mortgage crisis was a set of events and conditions that led to the late-2000s financial crisis, characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages. What is a subprime mortgage? A subprime mortgage is a type of loan granted to individuals with poor credit histories, who, as a result of their deficient credit ratings, would not be able to qualify for conventional mortgages. Because subprime
Words: 3201 - Pages: 13
An Economic Analysis of Bangladesh’s Foreign Exchange Reserves M. Shahidul Islam 1 Executive Summary Following the rapid accumulation of foreign exchange reserves in recent months, there has been a growing interest in Bangladesh on the alternative uses of its reserves. However, different reserves adequacy measures based on global best practices confirm that its reserves holding is not markedly higher than what is required. The country’s reserves stand higher than the adequate level only when one considers
Words: 9699 - Pages: 39
EXCHANGE RESERVES BULGARIAN NATIONAL BANK Celebrating the BNB 130th Anniversary INTERNATIONAL FOREIGN EXCHANGE RESERVES Edited by Tsvetan Manchev, Doctor in Economics BULGARIAN NATIONAL BANK 2009 International Foreign Exchange Reserves Abbreviations BNB GDP BIS b.p. EIB EC EU ESCB ECB LBNB М1 М2 М3 IMF ERMII Fed − the Bulgarian National Bank − gross domestic product − the Bank for International Settlements − basis points − the European Investment Bank − the European Commission
Words: 55968 - Pages: 224
Yesterday the committee addressed a wide spectrum of issues associated with debate over proposals for a new international financial architecture. Today we will home in on a critical element of that ongoing discussion, the question of which exchange rate systems best promote global economic growth and stability. Page 2 PREV PAGE TOP OF DOC Until very recently, the issue of appropriate currency arrangements was missing in action from the official agenda for global reform. The existence of
Words: 24837 - Pages: 100
DESCRIPTION: The world of finance has changed tremendously in the last few decades. Domestic financial markets are integrating more and more and businesses are becoming global. As the core component of the world of finance, capital markets have experienced some far-reaching
Words: 4773 - Pages: 20
THE GREAT RECESSION Since publication of Robert L. Hetzel’s he Monetary Policy of the Federal Reserve (Cambridge University Press, 2008), the intellectual consensus that had characterized macroeconomics has disappeared. hat consensus emphasized eicient markets, rational expectations, and the eicacy of the price system in assuring macroeconomic stability. he 2008–2009 recession not only destroyed the professional consensus about the kinds of models required to understand cyclical luctuations
Words: 177093 - Pages: 709
for more than 20,000 items across a broad range of industries. In 1929, the Smoot-Hawley Tariff Act established some of the highest levels of tariffs ever imposed by US. That day stock market crashed, falling 12%. Despite protest from 34 foreign countries, the act was signed in 1930. The result was a retaliatory trade war, characterized by tit-for-tat tariffs and protectionism between trading nations. World trade fell from $5.7 billion to $1.9 billion, industrial efficiency and the effects of comparative
Words: 7370 - Pages: 30
Monetary policy Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability.[1][2] The official goals usually include relatively stable prices and low unemployment. Monetary theory provides insight into how to craft optimal monetary policy. It is referred to as either being expansionary or concretionary, where an expansionary policy increases the total supply
Words: 6429 - Pages: 26
The Impact of Monetary Policy on Economic Growth and Inflation in Sri Lanka C.Amarasekara 1 Abstract Based on a vector autoregressive (VAR) framework and utilising both recursive and structural specifications, this study analyses the effects of interest rate, money growth and the movements in nominal exchange rate on real GDP growth and inflation in Sri Lanka for the period from 1978 to 2005. The results of the recursive VARs are broadly in line with the established empirical findings, especially
Words: 18533 - Pages: 75
forgiveness from the Paris Club. In 2003, the government began deregulating fuel prices, announced the privatization of the country's four oil refineries, and instituted the National Economic Empowerment Development Strategy. In November 2005, Abuja (the federal capital territory) won Paris Club approval for a debt-relief deal that eliminated $18 billion of debt in exchange for $12 billion in payments - a total package worth $30 billion of Nigeria's total $37 billion external debt. The deal requires Nigeria
Words: 10746 - Pages: 43
