Tag Archives: Money

Qualifications: Competition and property rights

Our focus so far has been on markets where rival firms can freely enter and exit, and private-property rights are clearly defined and enforced. The efficiency of market organization is, in fact, dependent on these two things: (1)competitive markets and … Continue reading

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Optimization

For a given exchange rate view, an optimization model can create an “efficient frontier” of hedging strategies to manage currency risk. The most efficient hedging strategy is that which is the cheapest for the most risk hedged. This is a … Continue reading

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Key Operational Controls for Treasury

Assuming that the corporation has accepted in principle that it needs to manage its currency risk, it then has several choices to make with regard to how it will go about achieving this — the instruments it will allow itself … Continue reading

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