1. INTRODUCTION: The movement of stock indices is highly sensitive to the changes in fundamentals of the economy and to the changes in expectations about future prospects. Expectations are influenced by the micro and macro fundamentals which may be formed either rationally or adaptively on economic fundamentals‚ as well as by many subjective factors which are unpredictable and also non quantifiable. It is assumed that domestic economic fundamentals play determining role in the performance of stock
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Devaluation of the Rupee: Tale of two years – 1966 and 1991 Since its Independence in 1947‚ India has faced two major financial crises and two consequent devaluations of the rupee. They were in 1966 and 1991. Foreign exchange reserves are very important for any country to engage in International commerce. Having huge sums of reserves helps trade with other nations and also reduces the transaction costs associated with international commerce. When a nation runs out of foreign currency and finds
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central bank of the Hong Kong. However‚ the economy is expected to enter one of the most severe recessions in the post-war period after the Asian Financial Crisis. Section 2 in this paper will offer background information of the Linked Exchange Rate System. It defines how the monetary authorities defend the currency peg. Section 3 will summarize on how and why the Hong Kong dollar was under speculative attacks during the Asian Financial Crisis. Section 4 is a postscript on how the HK government reacts
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is economic development? It is a multi-dimensional process that involves changes in the three structures of the society plus changes in popular attitudes and beliefs. THE THREE STRUCTURES OF THE SOCIETY 1. Institutional - example educational system‚ church 2. Social - family‚ agrarian reform 3. Administrative - government‚ constitution‚ currency SCHOOLS OF THOUGHTS OR APPROACHES IN THE STUDY OF ECONOMIC DEVELOPMENT Stages of economic growth theories of the late 1950s and early 1960s International
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Fin 242 Financial Management Term Paper How the American dollar ($) impacts India‚ a general report By Samarth Bahl Since‚ 1991 when the then Indian government was run by the Indian National Congress (INC)‚ the political party instituted a plan to implement economic reforms‚ short and long term to bring the country out of its quagmire‚ to this end the value of the dollar has played a key role in the economic fortunes of India. This is due to the fact that the dollar has been the world
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levels of specialized functions‚ is influenced by the critical elements of the business environment”. Explain with suitable examples. 2. What is the exact position of China in so far as its economic system/structure and the role of the Government are concerned? How would you describe its economic system? 3. Name and briefly describe a sick unit with which you are familiar or identify one such unit and briefly attempt the following: a) Factors which caused sickness‚ including management
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definition of a pegged exchange rate is‚ “System in which the value of a country ’s currency‚ in relation to the value of other currencies‚ is maintained at a fixed conversion rate through government intervention.” While this does work most of the time a pegged exchange rate it does not always work. Argentina had this exact problem in the case “Argentina Monetary Crisis”. Having this kind of exchange rate is often referred to as a dirty float: A system under which a country’s currency is nominally
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i) Are there any hidden assumption of price rigidities in Saudi Arabia that might inhabit market force indicators from revealing the true economic health of the country‚ there by either preventing government policy actions from correcting the problems or otherwise making them ineffective and counterproductive? How difficult is it to invest and repatriate profits and how would you deal with the need for educated managers and executives that can operate effectively in Saudi Arabia? Ans: The case
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MONETARY POLICY DECISION – Pakistan – 2013 In the monetary policy statement of February 2013‚ the SBP highlighted two main challenges for monetary policy: to manage the balance of payment position and to contain the possible increase in inflation. Since then‚ SBP’s foreign exchange reserves have declined by another $2 billion; from 8.7 billion at end-January 2013 to $6.7 billion as of 5th April 2013‚ mainly due to debt payments. Contrary to expectations‚ however‚ year-on-year inflation has come
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more by applying a variety of incentives. As a result‚ the FDI increased in 1950s. In order to ensure the import substitution strategy‚ Brazil took a series of measures such as tariff‚ non-tariff barriers‚ exchange controls‚ import licensing system‚ credit control through the BNDE‚ various incentives. Particularly important one was the "Plano de Metas" in 1956‚ to create a state-owned enterprise policy applied for the key industries in order to try to make them strong and sound. While it
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