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The East Asian countries were taking a de facto dollar peg (fixed exchange rate), [15] promoting the free movement of capital (free capital flow) [14] and making independent monetary policy at the same time. First, because of the de facto dollar peg, foreign investors could invest in Asian countries without the risk of exchange rate fluctuation ...
In economics, a dual exchange rate is the occurrence of two different values of a currency for different sets of monetary transactions. [1] [2] One of the most common types consists of a government setting one exchange rate for specific transactions involving foreign exchange and another exchange rate governing other transactions.
Country foreign exchange reserves minus external debt. In international economics, the balance of payments (also known as balance of international payments and abbreviated BOP or BoP) of a country is the difference between all money flowing into the country in a particular period of time (e.g., a quarter or a year) and the outflow of money to the rest of the world.
International finance studies the flow of capital across international financial markets, and the effects of these movements on exchange rates. [ 3 ] International monetary economics and international macroeconomics study flows of money across countries and the resulting effects on their economies as a whole.
An international monetary system is a set of internationally agreed rules, conventions and supporting institutions that facilitate international trade, cross border investment and generally the reallocation of capital between states that have different currencies. [1]
The history of international finance shows a U-shaped pattern in international capital flows: high prior to 1914 and after 1989, but lower in between. [4] The volatility of capital flows has been greater since the 1970s than in previous periods. [4]
In macroeconomics and international finance, a country's current account records the value of exports and imports of both goods and services and international transfers of capital. It is one of the two components of the balance of payments, the other being the capital account (also known as the financial account).
Other investment includes capital flows into bank accounts or provided as loans. Large short-term flows between accounts in different nations commonly occur when the market can take advantage of fluctuations in interest rates and/or the exchange rate between currencies. Sometimes this category can include the reserve account. [1] Reserve account.