EC249 Study Guide - Final Guide: International Monetary Systems, Portfolio Investment, Government Debt
Document Summary
International monetary systems, the balance of payments, the market for foreign exchange, international parity relationships: asset market: Banking, and the money market, the bond market, equity markets. Futures and options on foreign exchange, interest rates and currency swaps; International portfolio investment, foreign direct investment and cross-border acquisitions, corporate governance. The financial and legal framework for regulating the relationship between a firm"s management and its shareholders. Issues are serious where legal protection of shareholders is weak or non- existing: examples: indonesia, pakistan, and russia. More than 300 million europeans in 18 countries are using the common currency on a daily basis. In december 2009, the greek government revealed that the budget deficit would be much larger than forecasted and it was a serious violation of the. Europe"s sovereign-debt crisis revealed an important weakness of the euro: Eurozone countries have achieved monetary union without fiscal integration.
