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Economics : Recent Questions and Answers (Page 4)

Find answers to your questions about Economics or help others by answering their Economics questions.

Why aren't lengthier expirations offered, especially when a competitor offers it?

My grandparents in Canada screenshot from their Questrade IQ Edge.Why wouldn't the options exchange sell options with lengthier expiration dates for Vanguard's Russell 2000 ETF, when they do for iShares's?...

Asked on 10/03/2021

1 answer

Uniqueness of Arrow-Debreu Equilibria

I have been trying to figure out conditions on the preferences of traders in an exchange economy such that the equilibrium prices are unique but I cannot be sure since...

Asked on 10/03/2021 by Denizalp

0 answer

What is the difference between USD/EUR and EUR/USD when talking about Forex

I was recently watching the Forex market and I want to know what does it means when you see something like EUR/USD -0.04% -1.1208 Does that mean the USD...

Asked on 10/02/2021 by Adrian George

2 answer

Microeconomic rationale for UIP (uncovered interest rate parity)

The key idea behind UIP is that as for all common financial instruments, the "law of no free lunch" should also hold for currencies. However it differs from traditional replication-based...

Asked on 10/01/2021

2 answer

Still don’t understand why a trade deficit must be financed by foreign borrowing (even after reading other answers)

Maybe my understanding of how the real world works is now clouding my ability to understand the theoretical because I aced this stuff in college, but now can’t wrap my...

Asked on 10/01/2021

1 answer

How do you benefit from a fall in interest rates in general as a creditor of public bonds?

I’m reading about England debt in 1819 and how interest rate benefited its creditors. The country had a public debt of more than 250% of the GDP.With peace at last...

Asked on 10/01/2021

1 answer

Why does a current account deficit contribute to making a country a "sitting duck" for currency speculators?

George Soros had this to say about the factors surrounding his famous short of the British pound:The U.K. had a large current-account deficit…, modest FX reserves andno capital controls...

Asked on 09/28/2021

1 answer

Is a lack of "rules" dangerous for cryptocurrency

An issue/disadvantage that the gold standard had was a lack of mechanisms that forced economies to abide by the rules of the game. As a result, they could at any...

Asked on 09/28/2021 by Michael Presman

1 answer

Gold coins as currency?

My question is about gold standard. But not the version I always see mentioned (trading bills for gold at a set price). I mean having gold coins in circulation. For...

Asked on 09/28/2021

4 answer

Is fiat currency better than a backed-currency?

My question is would it be better if we went back to something like a gold standard but backed by a finite virtual material instead? It avoids the problem of...

Asked on 09/28/2021

2 answer

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