With the value of the Yen going down, is this on purpose or by freak accident. Japan is smart about this and has a specific strategy. In Japan, the BOX is buying almost as many of its bonds (about $76 billion per month) as the Fed is buying with SQ ($85 billion per month). This is resulting in more bang for your yen/more SQ per capita. Here is where it gets sneaky. Expectations that the BOX will keep expanding its balance sheet have led investors to sell yen. Japan knows it has to act carefully to equal out its domestic policy goals with potential foreign objections. . When you are done run a web search. What is the current situation in Greece? Are there other countries in Europe experiencing similar faculties? How could Europe get themselves into this position? Greece is not doing well. Some people want to continue using the Euro which a currency provided by the European Central Bank while others want to return to the drachma. The drachma is the fiat currency previously issued by the Greek central bank. This is causing a major uproar in Greece. Politically they are also crumbling.
The leaders are persistent with rejecting economic policies that would keep Greece in the Euro zone. These leaders are doing nothing to actually help the situation. Argentina is also going through a similar struggle financially. It has defaulted on its debt. With a low credit rating, there was no way this country could continue to operate and Greece might even need to do the same thing. Greece needs to elect better leaders as well as increasing exports earlier on. This would have allowed their depression to be a lot less which would have allowed them to be able to recoup faster. 3.
When you are done watching take a position on the question of cooperation do you think cooperation will increase or decrease going forward? Come up with a couple of paragraphs. I think it is hard to tell actually whether it will increase or decrease but if everything ran smoothly in society, it would be smart to increase it. A few tactics are currency boards as well as free floating currencies. Cooperation I think should start with currency boards. This will allow both countries to cooperate together with a commitment to exchange local currency for some amount of foreign currency at a set rate.
If the country is in a state of depression, this is a feasible solution if both countries agree to it. This would help businesses who are dealing with inflation. Your example from class about exchanging 2 levels for 1 Euro is a great example. You must be able to arrow euros and get the currency in for this to be feasible. In addition, there comes many difficulties with this strategy. Limiting countries ability to print money could be a problem and either lead to stimulate demand and drown it. It does however eliminate uncertainty of people doing business.
It also helps stimulate foreign investment. Limiting government also means you can only spend what is brought in. As we can see, the currency board in Bulgaria still held and is way better off than Greece. Another example is Argentina and how it moved from managed exchange rate too currency board in 1991. They locked currency the dollar. One problem was that value of dollar increased, making the value of their currency increased as well. This make it hard for exporters to be lucrative and sell aboard. Sales dropped, tax revenue decreased and drowned them.
Solution was to intro cue free flowing currency to make imports more expensive but exporters could now compete. Now we must discuss currency regimes. It can be either hard peg or free floating. Free floating regime currency can increase or decrease and cause problems with expectations of investors. Challenges are weak fiscal and monetary institutions, tendencies for commerce to allow currency obstruction and the denomination of liabilities in dollars, and the emerging markets vulnerability to sudden stoppages of outside capital flows.
Free floating regime also give the country a chance of loss of stability. With a currency board independent monetary policy is lost All exchange rate regimes must deal with the tradeoff between rules and discretion as well as between cooperation and independence. In order to reduce volatility you need cooperation among nations. US has done this by encouraging others and trying to dig them out of deep holes they put themselves into. 4. Most Western nations were on the gold standard for runners exchange rates from 1876 until 1914.
Today we have several different exchange rate regimes in use, but most larger nations have freely floating exchange rates today and are not obligated to convert their currency into a predetermined amount of gold on demand. Currently several parties still call for the “good old days” and a return to the gold standard. Develop an argument as to why this is a good idea. The gold standard is a complex issue that has caused a lot of uproar in countries. Yes, it has worked in the past but why would so many nations remove themselves from it.
However, dealing with countries today and the robbers they face, it is probably best that everyone returns to the gold standard. “If we remained on the gold standard, our economy would be 50% larger now” – Corer from newsman. Com. The gold standard gave stability. If there was no gold there was no money. None of this huge overprinting problem that the world faces today. The dollar has grown unstable over the past few years which we can see from bubbles that occurred. All in all, going back would create a more reliable currency especially among different countries. 5.
Use the Miff’s website (http://’. N. Www. Miff. Org/external/index. HTML) to find and riffle summarize: a. The role of the MIFF. The role of the MIFF is to help member governments take advantage of the opportunities posed by globalization and economic development more generally. It also tracks global economic trends and performance. It alerts its member countries when it sees problems on the horizon and provides policy advice and financing to members in economic difficulties. The MIFF works with developing nations to help them achieve macroeconomic stability and reduce poverty. B.
Current issues facing the MIFF Current issues include the global financial crisis. The global economic covers continues to rely heavily on accommodative monetary policies in advanced economies. Encouraged risk taking is never easy and with the increase of willingness to invest and hire by businesses, this can cause problems. There is only so much the MIFF can do to help eliminate the risk. C. The IMPS global economic outlook It includes a lot of emerging market and developing countries in the southern hemisphere. Advanced economies are more in the north particularly the United States.
The annual percent change for these emerging markets is around 6% – 10%+. If everything goes according to plan, this is an astronomical amount of growth. 6. The World Bank (http://www. Workloads. Org/) provides funding for a variety of different types of projects. Briefly list the criteria used by the WEB to evaluate projects. What are some of the recent funded projects? These approaches include assessing outcomes against stated objectives, benchmarks, standards, and expectations, or assessing what might have happened in the absence of the project, program, or policy (contractual analysis).
Public sector projects are assessed in relation to their relevance and the efficacy and efficiency with which they achieve their development objectives. To judge the Bank Group’s performance and identified,’ lessons for improving Bank Group operations, EGG conducts not only project-level evaluations, based on the review of self-evaluation reports prepared by Bank Group staff and supplemented by independent assessments, but also reviews of literature, analytical work, and project documentation; portfolio reviews; country case studies; structured interviews and surveys of staff and stakeholders; and impact evaluations.
Recent projects include Africans Kari Dam Rehabilitation Project with an overall approved amount of $829. 8. Also, Niger has had the National Strategy for the Development of Statistics which includes a total project cost of $. 39 million dollars. 7. Pull the annual reports from three different companies from three different countries & briefly search for evidence how each firm addresses corporate governance. What similarities/differences do you see? Armband in India Has contributed to 53% of the emerging markets to global sales while having 78 patents filed and has grounded operations in 43 other counties.
Selling over 1 50 counties and having manufacturing facilities in 8 countries. It has dressed corporate government by being compliant to all of the rules set forth by the government. In December it passed all of the compliance tests. Raise based in Asia takes a bold stance in align with the corporate government “The Board is dedicated to sound governance practices and strives to meet the standard at all levels of the organization. We have designed our corporate governance policies and practices to ensure that we are focused on our responsibilities to our shareholders and on increasing shareholder value.
We recognize the vital importance of trust in relationship tit our shareholders and investors and solid corporate governance practices ensure the alignment of corporate behaviors with shareholder interests by promoting the principles of transparency, accountability and independence in the Group’s business activities and decision making processes. ” ; Ares Asia Limited Airports company South Africa SOC LTD The King Ill Code on Corporate Governance states that corporate governance is the process of balancing power between the shareholders, Board of Directors, company managers, employees and other relevant stakeholders.
Adherence to this code is a critical platform in ensuring that we engage, direct and control our Company effectively. In accordance with King Ill, the Board is ultimately responsible for corporate governance and has two main functions: to determine our Company’s strategic direction (and consequently, its ultimate performance), and to take responsibility for the ultimate control of the Company.
We strive to achieve the highest standards and during the 2014 financial year, our Board has ensured that decisions taken allow full and effective control over our Company, and in-depth discussion and interrogation of our strategic issues, performance and sustainability. This includes the important issues of transformation, employment equity and other employee-related matters. The Board actively ensures compliance with King Ill principles, the Companies Act and the BEMA requirements; and related regulations.
All three companies tend to follow a rigorous connection with the corporate government and I can see that each government has a different amount of regulations and practices which it requires its companies uphold. The three companies I picked did exceptional well in all their categories 8. In 1 998 Malaysia implemented some pretty strict currency controls – http:/ www. Anytime. Com/1 998/09/02/business/international-business-Malaysia- imposes-controls-on-trading-in-its-currency. HTML and http://Mir. Mom. My/lb/ a. What was the justification for the controls, has Malaysia relaxed the controls since 1998? What was the impact of the controls on the economy? Prime Minister Mathis Mohammad imposed controls on the sale of the currency. This is a bold move and also introduced a fixed exchange rate. The government was also to ban the trading of Malaysian stocks outside the country. It is said that this will keep investors and funds away at a time when Malaysia is trying to pull out of its first recession.
It will however give authorities more freedom to lower interest rates while not having to deal with the impact of low rates on the ringing. The controls will help “regain monetary independence and insulate the Malaysian economy from the prospects of further deterioration in the world economic and financial environment,” Mr.. Zest said. “We want the supply of ringing in offshore centers to dry up. ” I don’t know how I feel about this and we can see how it has affect them since 1998. Since 1 998, Malaysia has been doing quite well. In recent years, capital intro on inflows is accepted.