New answers tagged central-banking
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Why is there increased speculation that America might go into a recession ? If they do will the rest of the world also face downturn?
This question is really a set of questions.
1 ) Will raising rates lead to a recession?
2 ) Will the US go into a recession (whatever the cause)?
3 ) Would a US recession have spillover effects to ...
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2
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Savings = Investment. High interest rates stifle investment. High interest rate encourage savings. Isn't this a contradiction?
tl;dr
There is absolutely no contradiction. $I=S$ is purely definitional like saying all triangles have three angles. It holds always because we defined the word saving in such way to always be equal ...
- 41.6k
4
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Accepted
With what money does a central bank buy gold?
When central banks buy gold, they use their reserves (their assets).
A central bank's assets are predominantly government bonds, but gold is also part of the reserves (and so is US currency). So, ...
- 894
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How do banks trust each other especially in cross-border situations?
When Bank A transfers money to Bank B, it usually does through in Bank C. The exception would be when Bank A is a client of Bank B. Then it would just move money out of its own account and into Bank ...
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