International Monetary Fund

Application to Leontief input-output model Introduction In order to understand and be able to manipulate the economy of a country or a region, one needs to come up with a certain model based on the various sectors of this economy. The Leontief model is an attempt in this direction. Based on the assumption that each industry in the economy has two types of demands: external demand (from outside the system) and internal demand (demand placed on one industry by another in the same…

expected net cash outflows during a 30 day period of acute market stress. Secondly, explain the types of outflows – and give specific examples - that could arise during such periods of stress. Thirdly, by making reference to different approaches to Funds Transfer Pricing (FTP) models, explain how those business units…

At another point where Mark Baum and his hedge fund employees are meeting the people they are betting against, Baum has a talk with a CDO manager. It is during this conversation where the CDO manager reveals just how corrupt the system truly is, and how millions of people would suffer if Mark and his…

Q1. What are the reasons for the increase in variability in Barilla’s supply chain? Variability in supply chain arises due to variability in demand which can be attributed to the following: 1. Volume and Transportation discounts: A full truckload entitled the distributor to a 2-3% discount by Barilla. In addition, the sales reps could offer 4% discount on a purchase of minimum 3 truckloads. This may have wrongly incentivized the distributors to wait for longer durations and in turn reduced…

The conflicting and perplexing observation that water, which is more useful than diamonds, is priced lower than diamonds was proposed by economists in the 1800s as a means of understanding the role utility plays in the demand and price of a good by differentiating between total utility and marginal utility. Adam smith is considered to be the first presenter of this paradox. The diamond - water paradox states that even though water which is relatively more useful for human activity (it is…

. What is inflation risk? Inflation is the rise or fall of a price by a certain time. It could something right now then be raised tomorrow or fall tomorrow. This makes it difficult to buy items at a certain time because everyone wants to save money, so if they hear that its 900$ tonight and tomorrow it’s going to be 1200$ then you’re going to want to get the item tonight. Black Friday is a big example of inflation risk. 2. What are opportunity costs? Give an example of an opportunity cost. It…

Introduction Individual’s behaviors significantly affect the decision making when they participate in the financial market. This phenomenon gives a shock to rational assumptions related to the traditional economic theory. For figuring out the principles and motivations behind decision-making process, behavioral economics has been widely discussed more than ever. Endowment effect, as one of economic phenomenon, arises from economic activities affecting preference and value construction (Ariely…

acquiring new knowledge. • This theory highlights the role of private firms for investment in research and development to help aid technological progress. • This theory aids the openness to trade which promotes openings to firms to participate in international capital market to increase investment…

items. Monetary and fiscal inflation are not the same thing. • Wage inflation Affects consumers directly. Wage inflation is also referred to as wage push inflation, it occurs when wages are increased and the price of goods rises as a result. This type of inflation is a key part of the wage-price spiral. This downward spiral involves an increase in the price of goods following a wage increase and leading to another wage increase, meant to accommodate the changing price of goods. • Monetary…

Department of Statistics 2014, p. vi, 6). The desire for monetary rewards may have driven Singaporeans into staying single and putting aside their aspirations to start a family in order to focus on their careers. This can be seen from how employees in Singapore are averaging working hours of 45.8 per week (Ministry of Manpower 2014) and this surpasses World of Work Report’s definition of normal working hours as 40 hours and less per week (International Labour Organisation 2014, p.90). This…