Floating Exchange Rates: The Only Viable Solution

For some, the collapse of Mexico’s economy proves that floating exchange rates and markets without capital controls are deadly. Others find the crash of the European exchange-rate mechanism (ERM) in 1993 to be proof that targeted rates will always be overturned by the free market. Many see the breakup of Bretton Woods as the failure … Read more

The Crash of 1929

Although the Prohibition controversy was absorbing, public interest in the first year of the Hoover administration became diverted by an event that shook the very economic foundations of the nation, namely, the stock market panic of 1929. The United States had enjoyed a boom after World War I, in which wages were high and production … Read more

Bonds and The Bond Market

Given today’s uncertain economy, many people are taking time to examine various options for their financial future. Different types of investments are investigated and bonds can be one of the more popular choices considered. Many of the same people who talk about investing in bonds, however, do not fully understand them nor where they place … Read more

The risk management of assets and liabilities by developing countries

Greater access to the international financial markets has bestowed many benefits on developing countries, but it has also exposed them to the vicissitudes of these markets. In addition to the macroeconomic challenges posed by large, potentially volatile flows, the sizable external foreign currency debt of many developing countries makes them vulnerable to swings in international … Read more

Free Trade vs. Protectionism

One of the greatest international economic debates of all time has been the issue of free trade versus protectionism. Proponents of free trade believe in opening the global market, with as few restrictions on trade as possible. Proponents of protectionism believe in concentrating on the welfare of the domestic economy by limiting the open-market policy … Read more

Instability In Financial Markets

The soaring volume of international finance and increased interdependence in recent decades has increased concerns about volatility and threats of a financial crisis. This has led many to investigate and analyze the origins, transmission, effects and policies aimed to impede financial instability. This paper argues that financial liberalization and speculation are the most reflective explanations … Read more

History Of The Stock Market

Once there was a time when shares in business corporations were rarely bought and sold because few companies were considered promising financial profits (Blume 21). That is hard to believe considering almost everybody has invested in some stock today. The stock market went through some distinct changes since its inception, and has evolved into a … Read more

1929 Stock Market Crash

On October 3, 1929 The Dow Jones started to drop from a recent high of 381. The average of the Dow Jones then kept dropping throughout the week of October 14. The night of Monday October 21,1929, margin calls were heavy, and numerous Dutch and German sell calls came in overnight for the Tuesday morning … Read more

Bonds and The Bond Market

Given today’s uncertain economy, many people are taking time to examine various options for their financial future. Different types of investments are investigated and bonds are one of the more popular choices considered. Many of the same people who talk about investing in bonds, however, do not fully understand them nor where they place in … Read more

Stock Market Crash

In early 1928 the Dow Jones Average went from a low of 191 to a high of 300 in December of 1928 and peaked at 381 in September of 1929. 1929) It was anticipated that the increases in earnings and dividends would continue. (1929) Price to earnings ratios rose from 10 to 12 to 20 … Read more

Chaos in The Currency Markets

1. What does the crisis of September 1992 tell you about the relative abilities of currency markets and national governments to influence exchange rates? The currency markets and national governments both have abilities to influence exchange rates. Like other financial markets, foreign exchange markets react to any news that may have a future effect. Speculators … Read more

Uleashing The Killer App: Book Report

Killer apps, goods or services that establish quickly and dominate the market, are displacing traditional planning and strategy in business. These revolutionary realities such as email, the first word-processing program, and e-commerce are sudden and dramatic changes that have recently found success in changing the face of business. Companies that use existing technologies are finding … Read more

Fast Food Demand

Analyze the fast food industry from the point of view of perfect competition. Include the concepts of elasticity, utility, costs, and market structure to explain the prices charged by fast food retailers. Firms within the fast food industry fall under the market structure of perfect competition. Market structure is a classification system for the key … Read more