IBUS-300 Lecture Notes - Lecture 10: Federal Reserve System, Fedwire, Money Supply
12 Dec 2018
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Chapter 11: kevin feyjoo (jess horst notes below) The value of daily foreign exchange transactions is almost one hundred times the value of daily international trade in goods/services. Fedwire, the payment mechanism operated by the us federal reserve system, processes more than trillion of transfers every day - about 50 times the us national income. Value of assets underlying current derivative contracts outstanding is three times the value of all physical assets in the world. Japan"s economy grew from y476 trillion in 1991 to y477 trillion in 2012, while during that time the us economy grew from trillion to . 6 trillion. Japan"s share of the global gdp shrank from 17. 9% to around 4% during this time. In 2003, depositors withdrew billion from banks causing an extreme drop in exchange rate of the yen. Balance of payments: balance on merchandize trade, balance on goods/services, balance on current account, capital account, financial account.
