This document provides an overview of a seminar on macroeconomics. The seminar aims to provide participants with a mental structure for understanding macroeconomics. The schedule outlines that the morning sessions will cover (a) the economic circuit, (b) economic cycles, (c) central bank intervention, (d) government intervention, and (e) money and financial markets. The afternoon sessions will focus on (1) key economic indicators and (2) current economic highlights. The document then provides more details on various macroeconomic topics within this framework.
Financial development and economic growth: empirical evidence from Namibia (1...Polytechnic of Namibia
Namibia is middle income country not industrialising fast enough. Tafirenyika Sunde looks at the causal relationship between financial development and economic growth in Namibia
Sovereign credit risk, liquidity, and the ecb intervention: deus ex machina? ...SYRTO Project
Sovereign credit risk, liquidity, and the ecb intervention: deus ex machina? - Loriana Pelizzon, Marti Subrahmanyam, Davide Tomio, Jun Uno. June, 5 2014. First International Conference on Sovereign Bond Markets.
Financial development and economic growth: empirical evidence from Namibia (1...Polytechnic of Namibia
Namibia is middle income country not industrialising fast enough. Tafirenyika Sunde looks at the causal relationship between financial development and economic growth in Namibia
Sovereign credit risk, liquidity, and the ecb intervention: deus ex machina? ...SYRTO Project
Sovereign credit risk, liquidity, and the ecb intervention: deus ex machina? - Loriana Pelizzon, Marti Subrahmanyam, Davide Tomio, Jun Uno. June, 5 2014. First International Conference on Sovereign Bond Markets.
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how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
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Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
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Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
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What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Which Crypto to Buy Today for Short-Term in May-June 2024.pdf
Seminar economics uk_2012_eib_bnp version
1. A mental structure for macro-economics
1
6 Circles
5 Instruments of the ECB
5 Financial markets
2. Roger Jean Claessens is an International lecturer and an independent
consultant for the financial services industry.
Professor at UBI (United Business Institutes), Brussels
Expert lecturer for FEBELFIN (Federation of banks & insurance in Belgium)
Expert lecturer for the EIB in Luxembourg
Expert lecturer for BGL BNPPARIBAS
others…
Author of several books:
« Corporate culture », End 2011, Serbian Bank Association (SBA)
«What is a bank?» 2009, Promoculture & Author House, UK
« Branch Management», with P. Wiertz,2006 Promoculture & SBA
« Ethics, corporate values and prevention of money laundering», 2003 SBA
« Marketing in financial services », 2007 SBA
Member of the Luxembourg Club of Economists.
3. The purpose of the seminar
Provide you with a mental structure
4. The schedule of the day
Morning
(a) The economic circuit
(b) The economic cycles
(c) The intervention of the Central Bank
(d) The intervention of the Government
(e) Money and the Financial Markets
Afternoon
(1) The key economic indicators
(2) Economic highlights of today
5. The schedule of the day
Morning
- (a) The economic circuit
- (b) The economic cycles
- (c) The intervention of the Central Bank
- (d) The intervention of the Government
- (e) Money and the Financial Markets
Afternoon
(1) The key economic indicators
(2) Economic highlights of today
7. (a) The economic circuit
Products
& Services
GNP
CONSUMERS
Salaries,
interest,
rentals
LABOUR
ENTREPRENEURS
8. Samuelson underlines that every economy has to answer
three basic questions:
What to produce?
Is determined by the consumers.
How to produce?
Is determined by the competition between companies.
For whom?
The answer to the third question is a matter of choice.
(a) The economic circuit
11. Salaries have been doubled,
what are the consequences
on the economy?
Discussion
(a) The economic circuit
12. (a) The economic circuit
In Samuelson’s representation, the government is
either acting as a consumer or as a company,
dependant upon its specific action.
The guardian of the monetary system is the
central bank
14. GNP = C+I+G+(X-M)
The Gross National Product is equivalent to the sum
of private consumer spending (C), private
investment spending (I), government spending (G)
and net foreign spending (eXports - iMports) on final
goods and services output.
(a) The economic circuit
15. The goal of modern economic management is to keep
this circuit in balance.
There are two states of unbalance:
INFLATION = a state of unbalance, characterised by
increasing prices. The consequence of inflation is a
decreasing purchasing power of money, i.e. with the
same amount of money you will acquire a decreasing
number of goods and services.
DEFLATION = is an unbalance characterised by
decreasing prices
(a) The economic circuit
16. You purchase one egg
daily for one Euro!
What happens if the
farmer knows that you
had a big salary
increase?
Discussion
(a) The economic circuit
22. The economic system depends upon people.
Adam Smith pointed out that the individual
motivation, invention, and innovation inspire an
economy to greater prosperity.
The “Wealth of a Nation” depends upon imagination,
entrepreneurship and discipline
(a) The economic circuit : The Entrepreneur
23. Market competition (the invisible hand in Adam
Smith’s terms) leads a self-interested person to wake up
in the morning, look outside at the earth and produce
from its raw materials, not what he wants, but what
others want!
The invisible hand (= the market) forces people to
give up if they do not produce something more valuable
than they started with.
(a) The economic circuit : The Entrepreneur
24. Strangely enough, we often make the statement in our
part of the world, that we have discouraged the
entrepreneurs because of administrative burdens, high
social security contributions and high taxation.
(a) The economic circuit : The Entrepreneur
25. The entrepreneur is also someone who will continuously
struggle to balance flexibility and cost cutting in order to
discover the optimal structure of the enterprise, pushing
for productivity, which is “the” competitive asset of a
nation.
(a) The economic circuit : The Entrepreneur
26. Paul Krugman highlights how the government can
induce firms to lift productivity.
Higher productivity translates into higher standard of
living.
But rising productivity requires rising investments in
plant, equipment, research and education.
High taxes discourage the search for productivity.
(a) The economic circuit : The Entrepreneur
29. Keynes underlines in the mid thirties that households
are the most important component of overall demand.
Keynes appoints income the chief determinant.
(a) The economic circuit : The Consumer
30. Veblen went even further than Marshall and
encouraged economists to be more willing to meet with
sociologists, anthropologists and psychologists if they
wanted to develop a better understanding of the
consumer.
(a) The economic circuit : The Consumer
31. Veblen made this rightful conclusion that consumers’
demand of goods is determined by the use of the good
and the price that the consumer thinks other people will
think he paid!
He analysed the underlying motivation of many
purchases.
(a) The economic circuit : The Consumer
32. How can one get a feel for the mood of both the
consumers and the entrepreneurs?
By analysing the economic indicators.
There are about 300 major indicators. Every week about
60 of them are being published on the key economies.
(a) The economic circuit : The Consumer
35. A fall of the GNP means that men and women will be
in a more precarious situation and that pessimism will
probably settle in.
It reflects the mood of the entrepreneurs and the
consumers
(b) The economic cycles
36. There are 300 hundred key economic indicators
divided into 3 categories :
1. the leading indicators = upstream indices of
change
2. the coincidental indicators = indices of change
3. the lagging indicators = downstream indices of
change
Example:
1. The stock index
2. Building permits
3. Savings versus income
(b) The economic cycles
38. Each cycle is unique but contains enough similarities with
others to enable us to draw general conclusions.
Let us also remember that many internal or external
factors can have an impact on the economy, such as:
politics, acts of war, etc.
(b) The economic cycles
39. What might be indicators
around us of an economic
boom or a slow down?
(b) The economic cycles
Discussion
40. • Production
• employment
• productivity
• wages
• sales
• profits
• output
• credit
• investment goods
• Stock exchange
• GNP
• public sentiment
• risk taking
• new activities
• interest rates
• central bank
• resources
• inventories
(b) The economic cycles
41. Orders
exports / imports
employment
sacrificed prices
raw materials
intervention
bankruptcies
savings
Intensity of fluctuation
Excess capacity
liquidity
credit-crunch
competition
central bank
producers
imagination
(b) The economic cycles
42. The better the understanding of a situation is, the
greater the probability to take a right decision, hence the
study of the economic indicators
They are the language of the economy
They are the basis for educated decisions
(b) The economic cycles
43. Markets do react to their release
Each week about 60 are released for the G 7
Monitoring is an on-going and time consuming process
Understanding their correlations is key to economic
decisions
(b) The economic cycles
45. The challenge of the European Union is to decrease non-
structural[1] unemployment.
[1] Structural unemployment means unemployment linked to the changes or lack of changes within the economy, the social
structure or demographics.
The unemployment in the EU remains significant for various
reasons, which we qualify as structural but are in fact non-
structural.
The equilibrium in the employment market will be more and
more difficult to establish. The structure of the age pyramid is
changing dramatically.
(b) The economic cycles: The labour market
45
60. 5 Key tools of the central bank
1. The printing of money
2. The short term interest rates
3. The fractional reserve
requirements
4. The open market policy
5. The financial structure of the
banks
(c) The intervention of the central bank
62. The question central bankers must answer is:
“What is the correct money supply level?”
The easy answer is enough to buy all the goods and
services produced, so that full employment is reached
without a rise in prices.
P.Q = M.V
(c) The intervention of the central bank
63. P.Q = M.V
P = price level of goods and services
Q = quantity of goods and services produced in a
national economy (= GDP)
M = the monetary supply (the assets of the consumers
and the entrepreneurs, with corresponding liabilities for
the banking system and the central bank)
V = is the velocity of the circulation of money
(c) The intervention of the central bank
64. Reserve requirement of 10 out of 100
100 is deposited with Bank A
Bank A is going to deposit 10 with CB and lend 90
90 is deposited with Bank B
Bank B is going to deposit 9 with CB and lend 81
81 is deposited with bank C
Bank C is going to deposit 8,1 with the CB and lend 72,9
…
M0 = cash = 100 = monetary base
M1 = cash + sight deposits = 342,9 = money supply
= (100+90+81+72,9)
(c) The intervention of the central bank
66. (c) The intervention of the central bank
The preference curve of the borrowers
2- Interest rates
67. The preference curve of the lenders
(c) The intervention of the central bank
2- Interest rates
68. (c) The intervention of the central bank
The cost of borrowing and the return of a deposit
69. (c) The intervention of the central bank
When the perspective changes, the curve moves
70. Interest rate
Short term interest rate + inflation
= +/- long term interest rate
Real interest rate
= +/- nominal interest rate – inflation
(c) The intervention of the central bank
2 – Interest rates
72. Money makes the economic system work.
(c) The intervention of the central bank
73. (c) The intervention of the central bank
3 – Fractional reserve requirement
The representation of a bank’s balance sheet
Sum of assets
Sum of
liabilities
Net worth
Assets-Liabilit
ies to third
parties
74. (c) The intervention of the central bank
3 – Fractional reserve requirement
Commercial Bank Central Bank
%
DEPOSITSLOANS DEPOSITS
75. (c) The intervention of the central bank
Commercial Bank Central Bank
Purchase of bonds
Euro
4 – Open market policy or “quantitative easing”
76. (c) The intervention of the central bank
Commercial Bank
5 – Balance sheet structure
84. About 200 years ago Adam Smith defined what, in his
view, should be the role for a government.
“First”, he said, “providing for national
defence, second, administering justice through a court
system; third, maintaining public institutions and
resources such as
roads, canals, bridges, educational systems, and the
dignity of the sovereign.”
(d) The intervention of the government
86. From the end of the 19th century the economic
functions of the state developed without
interruption in almost all of the industrialised
countries.
Today, simultaneously public and private institutions
exert control.
(d) The intervention of the government
87. The state intervenes, as a spending prone
economic agent, to improve the real or nominal
income of certain citizens.
(For example the minimum income level are nowadays
among the usual objectives of the public authorities).
The State, all things considered, behaves exactly like
any other large consumer or investor or entrepreneur.
(d) The intervention of the government
88. Keynes recommended, in addition to state intervention
resorting to budget deficits to stimulate the
economy, to spend thus more than the receipts and to
borrow to
finance this extra expenditure.
Many states did pursue this economic policy only too
well with a resulting high inflation and/or a high
indebtedness as a result.
(d) The intervention of the government
89. One of the functions of the state consists in
attenuating the acute or chronic crises of
unemployment or inflation as well as promoting the
economic growth.
(d) The intervention of the government
90. The balance of payments is a good source in this
respect.
It reveals the overall situation of the economy and
provides an excellent idea of the economic activity by
both the state and the consumers and producers.
(d) The intervention of the government
91. Trade in goods balance -20
Plus Trade in services balance 4
Plus Transfer payments 2
Plus Investment income 6
Equals CURRENT ACCOUNT -8
Equals CAPITAL ACCOUNT 5
Plus Balancing item 3
BALANCE OF PAYMENTS 0
91
(d) The intervention of the government
92. A surplus in the overall balance will indicate a
probability of a strong and stable currency, of a healthy
economy with stable interest rates, where the
investment climate should be favourable.
Deficits can occur. During recessions, balanced budgets
are probably not the best thing.
Over the course of the business cycles budgets should
be balanced.
(d) The intervention of the government
93. With huge non-funded pension liabilities, European
governments will struggle to keep their budget deficits
within the limits they agreed to when joining the Euro.
The solution has to do with welfare reform rather than
tax harmonisation
The real problem in the EU is that taxes on labour are
very high, probably too high. The answer to that is not
tax harmonisation but the reform of the welfare
state.
(d) The intervention of the government
94. The national debt is a relatively new and impressive
event.
On the positive side, a national debt undeniably allows
for internal transfers between individuals of the same
age or different age.
On the negative side, an external national debt
constitutes a real charge for the economy and a
limitation to the national consumption.
(d) The intervention of the government
98. The art of asking questions…..
(e) Money and the financial markets
98
99. What might be the difference
between
those markets?
1. The money market
2. The capital market
3. The foreign exchange
market
4. The stock market
5. The future market
Discussion
(e) Money and the financial markets
100. The art of asking oneself questions
(e) Money and the financial markets
101. The market is available for financial transactions up
to one year for the professionals of the financial
sector.
Periods are standard and the computation of interest
is done on an exact day count basis.
Beyond one year one talks about the capital market.
(e) Money and the financial markets
1. Money Market
102. Quotations are with bid and offer rates
- for instance 2.25 – 2.35 for a given period;
This means that if you would call a bank you:
Could place money at 2.25 less the margin of
the bank & Could borrow at 2.35 plus the margin of
the bank (providing a contractual framework).
(e) Money and the financial markets
1. Money Market
103. The capital market comprehends transactions
beyond one year.
Rates reflect the inflation expectations of the market
participants, mainly the governments and institutional
borrowers and lenders.
The main instrument used to raise long term capital is
a bond.
(e) Money and the financial markets
2. Capital Market
104. Bond pricing is determined by:
• the rating of the issuer,
• the rating of the bond,
• the market’s appetite for a certain rate or
borrower,
• the placement power of the underwriters,
• the commissions,
• the tenor of the bond, …
(e) Money and the financial markets
2. Capital Market
105. Present Value (PV) & Future value (FV) of money
What will be the purchasing power of 100 € in year from
now?
(e) Money and the financial markets
2. Capital Market
105
106. Future value (FV) = Present value x interest rate
Present Value (PV) = Future value (FV) x discount factor
Discount factor for one year =
Discount factor for two years =
2
1
1
r
r1
1
(e) Money and the financial markets
2. Capital Market
106
107. Bond pricing
Please note what would happen with a 3 % and with
a 10 % discount rate!
(1.07)³
100.000
(1.07)³
10.000
(1.07)²
10.000
1.07
10.000
107.83681.6008.1608.7309.346
(e) Money and the financial markets
2. Capital Market
110. Samuelson’s circle shows a closed economy.
When a consumer purchases a piece of equipment in
another economic/currency system, he will need to
exchange his national currency into the foreign one.
(e) Money and the financial markets
3. Foreign Exchange Market
112. • The seller could accept the
currency of the buyer and
change the currency in his
home country.
• When would he choose
that option?
• What determines the value
of a currency?
(e) Money and the financial markets
112
3. The foreign exchange markets
Discussion
113. The foreign exchange market is the largest market in
the world. It is an over the counter
market, regulated by a strict code of conduct.
The daily turnover is now close to an estimated
$4.000.000.000.000.
(e) Money and the financial markets
3. Foreign Exchange Market
114. It is by large the largest market in the world and the
most unpredictable, although theoretically there is a
fundamental link between the interest rates, the
balance of payments of countries and the exchange
rates of their currencies.
(e) Money and the financial markets
3. Foreign Exchange Market
115. EUR / USD 1.39458 - 1.39475
Prices are quoted as shown:
The EUR is the unit - buyer & selling side
(e) Money and the financial markets
3. Foreign Exchange Market
116. The dealer which is being called quotes:
EURO / USD 1.39458 – 1.39475
1.39458 is the buying side = the rate at which he is
willing to purchase EURO against USD
1.39475 is the selling side = the rate at which the dealer
is willing to sell EURO against USD
(e) Money and the financial markets
3. Foreign Exchange Market
117. The dealer which is being called quotes:
EURO / USD 1.39458 – 1.39475
Settlement needs to be done in two working days -
physical exchange
$
€
Settlement risk !
(e) Money and the financial markets
3. Foreign Exchange Market
118. Inflation - Interest rates & Foreign Exchange
1970 : £ = 120 FLUX = € 3
2003 : £ = 66 FLUX = € 1.60
2011 : £ = 50 FLUX = € 1.10
There is a relationship between the inflation and the
interest rate and the exchange rate
(e) Money and the financial markets
The key economics indicator : the exchange rate
119. Difference in
interest rate
Expected
difference in
inflation rate
Difference
between
forward & spot
rate
Expected
change in spot
rate
equals equals
equals
equals
(e) Money and the financial markets
The key economics indicator : the exchange rate
120. (e) Money and the financial markets
4_ Stock Market
121. (e) Money and the financial markets
4_ Stock Market
122. Forward Future
Specific amounts Standard amounts
Over the counter Organised market
Settlement risk Off-setting is easy
Up to 12 months Up to what the market
will bear
(e) Money and the financial markets
5_Futures Market
122
123. The name derivative comes from the fact that the
profit or loss is derived from the fluctuation of another
product called the “underlying” product
(e) Money and the financial markets
5. Futures and derivatives Market
124. The underlying product might be a raw material
such as wheat, petrol, but could also be shares or
bonds, a portfolio, and so on.
A derivative could be an option to purchase or to
sell something at a later date at a certain price.
(e) Money and the financial markets
5. Futures and derivatives Market
125. The prices of the derivatives will fluctuate in line
with:
1. The interest rate
2. The volatility of the underlying instrument
3. The time
4. The actual price of the underlying instrument
5. The price at maturity of the contract
(e) Money and the financial markets
5. Futures and derivatives Market
126. “People often talk about financial markets as if they were
casinos, but they are more dangerous than any gambling
den. The numbers on a roulette wheel never change, but
markets offer no guarantee that yesterday’s odds will be
the same tomorrow. 126
(e) Les marchés financiers
133. The schedule of the day
Morning
- (a) The economic circuit
- (b) The economic cycles
- (c) The intervention of the central bank
- (d) The intervention of the government
- (e) Money and the financial markets
Afternoon
(1) The key economic indicators
(2) Economic highlights of today
135. (1) The key economic indicators
1. Measuring economic
activity
2. Growth
3. Population, employment
and unemployment
4. Fiscal indicators
5. Consumers
6. Investment and savings
7. The balance of payments
8. The exchange rates
9. Money and the financial
markets
10. Prices and wages
137. (1) The key economic indicators
Investments and Savings
138. (1) The key economic indicators
Economic activity
The gross domestic product is measured per quarter
and is often expressed as a percentage increase or
reduction compared with the previous quarter.
The change is often annualised.
One speaks about a recession when the GDP falls two
quarters in a row.
146. (1) The key economic indicators
Exchange rate
147. (1) The key economic indicators
Fiscal indicators
148. (1) The key economic indicators
The balance of payments
149. (1) The key economic indicators
Fiscal indicators
Government spending as percentage of national income
in G7 countries
2000 2010
France 51.6 55.9
UK 36.6 52.5
Italy 46.1 51.6
Germany 45.1 47.9
Canada 42.0 43.2
United States 33.9 41.6
Japan 39.0 40.8
150. (a) The economic circuit
What are the
recent
economic
highlights?
Discussion
161. (2) The economic highlights of today
Most crisis do not detonate like
bombs – they emerge:
What could be their indicators?
162. (2) The economic highlights of today
Most crisis do not detonate like
bombs – they emerge:
What could be there indicators?
° fraud, waste, abuse
° disinformation
° financial indicators
° economic indicators
° lack of common sense
163. 1. Aging
2. Far-East
3. Connectivity
4. “GRIN”
technologies
5. Environnement
(genetics, robotics, internet, na
no technology)
The trend
163
164. Conclusion
Economics is the study of choice.
It does not tell us what to
choose. It only helps us
understand the consequences of
our choices.
“New Ideas from dead
economists”, Todd Bucholz
168. Bibliography
“Pocket Economist”, M Bishop, The Economist
Books,2000
“Economics” Paul Samuelson, Armand Colin ( old French
edition), 1964
“Economics for Professional Investors” Tim
Lee, Prentice Hall Professional Finance series, 1998
“New Ideas of Dead Economists”, Todd
Bucholz, Plume, 1990
“The world is flat”, T. Friedman, Penguin, 2006
“The dead of inflation” R.Bootle, Nicholas Brealey, 1996
“International Economics, P. Krugman & M.
Obstfeld, Addison Wesley Longman,1995
170. Interventions in 2008 - 2009
1. Bank deposit guarantee
2. Bank recapitalisation
3. Purchase of poor quality assets
4. Liquidity guarantee
5. Lending guarantee
6. Mergers
7. Investment banks accepting commercial bank
regulations
8. Stress test
171. 9. Short selling crack down
10. Derivatives regulations
11. Interest rates decrease
12. Help for municipalities and households
13. Corporate tax cuts
14. Tax rebates for individuals
15. Infrastructure improvement programs
16. IMF
17. EU Supervision
Interventions in 2008 - 2009