspects of fiscal policy and the government budget. It defines fiscal policy as the government's spending and taxing policies. It also defines the government spending multiplier, tax multiplier, and balanced-budget multiplier. The multipliers measure the impact of changes in government spending, taxes, and balanced changes to spending and taxes on equilibrium output. The document also discusses the federal budget, including tax revenues, government expenditures, the surplus or deficit, and how the economy can influence the budget.
This chapter discusses aggregate expenditure and equilibrium output in the economy. It explains key concepts such as aggregate output, aggregate income, consumption, saving, planned investment, and aggregate expenditure. The chapter also covers how the economy adjusts to equilibrium through the multiplier process, and provides an example of this during the Great Depression recovery.
1) The document discusses methods of measuring national output and income, including gross domestic product (GDP), gross national product (GNP), and national income.
2) GDP is the total market value of all final goods and services produced within a country in a given period of time. It can be calculated using the expenditure approach by adding up personal consumption, gross private investment, government spending, and net exports.
3) The income approach measures GDP by totaling compensation of employees, proprietors' income, rental income, corporate profits, and net interest in the economy.
This chapter introduces macroeconomics and its key concepts. It discusses the roots of macroeconomics in the Great Depression and John Maynard Keynes' work. The chapter outlines the three main concerns of macroeconomics: inflation, output growth, and unemployment. It also describes the components of the macroeconomy including households, firms, government, and the rest of the world. Government policies like fiscal and monetary policy that impact the macroeconomy are introduced. Aggregate demand and supply and the methodology of using microeconomic foundations for macroeconomic analysis are summarized. Business cycles, expansion/contraction, and trends in the US economy since 1900 and 1970 are briefly outlined.
This chapter discusses aggregate demand, aggregate supply, and inflation. It introduces the aggregate demand curve, which slopes downward, showing an inverse relationship between the price level and output. The aggregate supply curve can be drawn to represent the economy's price and output responses in both the short run and long run. The intersection of the aggregate demand and supply curves determines the equilibrium price level in the economy. The chapter also examines causes of inflation, including demand-pull inflation and cost-push inflation, and how monetary and fiscal policy can impact price levels and output.
The document discusses the key concepts of business management and planning. It covers 1) the meaning of management and principles, 2) planning as a primary function of management, and 3) an overview of the planning process which involves setting objectives and developing different types of plans.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
The Impact of Generative AI and 4th Industrial RevolutionPaolo Maresca
This infographic explores the transformative power of Generative AI, a key driver of the 4th Industrial Revolution. Discover how Generative AI is revolutionizing industries, accelerating innovation, and shaping the future of work.
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...Donc Test
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Every business, big or small, deals with outgoing payments. Whether it’s to suppliers for inventory, to employees for salaries, or to vendors for services rendered, keeping track of these expenses is crucial. This is where payment vouchers come in – the unsung heroes of the accounting world.
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
Enhancing Asset Quality: Strategies for Financial Institutionsshruti1menon2
Ensuring robust asset quality is not just a mere aspect but a critical cornerstone for the stability and success of financial institutions worldwide. It serves as the bedrock upon which profitability is built and investor confidence is sustained. Therefore, in this presentation, we delve into a comprehensive exploration of strategies that can aid financial institutions in achieving and maintaining superior asset quality.