abu yahya's definitions
A currency whose value is set by the currency markets; money whose exchange rate relative to other currencies is determined mainly or entirely by unrestricted trading in the currency. Most currencies are dirty float|dirty floats, which means that the government issuing them attempts to manage their traded value in some way; or else hard peg|hard pegs, in which the value is tied to something specific.
When a currency is floating, then its value may rise because the county is running a trade surplus, or it is running a capital account surplus. Floating currencies are not fiat money, although they are often confused for each other.
When a currency is floating, then its value may rise because the county is running a trade surplus, or it is running a capital account surplus. Floating currencies are not fiat money, although they are often confused for each other.
by abu yahya September 28, 2008
Get the floating currencymug. 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 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
Get the capital account balancemug. a type of shantytown whose buildings are made with mud brick, mortar, or found materials.
Prior to the 1950's, a "hutment" could mean any sort of temporary barracks.
Prior to the 1950's, a "hutment" could mean any sort of temporary barracks.
These hutment colonies consist of hovels made of a variety of hard and soft materials like pieces of wood, rags, tin sheets, mud, bricks and any such thing that comes in handy.
Pushpa Agnihotri, *Poverty amidst prosperity: survey of slums* (1994), p.44
Pushpa Agnihotri, *Poverty amidst prosperity: survey of slums* (1994), p.44
by Abu Yahya April 10, 2010
Get the hutmentmug. (US GOVERNMENT) one of two governing boards of the US Federal Reserve System (the Usonian Central Bank). The FRB consists of seven governors appointed by the White House to staggered terms of 14 years.
Governor appointments are subject to Senate confirmation.
The FRB sets monetary policy. Its seven members also serve on the other governing board of the Fed, the FOMC. However, the FRB has sole responsibility for discount rates and reserve requirements, and it is also responsible for enforcement of banking regulation.
Governor appointments are subject to Senate confirmation.
The FRB sets monetary policy. Its seven members also serve on the other governing board of the Fed, the FOMC. However, the FRB has sole responsibility for discount rates and reserve requirements, and it is also responsible for enforcement of banking regulation.
Despite the fact that the Chairman of the Federal Reserve Board has the same power as the other six governors, most people have only heard of Alan Greenspan (1987-2006) or Ben Bernanke (2006-present). About the same time, Susan M. Phillips (1991-1998) held approximately equal power on the Board; so did Roger W. Ferguson, Jr. (1997-2006).
Because governors almost never serve their full terms, there are currently only five governors on the board. The two longest-serving members, Bernanke and Vice Chair Donald Kohn, have only been there since August 2002.
Because governors almost never serve their full terms, there are currently only five governors on the board. The two longest-serving members, Bernanke and Vice Chair Donald Kohn, have only been there since August 2002.
by Abu Yahya June 17, 2010
Get the Federal Reserve Boardmug. national income and product accounting; refers to the formal system of measuring capital accounts, current accounts, and gross domestic product.
National income and product accounting is the centerpiece of national economic
accounting in the United States. The NIPA's show the real and nominal value of output, the composition of output, and the distribution across types of income generated in its production.
Abraham & Mackie, *Beyond the Market,* p.40
accounting in the United States. The NIPA's show the real and nominal value of output, the composition of output, and the distribution across types of income generated in its production.
Abraham & Mackie, *Beyond the Market,* p.40
by Abu Yahya February 14, 2009
Get the NIPAmug. (acronym) American Enterprise Institute; an extremely powerful thinktank associated with the Conservative Movement.
by Abu Yahya May 29, 2009
Get the AEImug. (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.
by Abu Yahya May 18, 2010
Get the real exchange ratemug.