Cryptocurrency
Quantity Theory of Money
Quantity Theory of Money
The Quantity Theory of Money is an economic theory that establishes a relationship between the quantity of money in an economy and the level of prices and inflation. It provides insights into how changes in the money supply affect economic activity and helps us understand the impact of monetary policy. The core principles of […]
Petrodollars
Petrodollars refer to the revenues earned by oil-exporting countries from the sale of petroleum products, particularly in US dollars. The term was first used in the 1970s during the oil crisis when OPEC (Organization of the Petroleum Exporting Countries) members decided to increase the price of oil and receive payment in US dollars. The […]
Petrodollar Recycling
Petrodollar Recycling refers to the process by which oil-exporting countries reinvest their oil revenues into global financial markets, particularly in the United States. This process has significant implications for both the oil-exporting countries and the global financial system. Here is a detailed explanation of Petrodollar Recycling: Oil Exporters’ Revenue: Oil-exporting countries earn substantial […]
Net International Investment Position (NIIP)
The Net International Investment Position (NIIP) is an economic indicator that measures the difference between a country’s foreign assets and its foreign liabilities. It provides a snapshot of a country’s net international investment position. The NIIP compares the total value of a country’s foreign assets with its foreign liabilities. Foreign assets can include direct […]
International Economics
International Economics is a branch of economics that studies the economic relations and trade between countries. It analyzes the flow of goods, services, and capital across borders, as well as the effects of international economic policies on countries and the global economy. The main objectives of International Economics are to understand the patterns and […]
Financial Instability Hypothesis
The Financial Instability Hypothesis, developed by economist Hyman Minsky, is a theory that explains the inherent instability of the financial system and the occurrence of financial crises. According to Minsky, financial instability is a natural part of the capitalist economy and occurs in a cycle of booms and busts. The hypothesis suggests that during […]
Financial Contagion
Financial contagion refers to the spread of a financial crisis or shock from one market or institution to others, leading to a broader and systemic impact on the financial system. It is characterized by the transmission of financial distress, panic, and instability across different markets, countries, or sectors. Financial contagion can occur through various […]
De Dollarization
De-Dollarization refers to the process of reducing or decreasing the use of the US dollar in a country or region’s economy, particularly in areas such as foreign trade, reserves, borrowing, and the use of the local currency. It is a strategic move aimed at decreasing reliance on the US dollar and diversifying currency holdings. […]
Current Account
The Current Account is a component of a country’s balance of payments, which records all economic transactions between residents of that country and the rest of the world over a specific period. The Current Account specifically focuses on the international trade in goods and services, income flows, and current transfers. The Current Account is […]
Currency Basket
A currency basket is a weighted combination of multiple currencies that is used as a measure of the value of a specific currency or as a tool for monetary policy. It is essentially an index or reference value that represents the collective strength or weakness of a currency relative to a group of other currencies. […]
