Definitions by Abu Yahya
Hispanophonic
The largest Hispanophonic countries, in order of population, are
Mexico (111,211,789)
Colombia (43,677,372)
Argentina (40,913,584)
Spain (40,525,002)
USA (35,000,000?)
Peru (29,546,963)
Venezuela (26,814,843)
Chile (16,601,707)
Ecuador (14,573,101)
Guatemala (13,276,517)
Cuba (11,451,652)
Bolivia (9,775,246)
The Dominican Republic (9,650,054)
Honduras (7,833,696)
El Salvador (7,185,218)
Paraguay (6,995,655)
Nicaragua (5,891,199)
Costa Rica (4,253,877)
Mexico (111,211,789)
Colombia (43,677,372)
Argentina (40,913,584)
Spain (40,525,002)
USA (35,000,000?)
Peru (29,546,963)
Venezuela (26,814,843)
Chile (16,601,707)
Ecuador (14,573,101)
Guatemala (13,276,517)
Cuba (11,451,652)
Bolivia (9,775,246)
The Dominican Republic (9,650,054)
Honduras (7,833,696)
El Salvador (7,185,218)
Paraguay (6,995,655)
Nicaragua (5,891,199)
Costa Rica (4,253,877)
Hispanophonic by Abu Yahya May 18, 2010
terms of trade
(ECONOMICS) the effective ratio whereby a country exchanges its goods with those of another country. Hence, a country that exports (say) mostly coffee and chocolate has to import almost everything else; if the price of chocolate and coffee declines, the country has no choice but to increase production of both, further reducing the price of both on world markets, and increasing the relative cost of everyhting it imports.
Terms of trade are determined notionally by the forex markets, but more fundamentally by (a) the markets for commodities, and (b) the ability of the country to finance transitions to other, higher-priced export goods.
Terms of trade are determined notionally by the forex markets, but more fundamentally by (a) the markets for commodities, and (b) the ability of the country to finance transitions to other, higher-priced export goods.
Terms of trade typically lead to very high real exchange rates for currencies like the Indian rupee.
terms of trade by Abu Yahya May 18, 2010
comprador
(SOCIOLOGY) merchant class in a colony; usually dependent on exports of raw material from the colony (or former colony) in exchange for overpriced imports from the former colonial power.
As a class, the compradors are usually nationalistic--they usually want the trappings of independence. However, they are totally dependent on the global economy and its structure of hegemony. The rich nations benefit from excellent terms of trade, specialization in manufactured goods or intellectual property, etc.
After nominal independence, the comprador class usually become very powerful in the former colony; major powers like the USA or the EU ensure the comprador remain the de facto leaders of the colony. Anti-US rhetoric is usually just political theater or may reflect petty rivalry on the part of the compradors with their foreign masters.
As a class, the compradors are usually nationalistic--they usually want the trappings of independence. However, they are totally dependent on the global economy and its structure of hegemony. The rich nations benefit from excellent terms of trade, specialization in manufactured goods or intellectual property, etc.
After nominal independence, the comprador class usually become very powerful in the former colony; major powers like the USA or the EU ensure the comprador remain the de facto leaders of the colony. Anti-US rhetoric is usually just political theater or may reflect petty rivalry on the part of the compradors with their foreign masters.
Eventually, the terms of trade become so bad that the relationship breaks down and the country suffers a sovereign debt default, revolution, or permanent FUBAR status. At this point the comprador class has to share power with the local Junker class.
real exchange rate
(ECONOMICS) ratio between a country's foreign exchange rate and the real purchasing power of its local currency.
The actual exchange rate between (say) the yen and the US dollar tells you nothing about the relative strength of the two currencies. The US dollar buys 92.57 yen (17 May 2010) right now, which sounds like a lot. But $100, converted into ¥9,257, only buys $71 worth of actual goods & services. In order for the yen:dollar exchange rate to reflect real purchasing power of the two currencies, the US dollar should be able to buy ¥130.
The real exchange rate for the US dollar against the Japanese yen is 1.41 (meaning the yen is costlier than the dollar in real terms).
The actual exchange rate between (say) the yen and the US dollar tells you nothing about the relative strength of the two currencies. The US dollar buys 92.57 yen (17 May 2010) right now, which sounds like a lot. But $100, converted into ¥9,257, only buys $71 worth of actual goods & services. In order for the yen:dollar exchange rate to reflect real purchasing power of the two currencies, the US dollar should be able to buy ¥130.
The real exchange rate for the US dollar against the Japanese yen is 1.41 (meaning the yen is costlier than the dollar in real terms).
The recent (March-May) fall of the euro against the US dollar has brought the real exchange rate of the two currencies into approximate parity.
real exchange rate by Abu Yahya May 18, 2010
T-bill
(FINANCE) a bond issued by the US Department of the Treasury. Unlike longer-term bonds, with regular scheduled interest payments, a T-bill is purely discounted. In other words, the lender--the person buying the bond--pays a price lower than the face value of the bond. When the bond matures (after, say, 91 days), then the buyer is paid the face value.
The yield on the T-bill is usually very low; for example, yesterday 13-week T-bill rates were 4.01%. Their price is set at auction.
The yield on the T-bill is usually very low; for example, yesterday 13-week T-bill rates were 4.01%. Their price is set at auction.
insolvency
(ECONOMICS) crisis created when a government or firm cannot pay its obligations in any reasonable time frame. Often confused with illiquidity, which is a when an entity suffers a temporary shortage of cash.
When a firm has assets that are greater than liabilities, it is solvent. In a lot of cases, the management of a firm runs out of ways to make money with the assets it has, so it "invests" in poor quality assets with high risk of default (for example, by lending money to borrowers using inflated housing prices as collateral).
When a firm has assets that are greater than liabilities, it is solvent. In a lot of cases, the management of a firm runs out of ways to make money with the assets it has, so it "invests" in poor quality assets with high risk of default (for example, by lending money to borrowers using inflated housing prices as collateral).
Most of the time, insolvency is the result of corrupt or feckless management. In a few cases, however, it can be the result of a vicious cycle in which a well-managed company's customers all become insolvent first.
insolvency by Abu Yahya May 5, 2010
IMF
(ECONOMICS) international bank created after World War 2 to coordinate currency stabilization. Main policy tool consists of lending money to central bank of countries facing a liquidity crisis.
In some cases, as when a member government is insolvent, the IMF will impose a structural adjustment program (SAP) requiring the government to jettison programs it has to serve the poor. For this reason, the IMF is often harshly criticized.
In some cases, as when a member government is insolvent, the IMF will impose a structural adjustment program (SAP) requiring the government to jettison programs it has to serve the poor. For this reason, the IMF is often harshly criticized.