67 vol. 2‚ 2012 TARGETING OF KEY INTEREST RATE AS A SOURCE OF CRISIS YANA SOKOLOVA St. Petersburg State University‚ Faculty of Economics‚ Russia Abstract In response to the world economic crisis of 2008 the authorities of many countries have launched policies of interest rate reduction through large-scale asset purchases on the open key rate targeting. The author explains how changes of the federal funds rate increased bank interest rate risk and provoked the recession of 2007-2009
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Major Determinants of Interest Rates Inflation Inflation is a factor that decisively affects the nature or outcome of interest rates. “Inflation is an increase in prices of goods and services over time”(Financial Institutions‚ Instruments and Markets‚ 2012). Inflation is the natural byproduct of a robust‚ growing economy. No inflation‚ or deflation (the lowering of prices)‚ is actually a much worse economic indicator. Also‚ in a healthy economy‚ wages rise at the same rate as prices. A standard
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CHAPTER 14 INTEREST RATE AND CURRENCY SWAPS SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS QUESTIONS 1. Describe the difference between a swap broker and a swap dealer. Answer: A swap broker arranges a swap between two counterparties for a fee without taking a risk position in the swap. A swap dealer is a market maker of swaps and assumes a risk position in matching opposite sides of a swap and in assuring that each counterparty fulfills its contractual obligation
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Mackenzie Lopez Speech 101 03/03/15 Special interest speech outline I. Introduction A. Attention Getter: it’s a day before New Year’s Eve and from the moment when i wake up i can already smell the deliciousness of the quesadillas that my grandmother had been preparing from the night before. Thesis Statement: New Year’s Eve in El Salvador is like thanksgiving‚ Christmas and New Years all mixed together and is filled with laughs and great memories with the people you love most
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In my family there is a tradition of interest in science: my grandmother was college professor in chemistry and physics‚ and both my parents were trained as mechanical engineers in college. When I was a kid‚ my mom showed me a box full of extremely tiny gears — those that table clocks are made out of — and told me what each part was for. And I remember thinking "this is the coolest tiling I’ve ever seen!’ I have been interested in mechanical structures and the inner working of human-made and natural
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trials that took place in puritan community of Salem Massachusetts. This play captured the mood of a time where no one was safe. Because too much self-interest leads to the harm of others‚ Abigail fosters the witch trials throughout the play in hopes of being with John Proctor. Self-interest lead to the harm of others. Abigail shows immense self-interest when she threatens the other girls that she will “bring a pointy reckoning” if they were to say anything about the events in the forest (Miller 148)
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“Let’s Talk About Intellectual Disabilities” by Loretta Claiborne zoned in on a few issues that need attention when considering people with disabilities. The main focus of the video was to encourage the watcher to be fearless when fighting for the rights of people with intellectual disabilities‚ but the video also presented personal stories from Loretta Claiborne to support her cause. While this video gave a realistic view of the struggle of having a disability‚ it also connected to my own personal experiences
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Influence of interest groups on the American legislature We elect politicians on the basis on the issues by which they stand‚ and these issues are either held up or weakened by the numerous interest groups that exist today. Interest groups target both major and minor issues‚ using all of their resources to sponsor or overpower the groups’ concern. Interest groups are composed of a limited range of the body of voters who have a great stake in the issues their group support. They make evident
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I. Introduction Homo economicus‚ the Economic Man‚ represents a rational human being formalized in certain social science models‚ especially in economics‚ who acts in self-interest to achieve in a goal-oriented manner. As John Kay puts it‚ "He is self interested‚ materialistic‚ and obsessed with calculating his worth." In the world of economics textbooks‚ "... he is the mainstay of economic life." The edifice of modern economics is built on the foundation of Homo economicus‚ where the behavior
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Strategic Forum Institute for National Strategic Studies National Defense University http://www.ndu.edu/inss No. 239 April 2009 The United States and the Asia-Pacific Region: National Interests and Strategic Imperatives by James J. Przystup Key Points Notwithstanding the 2008–2009 financial crisis‚ East Asia today remains the home of the world’s most dynamic economies. In 1990‚ the region’s share of global gross domestic product (GDP) amounted to 26.5 percent; in 2006‚ that figure stood at 37.5
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