|
|
Exchange equalization fund |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Exchange equalization fundThe unit within a government or central bank that manages a pegged exchange rate. It manages reserves of foreign currencies, which it uses to buy and sell domestic currency as needed to keep the exchange rate within specified bounds.Similar MatchesInterest equalization taxInterest equalization taxA tax levied between 1963 and 1974 by the United States of 15% on interest received from foreign borrowers, intended to discourage capital outflows. Factor price equalizationFactor price equalizationThe tendency for trade to cause factor prices in different countries to become identical. Ohlin (1933) argued that trade would bring factor prices closer together. Samuelson (1948, 1949) showed formally the circumstances under which they would actually become equal. Factor Price Equalization TheoremFactor Price Equalization TheoremOne of the major theoretical results of the Heckscher-Ohlin Model with at least as many goods as factors, showing that free and frictionless trade will cause FPE between two countries if they have identical, linearly homogeneous technologies and their factor endowments are sufficiently similar to be in the same diversification cone. Interest equalization taxInterest equalization taxTax on foreign investment by residents of the US which was abolished in 1974. |
|
|
|