I'm not an economist and it's maybe not directly related to your question but what do you think of the interest rates offered on BitAssets in BitShares?
Currently they're listed on the assets page and only BitUSD really has any CAP.
But a BitUSD is created when a long meets a short at 1-1 or higher. The shorts provide 200% collateral and compete on interest they are willing to pay longs. The result is a fully backed BitAsset that pays interest. The short gets the benefit of a leveraged position in BitShares.
I'm not sure what the average interest rates will be but imagine in the 3.5%+ range which is more than bank accounts. It's also quite amazing that you can earn interest on holdings like BitGold & BitSilver and BitBTC. (BitBTC holds the value of BTC but pays interest.)
They're not even on version 1.0, but with the main marketing push starting at the beginning of next month will be interesting to see if that's what the market is looking for. (I think the main thing the market is looking for is the decentralised advantages of Bitcoin without the volatility, so many use cases for things like BitUSD whereas there are very little for unstable crypto-currencies http://whatisbitusd.com/ )
Topic: "Interest Rates" are supposedly important components of exchange rates... (Read 1521 times)
November 10, 2014, 06:17:52 AM
November 10, 2014, 03:37:10 AM
http://www.investopedia.com/terms/c/covered-interest-arbitrage.asp
In today's world it is possible to get a guaranteed return in the forex market.
All you need to do is two things: one is to use a sensible leverage so that you are not stopped out before your interest payments accumulate. And the other is to find two brokers that will be able to support your strategy. Last time I checked, it was most profitable to reap the swap on a long AUD/JPY and to hedge with a no-swap short on AUD/JPY. Within a few weeks, the interest payments will make up for the spread and the rest is pure profit.
In today's world it is possible to get a guaranteed return in the forex market.
All you need to do is two things: one is to use a sensible leverage so that you are not stopped out before your interest payments accumulate. And the other is to find two brokers that will be able to support your strategy. Last time I checked, it was most profitable to reap the swap on a long AUD/JPY and to hedge with a no-swap short on AUD/JPY. Within a few weeks, the interest payments will make up for the spread and the rest is pure profit.
November 10, 2014, 03:19:38 AM
However, it is supposed that the banks could choose a reserve target and hence hit money targets. The banks actually must accommodate the demand for reserves, but can choose a different interest rate target. its also depend on stock exchanging market for various factors.
For accurate calculation of the international exchange rates for different countries we depend on exact Interest rates values which changes everyday. so, many International Money Exchange Rate android apps also depend for easy calculation with instances results.
For accurate calculation of the international exchange rates for different countries we depend on exact Interest rates values which changes everyday. so, many International Money Exchange Rate android apps also depend for easy calculation with instances results.
March 07, 2012, 09:20:40 AM
Sigh.
How fortunate we are to have the benefit of the cogent and illuminating clarifications and explanations of a Real Economist.
If you'd bothered to respond when I tried to consult you privately about such theories I maybe wouldn't've resorted to bringing it to the public and they would thus have been deprived of your expert professional insight / opinion / evaluation.
-MarkM-
March 07, 2012, 07:44:45 AM
Check out for example
http://en.wikipedia.org/wiki/Mundell%E2%80%93Fleming_model
From such theories it looks as if one ought to be able to help the exchange rate of a currency by increasing "its interest rate".
Thus maybe the various alt chains could compete among themselves trying to provide higher interest rates?
Bonds issuance or something like that?
I think that is part of why the finance oriented players in the Galactic Milieu have been pushing so hard to have stock-and-bond-etc markets implemented, they figure such markets should be helpful in the "convince other nations your nation's currency is worth something" aspects of the game...
Maybe DeVCorp and/or GRouPcorp can test such theories if one or both of them can succeed in causing the value of their shares to grow, thereby in effect providing, in the form of the rising value of shares denominated in a currency, some semblance of an "interest rate of that currency"...
-MarkM-
Sigh. http://en.wikipedia.org/wiki/Mundell%E2%80%93Fleming_model
From such theories it looks as if one ought to be able to help the exchange rate of a currency by increasing "its interest rate".
Thus maybe the various alt chains could compete among themselves trying to provide higher interest rates?
Bonds issuance or something like that?
I think that is part of why the finance oriented players in the Galactic Milieu have been pushing so hard to have stock-and-bond-etc markets implemented, they figure such markets should be helpful in the "convince other nations your nation's currency is worth something" aspects of the game...
Maybe DeVCorp and/or GRouPcorp can test such theories if one or both of them can succeed in causing the value of their shares to grow, thereby in effect providing, in the form of the rising value of shares denominated in a currency, some semblance of an "interest rate of that currency"...
-MarkM-
March 07, 2012, 07:36:52 AM
Check out for example
http://en.wikipedia.org/wiki/Mundell%E2%80%93Fleming_model
From such theories it looks as if one ought to be able to help the exchange rate of a currency by increasing "its interest rate".
Thus maybe the various alt chains could compete among themselves trying to provide higher interest rates?
Bonds issuance or something like that?
I think that is part of why the finance oriented players in the Galactic Milieu have been pushing so hard to have stock-and-bond-etc markets implemented, they figure such markets should be helpful in the "convince other nations your nation's currency is worth something" aspects of the game...
Maybe DeVCorp and/or GRouPcorp can test such theories if one or both of them can succeed in causing the value of their shares to grow, thereby in effect providing, in the form of the rising value of shares denominated in a currency, some semblance of an "interest rate of that currency"...
-MarkM-
http://en.wikipedia.org/wiki/Mundell%E2%80%93Fleming_model
From such theories it looks as if one ought to be able to help the exchange rate of a currency by increasing "its interest rate".
Thus maybe the various alt chains could compete among themselves trying to provide higher interest rates?
Bonds issuance or something like that?
I think that is part of why the finance oriented players in the Galactic Milieu have been pushing so hard to have stock-and-bond-etc markets implemented, they figure such markets should be helpful in the "convince other nations your nation's currency is worth something" aspects of the game...
Maybe DeVCorp and/or GRouPcorp can test such theories if one or both of them can succeed in causing the value of their shares to grow, thereby in effect providing, in the form of the rising value of shares denominated in a currency, some semblance of an "interest rate of that currency"...
-MarkM-
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