192 definitions by abu yahya

the net purchase of financial assets in a country by foreigners. Put another way, the capital account balance is the net influx of money from overseas investors. It includes net purchases of domestic financial assets by foreigners minus net purchases of foreign financial assets by domestic citizens.

The capital account balance over short periods of time (e.g., a fortnight) is extremely volatile; over a period of a year, however, it usually offsets the current account balance. For example, in all years since 1980, the USA has run a large-to-huge current account deficit, but in most years it has run a capital account surplus that is almost as big as the current account deficit.
The capital account balance often permits a huge trade deficit to persist over several decades without a significant fall in the exchange rate of a nation's currency.
by Abu Yahya February 14, 2009
(LOGIC) a logical fallacy in which a person defends against an allegation by accusing an adversary of doing the same thing. It's a classic douchebag move because it implies that the speaker has a RIGHT to be a douchebag, by virtue of the fact that someone ELSE is being a douchebag.

From Latin, for "you, too."

Suppose A is accused of terrorism. He reacts by accusing B, his enemy, of terrorism. Now, it's possible (but unlikely) that A actually chose this argument knowing he was totally innocent. More likely he wants to claim that his terrorism is PROVOKED. In effect, he's saying, "I have to do this, or I'm entitled to do this, because B did it first."

First, as logic it's a red herring. But what makes it douchebaggery rather than just another wartime propaganda tactic, is that it's MORALLY irrelevant as well as LOGICALLY irrelevant. The victims of terrorism almost never have any material control over either perpetrator ever.
ANNA: Abu Yahya, I don't know if your definition of "tu quoque fallacy" belongs in the Urban Dictionary. This isn't Wikipedia, you know.

ABU YAHYA: The reason I did is that I see all the time people using the rationale that, because somebody else did something bad to me, therefore I get to do something similar to anybody. It's sort of like sloppy revenge.

ANNA: Like men punishing random women because their girlfriends allegedly did something shitty to them?

ABU YAHYA: Actually, that's a perfect example of a tu quoque!
by Abu Yahya June 02, 2010
(ECONOMICS) a financial institution that issues the national currency and administers monetary policy.

For the USA, the central bank is the Federal Reserve System.

In a few cases, the central bank is private, and otherwise similar to a regular commercial bank. In other cases, it is directly controlled by the head of government. In most cases, however, it is a government agency that is shielded from direct control.


European Union--European Central Bank (ECB).
Japan--Bank of Japan

China--People's Bank of China
United Kingdom--Bank of England

See also the International Monetary Fund and the Bank for International Settlements.
In the USA, as well as many other countries, the Treasury acts as the government's underwriter but the central bank controls the money supply using treasury securities and other forms of hot money. The central bank is usually responsible for managing the currency reserves, including foreign currency reserves, of its government. It also enforces banking laws and operates check clearing.

The BIS acts as a bank to most of the world's central banks.
by Abu Yahya May 05, 2010
Breathless and/or mendacious "Globalization" pieces from neoliberal commentators. A lot of pop economics insists that increased trade in services, intellectual property, and equities will solve every significant problem.
The American Enterprise Institute (AEI) is always good for a large steaming helping of globollocks.
by Abu Yahya August 03, 2008
Less developed country; refers to countries such as Mexico or Egypt, where there is a semi-functional state and plans to stimulate industry, but very limited industrial development (relative to the total labor force).
The World Bank and the IMF are both intensely controversial entities among LDCs.
by abu yahya July 10, 2008
(FINANCE) a type of financial derivative which two parties "swap," or exchange, the streams of income (or payments) from two different sources. The actual instrument is created by a third party, such as an investment bank.

The most familiar version of the swap is the interest rate swap, in which the holder of a fixed rate loan and the holder of an adjustable rate loan agree to exchange revenue streams.

The variety of swaps available is massively greater than with options or futures; essentially, swaps exist for every arbitrage opportunity that any combination of markets provides; the market for swaps is huge.
BILL: Why do firms buy swaps? Why don't they just sell the loans they have to other banks, or whatever?

ANNA: One is that swaps are a method of hedging risk; you hold the bond in case the price goes up, but you buy interest rate swaps to protect against having average rates in your portfolio that are two high or two low.
by Abu Yahya April 05, 2010
(FINANCE) a financial instrument whose value is tied to something else; for example,

* a futures contract (future)

* an option

* a swap

In each of these examples, the value of the derivative is related in some way to the price of something else. When the market price of (say) an ounce of gold goes from $1000/oz to $1050/oz, the return to the owner of 1 oz. of actual gold is 5%. But for the owner of a call option or a future, the return is much, much greater than that.

A derivative can be used to multiply risk AND potential profits to speculators; but it can be used for the counterparty to minimize risk by locking in prices, or by hedging against risk.
The economic crisis of 2008 has really focused attention on the financial derivative market.
by Abu Yahya April 05, 2010
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