ECON 2035 Lecture Notes - Lecture 1: The Foreign Exchange, Vale Limited, Vise
Document Summary
Why study financial markets? consumers, and the cyclical performance of the economy. The stock market (usually expressed as a percentage per year). as a result, their willingness to spend issued stock [higher price = larger amounts of funds used to buy more] Why study financial institutions and banking: banks/other financial institutions make financial markets work. Banks and other financial institutions credit unions savings, or other types of bank deposits. Why study money and monetary policy? or services or in the repayment of debts. Money and inflation produced in the economy percentage change per year: countries with highest inflation rates are ones with highest money growth rates. Money and interest rates: as money growth rose in 1960s, long term bond rate rose with it [however relationship between money growth/interest rates has been less clear] The foreign exchange market responsible for monetary policy in the us.