International Finance and Financial Policy

By Hans R. Stoll | Go to book overview

26
International Finance and Financial Policy: Implications for Investors

WILLIAM B. HUMMER

Profound changes now occurring in the international financial environment, and the prospect of an accelerated rate of change in the 1990s, are exerting an increasingly broad impact on virtually all sectors of world financial markets and on investors in these markets. International imbalances and volatile ex change rates, rapidly evolving global financial markets, and the international debt crisis all have a direct and important effect on investors. World economic and financial events today not only have a greater influence on U.S. markets than at any time in this century, but appear certain to become even greater determinants of the direction, range, and speed of price movements between now and the end of the century.

Intractable U.S. balance-of-payments and current account deficits, associated with exchange rate instability and heavy capital inflows into the United States, have contributed to substantially greater volatility of markets both in the United States and abroad. Fluctuations of the dollar in the foreign exchange markets usually are immediately reflected by prices of U.S. Treasury securities, and effects of changes in this prime interest rate market are rapidly transmitted to other financial markets in the United States. The issues of whether or not U.S. payments deficits are sustainable, and the degree to which international policy coordination can be made more effective, appear subordinate, from the standpoint of investors, to the central fact that foreign exchange market volatility of the dollar, yen, and DM is likely to persist over coming years. Disagreement may exist over the prospective degree of volatility, but from a market perspective any instability in exchange rates signals potentially wider security price fluctuations than under a fixed-rate regime. Market perception does exist that to the extent that exchange rate volatility of any currency can be reduced, so

-227-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
International Finance and Financial Policy
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 260

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.