Money And Capital Markets

Running Head : 1 ) If we follow the money and smashing markets around the dry land each day it shortly becomes observable that interest order and asset prices in unalike markets run away to move unitedly , albeit with leads and lags Why do you think this is soInterest range and asset prices are measurable tools in determining establishment policies (Andrew , 2002 . It is a trend that these two carry down to follow a resembling trend well-nigh every over the world , though delays or impediments may occur . The reason for this is that the coetaneous world is now , what is popularly known as a global village . As countries are connected together through trade , exports , imports , roads and channels , it is inevitable that the make of one demesne go out spill into the other . For practice session if one country i s experiencing inflation another country importation goods form it entrust feel the effect of higher prices .

This makes governments tend to follow similar economic policies The interest rate in this regard is an important tool and as seen today all countries from US to UK to chinaware is moving to cut their interest rates . Lags occur because most countries are slow to respond to market conditions maybe because the spillover cause take a longer time to materialize2 ) What is the consanguinity amid the process of creating financial assets and liabilities and the acts of saving and enthronement ? Why is that relationship important to your financial an! d economic well-beingFinancial assets and investment...If you inadequacy to get a full essay, order it on our website: OrderCustomPaper.com

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