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05 Oct 2015, 04:30
05 Oct 2015, 04:32
05 Oct 2015, 04:39
05 Oct 2015, 04:46
| FROM Cambridge Master of Finance Blog: Thinking about the risks to global economic growth |
| The fundamentals of global economic growth seem broadly positive but there are some reasons for caution, which can be understood through the savings-investment framework described in the previous blog. If savings are “too high” or investment “too low” then the equilibrium rate of interest that makes savings and investment equal may be negative. That means […] |
05 Oct 2015, 04:46
| FROM Cambridge Master of Finance Blog: Is a market determined exchange rate always a good thing? |
| For years there has been pressure on China to allow its exchange rate to be determined by market forces rather than by the central bank. Now that seems closer to happening but it might mean a fall in the RMB, which is not what most of China’s critics wanted. * For years, China held down […] |
03 Nov 2015, 06:02
| FROM Cambridge Master of Finance Blog: Global foreign reserves are now falling |
| The foreign exchange reserves held by governments, having risen for over a decade, have recently fallen. This is mainly because they are being used, as intended, to protect against turbulence in financial markets that would otherwise hurt the developing economies. * Foreign reserves are assets held by governments as a safety net against abrupt changes […] |
16 Nov 2015, 10:02
| FROM Cambridge Master of Finance Blog: Cash remains king |
| Despite the increasing ease of electronic payments, cash remains popular in the UK, according to the Bank of England. * Money is anything that fulfils the three functions of money: i) a means of payment; ii) a unit of account; and iii) a store of wealth. Physical cash does all of these rather well and […] |
20 Nov 2015, 04:02
| FROM Cambridge Master of Finance Blog: Changes in the Federal Reserve’s measurement of short term interest rates |
| The Federal Reserve, the US central bank, is making some changes to the measurement and monitoring of the short term interest rate between banks, which is its key target for monetary policy, * Most central banks have goals such as low inflation and high employment. After experimenting over the years with tools to achieve these goals, most […] |
30 Nov 2015, 14:02
| FROM Cambridge Master of Finance Blog: The true story of the Euro crisis |
| Most economist agree on the causes of the repeated crises of the Eurozone but that explanation is not the one that many governments, and the European Commission, want you to believe. * The problems of the Eurozone – bank failures, sovereign debt crises and bailouts and above all a protracted recession and mass unemployment – […] |
02 Dec 2015, 04:02
| FROM Cambridge Master of Finance Blog: The IMF includes the RMB in the SDR basket |
| On 30 November 2015 the IMF voted to include the RMB (the Chinese “people’s currency” denominated in yuan) in the basket of currencies it uses to calculate the value of the Special Drawing Rights, from October 2016. This is largely symbolic but should encourage further international financial reform in China. * What does it actually […] |
Updated on: 21 Jun 2016, 00:01
18 Jan 2016, 06:02
| FROM Cambridge Master of Finance Blog: Davie Bowie innovated in finance too |
| David Bowie, among his many other creative achievements, was an innovator in finance, with the first ever intellectual property rights securitisation. * Nearly everyone seems to have been affected by the death of David Bowie, a uniquely creative and influential musical artist. I’ll add my own personal memories to the list. I think the first […] |
03 Feb 2016, 10:02
| FROM Cambridge Master of Finance Blog: What exactly is “the” exchange rate? |
| Exchange rates are ratios of the price of one currency to another. We should be careful about saying “the” exchange rate without being clear as to which particular ratio we mean and why. * Exchange rates often dominate the financial news. In 2016 the Chinese exchange rate has been frequently mentioned as a source of concern. […] |
25 Apr 2016, 03:01
| FROM Cambridge Master of Finance Blog: Key concepts in finance: liquidity |
| What exactly is liquidity? The word liquidity is used in many different ways, often confusingly. It’s important to keep clear the centrally important concept of what liquidity is: the ability to turn assets into money quickly and at low cost. * It’s common to read in the financial press that central banks are keeping up […] |
08 May 2016, 12:01
| FROM Cambridge Master of Finance Blog: How can retail finance customers avoid being ripped off? |
| A condition for any market to work well is that consumers have enough information to make good decisions. This is rarely the case with services such as finance. * Theory, backed up by a lot of practical evidence, suggests that markets are a good way of organising many economic activities. But for markets to work, […] |
12 Jul 2016, 08:02
| FROM Cambridge Master of Finance Blog: Key finance concepts: exchange rates |
| Exchange rates are among the most important macrofinancial prices, influencing many aspects of an economy. This post introduces exchange rates and their importance for macroeconomic adjustment * What is an exchange rate? An exchange rate is a ratio, the price of one currency relative to another. All prices are ratios, but normally they’re expressed in […] |
09 Aug 2016, 08:01
| FROM Cambridge Master of Finance Blog: Key financial concepts: securities |
| Securities are a very important and useful piece of financial technology, including bank notes, shares and bonds. They make possible a wide range of financial transactions and provide competition to the other main source of funding, banks. * A security is a certificate representing a contract between two or more people which promises to pay […] |
14 Aug 2016, 12:01
| FROM Cambridge Master of Finance Blog: Classifying funds: the type of contract – is it equity or debt? |
| Another way to classify funds that are provided by a saver to an investor is whether they are in the form of debt or equity. These are the two main forms of contract through which one person or company can provide funding to another. Note that governments, which are very important actors in the financial system, can only […] |
14 Aug 2016, 12:01
| FROM Cambridge Master of Finance Blog: Classifying funds: the length of the contract |
| One of the three purposes of a financial system is to join savers to investors, to allow funds to flow from people who have a surplus to those who have a deficit (the others are to manage risk and to facilitate payments). Investors are people or organisations which try to raise funds to put into projects which […] |
15 Aug 2016, 03:01
| FROM Cambridge Master of Finance Blog: Key financial concepts: Financial markets |
| Financial services are provided mainly in two ways: by banks and by markets. Here we outline the key features of financial markets * A market is a very general concept of any arrangement which brings together users for mutual advantage. We’re used to thinking about markets as mainly for goods and services but the concept is […] |
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Hi Generic [Bot],
Here are updates for you:
ANNOUNCEMENTS
 Wednesday, Apr 24, 2024 11:30am NY / 3:30pm London / 9pm Mumbai Watch earlier episodes of DI series below EP1: 6 Hardest Two-Part Analysis Questions EP2: 5 Hardest Graphical Interpretation Questions
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