02138 February 1989 A first version of this paper was written while Edwards was a visiting scholar in the Research Department of the International Monetary Fund. We have benefited from discussions with Saul Lizondo. We are particularly This paper is part of grateful to Mohsin Ehan for very helpful comments. NBER's research program in International Studies. Any opinions expressed are those of the authors not those of the National Bureau of Economic Research. NBER Working Paper #2866
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from Knowledge@Wharton look at these and other developments in global finance. They also examine how similar crises have been managed successfully—or not—on a national basis in the past, and what lessons they may offer. 3 Contents Huge Reserves, Emerging Market ‘Challengers’ and Other Forces Are Changing Global Finance Rapidly developing economies (RDEs) have increasingly become drivers of change—and sometimes disruption—in global financial markets. That has important implications for companies
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Regime Change to Sustained Growth in Central and Eastern Europe * After the state socalism collapsed in Central and Eastern Europe in the early 1990s, the Washington consensus of 1989 (a broadly accepted set of criteria for a reform program) was adopted as a blueprint for the process of transformation. * Central elements: * Macro-economic stabilization (for countries with significant inflation and indebtedness) * New institutions * Legislation * Price and trade liberalisation
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Characteristics ..................................................................................... 21 The Basic Economic Questions ........................................................................................................ 22 What and how much to
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What is foreign exchange risk? Foreign exchange (or currency) risk is the risk of unexpected changes in foreign currency exchange rates. 1.4 What is political risk? Political risk is the risk that a sovereign host government will unexpectedly change the rules of the game under which businesses operate. 1.5 In what ways do cultural differences impact the conduct of international business? Because they define the rules of the game, national business and popular cultures
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Monetary Policy in Vietnam: Alternatives to Inflation Targeting Le Anh Tu Packard (tu.packard@gmail.com) Fifth Draft July 2007 Paper prepared for the Political Economy Research Institute (PERI) at the University of Massachusetts, Amherst with support from the United Nations Department of Economic and Social Affairs (UNDESA). Earlier versions of this paper were presented to the May 2005 CEDES/Amherst Research Conference in Buenos Aires and the July 2005 Da Nang Symposium on Continuing Renovation
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markets. (c) derivative exchange markets. (d) financial markets. Answer: D 4. The price paid for the rental of borrowed funds (usually expressed as a percentage of the rental of $100 per year) is commonly referred to as the (a) inflation rate. (b) exchange rate. (c) interest rate. (d) aggregate price level. Answer: C 5. The bond markets are important because (a) they are easily the most widely followed financial markets in the United States. (b) they are
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Corporate Finance a) WACC A company’s weighted average cost of capital (WACC) is usually regarded as the minimum required rate of return. It is defined as the weighted average rate of return a company must pay to its long-term creditors and shareholders for the use of their funds. When WACC is used as the discount rate, it serves as a screening device in net present value analysis. To calculate WACC we must first find the expected return on share i E(Ri), using the securities
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Macroeconomic Theory Macroeconomic Theory A Dynamic General Equilibrium Approach Michael Wickens Princeton University Press Princeton and Oxford Copyright © 2008 by Princeton University Press Published by Princeton University Press, 41 William Street, Princeton, New Jersey 08540 In the United Kingdom: Princeton University Press, 3 Market Place, Woodstock, Oxfordshire OX20 1SY All Rights Reserved ? A catalogue record for this book is available from the British Library This book has
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represent those of the Bank of Finland. 1 Electronic copy available at: http://ssrn.com/abstract=2190375 I Introduction The banking and economic crisis that occurred in the Nordic countries in the 1990s has ever since received wide international attention. The episode was the most serious economic and financial crisis experienced by advanced market economies in the period subsequent to WWII. 2 In particular, the nearly 15% plunge in Finland’s aggregate output in a period of two or three
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