Group items tagged

The article that I bookmarked for this week is about how exchange rates and bad climate are affecting Brazil's melon shipments. Brazil is a large exporter of melons and Europe is their biggest importer of melons. Because of the recent financial problems in Europe the exchange rates are not in Brazil's favor for exports. Due to these bad exchange rates for an exporting industry and the bad weather also hurting the melons, Brazil's melon farmers are facing some problems.

This article details the reduced appreciation of the chinese yuan possible due to accelerated outflow of international capital. This doesn't pose any serious threat to chinese industry or trade but does show a pessimistic outlook on the Chinese economy. HOwever this reduced appreciation of the chinese yuan could force the government re-evaluate its exchange rate mechanism.

The article discusses whether Denmark made the right choice in having a fixed exchange rate between the Danish Kroner and the Euro. On one hand it has brought stability/predictability to Denmark as an exporting nation, on the other hand Denmark is unable to use a change in exchange rate to boost the economy.

Over the weekend there were proposals that Germany and the other 5 AAA-rated nations of Europe might start jointly issuing 'Elite' bonds. Pound rates are today being driven by attitude to risk - and what a morning it has been. Equity markets have surged, and risk associated currencies such as the Australian dollar have moved higher.

This article discusses how, in some circumstances, fiscal policy has no knock-on effect onto private spending. This is the case when government debt is high (over 60 per cent of GDP) and when exchange rates are flexible.

The governor of the New Zealand central bank said monetary policy would continue to focus on medium term inflation pressures and would be used if they rise because of high commodity prices and the exchange rate.