Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/6

Click to flip

6 Cards in this Set

  • Front
  • Back

What is Moral hazard in the context of the documentary?

Invest these countries, the risk is minimal as the IMF will bail you out if the investment fails.

What is carry trade?

By selling a currency with low Interest Rates to buy currencies with higher Interest Rates to obtain the difference.

What did US monetary policy have to do with the Mexican peso crisis?

Investors invested in Mexico because of its high Interest Rates, until the Fed dramatically raised rates to where investors abandoned Mexico.

What did they mean by “the Brazilian watched Yeltsin go to bed drunk andthem waking up with a hangover?”.

Once investments in Russia failed and costed investors money, they tried to recover the losses by selling Brazilian Assets.

What was the role of capital controls and did Soros approve of them?

The role was minimal, Soros believed them to be important as capital flows can be destabilizing.

What about Rubin's view on capital controls?

He found them to be unnecessary.