Money And Capital Markets

Running Head : 1 ) If we follow the money and peachy markets around the dry land each day it before long 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 of import tools in determining establishment policies (Andrew , 2002 . It is a trend that these two pursuit down to follow a interchangeable trend roughly every over the world , though delays or impediments whitethorn 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 , roadstead and channels , it is inevitable that the make of one uncouth go out spill into the other . For practice session if one country is experiencing inflation another country importation goods form it leave 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 china is moving to cut their interest rates . Lags occur because some(a) countries are slow to respond to market conditions maybe because the spillover effects take a longer time to materialize2 ) What is the kindred amongst the process of creating financial assets and liabilities and the acts of saving and enthronement ? Why is that relationship important to your f! inancial and economic well-beingFinancial assets and investment...If you inadequacy to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper