Abstract This document discusses the characteristics and attributes of hard and soft currencies. The paper identifies hard currencies as positive investment targets and are typically associated with stable economies and politically stable markets. The paper further discusses how soft currencies are most often associated with emerging markets and are typically avoided by investors because of their negative practices such as issuers often pegging such soft currencies to hard currencies which serves to destabilize world currency markets.
From the Paper "Hard and soft currencies as well as knowledge of them are vital in the global economy. How international currencies interact is a strategic consideration for corporate bodies with operations in more than one area, country, or region in matters such as hedging for risk or in repatriating revenues. A hard currency is typically referred to as the currency of a leading economy and one that is widely accepted in all markets as a common form of payment, such as the U.S. dollar, the Swiss franc or the British pound (Carrada-Bravo, 2003, p.17). Additionally, hard currencies, or currencies classified as hard in character are especially liquid on foreign exchange markets where they are actively traded. Another perspective of hard currencies is that they are normally associated with politically, economically, and socially stable countries (Laulajainen, 2003, p.44)."
Abstract This paper defines derivatives as financial instruments such as options, futures, forwards and swaps that are derived from their underlying currencies. The returns on derivatives are tied to yields of these underlying securities and currencies. This paper details the essential role the derivatives market plays in the global economy in countries such as Asia, Germany and Switzerland, in which these economies reap substantial growth rates due to these financial practices. The writer contends that with the presence of this market the financial condition of business entities are stabilized and secure from the possibility of hedge currency risks. The derivatives market also decreases the amplitude in the fluctuation of spot prices and promotes optimal funds placing. The writer stresses the importance in the implementation and development of the currency derivatives market as a necessary prerequisite for the growth of international trade volume, expansion of foreign investment and for the general development of economy.
Table of Contents:
Abstract
Currency Derivatives Operations in the World Economy
References
From the Paper "Derivatives market in Ukraine was operating from 1994 to 1998. Unfortunately, its work was far beneath the world standards. From the very beginning the Ukrainian market was developing as an exchange market, despite the fact that the world derivatives development gained the incentive to growth from over-the-counter form of these instruments. Hedgers, a category of market subjects, almost did not participate in the activity of Ukrainian currency exchanges, and the absence of hedgers makes the market non-balanced and not liquid. Moreover, the world financial crisis of 1997 caused the collapse in currency markets. The National Bank of Ukraine made a decision to hold up and later to abolish the functioning of currency derivatives in Ukraine. We would like to underline that despite the crisis in the Russian market, the operations with currency derivatives were not stopped, but continued to develop."
Abstract This paper reviews ten articles on the currency crises of the past 20 years. The paper examines the global impact a crisis in one country or area has on the world, such as the Asian currency crisis of the 1990s, and discusses the notion that currency crises are self-fulfilling. The paper also looks at whether currency crises are predictable.
From the Paper "Currency crises have gained much attention in the past years because they have apparently occurred with greater frequency than in the past or perhaps because the global nature of today's financial markets make a currency crisis in one nation a concern around the world. Increasingly, currency stability is of interest to more than just economists and policy makers, with companies and individual investors noting the movement or stability of various currencies with interest .These are not necessarily new stakeholders with regard to..."
Tags:Currency crises, currency crisis, literature review
Abstract This document discusses the Euro markets within the European Union vis-a-vis the Euro currency. The paper examines the currency itself, its management, as well as the individual markets. Finally, the paper makes several observations regarding the macroeconomic impact of the euro as well as how companies utilize currency markets for competitive advantage. The Euro is now considered a hard currency.
From the Paper "Familiarity with the Euro currency markets is vital in the current global market. The implementation of the Euro currency required careful and lengthy planning. The exchange rates at induction of the Euro was particularly problematic considering the sheer variety of national currencies that were being converted over and the variance of existing exchange rates whereby a complex system of triangulation between currencies, exchange rates, and fixed rates (Mundell, 2003). Thus, on January 1, 1999 the Euro was introduced to the national economies of the member states of the EU in 11 of the 12 countries. However, this was just a partial introduction since Greece failed to meet the strict requirements which involved deficits: "On January 1, 1999, the Euro will become the official currency for banking purposes of 11 of the 15 member states of the European Union..." (Walker, 1998, para.6)."
Abstract Over the past thirty years, rather than improving, it is clear to see that the regional disparities, economic and otherwise, have been getting worse. Looking to census data over the circa 1966-96 period, we can see that Eastern Canada, in particular, has fared very poorly. This paper will bring this evidence to light, and argue that, not only have regional inequalities been exacerbated in the past 30 years, but that they will continue to get worse as globalization intensifies.
Abstract This paper examines hard and soft currencies. It provides a definition and practical examples of both. The paper addresses the issue of convertibility, as well as the options sellers have relating to hedging.
From the Paper "A hard currency is a freely convertible currency that is not expected to depreciate significantly in value in the foreseeable future. A hard currency is considered to be stable meaning that it is not subject to dramatic variations in its value relative to other currencies expressed as changes in its exchange rate. As a general rule, demand for hard currency in foreign exchange markets is high because of it stability. A soft currency often is a currency that is not fully convertible to all currencies..."
Tags: Hard and soft currencies, foreign exchange, fx, exchange rate fluctuations, currency converters, volatility, exchangeability.
Abstract This eight page paper examines hedging currency risks. The author notes that in critically discussing the view that the efforts by companies to hedge currency risks are of little value to the owners of such companies, it is evident that there is much support for this view. For example, the writer points out that in a Mercer Management Consulting survey of 111 pension fund managers in North America, Australia, Japan and the UK, 86% of respondents said they consider the impact of hedging currency risks to be nil over the long term.
From the Paper "In critically discussing the view that the efforts by companies to hedge currency risks are of little value to the owners of such companies, it is evident that there is much support for this view. For example, "in a Mercer Management Consulting survey of 111 pension fund managers in North America, Australia, Japan and the UK, 86% of respondents said they consider the impact of hedging currency risks to be nil over the long term". But this view is not universal by any means, for more than sixty-percent of the respondents in this survey believed that hedging currency risks "can have a short-term effect on volatility. Despite this reservation, 79% say they would allow fund managers to carry out hedging operations"."
Abstract This paper discusses the problem of wage disparity across Canada, which has long been a concern not only of the general population but also of the various federal government administrations throughout the years, as well as the provincial governments. The paper explains that a genuine concern of government bodies and researchers alike is that of ensuring not necessarily wage parity across professions, but of ensuring livable wages across all demographics. The paper maintains that discussing and properly framing the wage disparity issues for Canadians is important because the consequences of not addressing this issue are enormous and, ultimately, far more costly to ignore than to repair.
Abstract The paper provides the background of the 1997 Asian currency crisis and explains the five main causal factors. The paper then explores the effects of the Asian currency crisis on the Asian economic paradigm and concludes by relating that major hindrances still remain in the banking system.
Outline:
Main Explanations of the 1997 Asian Currency Crisis
Implications of the Crisis for the Asian Economic Paradigm
From the Paper "The Asian currency crisis started in two phases of currency depreciations which were underway since the initial part of summer of 1997. The first round was marked by a steep decline of the Thai Bhat, the Malaysian Ringgit, the Philippine Peso and the Rupiah of Indonesia. Following the stabilization of the currencies, the second round set off with downward pressures hitting the Taiwan dollar, Won of S. Korea, Singaporean and Hong Kong Dollar. The governments of these nations had countered weakness in their currencies through the process of selling foreign exchange reserves and raising interest rates that in effect rendered economic growth sluggish and have made interest-bearing securities more appealing compared to equities. The currency crises also brought to light acute problems within the banking and financial sectors of the burdened Asian economies. (Nanto, 1998)"
A look at the health disparities found in diabetes and obesity based on socio-economic status among African Americans and what can be done to address those disparities.
Abstract The correlation between diabetes and obesity has been long established in recent years. There are strong genetic component and environmental factors that contribute to high prevalence rates of diabetes. The changes in one's lifestyle, sedentary mode of living, poor eating habits and socioeconomic status are significant contributors to the development of diabetes mellitus. Currently, in the U.S. the rate of diabetes is staggering among all age groups, sexes, and ethnic populations. The paper studies the correlation between socioeconomic status, diabetes and obesity and how diabetes in the above mentioned statement as well as other economic and social factors is related.
Outline:
Abstract
Introduction
What is Diabetes Mellitus and Obesity
History of Diabetes Mellitus and Obesity in America
Factors Created Due to Diabetes
How is Diabetes Mellitus and Obesity Linked?
Proposed Solutions to Combat Disparities Solutions: Health Literacy Program and Creating Satellites
Conclusion
From the Paper "" In the United States there has been a concurrent increase in the incidence of diabetes and obesity among all age groups and races. This increase has been especially prominent in the African American population, where a large percentage of diabetes cases and complications develop due to lack of access or provision of healthcare. This disparity is also evident in other races, but African Americans possess the genetic tendency to develop diabetes in greater proportions. Obesity patterns have also exponentially increased in this population in the recent years. Therefore, obesity a prime factor in the development of diabetes, has resulted in a elevated increase in the percentage of diabetes cases in the African American population (Department of Health and Human Services, 2003)."
Abstract The prospect of switching Britain's official national currency to the Euro, and the related issue of whether the country should join the European Union, have certainly inspired much heated debate and a variety of viewpoints regarding possible consequences of these changes. This paper explains that the widespread prevalence, passion and diversity of the public discussion on British currency could be seen as a possible reason for the government's resistance to the Euro, in and of itself. It explains that the United Kingdom is regarded all over the world as a successful, consolidated democracy, meaning that the government represents the interests and wishes of its citizens. The writer further points out that therefore, it seems likely that until the public is assured and convinced that the Euro will result in only positive economic and political changes for both ordinary Britons and the country as a whole, the pound will continue its exclusive monopoly over the British economy for many years.
From the Paper "The decision of Britain of whether to adopt the euro as their only currency and eliminate the pound completely has been widely debated over the last few years. There are a myriad of good reasons for this; the switch to the euro currency will undoubtedly have various consequences whose benefits and downsides are very debatable. These consequences will certainly affect several of Britain's long-established roots and traditions in aspects of its government such as the economy, of course, but also its political parties, European integration, international relations, citizen participation in the government, and public opinion. Furthermore, economic results of Britain's adoption of the euro will likely include significant modifications in taxation, trade, unemployment, price stability, interest and exchange rates, standards of living, and economic distributional policy."
Abstract This paper looks at the currency crisis in Thailand, which started in the summer of 1997 and rapidly engulfed a number of East Asian "Tiger economies" in a major financial crisis. This crisis became a an interesting case study for economists who were interested in analyzing the pros and cons of globalization and laissez faire market economies. The author further examines the effects of the East Asian currency crisis, on Thailand itself, which underwent a painful re-adjustment of its economy.
Outline:
Background
The Danger Signals
Foreign Exchange Reserves
Current Accounts Deficit
Excessive Credit Expansion
Why Did the Growth Slow Down?
The Housing and Real Estate Bubble
The Stock Market Bubble
The Crisis
The Aftermath of the Crisis for Thailand
Conclusion
From the Paper "The country took a number of measures to attract foreign capital during the 1980 and early 1990s. These included lifting of restrictions on foreign investments, elimination of most barriers on foreign ownership of export oriented industries, granting of tax incentives to foreign mutual funds and investments in the stock market, creation of closed-end mutual funds, and reduction of taxes on dividends remitted abroad (Antczak 40-41). These measures along with a pegged exchange rate policy (i.e., the Thai currency baht was pegged to the dollar and its value rose and fell with dollar's value), and the large differential in interest rates provided comfort to foreign investors who came to Thailand in droves. "
Tags: Thailand, currency, crisis, globalization, Asia
Abstract There are significant employment disparities between African-Americans and whites in America. This phenomenon is rooted in the racial inequality in society at large. Educational opportunity, and the denial of it to African-Americans, lies at the center of this reality.
Abstract The paper evaluates the importance of health disparities in children from various racial and ethnic groups, who often do not obtain adequate access to healthcare on a regular basis. It is important to note that government intervention, additional resources and community support are likely to encourage the removal of these barriers over time.
From the Paper "In today's world, many children do not regularly obtain the medical care that is necessary to promote health and well being and this is often attributed to many disparities amongst racial and ethnic groups. As a result of these problems, many children do not obtain prevention and wellness procedures that will encourage a healthy childhood. When poverty is introduced into the home environment, children always suffer in more ways than one and this reflects poorly on their psychological well being over time. There are a number of critical arguments that profess the lack of support for healthcare promotion in various racial and ethnic groups and the influence on a child's psychological profile is often alarming."
Abstract This paper compares statistics from the United States and Canada in terms of income disparity and age, showing how the elderly earn less and may be retired so that they are dependent on pensions and government payments to live,. The paper analyzes how the retirement system in Canada is better shaped to maintain a level for the elderly than is the Social Security system in the United States.
From the Paper "Income inequality has been examined from a number of perspectives, noting the wide disparity between the income of the richest and the poorest, between people in different jobs, between genders, between different racial groups, and on the basis of age. Many such inequalities are evidence of unfair distribution, while that for age suggests certain characteristics of working life as the cause. An examination of the age disparities in the United States and Canada show why this is so and also suggest some differences between the two countries. Income disparities exist within age groups and have more to do with unfair distribution caused by such other factors as race and gender, along with expected differences on the basis of education."
