Short Selling

Shorting a stock involves selling a stock that an investor does not hold in the expectation that it can be bought back at a later date at a lower price. This provides a way to make absolute returns when stock prices are falling. Custodian banks act as facilitators to this process. Custodian banks approach their [...]

Capital Infows and Real Exchange Rate Appreciation – practice

Asian countries pegged their currencies to the US dollar in order to provide a foundation for economic stability, while they got on with the job of growing their economies. In a sense these dollar pegs did their job too well. With Asian currencies pegged to the US dollar, it appeared that the idea of currency [...]