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Author:Fesmire, J. M.
Jeffries, M. G.
Truscott, M. H.
Title:Teaching the linkages between the international credit and foreign exchange markets
Journal:Journal of Teaching in International Business
1998 : VOL. 9:4, p. 75-84
Index terms:CREDIT MARKETS
FOREIGN EXCHANGE MARKET
INTERNATIONAL ECONOMICS
MODELS
EDUCATION
Language:eng
Abstract:The paper presents a teaching model providing an analytical framework that encourages students to think about economic events in global context. It ties the international foreign exchange and credit markets together and also shows how international capital flows represent the crucial linkages between them. The model is primarily a teaching tool which illustrates how changes in one country impact world interest rates, exchange rates, and capital and trade imbalances for other countries. This approach can be used to illustrate the impacts of changes in savings and investment behaviour by businesses and households, as well as central bank interventions.
SCIMA record nr: 176472
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