Currency Essay Examples and Topics

Alternative PoliciesTtowards the Exchange Rate

Exchange rates are used to facilitate business transactions between different economies with different legal tenders in terms of money. An exchange rate,“is a measure of how much of one currency may be exchanged for another currency” (Fischer, Taylor and Cheng, 2011 p.551). The fact that each country has its own economy and the emergence of […]

Monetary Policy and Impact on Economic Stabilization

Introduction Countries, like businesses, control their economic positions to maintain a healthy economic stance regarding their financial resources. Often, the nations establish their respective central banks that act as the finance department in the country to regulate both the money, as well as the credit system. The central banks use varied policy tools, including bank […]

Euro and the US Dollar in International Markets

The US dollar has enjoyed hegemony in international markets for more than half a century. However, this status has not always been uncontested. In the 1980s and 1990s, a number of scholars proposed that Japanese yen or the German mark as a possible alternative. These countries were much less populated and had fewer resources than […]

US Dollar Currency

Introduction The United States of America dollar is the most used currency and therefore suitable for carrying out international trade America holds about 59% of the world’s total reserves. Therefore when the American economy is affected by anything be it a boom or the recession the effect is likely to trickle down and then the […]

The Reserve Bank of Australia: Controlling the Interest Rates

I agree with the treasurer that banks should pass the rate cuts on to the public. The Reserve Bank of Australia (RBA) is tasked with the responsibility of managing Australian economy to keep employment rate, interest rate, and other macroeconomic variables stable. Doing this makes the economy stable and encouraging investments and general confidence in […]

Economic Crisis of Europe

Europe has been affected massively by the economic crisis. Some nations in Europe have suffered massively and are dragging the entire European economic block behind. Such nations include Spain, Greece and Portugal. While some countries such as Germany and United Kingdom seem to have recovered fully from this crisis others haven’t. One of the key […]

The role of the US dollar as the world’s reserve currency

The United States dollar has acted as the world’s reserve currency for more than sixty years. According to Carbaugh (2009, p. 519), the US dollar emerged as the world reserve currency after World War II. The United States was not adversely affected by war. In addition, the US experienced an increment in the inflow of […]

The relationship between money supply and inflation

Introduction The current globalisation rate has led to many changes and effects on the value of most resources and especially the financial resources. The world’s population is increasing at a fast rate while on the other hand resources are being depleted without being replenished thus causing scarcity. As a result, economic crisis have occurred which […]

Business Economics

Currency devaluation and appreciation has been a debatable issue in macroeconomics. Currency devaluation means a reduction in currency value and currency valuation is the increase in the value of a currency (Zelkó 1980, p. 110). There are many factors that determine a country’s currency value. The most influential determinant is the economic performance of a […]

Monetary Policy

Explanation of the Federal Reserve The Federal Reserve Act that was approved in the United States led to the creation of the Federal Reserve, which is widely known as the Fed (Hubbard & O’Brien, 2008). This enactment followed the harsh financial crisis that had hit the country. Over the years, the Federal Reserve System has […]

National Economic Policy in Australia

Introduction Terms of trade are an important measure of economic performance. It refers to the ratio of export prices to import prices. If reflects the capacity for a given volume of Australias exports to pay for a given volume of its imports. Improved terms of trade is significant to Australia since it enables the country […]

Mechanics of money

Introduction Barter system of trade was convenient in the primitive society because production was diversified and subsistence. Only the few commodities that one lacked could be obtained through exchange. However, as time progressed, the society shifted to specialization in the production process. This necessitated for the need for an accepted medium of exchange to use […]

The Business Role in the Economy

Role of Business in the Society The main role of business in the society is to produce both goods and services in order to meet demand created by the public. However, it must do so in such a way that companies also make profits so that they can continue to exist. Businesses provide goods and […]

International Monetary System

Introduction The international monetary system is a system through which national currencies and regional currencies are exchanged for each other on the world market. Currencies of different countries in the world are of different strengths and value in the market. Therefore, when they get in the international market as standards of exchange, they cannot be […]

Monetary Policy: Easier does it

Introduction The monetary easing that the fed has been implementing for some time now is seen to bear fruits. People are wondering whether the impressing report from the job market of January will actually prevent the Fed from implementing monetary expansion. Ben Bernanke, the Fed chairman, agreed there were some improvements though he was cautious […]

The Law of Demand

Introduction There are two types of social equilibrium that is dynamic and static equilibriums, abnormal and normal equilibriums the first is active, the second is passive.the first is unstable and the second is stable Equilibrium is the spot where consumers and producers exchange services and goods at a quantity and cost that signify a balance […]

Milton Friedman’s Contribution to Economics

Biography Milton Friedman was an American economist, statistician, scholar, and an author who is remembered as the father of monetarism and a proponent of free markets. Milton Friedman is a renowned economist born on July 31, 1912 to Jewish immigrants in Brooklyn, New York City (Cole, 115). At the age of twenty, he got his […]

The Fate of the Euro

When economists evaluate and discuss the fate of euro, many ask a question whether the euro should replace the dollar as the world currency. Usually, economic researches indicate that European Union matches United States international trade and financial markets. Today’s global economic and financial crises have adversely affected the Euro value. The key question remains […]

Monetary Policy: Increasing of Interest Rate

An increase in interest rate is one of the approaches used by governments to control the level of inflation. Countries like Britain have a target inflation rate of 2%, but currently the rate stands at 4%. This explains why the British pound is the strongest currency. Raising and lowering interest rates influences many sectors of […]

International Treasury Management

Introduction Treasury management is the management of an enterprise trading in government and corporate bonds, currencies, financial futures, and the associated financial risk management. International treasury management deals with enterprise holding at a global level trading in bonds, futures, options, derivatives, currencies and payment systems (InvestorDictionary, 2011). This essay focuses on what treasury management is, […]

Prices Rise When the Government Prints too Much Money

Introduction Inflation is an increase in the prices paid for commodities within an economy at the expense of a constant real income. It is closely linked to increased money supply. The increase in the liquidity of an economy is intended to stimulate economic activities such as increase demand, productivity and reduce the level of unemployment. […]

Australian and Hong Kong monetary policy

Introduction According to Edirisuriya (2010, 5), monetary policy is the regulation of the monetary supply and interest rates by a central bank so as to counter inflation and make the local currency more stable. Monetary policy refers to the actions and policies initiated by a country, through its central bank or through other government regulatory […]

Exchange Rates and the open economy

Nominal and real exchange rates Real exchange rate can be defined as the purchasing power that different currencies have when they are evaluated and analyzed together. In this case, it is mostly based on two currencies (Sheffrin 2003, p. 16). Real exchange rate incorporates specific aspects like GDP deflator. Nominal exchange rate can be defined […]

The movement of the Japanese Yen relative to the US dollar

Abstract Over past three decades, Japanese Yen has fluctuated significantly against the U.S dollar. It was stronger during the 80s to the early 90s, but this value has been deteriorating since mid 90s to date. Japanese government intervened in many occasions in their foreign exchange market to attain unjust advantage in the global world market. […]

History of European Currency

Executive Summary The article reviews the European currency from its inception to date. The introduction underlines the general importance of currencies to various individual countries and their contributions towards the economy. Euro has since become a major currency within Europe, uniting twelve countries. The paper then describes the history of the euro currency the benefits […]

Exchange Rate Decline

Introduction Investing in international markets involves encounter with various challenges such as sudden changes in market value. Basically the changes in foreign currency exchange rates affect all international investments. Nature of risks differs based on the kind of investment and the conditions within the market. It is important for individuals to learn about the political, […]

Money and Commodity Circulatory Processes

Money and Commodity Circulatory Processes Common characteristics and differences in C-M-C and M-C-M Marx realized that problems existed amid commodities circulation. He then approached this dilemma by classifying the two ways that commodities could possibly circulate namely C-M-C and M-C-M. The difference and similarities between money that is just money and capitalized money appear only […]

The United States’ Housing Bubble

The housing bubble of 2000s remains one of the greatest economic challenges ever faced by the US. The housing bubble defines an economic bubble in which there was a remarked increase in housing prices in the United States. The price escalation was fueled by increased demand and speculation. Increase in demand for houses against the […]

Monetary policies in Mexico

One of the most striking features of the economic history of Mexico is the persistent instability in prices that has been witnessed for a considerably long period of time due to ineffective monetary policies. Reliable statistics from the World Bank indicate that variability in pricing index coupled with high inflation rates in Mexico has been […]

Goals of the Monetary Policy

The latest statement by the Fed was released on 25 January 2012. In the statement, the Committee states that it kept the current fund rate at zero to ¼ percent (Federal Reserve, 2012). It also extended the average maturity of its holdings. Moreover, the Committee continued reinvesting principal payments from its holdings. The reinvestment saw […]

We are the 99%: Causes and Reasons of Bad Economy in US

Introduction There are various effects and causes of bad economy in the U.S. which has attracted people’s concern since the situation became apparent within recent decade or so. The paper addresses the causes of bad economy and reasons why it has reached such an alarming rate. People will always demand for their rights which they […]

Monetary and Fiscal Policy during the Great Depression

In the year 2000, United States economy experienced a period of slow growth that was characterized by financials crisis. The main cause of this recession was the housing bubble which burst during that time. When recession takes place in any economy, it usually comes along with very many complications. For instance, the level of unemployment […]

Fiscal and Monetary Policies

Introduction Fiscal policy is defined as “government’s program with respect to the purchase of goods and services and spending on transfer payments and also with respect to the amount and types of taxes” (Samuelson and Nordhaus 3). The difference between monetary and fiscal policy is that monetary policy is implemented by the government whereas fiscal […]

Monetary policy

Introduction Monetary policies are macroeconomics regulations, enacted by central government of a state. They aim at controlling macroeconomic activities within an economy directly or indirectly; it involves control of supply and availability of money (Bofinger, Reischle and Schächter 17). In the United States of America, the power to use monetary policies is vested in Central […]

Japan Value Exchange Rates

The recent crisis in Japan that is currently underway is a major blow to the Japanese economy as a whole and to its currency ratings in international foreign exchange market. At the moment the Tokyo yen exchange rates have already started plummeting by an alarming percentage just few days after the crisis (Langundo). A recent […]

Monetary and fiscal policy during the Great Depression

The government plays a very important role in the regulation of a country’s economy by regulating and authorizing the amount in circulation and the amount held by banks and other financial institutions. This process can be done in two different ways which include monetary policy and fiscal policy (Frank & Bernanke 42). Monetary policy is […]

Modern Monetary Policy

Introduction Globalization has made the world a global village and thus any country’s economy is affected both by its internal monetary policies and those of other countries it interacts with. Depending on the way these monetary policies are made they can work toward developing the economy of one country to the detriment of the others […]

Exchange Rate like a Monetary System

Primarily, an exchange rate is a monetary system of exchanging the currency of one country to that of another. Exchange rates play a significant role in international trade aimed at bringing a balance of capital. The most imperative issue for any country’s trade and domestic pricing is the level at which the exchange rate affects […]

Are Currency Boards a Cure for All Monetary Problems?

What is a currency board and how does it work? A currency board is a country’s monetary organization that works like a central bank with the aim of setting up a fixed exchange rate with another country. A currency board integrates three basics: a fixed exchange rate to a specific foreign currency, an automatic exchange […]