The Renminbi (RMB) is the name of the Chinese Currency. Renminbi roughly translates as ‘people’s currency’ The Yuan refers to its unit of account. So for example, we might use the following sentences The Renminbi is the 6th largest traded currency in 2006. The Chinese government issues a 100 Yuan note. In practice, they can …
Oil prices tend to be volatile for a few reasons. Demand varies with the economic cycle. Changes in the price of oil can be magnified by speculators who buy forward contracts Supply is quite inelastic in the short-term. Therefore, a small change in demand can have a significant impact on the price. Firms and consumers …
Readers Question: I only have $10,000 in my bank. With this virus situation, what is going to happen to the value of my money? Serious question. Do I try to exchange my money to another foreign country currency? Help, please. I am 68 years old, no pension and no job. George Firstly, I would not …
A list of different types of economic policies. Monetary policy Fiscal policy Supply-side policies Microeconomic policies – tax, subsidies, price controls, housing market, regulation of monopolies Labour market policies Tariff/trade policies Demand-side policies Policies for influencing aggregate demand and expenditure in the economy. This mainly involves fiscal and monetary policy. Fiscal policy Government changes to …
Questions on budget deficits and bond yields. 1. What is the Link between the size of a countries budget deficit, and bond yields? Highest budget deficits – Ireland, Japan, UK and US 10 Year Bond Yields Greece and Ireland seem to have the relationship you might expect – deficit close to 10% of GDP …
The balance of payments is the record of a country’s transactions / trade with the rest of the world. The balance of payments consists of: Current Account (trade in goods, services + investment incomes + transfers) Capital Account / Financial Account (capital and financial flows, net investment, portfolio investment) Errors and omissions. It is hard …
The competitiveness of British industry refers to whether British goods/service are more attractive to consumers than in other countries. A big factor is the relative price of British goods and services compared to other economies. However, as well as price competition, for many goods non-price competition will be important. For example, British fashion labels may …
An essay on the economic effects of a falling dollar. Between 2006 and early 2008, there was a 15% fall in the trade-weighted value of the dollar. Then from 2008 to 2011, there was another fall of around 15%. In summary, a fall in the value of the dollar will have these effects. Makes US …