Central banks fine-tune a currency price frequently based on a set of criteria, most of which revolves around currency stability. However, some of the criteria may be to boost exports by engineering an artificial low price for a currency, that is below market expectations. Such criteria may be...

Perceptions of economic trends and growth rates around the world over the past two decades, especially in advanced economies, suggests that the world is in a period of low growth without external stimulus delivered via speculative activities in the financial markets or fiscal stimulus. But is...

The foreign exchange market seeks to use a market-based mechanism to discover a price for a currency. But, this price discovery mechanism is hampered by a variety of externalities, chief of which is the different intermediaries involved in the trading and clearing of a currency. Such...

Due to various externalities, a labour market never operates in perfect competition mode. One such externality is the inelasticity in wages introduced due to personal fulfilment and satisfaction that led to personal job preference. This meant that salary is not the sole determinant of one’s...

Bonds are traditionally more stable and less volatile than equity as instruments to safekeep one’s money. But, bonds, by its conceptualization and construction, are illiquid assets. Such illiquidity provides a gap which can be exploited by manipulators and speculators in the bond market....