Gordon Brown's secret weapon

Article Abstract:

The United Kingdom chancellor, Gordon Brown, can intervene in the market for foreign exchange using the UK's reserves. It is unclear whether this will affect the level of pound sterling. Some economists argue that it does not, while others argue that expectations are changed, so intervention can have an impact, especially if a currency is undervalued or overvalued. It is not clear that pound sterling is overvalued, so the government may be advised to wait until it rises further if it is to intervene.

Administration of General Economic Programs, Currency Stabilization Programs, Prices and rates, Pound (United Kingdom), Currency stabilization

---

Wild goose chase of economic stability

Article Abstract:

Governments seek to achieve economic stability through macro-economic policies and this is seen as a way of encouraging investment. The UK economy s stable in the 1990s, yet investment levels are low compared with the 1980s. Stable growth and lack of capacity constraints are not necessarily likelyto promote investment. Instability can lead to inflation, though this was linked to sharp rises in petroleum prices in the 1970s, which led to inflation and recession.

Analysis

---

Similar abstracts:

• Abstracts: Information content of bank loan announcements to Asian corporations during periods of economic uncertainty. Dollarization of bank deposits: causes and consequences
• Abstracts: A model for the evaluation of and response to economic exposure risk by multinational companies. A comparison of the effectiveness of currency futures and currency options in the context of foreign exchange risk management
• Abstracts: Voluntary information disclosure during periods of stock price vulnerability. The relation between predisclosure information and the dispersion of financial analysts' forecasts of earnings
• Abstracts: De Gruchy looks a tempting Jersey target. City still checking Sainsbury out over Star buy
• Abstracts: New Australian interest withholding tax regime for offshore capital markets issues. Debt and market incompleteness

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.