Glossary
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C Understanding the Capital Account for Forex Traders
The capital account is a fundamental component of the balance of payments, which tracks the flow of money into and out of a country
B Understanding the Balance of Payments
The balance of payments is a systematic record of all economic transactions conducted by a country with the rest of the world
P Understanding the Impact of Petrodollars
Petrodollars refer to the revenues earned by oil-exporting countries through the sale of petroleum. These revenues are typically denominated in U.S. dollars, as oil is predominantly traded in this currency
F Understanding Financial Contagion
Financial contagion refers to the spread of financial distress, shocks, or disruptions from one market or institution to others. It is characterized by the rapid transmission of negative economic events, such as a crisis or downturn, across interconnected financial systems
C Understanding the Current Account in International Economics
The current account is a record of a country’s transactions with the rest of the world in goods, services, income, and current transfers
P Understanding Petrodollar Recycling: Implications and Insights
Petrodollars are a significant component of the global financial system. When oil-exporting countries receive payments in US dollars
C Understanding Central Bank Digital Currency (CBDC)
Central Bank Digital Currency, or CBDC, refers to a digital form of currency issued and regulated by a country’s central bank
C Understanding the Potential of Currency Baskets
A currency basket refers to a collection of currencies that are grouped together to represent a specific market or economic region
F Understanding the Financial Instability Hypothesis in Forex Trading
The financial instability hypothesis is a concept developed by economist Hyman Minsky. It posits that in a capitalist economy, stability can breed instability
N Understanding Net International Investment Position (NIIP)
The Net International Investment Position (NIIP) represents the difference between a country’s external assets and liabilities at a specific point in time
Q Understanding the Quantity Theory of Money
The quantity theory of money is a fundamental concept in the field of international economics. It posits that the general price level in an economy is directly influenced by the supply of money circulating within that economy
D Understanding De-Dollarization
De-dollarization is a multifaceted phenomenon characterized by a decrease in the use of the USD as a medium of exchange, unit of account, and store of value in international transactions