Finance refers to monetary resources and to the study and discipline of money,currency,assets and liabilities. As a subject of study,it is related to but distinct from economics,which is the study of the production,distribution,and consumption of goods and services. Based on the scope of financial activities in financial systems,the discipline can be divided into personal,corporate,and public finance.
Rüdiger Dornbusch was a German economist who worked in the United States for most of his career.
The global financial system is the worldwide framework of legal agreements,institutions,and both formal and informal economic action that together facilitate international flows of financial capital for purposes of investment and trade financing. Since emerging in the late 19th century during the first modern wave of economic globalization,its evolution is marked by the establishment of central banks,multilateral treaties,and intergovernmental organizations aimed at improving the transparency,regulation,and effectiveness of international markets. In the late 1800s,world migration and communication technology facilitated unprecedented growth in international trade and investment. At the onset of World War I,trade contracted as foreign exchange markets became paralyzed by money market illiquidity. Countries sought to defend against external shocks with protectionist policies and trade virtually halted by 1933,worsening the effects of the global Great Depression until a series of reciprocal trade agreements slowly reduced tariffs worldwide. Efforts to revamp the international monetary system after World War II improved exchange rate stability,fostering record growth in global finance.
Monetary economics is the branch of economics that studies the different theories of money:it provides a framework for analyzing money and considers its functions,and it considers how money can gain acceptance purely because of its convenience as a public good. The discipline has historically prefigured,and remains integrally linked to,macroeconomics. This branch also examines the effects of monetary systems,including regulation of money and associated financial institutions and international aspects.
Monetary policy is the policy adopted by the monetary authority of a nation to affect monetary and other financial conditions to accomplish broader objectives like high employment and price stability. Further purposes of a monetary policy may be to contribute to economic stability or to maintain predictable exchange rates with other currencies. Today most central banks in developed countries conduct their monetary policy within an inflation targeting framework,whereas the monetary policies of most developing countries' central banks target some kind of a fixed exchange rate system. A third monetary policy strategy,targeting the money supply,was widely followed during the 1980s,but has diminished in popularity since then,though it is still the official strategy in a number of emerging economies.
The Bretton Woods system of monetary management established the rules for commercial relations among the United States,Canada,Western European countries,and Australia and other countries,a total of 44 countries after the 1944 Bretton Woods Agreement. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent states. The Bretton Woods system required countries to guarantee convertibility of their currencies into U.S. dollars to within 1% of fixed parity rates,with the dollar convertible to gold bullion for foreign governments and central banks at US$35 per troy ounce of fine gold. It also envisioned greater cooperation among countries in order to prevent future competitive devaluations,and thus established the International Monetary Fund (IMF) to monitor exchange rates and lend reserve currencies to nations with balance of payments deficits.
Money creation,or money issuance,is the process by which the money supply of a country,or an economic or monetary region,is increased. In most modern economies,money is created by both central banks and commercial banks. Money issued by central banks is a liability,typically called reserve deposits,and is only available for use by central bank account holders,which are generally large commercial banks and foreign central banks. Central banks can increase the quantity of reserve deposits directly,by making loans to account holders,purchasing assets from account holders,or by recording an asset,such as a deferred asset,and directly increasing liabilities. However,the majority of the money supply used by the public for conducting transactions is created by the commercial banking system in the form of commercial bank deposits. Bank loans issued by commercial banks expand the quantity of bank deposits.
The impossible trinity is a concept in international economics and international political economy which states that it is impossible to have all three of the following at the same time:
International economics is concerned with the effects upon economic activity from international differences in productive resources and consumer preferences and the international institutions that affect them. It seeks to explain the patterns and consequences of transactions and interactions between the inhabitants of different countries,including trade,investment and transaction.
Articles in economics journals are usually classified according to JEL classification codes,which derive from the Journal of Economic Literature. The JEL is published quarterly by the American Economic Association (AEA) and contains survey articles and information on recently published books and dissertations. The AEA maintains EconLit,a searchable data base of citations for articles,books,reviews,dissertations,and working papers classified by JEL codes for the years from 1969. A recent addition to EconLit is indexing of economics journal articles from 1886 to 1968 parallel to the print series Index of Economic Articles.
Monetary hegemony is an economic and political concept in which a single state has decisive influence over the functions of the international monetary system. A monetary hegemon would need:
Nikolay Nenovsky is a Bulgarian economist,working in the fields of monetary theory and policy,monetary history and history of economic thought. He is Professor of economics at the University of Picardie Jules Verne,LEFMI,Amiens,France from 2012. Nikolay Nenovsky is currently associate researcher at SU HSE,department of theoretical economics and also associate professor at RUDN University. Since June 2020 he is a Member of the Governing Council of the Bulgarian Central Bank.
Malcolm D. Knight is a Canadian economist,policymaker and banker. He is currently Visiting Professor of Finance at the London School of Economics and Political Science and a Distinguished Fellow at the Center for International Governance Innovation. From 2008 to 2012,Knight was Vice Chairman of Deutsche Bank Group where he was responsible for developing and coordinating the bank's global approach to issues in financial regulation,supervision,and financial stability. He served as general manager of the Bank for International Settlements from 2003 to 2008 and as Senior Deputy Governor of the Bank of Canada (1999-2003),after holding senior positions at the International Monetary Fund (1975-1999).
Domestic liability dollarization (DLD) refers to the denomination of banking system deposits and lending in a currency other than that of the country in which they are held. DLD does not refer exclusively to denomination in US dollars,as DLD encompasses accounts denominated in internationally traded "hard" currencies such as the British pound sterling,the Swiss franc,the Japanese yen,and the Euro.
Colm Kearney (1954–2018) was an Irish economist and academic,who was dean of the Faculty of Business and Economics at Monash University,Melbourne,Australia,until 2017,shortly before his death on 28 March 2018.
Peter Howells is Professor Emeritus of Monetary Economics at the Bristol Business school at the University of the West of England.
This glossary of economics is a list of definitions of terms and concepts used in economics,its sub-disciplines,and related fields.
Michael David Bordo is a Canadian and American economist,currently Board of Governors Professor of Economics and Distinguished Professor of Economics at Rutgers University. He is a research associate at the National Bureau of Economic Research as well as a Distinguished Visiting Fellow at the Hoover Institution at Stanford University. He is the third most influential economic historian worldwide according to the RePEc/IDEAS rankings. He was a student of Milton Friedman and has co-authored numerous books and articles with Anna Schwartz.
Graciela Kaminsky is a professor of economics and international affairs at George Washington University and a faculty research associate at the National Bureau of Economic Research. Kaminsky studied economics at the Massachusetts Institute of Technology where she received her Ph.D. In 1984 she did a brief research stay at the Argentine Central Bank,later in 1985 she moved to San Diego as an assistant professor at the University of California. In 1992 she worked on the board of governors of the US Federal Reserve System,later in 1998 she was appointed a full professor at George Washington University,where she works at the Elliot School of International Affairs. Kaminsky has been a visiting scholar at the Bank of Japan,the Bank of Spain,the Federal Reserve Bank of New York,the Hong Kong Monetary Authority,and the Central Bank of France.
Előd Takáts is a Hungarian economist,professor,former senior economist at the Bank for International Settlements and visiting professor at the London School of Economics and Political Science. He has been serving as rector of Corvinus University of Budapest since 1 August 2021.
