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    (Original post by ayandutta)
    extent of hot money
    wikipedia is a bit crap at explaining - does it mean you'll get people who play the currency game, putting their money into countries when the exchange rate is low to get the most Xs possible from their Ys then moving the money out -when the rate is less favourable?
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    (Original post by dreadnaut)
    wikipedia is a bit crap at explaining - does it mean you'll get people who play the currency game, putting their money into countries when the exchange rate is low to get the most Xs possible from their Ys then moving the money out -when the rate is less favourable?
    It's to do with interest rates. Whereever has the highest interest rate will experience an influx of hot money as investors seek the highest return on their investment.
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    (Original post by hmjessop)
    It's to do with interest rates. Whereever has the highest interest rate will experience an influx of hot money as investors seek the highest return on their investment.
    true!
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    (Original post by Andrew_2006)
    well inequality is a normative concept for a start - what is "equality"
    i thought equity was a normative concept?
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    Er, what the hell is the Marshall Lerner condition?
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    Yep sorry prash you're right..
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    (Original post by tomoli)
    Er, what the hell is the Marshall Lerner condition?
    PED for imports + PED for exports > 1
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    (Original post by hmjessop)
    PED for imports + PED for exports > 1
    You will have to excuse my ignorance, but what does that mean in basic terms?
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    (Original post by tomoli)
    You will have to excuse my ignorance, but what does that mean in basic terms?
    basically, you know how an increase in the value of the pound should lead to less exports and more imports? the marshall lerner condition basically states that this should happen. although the condition may not be satisfied if the goods/services are price inelastic.
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    PED is price elasticity of demand. I'm not sure how to explain it, someone else will have to step in.
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    (Original post by ayandutta)
    lack of investment into cap (esp, in amnufacture sector)
    i believe the UK actually recieves the most investment in the whole of Europe (mainly from Japan), you would be right to say that there has been a lack of investment in the manufacturing sector (excluding the car industry where we've had significant investment)
 
 
 
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