Peng_Chapter 7

Peng_Chapter 7 - PPPandBigMacIndex...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
PPP and Big-Mac Index Purchasing Power Parity  the price for  identical products sold in different countries  must be the same. 
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 6
Exchange Rate Policies floating  (or  flexible exchange rate policy  -  willingness  of a government to let the demand and supply conditions determine  exchange rates clean  (or  free float dirty  (or  managed float target exchange rates  or  crawling bands  -
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Exchange Rate Policies fixed exchange rate policy -  Fixing the exchange rate of  a currency relative to other currencies Peg Currency Board
Background image of page 8
Investor Psychology Bandwagon effect  -  result of investors moving as a herd in  the same direction at the same time Capital flight  -  phenomenon in which a large number of  individuals and companies exchange domestic currencies for a  foreign currency
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
EVOLUTION OF THE INTERNATIONAL MONETARY SYSTEM Gold standard  - 
Background image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 20

Peng_Chapter 7 - PPPandBigMacIndex...

This preview shows document pages 1 - 11. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online