Tag: Finance
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Sustainable finance and its growing importance in Canada

Sustainable finance involves integrating environmental, social, and governance (ESG) factors into financial decision-making processes to promote sustainable economic growth while addressing environmental and social challenges. Sustainable finance involves allocating capital towards investments that have a positive impact on the environment and society while minimizing the negative impact of investments in these areas. It includes various…
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Why the Widening Gap Between US and Canadian Policy Rates Can Impact the Value of the Loonie

The original question asked why the widening gap between US and Canadian policy rates can cause the loonie to fall and lose its value against the US dollar. The answer explains that this can occur due to a combination of factors, including interest rate differentials, capital flows, and trade. When the US Federal Reserve raises…
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The Consequences of Elevated Uncertainty: Impacts on Economy, Politics, Society, and Environment

Elevated uncertainty can lead to negative consequences in various domains, including economic instability, political turmoil, social disruption, and environmental degradation. Uncertainty can arise from a range of factors, such as economic, political, social, and environmental factors. It is crucial to address the underlying causes of uncertainty and mitigate its negative consequences to ensure the stability…
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US Banking Industry in Turmoil: Collapse of Four Banks and Struggles of a Fifth Leave Investors Reeling

In the span of just 11 days, four banks have collapsed in the US due to unique scenarios, leaving investors concerned about the possible spread of the crisis. The collapse of Silvergate Capital Corp. was caused by its exposure to the crypto industry’s meltdown, and despite the Federal Reserve’s authorization to intervene, it failed to…
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Dynamic stochastic general equilibrium (DSGE)

The model would allow us to analyze the effects of various economic shocks, such as changes in productivity or changes in the monetary policy regime, on the macroeconomy.
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Should Fed Caught Between Inflation and Bank Crisis?

The Federal Reserve, like any central bank, is often faced with difficult decisions when trying to balance various economic goals and challenges. In this particular case, if the Fed is caught between inflation and a bank crisis, it would face two major challenges: In such a scenario, the Fed would need to carefully weigh the…
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The final destination of all world savings is the USA

I am not certain who originally made this statement. However, it is a common idea that has been expressed by many economists and financial experts over the years. The statement suggests that the United States is a primary destination for savings from around the world, which is reflected in a large amount of foreign investment…
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The efficient market hypothesis (EMH)

The weak form of efficiency hypothesis in two regimes of high volatility and low volatility in the New York Stock Exchange.
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Narrative Stories

Economics (and, by extension, finance) has focused too much on quantitative methods and forgotten something important in the process: We humans have evolved to be storytellers. The stories we tell each other bind us together as families, communities, nations, and religions. These narratives define what it means to be a mother, a German, or a…
