The document discusses China's financial system and how it compares to that of the United States. It notes that China has the second largest economy globally and its largest stock market is the Shanghai Composite Exchange. Banks are the most important part of China's financial system, providing most credit, while bonds and insurance are less developed. Data shows China's stock market is more volatile than the US market, particularly during the 2007-2008 recession when the Shanghai market dropped sharply. Overall, the document analyzes key aspects of China's financial structure and how its stock market performance compares to that of the United States.
Despite a voluminous literature on the topic, the question of whether aid leads to growth is still controversial. To observe the pure effect of aid, researchers used instruments that must be exogenous to growth and explain well aid flows. This paper argues that instruments used in the past do not satisfy these conditions. We propose a new instrument based on predicted aid quantity and argue that it is a significant improvement relative to past approaches. We find a significant and relatively big effect of aid: a one standard deviation increase in received aid is associated with a 1.6 percentage points higher growth rate.
The magnificent 7 and equity markets review 11Markets Beyond
2011 was a bumby year for financial markets and 2012 will be no less hectic. However the US economic picture is improving and as written in early 2011 no double dip to be expected but for FED policy folly.
Global imbalances remain, but the eurozone is where lies the deepest problems which have not been properly addressed.
Remain invested in high yielding equities / net cash companies with a strong franchise and look at strong brands in fast growing economies; stay clear from the bond market and financials.
Despite a voluminous literature on the topic, the question of whether aid leads to growth is still controversial. To observe the pure effect of aid, researchers used instruments that must be exogenous to growth and explain well aid flows. This paper argues that instruments used in the past do not satisfy these conditions. We propose a new instrument based on predicted aid quantity and argue that it is a significant improvement relative to past approaches. We find a significant and relatively big effect of aid: a one standard deviation increase in received aid is associated with a 1.6 percentage points higher growth rate.
The magnificent 7 and equity markets review 11Markets Beyond
2011 was a bumby year for financial markets and 2012 will be no less hectic. However the US economic picture is improving and as written in early 2011 no double dip to be expected but for FED policy folly.
Global imbalances remain, but the eurozone is where lies the deepest problems which have not been properly addressed.
Remain invested in high yielding equities / net cash companies with a strong franchise and look at strong brands in fast growing economies; stay clear from the bond market and financials.
How much should we worry about the chinese stock market collapseAmol Patil
Details with explanation. contents are of reputed authors and experts.Topic wise explanation is there for better understanding.Suitable changes can be made as per requirement
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Student Name:________________
1. Article Title, Author, Date and Source:
Transmission Unaccomplished, John Authers September 24
th
2010 Financial Times Page 12
2. Article Summary:
“Transmission Unaccomplished” written in the Lex section of Friday’s Financial Times
offers an interesting and simplified perspective of the complex and sophisticated purpose and
workings of monetary policy. At a time when the world is reeling from the effects of
misunderstood monetary policy in the United States and other nations around the globe, this
article clearly cuts to the heart of the matter, provides a simple, easy to understand analogy
relating monetary policy to an automobile. The authors describe the key moving parts of the
economy as they correlate to their counterparts in an automobile. While he labor and
resources constitute the fuel of the economy, technology and institutions correspond to the
engine, and commerce is depicted as wheels. The financial system is the transmission,
responsible for moving the power and energy created by the fuel and engine to the wheels.
This simple analogy helps frame the context for the reason why central bankers – the
transmission mechanics – were facing increasing difficulty. In particular, the 1.6 % drop in
the dollar’s value, the lack of real economic turn-around, and the lagging increase in GDPs
around the world. The authors seem to think the US, despite an increasing saving rate and
10% deleveraging, still has long ways to go on the road to recovery, and the automobile
analogy suggests, is in need of significant repairs and rebuilding before it is truly road worthy.
3. How is the article is related to the readings and class discussions?
The concepts in the article mesh with the readings in chapters 3 – 5 as a current, real world
depiction of how monetary policy influences decisions in economics. The article highlights the
need for central bankers to properly manage monetary policy in order to maintain the
transmission of the vehicle, and keep the proper amount of power moving from the motor to the
wheels. It questions the true value of quantitative easing, and highlights the ramifications of
pursuing excessive QE as a policy. Just as was discussed in the first five chapters of the text
book, monetary policy involves a delicate balance of adjusting interest rates, setting currency
value, and establishing guidelines that enable prosperity and growth. The article also identifies
too much intervention as a possible means for enhancing the problems we face, rather than
ameliorating the problems.
4. What did I learn from this article?
This article certainly helped put monetary policy, something I seem to be familiar with only
through studying politics and economics, into a very concise, easy to understand framework that
enables a deeper understanding of greater associated issues. I learned that the US liabilities are
Student .
Ziad Abdelnour, Lebanese American author, trader and financier is President & CEO of Blackhawk Partners, Inc., a “private family office” that backs talented operating executives in growing their companies both organically and through acquisitions and trades physical commodities.
NORMAN, ELTON_BTM7300-12-8
2
NORMAN, ELTON_BTM7300-12-8
1
NORTHCENTRAL UNIVERSITY
ASSIGNMENT COVER SHEETStudent: Elton Norman
BTM7300
Dr. George Ackerman
Scholarly Literature Review
Assignment 8
Faculty Use Only
Hello Elton,
Thank you for submitting your Week 8: Brief Literature Review Draft for my review.
This week is perfect for honing in one a theoretical framework. The theoretical framework is the foundation from which all knowledge is constructed (metaphorically and literally) for a research study. It serves as the structure and support for the rationale for the study, the problem statement, the purpose, the significance, and the research questions.
The theoretical framework provides a grounding base, or an anchor, for the literature review, and most importantly, the methods and analysis. Conduct a brief literature review to find support for your theories. Consider arguments that oppose your beliefs and theories Apply answers to “how” the theory connects to your problem, the study’s purpose, significance, and design.
Continue to work on using more credible and reliable resources as well as APA format. The resources and websites you are cited were not proper in the academic setting. Continue to work on spacing and format with the text and paragraphs. There were a few errors with in-text-citing and grammar once you correct this area you will excel. Review Owl Purdue for more information on in-text citing.
Dr. George Ackerman
12/24/2018
Brief Literature Review Draft
BTM-7300 Assignment # 8
Elton Norman
Dr. George Ackerman
20 December 2018
Currency Manipulation
Introduction
Report released by CNN explicitly explains the subject of currency manipulation in a diverse way. According to Censky, (2010), currency manipulation is the act of changing the currency value against other currencies instead of leaving it free to fluctuate following the dynamics in the global market Censky, (2010), currency manipulation has a significant impact on the local economy. It is defined by the country’s currency value against the international standards and the exchange rate used.
A country that is actively involved in exports and import has higher chances of facing the economic currency exchange challenges that can prompt manipulation of currency (Katz, 2015). As outlined in the CNN reports, China is perceived to be on the forefront for currency manipulation. This is report comes as a result of currency valuation report where the Chinese Yuan dropped significantly in 2016 following the US government action on the country’s export surge (Censky, 2010).
Currency manipulation history
The history of currency manipulation streams as early as 1998 when the Chinese government rolled its export trade into the United States following the unification of US and Chinese policies. The first sign of U.S. trade and current account deficits in the post-war era occurred in 1971. They were caused, in part, by a.
How much should we worry about the chinese stock market collapseAmol Patil
Details with explanation. contents are of reputed authors and experts.Topic wise explanation is there for better understanding.Suitable changes can be made as per requirement
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Student Name:________________
1. Article Title, Author, Date and Source:
Transmission Unaccomplished, John Authers September 24
th
2010 Financial Times Page 12
2. Article Summary:
“Transmission Unaccomplished” written in the Lex section of Friday’s Financial Times
offers an interesting and simplified perspective of the complex and sophisticated purpose and
workings of monetary policy. At a time when the world is reeling from the effects of
misunderstood monetary policy in the United States and other nations around the globe, this
article clearly cuts to the heart of the matter, provides a simple, easy to understand analogy
relating monetary policy to an automobile. The authors describe the key moving parts of the
economy as they correlate to their counterparts in an automobile. While he labor and
resources constitute the fuel of the economy, technology and institutions correspond to the
engine, and commerce is depicted as wheels. The financial system is the transmission,
responsible for moving the power and energy created by the fuel and engine to the wheels.
This simple analogy helps frame the context for the reason why central bankers – the
transmission mechanics – were facing increasing difficulty. In particular, the 1.6 % drop in
the dollar’s value, the lack of real economic turn-around, and the lagging increase in GDPs
around the world. The authors seem to think the US, despite an increasing saving rate and
10% deleveraging, still has long ways to go on the road to recovery, and the automobile
analogy suggests, is in need of significant repairs and rebuilding before it is truly road worthy.
3. How is the article is related to the readings and class discussions?
The concepts in the article mesh with the readings in chapters 3 – 5 as a current, real world
depiction of how monetary policy influences decisions in economics. The article highlights the
need for central bankers to properly manage monetary policy in order to maintain the
transmission of the vehicle, and keep the proper amount of power moving from the motor to the
wheels. It questions the true value of quantitative easing, and highlights the ramifications of
pursuing excessive QE as a policy. Just as was discussed in the first five chapters of the text
book, monetary policy involves a delicate balance of adjusting interest rates, setting currency
value, and establishing guidelines that enable prosperity and growth. The article also identifies
too much intervention as a possible means for enhancing the problems we face, rather than
ameliorating the problems.
4. What did I learn from this article?
This article certainly helped put monetary policy, something I seem to be familiar with only
through studying politics and economics, into a very concise, easy to understand framework that
enables a deeper understanding of greater associated issues. I learned that the US liabilities are
Student .
Ziad Abdelnour, Lebanese American author, trader and financier is President & CEO of Blackhawk Partners, Inc., a “private family office” that backs talented operating executives in growing their companies both organically and through acquisitions and trades physical commodities.
NORMAN, ELTON_BTM7300-12-8
2
NORMAN, ELTON_BTM7300-12-8
1
NORTHCENTRAL UNIVERSITY
ASSIGNMENT COVER SHEETStudent: Elton Norman
BTM7300
Dr. George Ackerman
Scholarly Literature Review
Assignment 8
Faculty Use Only
Hello Elton,
Thank you for submitting your Week 8: Brief Literature Review Draft for my review.
This week is perfect for honing in one a theoretical framework. The theoretical framework is the foundation from which all knowledge is constructed (metaphorically and literally) for a research study. It serves as the structure and support for the rationale for the study, the problem statement, the purpose, the significance, and the research questions.
The theoretical framework provides a grounding base, or an anchor, for the literature review, and most importantly, the methods and analysis. Conduct a brief literature review to find support for your theories. Consider arguments that oppose your beliefs and theories Apply answers to “how” the theory connects to your problem, the study’s purpose, significance, and design.
Continue to work on using more credible and reliable resources as well as APA format. The resources and websites you are cited were not proper in the academic setting. Continue to work on spacing and format with the text and paragraphs. There were a few errors with in-text-citing and grammar once you correct this area you will excel. Review Owl Purdue for more information on in-text citing.
Dr. George Ackerman
12/24/2018
Brief Literature Review Draft
BTM-7300 Assignment # 8
Elton Norman
Dr. George Ackerman
20 December 2018
Currency Manipulation
Introduction
Report released by CNN explicitly explains the subject of currency manipulation in a diverse way. According to Censky, (2010), currency manipulation is the act of changing the currency value against other currencies instead of leaving it free to fluctuate following the dynamics in the global market Censky, (2010), currency manipulation has a significant impact on the local economy. It is defined by the country’s currency value against the international standards and the exchange rate used.
A country that is actively involved in exports and import has higher chances of facing the economic currency exchange challenges that can prompt manipulation of currency (Katz, 2015). As outlined in the CNN reports, China is perceived to be on the forefront for currency manipulation. This is report comes as a result of currency valuation report where the Chinese Yuan dropped significantly in 2016 following the US government action on the country’s export surge (Censky, 2010).
Currency manipulation history
The history of currency manipulation streams as early as 1998 when the Chinese government rolled its export trade into the United States following the unification of US and Chinese policies. The first sign of U.S. trade and current account deficits in the post-war era occurred in 1971. They were caused, in part, by a.
1. China has the second largest economy in the world, making them one of the strongest countries
financially. Therefore, I chose to do the People’s Republic of China as my focus on my term paper.
China’s largest stock market is the Shanghai Composite Stock Exchange (SHCOMP) which is
comparable to the United States S&P 500. In due time, I think that the differences between China and the
US’s financial markets will get smaller as China’s economy continues to grow faster and expands as their
financial system becomes more similar to the United States financial system. China’s financial system has
continued to grow enough to continue to support their rapid economic growth.
The three most important aspects of China’s economy are: banks, insurance companies, and
bonds. Banks are by far the most important, they provide financing and money which leads to greater
investment for China’s ever growing economy. Elliot stated in The Chinese Financial System that,
“Banks dominate the Chinese financial system, providing about three fifths of total credit to the private
sector.” The five largest banks are mostly owned by the central government. The government involves
themselves much more in China’s financial decisions in comparison to the United States. The second
largest part of China’s economy is bonds, “The bond market, however, is under-developed, providing
credit equivalent to approximately 41% of China’s GDP” (Statistics). The third largest aspect of China’s
financial structure is insurance, “Insurance companies are another under-developed part of the Chinese
financial system, holding $1.2 trillion in assets,or just over 14% of GDP” (China's Statistical Yearbook).
Banks are regulated primarily by the China Banking Regulatory Commission (CBRC), securities and
financial markets by the China Securities Regulatory Commission (CSRC), and insurance by the China
Insurance Regulatory Commission (CIRC).
As you can see from the data I have collected from the Shanghai Composite Exchange and the
S&P 500 over the past 10 years,China’s stock market is far more volatile in comparison to the United
States stock market. This is especially prevalent around the recession of 2007/2008, when the Shanghai
took a drastic drop showcasing that the recession in the United States also led to changes in China’s stock
market as well. There was drop in the United States stock market but it was far less than the drop in
2. China. This shows how China’s
stock market it more sensitive to
global financial crises. China’s
stock market for example was at an
all-time high right before the
recession hit America, while the
S&P stayed pretty constant.
Overall, over the past 10 years it
can be seen that China’s stock
market is far more volatile that the
United States stock market.
When looking at both of the graphs above of stock data from the last 10 years,it can be seen that
China’s stock market moved in the same way as the United States stock market. They fluctuated in the
same way as far as going up and down. During the recession, the S&P 500 dipped from 1000 to 500
during 2008 to 2009. As far as China, they had a sharp decrease from 6000 to 2000 during 2008 to 2009
which was also caused by the recession of the United States. China though suffered a huge decrease in
their stock market.
The Chinese financial system is very important in helping or hurting the development of China’s
economy. China’s economy and financial structure also greatly affects the rest of the world’s economies
as well. Fluctuations and economic disturbances have a great impact on China’s stock market.
0
2000
4000
6000
8000
People's Republic of China Shanghai
Composite
0
500
1000
1500
2000
2500
United States Stock Market S&P 500
3. Works Cited
Elliott, Douglas J., and Kai Yan. "The Chinese Financial System." Choice Reviews Online 32.06
(1995): 32-3404. The Brooking Institution, July 2013. Web. 11 Apr. 2015.
"Statistics." China's Statistical Yearbook. National Bureau of Statistics of the People's Republic of
China, 2012. Web. 17 Apr. 2015.
"Statistics |." Statistics | World Federation of Exchanges. World Federation of Exchanges, 2010.
Web. 17 Apr. 2015.