Regional financial institutions, Microeconomics

REGIONAL FINANCIAL INSTITUTIONS:

You have read about regional international trading blocs in Block 5 Course MEC 007 International Trade and Finance. This unit deals with regional financial institutions which are institutions working in a group of nations. Regional financial institutions are institutions that have financial dealings in a certain region rather than at a global level. But we explore in a greater part of the unit how a group of nations comes together to engage in foreign trade and international financial dealings among each other using arrangements that may be thought to be substitutes for the fixed exchange rate system.

We will explain the theory of customs unions in the next section. These unions are basically arrangements where a group of nations do away with tariff and non-tariff barriers among themselves but apply these to countries outside the group. The subsequent section deals with currency unions and optimum currency areas. These are areas where the member countries agree to share a common currency. The
monetary or currency union is an extension of the fixed exchange rate that seeks to avoid the instability associated with the fixed exchange rate system. The section after that deals with regional financial institutions, which are financial institutions that

lend at the level of a few nations, or one continent. An example is the Asian Development Bank (ADB). The final section discusses the evolution of Europe in the post-World War II period from being a customs union to moving towards a monetary union with a common currency. 

 

Posted Date: 11/9/2012 6:54:39 AM | Location : United States







Related Discussions:- Regional financial institutions, Assignment Help, Ask Question on Regional financial institutions, Get Answer, Expert's Help, Regional financial institutions Discussions

Write discussion on Regional financial institutions
Your posts are moderated
Related Questions
The US government decides to subsidize solar panels. For each unit sold, the government pays $T to the buyer. Using a graph, show how this subsidy affects i) consumer surplus, ii)

Show that when a plane wave is transmitted through a thin lens of focal length f in the direction parallel to the optical axis of the lens, its converted into a paraboloid wave (th



If a minimum wage were imposed below the competitive equilibrium what would we expect to observe in the effected labor markets?

what is the total cost if the price of 10,quantity demanded is 900000, at $20 it is 800000? The author is paid 2 million dollars to write a book, the marginal cost of publishing t

Determine the productivity level of US Those who live in relatively poor regions of the world today have higher material living standards than their predecessors who lived in t

What are the various forms of aid a developing country might receive? Here the student must show clearly the difference between grant (donor) aid; reciprocal (tied) aid; bilat

compare traditional modern and engineering cost curves

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4