PHYSICS 102 Lecture Notes - Lecture 11: Money Market Fund, Business Analysis, Spot Contract
Document Summary
Makers: trade currencies and engage in fx services for customers, other financial institutions, commercial banks other than money centre banks, hedge funds, pension funds, money market funds, non-financail institutions, customers, governments, companies. The fx market: otc and exchange-traded markets, otc banks, exchange-traded exchanges bespoke products standardised contracts. Bad times: possible solutions, forward contracts; futures contracts; currency options, see also, volkswagen"s hedging strategy (hill, p. 292) The bretton woods system: 1944 representatives from 44 countries met to design new international monetary system, aim to build a lasting economic order to facilitate post-war economic growth, discipline and flexibility. Imf s role: maintain order in the ims: avoid repetition of competitive devaluations, control price inflation through monetary discipline, world bank"s role: promote economic development. Imf"s original aim was to avoid repeat of interwar economic chaos through discipline and flexibility. Imf lends money to countries to help ease balance-of-payments difficulties: on condition that the country accepts stabilising policies.
