by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Appreciating and Depreciating Currency?When the exchange rate for a currency rises, so that the currency exchanges for more of other currencies, we refer to it as appreciating or “strengthening.” Related Topics What Does it Mean to Dollarize Foreign Exchange...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Tobin Tax? The Tobin tax is a duty proposed on spot currency trades to penalize short-term currency trading in order to stabilize markets and disincentive speculation. The Tobin tax can be used to generate revenue streams for countries that see a great deal...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Foreign Direct Investment?We often divide financial investments that cross international boundaries, and require exchanging currency into two categories. Foreign direct investment (FDI) refers to purchasing a firm (at least ten percent) in another country or...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Dollarize? Most countries have different currencies, but not all. Sometimes small economies use an economically larger neighbor’s currency. For example, Ecuador, El Salvador, and Panama have decided to dollarize—that is, to use the U.S. dollar as their...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Free Trade Agreement? Free Trade Agreements are direct agreements between nations that allow for the unrestricted transfer, sale, and distribution of goods and services between the nations. The Free Trade Agreement generally grants special rights to the...
