economics

inflation is lower than expected>lower dollar value... why? the reason is because central bank will hold off additional interest rate increase.

expect higher interest rate, current account and fiscal deficit to narrow>higher dollar value

"China's January export growth picked up speed, defying expectations that a weaker U.S. dollar would slow the trend and giving the U.S. more ammunition in its efforts to convince China to allow the yuan to appreciate."
-can someone please explain the analysis to me?
-why would a weaker US dollar slow China's export?
-i only know that the yuan is pegged to the dollar and it's pegged 'unfairly low' relative to the US dollar.
-because the yuan is pegged 'unfairly low' to the US dollar, the yuan is therefore 'weaker' and therefore it's currency is more competitive than the US dollar. i.e. it's goods are cheaper aboard.
-and what's next? what will a weaker US dollar lead to?

what is expectation theory?

IS-LM and IS-LM-BP... i forgotten everything liao

CAPM, binomial option pricing model, black scholes, gordon growth model...

what happens when government sell bonds? less money supply, interest rate goes up and then? in the first place, am i even right?

towards the end of last year, the interest rate was such a hot issue in the newspaper... everyone was talking bout the increase in the rate of inflation and possible increase in interest rate... blar blar blar. but look at what's happening? absolutely nothing is reported in the newspaper. and interest rate has been increasing significantly for the past few months and yet there's not much hype bout it now. and my explanation (conspiracy theory) is that in the beginning of the year, interest rate will be increased to attract financial investments, increase the value of the currency and increase stock prices (bull market). in the second quarter, imports will increase because of a stronger currency but it will be a quiet market in terms of risk and returns but there might be financial scandal that will be uncovered. in the third quarter, to increase net export due to the widening trade account, interest rate will fall, and the financial investment will flow out, the currency will be weaker, import will fall, export will rises and there will be increase in physical investment and borrowing. in the fourth quarter, production will increase for Christmas and Boxing day sales, the newspapers will talk bout inflation and possible hike in interest rate and the whole cycle starts all over...

... i must be really bored...