The past few months have seen a rise in the US dollar. The trade-weighted index has risen from 95 in 2011 to 111 in Jan 2011. There has been a near 10% rise in the value of the dollar since July of 2014. Against the Euro, the dollar has been even stronger. One Euro was …
Currency wars are said to occur when countries seek to devalue their currency to gain a competitive advantage. However, if one country seeks to become more competitive through devaluation, it means other countries become less competitive. Therefore, they may respond by weakening their currency too. Thus, we may get a situation of competitive devaluation where …
Readers Question: Who really is a global funds manager? A global funds manager is person who looks after different investment trusts / pension funds. He will decide where and how to invest the fund of money in different markets. Individuals with savings may wish to seek better returns than just saving in a bank with …
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In recent months, the Chinese stock market has been very volatile, with sharp drops in prices since last July. On August 24th, share prices fell 9% – one of the biggest single day falls. People fear this is the bursting of the Chinese stock market bubble which could have serious effects on the global economy. …
A look at the different economic factors that determine the price of gold Essentially the price of gold is determined by: Supply of gold Demand for use in goods such as jewellery. Speculative demand to hedge against inflation and economic uncertainty. In early August 2011, gold touched $1,716.19. Adjusted for inflation, the record gold price …
Readers Question. I greatly appreciate the time that you took to try to explain our debt situation. (History of National Debt / GDP) One thing that still confuses me is why our debt actually rose during a sustained time period where debt/GDP charts showed that it shrank. This is very important. (and I wish those …
During the 1990s and early 2000s, Spain enjoyed rapid economic growth and became the 5th largest EU economy. In particular, the rapid economic growth encouraged a boom in property. In 2006, Spain started building 800,000 new homes – more than Germany, Italy, France and UK combined. (Euro Challenge.org) However, in 2008, Spain was badly affected …