Use for questions related to international trade, commercial policy, open economy macroeconomics, international finance, and exchange rates. It can also be used in financial and monetary policies, economic development, migration and factor movements, as long as they are specifically related to an international context. Preferably use in conjunction with other, more precise tag.
Questions tagged [international-economics]
234 questions
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Fixed vs pegged exchange rate: What's the difference (if any)?
I am told very firmly by an economist that a pegged exchange rate is NOT the same thing as a fixed exchange rate. So what, if any, is the difference between the two?
Addendum: Here's one webpage about the difference. I am looking for simple…
user18
6
votes
1 answer
Purchasing Power Parity (PPP) and Law of One Price (LOP)
If PPP were to be satisfied in reality, does that mean the Law Of Price is satisfied for all goods in a basket of goods used to generate the price levels of the country? Or, since PPP uses only average price of basket, is there possibility of…
user51966
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"Buy a country", expression or possibility?
I keep hearing the term, "enough money to buy a country". My question is: Is it realy possible to buy a country or is this just an expression? and if so how would this work since there is no 1 person you could pay for it?
So "Bill Gates has enough…
Kenny Steegmans
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2 answers
Why Nobel prize winners studied economics?
Recently I have read a great article about Olivier Blanchard and I wonder why he has chosen to dedicate his life to study economics? Moreover he managed to do a research in several subfields, which is very impressive.
In the article we can find a…
Zimas
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3
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2 answers
China causing Currency War
Recently there have been reports of China devaluating its currency against the U.S Dollar. I'm a layman and I am unable to understand the need for a country devaluating it's own currency. How would it help that country? Moreover newspapers report…
Aniket Mehta
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3
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3 answers
Why are aeroplanes not made in one place?
As an example, different parts of an Airbus A380 are produced in factories all over Europe, and then assembled in a factory in France. Transporting these massive objects must be incredibly expensive (unless in fact they are shipped in small…
tonicsoft
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3
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3 answers
Are markets inherently short sighted?
If markets are types of "information systems", how do they assist in the attainment of a future common objective that is beneficial or even necessary to a society? Since markets are driven by individual needs and wants, are such future planning…
Hexatonic
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What is the difference between the international Fisher effect and uncovered interest rate parity?
References:
https://en.wikipedia.org/wiki/International_Fisher_effect
https://en.wikipedia.org/wiki/Interest_rate_parity#Uncovered_interest_rate_parity
As far as I can tell, these two are the same. What is the difference? (Is the former a statement…
J Li
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1
vote
1 answer
Impact of Import Quota onto Revenues
I'm learning about quotas from my textbook but I've found one thing that doesn't make sense to me at all and I think it may be a mistake in the book.
The context: $P_w$ is the price of wheat on the world market. So far the domestic government has…
Richard Smith
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How leniency laws are ineffective in destabilizing cartels in Dong(2019)
In a paper, Dong, 2019 mentioned that leniency laws can destabilize the cartel or induce the formation of new cartels. Their argument is as below
- Leniency destabilize the cartels
On the one hand, leniency laws destabilize cartels, as they…
Phil Nguyen
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What would be the impact on value of a country's assets and trade balance if its residents choose to increase their savings
What would be the impact on value of a country's assets and trade balance if its residents choose to increase their savings by investing in overseas assets and why?
May please help with this question family.
Keto
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vote
1 answer
Interpretation of the World Bank's definition of Portfolio equity inflows
The following is the definition from World Bank:
Does it imply that apart from FDI, portfolio equity includes net inflows from equity securities including shares, stocks, depository receipts and direct purchases in local stock markets by foreign…
user508281
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vote
3 answers
Why Turkey's president thinks that by cutting interest rate it will lower inflation?
Recently, President Erdogan sacked the head of Turkey’s central bank because he didn't want to cut interest rates. He even said: “We said that if rates fall, inflation will fall. He didn’t do what was necessary.”
From my understanding of economics,…
Victor
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vote
1 answer
Is there a measure of similarity for economies?
Is there a measure of similarity for economies?
For example, I would like to find the world economies most similar to the UK.
52d6c6af
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how to find whether trade is possible between two nations
In the following image, we have U.S. and U.K. producing wheat and cloth in bushels/hour and yards/hour respectively.
In all cases except in case D, given in the figure, trade is possible between U.S. and U.K.
how did we reach this…
Shree
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