IMF

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• Fisical Federalism The ability to transfer economic resources from areas with healthy economies to those suffring economic setbacks
• Financial Account Balance of payments records all international purchases or sales of financial assets. It measures the net acquisition of financial assets. A positive financial account means a countr is acquriring more value in financial assets than foereign countries are acquiring of its assets, it is not net lending to the rest of the world
• Risk Premium (p>0 implies about risk) Reflects the difference in riskiness of domestic and foreign bonds. p is extra return investors require in domestic bonds compared to foreign ones due to their difference in risk. p>0 implies are consiered riskier than foreign ones
• Pricing to market when a firm sells the same product with diffrent prices in different countries
• Feldstein - Horioka Perfect capital mobility, strong relationship between domestic savings and investments
• Argentina 1991 1 peso per dollar (fully convertable) inflation drastically falls in 5 years
• Eurocurrencies Offshore currency deposits
• The gold standard "rule of the game" The central bank practice of selling domestic assets in th eface of deficit and buying domestic assets in face of surplus
• optimum currency area a group of regins with economies closley linked by trade in godds and services and by factor mobility. A fixed exchange rate area will best servce the economic interests of each of its members if the degree of output anf factor trade among the included economies is high. The theory predicts that fixed exchange rates are most appropriate for areas closley integrated throguh international trade and factor movements
• seignorage the real resoruces a government gains for printing money and spend them on good and services

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