• Value Of Canadian Dollar And Interest Rates
    801 words
    Unemployment is one of the major economics problems. People who are considered unemployed are those who are seeking work or laid off for more then a week. There are many different reasons why a person could be unemployed. Three of those causes are cyclical, structural and seasonal unemployment. The government tries to find solutions in order to reduce unemployment by making up policies. Cyclical unemployment is one of the causes that creates unemployment. When a person is cyclically unemployed, ...
  • Interest Rates In The Money Market
    1,726 words
    Explain the operation of Monetary Policy in the Australian Economy. Outline the current settings of Monetary Policy. Explain the predicted future direction of interest rate movement in relation to inflation and economic growth. The Reserve Bank Of Australia uses Monetary Policy to influence the level of aggregate, or total, money supply of financial intermediaries. The aims of the RBA are to maintain sustainable economic growth in a low inflationary environment with full employment. The RBA ente...
  • Higher Interest Rates Early Next Year
    600 words
    Lagging Earnings, Interest Rates Make Year-End Rally Unlikely Many European fund managers arent going to find anything good this Christmas to be merry about. In most years, particularly lackluster ones, there seems to always be the year-end rally that puts the fund managers performance up to the standard. And makes the woes of the years financial problems on either side of the Atlantic a little easier to swallow. To be sure, this hasn't been a year for the books. The DJ Stoxx 50 has inched up a ...
  • Rise In Federal Fund Interest Rates
    1,040 words
    The Annual Inflation Rate Just about everything we do as a nation lends to the annual inflation rate. In this article, though, I have chosen four of the most important variables that influence inflation the most. Inflation is the sustained increase in prices, or in other words, a steady decline in the buying power of the dollar. I have come up with an equation that includes the following variables: the unemployment rate, the federal funds interest rate, per capita income, and new home sales. The...
  • Increase In Interest Rates
    1,197 words
    The Fed and Interest Rates Dave Pettit of The Wall Street Journal writes a daily column that appears inside the first page of the journal's Money & Investment section. If the headlines of Mr. Pettit's daily column are any accurate record of economic concerns and current issues in the business world, the late weeks of March and the early weeks of April in 1994 were intensely concerned with interest rates. To quote, 'Industrials Edge Up 4.32 Points Amid Caution on Interest Rates,' and " Industrial...
  • High Interest Rates And Low Oil Prices
    634 words
    Extract The Venezuelan economy is experiencing a recession. The recession has hit the industries the hardest. One company named Construcentro, similar to our Home Depot, was planning on opening thirteen new stores by the year 2000. They will certainly not achieve that goal and they may have to also close down other existing stores because of a forty- percent drop in sales. The effects of the recession are already very evident with the closing of fifty medium and large manufacturing companies. Fo...
  • Function Of Interest Rates
    517 words
    Long Swings in the Exchange Rate and the Excess Returns Puzzle: The Role of Imperfect Knowledge William Strauss The paper is a clear breath of 'dirty' air in the sterile world of perfect foresight. The authors offer a well worked out model of how agents persistently bid the exchange rate away from the expected long-run equilibrium rate. It seems intuitively comfortable to see the mathematical justification for the unexplained excess returns to be a function of the distance from the bench-mark ( ...
  • Interest Rates In Dollars Within Argentina
    1,847 words
    In 1998, Argentina entered what turned out to be a four-year depression, during which its economy shrank 28 percent. Argentina's experience has been cited as an example of the failure of free markets and fixed exchange rates. Contrarily, Argentina's economic woes have been attributed to bad economic policies which converted a typical recession into a full depression. Three big tax increases in 2000-2001 discouraged growth, and interfering with the monetary system in mid 2001 created fear of curr...
  • An Increase In Interest Rates Anheuser Bush
    6,229 words
    Main Economic Forecasts The main economic forecasts used to understand the general outlook of the economy included the Congressional Budget Office (CBO) forecast, the Administrations Forecast, the Blue Chip consensus forecasts and the Mortgage Bankers Association (MBA) forecast. Not all forecasts contained the required indicators for the chosen indicators: employment growth, interest rates, housing starts, and business investment. For this reason, the analysis focused on a combination of the for...
  • Increase In Interest Rates
    1,127 words
    Firstly, I will deal with the factors which can affect the demand for houses in an economy. In many people's opinion, the single most important factor which affects demand for housing is interest rates. This belief is held because for most people, the cost of purchasing a house is so great that the only way they can afford to do so is to take out a mortgage from a bank or building society. One of the main conditions that banks and building societies apply to mortgages is that during the course o...
  • Their Bonds As The Interest Rates
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    Bonds Given today's uncertain economy, many people are taking time to examine various options for their financial future. Different types of investments are investigated and bonds are one of the more popular choices considered. Many of the same people who talk about investing in bonds, however, do not fully understand them nor where they place in the economy. Many individuals believe that they should simply buy a bond and wait until it matures before cashing it in. These people fail to realize t...
  • Mortgage With Interest Rates And Monthly Payments
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    Mortgage Terms Adjustable-Rate Mortgage (ARM): A mortgage with interest rates and monthly payments adjusted at regular intervals based on changes in either a national or regional index. Also called "variable-rate mortgage". Amortization: A loan payment schedule characterized by equal periodic payments that are calculated to meet current interest payments and retire the principal at the end of a fixed period (at maturity if the loan is fully amortized). Annual Percentage Rate (APR): The total yea...
  • Money At High Interest Rates
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    In everyday society, companies are affected by the economy. The company either suffers or benefits depending on what kind of economy it is. This will depend on what kind of company it is, and what kind of market the business does well in. The Business Cycle is what determines this factor. It is a term used in economics to designate changes in the economy. Timing of the business cycle is not predictable, but its phases seem to be. Many economists site four phases-prosperity, liquidation, depressi...
  • Interest Rates And Exchange Rates In Equilibrium
    3,129 words
    "Prices, Interest Rates, and Exchange Rates in Equilibrium" (International Parity Conditions) Table of Content Executive Summary... 31. Introduction... 42. Literature Review... 63. Findings and Analysis: ... 10 a. ... 10 b. FE... 12 c. IFE... 144. Conclusion & Recommendations... 16 Bibliography... 17 Appendix A. Historical Data... 18 Table of Figures Figure 1. International Parity Conditions Figure 2. Scatter Diagram for Figure 3. Time-series data for inflation rates differential and exchange ra...
  • Gdp Growth And Higher Interest Rates
    2,561 words
    Daekwon the chef and Rza Shogun, Sergio Suarez, Sylvia Lin, Anne-Sophie Young Economics Final Report A Treatise on the Value of Economic Indicators The US Economy and Economic Indicators The United States economy is the strongest and the most affluent in the world. Besides having the highest GDP (Gross Domestic Product), the United States has a complex system of regulating economic policy and controlling the money supply. The system also regulates banks and financial institutions, and even has a...
  • Rise In Interest Rates
    364 words
    Year 11 Economics- Homework Task 6 Part A Type Risk Expected Return (%) PA Amount ($) % of total investment ING Savings Maximise r Low 5.40% $75000 35%Commonwealth Cash investment account Low 5.25% $50000 25%Westpac Moderate Growth Fund Medium 4.17% $50000 25%Colonial First Estate Conservative Fund Low 1.7% $25000 15%The portfolio shown in the table above I feel is ideal for Hugh Jackman. He wishes to invest $200, 00 and does not want to risk loosing any of his money. Therefore I have chosen to ...
  • Stable Prices And Long Term Interest Rates
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    It goes without saying, that interest rates influence our decisions, and affect many activities in our lives. Interest rates can be expressed as "a percentage of the amount borrowed or saved". People always try to be well-informed about changes in economy and finance. They say that it helps them to make better decisions about their personal finance. It is evident that interest rates affected the standards of our life such as mortgages, savings and investments, buying a car and paying taxes. The ...
  • European Interest Rates
    1,006 words
    Economic consequences of a Single European Currency A large part of the attraction to those businesses which have declared themselves in favour of joining the single currency lies in the notion that Euroland will be a zone of economic stability, within which effective business planning can take place and growth be enhanced. But will Euroland in fact exhibit these characteristics Will it be a zone of stability Will it be a zone of growth Will it be a zone of high employment The answer to all thre...
  • Increase In Interest Rates
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    Objectives: Primary To successfully invest $200 m of funds into short term securities with the highest possible yield in order to maximise our return on profit. 10% of our funds are required to be invested in the overnight market and 50% should be available over the next 3 months. Secondary To speculate in the market according to interest rate movements over the next 6 months by buying and selling securities in order to achieve maximum profit from interest rate returns. Money Investing Strategy ...
  • Interest Rates And The Housing Market
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    The inter-relationship between the health of the economy and interest rates is an incredibly important and often discussed topic. And recently in Australia the link between these and the housing sector has been heavily scrutinised. Penm et al. (1994, p. 241) have even suggested ^aEURoehousing activity is a leading indicator of general economic activity^aEUR. In the Australian economy, the housing market is booming, some believe out of control. Whether or not the boom is sustainable is a topic wh...
  • Short Term Interest Rates
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    There are numerous reasons for introducing a common currency. For most EU countries today, the majority of international trade is with other EU members. The euro-zone will become an area of monetary stability in Europe. The new currency removes exchange rate risks from the internal market, cuts the costs of transactions and encourages firms to trade across national borders. It also forces EU states to adopt responsible economic policies that contain inflation and increase real living standards. ...
  • Interest Rates On Long Term Bonds
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    INTEREST RATE VOLATILITY DOES MATTER The variability of interest rates directly influences how the public saves and invests, thus having a large impact on the standard of living. As fluctuations of the rate occurs, return on assets become less predictable forcing investors to re-evaluate their original investment decisions, or face the possibility of drastic loss. Those investors with low income are more likely to hold investments with relatively low volatility, ensuring a steady level of consum...
  • Real Interest Rates In The Short Run
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    Monetary policy affects the economic and financial decisions of virtually all of us from workers to borrowers to investors (Rukeyser 105). Louis Rukeyser wrote, If we want monetary policy to play its proper role in a true national economic reconstruction, the authentic task is to get the Fed to stop bouncing like a Chinese Ping-Pong ball, switching every few months between the inflationary effect of pumping far too much money into the economy and cramping, recessionary effect of supplying far to...
  • Higher Interest Rates
    569 words
    The economy over the last eighteen months had started with moderate production, but began to slope into a recession causing the unemployment rate to rise. Beginning in the fourth quarter of the year 2001, the Federal Reserve decided to lower its federal funds rate to 1-3/4% (this was the lowest rate in the last 40 years). With this move the economy expanded quickly not soon after the change. Consumer Spending increased considerably and housing production was on the rise with the help of good wea...
  • Interest Rates
    352 words
    WHAT IS THE WASHINGTON CONSENSUS and HOW DID IT EMERGE? August 1982. Mexican Finance Minister informed Washington it could not make it's debt repayments. The problem was that in the 1970's money was cheap, plenty of liquidity in the system - largest banks lent much cash to sovereign nations when inflation was high and real interest rates were practically negative. Effectively banks were effectively paying latin American governments to effectively borrow money. Many of the latin American governme...