Glossary

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capital account 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

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Balance of Payments 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

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Petrodollars 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

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Financial Contagion 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

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current account 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

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Petrodollar Recycling 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

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Central Bank Digital Currency (CBDC) 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

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Currency Baskets 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

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Financial Instability Hypothesis in Forex Trading 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

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Net International Investment Position 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

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Quantity Theory of Money 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

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De-Dollarization 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

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