Flashcards for the second half of International Economics (lecture 7-12)
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Created by Emily Fenton
almost 9 years ago
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Types of Capital/Financial Assets (4)
Primary Institution of Financial Economy
Investment Universe
Futures
Bond
Stock
Options
Commercial Paper
Money as an Asset
Brief History of Currency
Pros & Cons of Pegged Currencies
Case Study: China's Manipulation of Currency
Devaluation of Currencies (3)
Appreciation of Currencies
Monetary Policy
How to Defend a Currency
Risk Encountered by Firms (2 Types)
Spot Rate
Arbitrage
Bid Rate
Ask Rate
Spread
Forward Rate
Flexible Exchange Rate
Fixed Exchange Rate
Key Market Players (4)
PPP = Price Level
Valuation of Currencies Indices (3)
Uncovered Interest Parity
Covered Interest Parity
Big Mac Index
Black Wednesday
Currency Cycle
Manipulating Currency Cycle with Interest Rates
Currency Crisis
Actors of a Currency Crisis (2)
Self-fulfilling
Stages of Currency Crisis (4)
Characteristics of Currency Crisis (3)
First Generation Crisis Model
Game Theory Model
Criticisms of First Generation Model (4)
Second Generation Crisis Model (and 3 assumptions)
Trilemma
Brief Timeline of Crisis in Mexico (7)
Austerity Conditions Imposed on Mexico (5)
Political Dramas in Mexico Contributing to Crash (3)
Tequila Effect
Types of Financial Crisis (5)
Financial Crisis (basic definition)
Asymmetrical Information
Measuring Currency and Banking Crises
Condition of Moral Hazard
Individual & Institutional Moral Hazards
Adverse Selection
Disruptions Leading to Financial Crisis (5) and Adverse Selection/Moral Hazard
Equity Financing
Glass-Steagall Act
Keynesianism
Internet Age
"The Gradual Decline..." (4)
New Financial Products to Spread Risk (4)
Sovereign Rating
US Government Response to Crisis (2)
Market Response to Crisis (5)
Political Response to Crisis (2)
Socio-Political Response to Crisis (6)
Euro Currency Crisis: Hard-Hit Countries (7)
Leaving the Euro (pros and cons)
European Policy Responses to Sovereign Debt Crisis (5)
European Social Responses to Sovereign Debt Crisis (5)
Results of the Sovereign Debt Crisis Responses (pros and cons)
Bull-Whip Effect
Benefits of International Capital Mobility (2)
Limits of International Capital Mobility (4)
Problem with Globalization & Growth
Solow Model
Total Factor Productivity
Human Capital and TFP
Technology and TFP
Open Economies and TFP
"Transfer" Company
Corruption According to "Transfer"
Vocational Economics
Human Economics
Problems with Economic Globalization (4)
Issue of Long-Term (In)Equality (Piketty)
Pros and Cons of Globalization
Gini Coefficient
Reasons for Increasing Inequality (5)
Reasons Global Equality is Increasing
