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The complex pattern of gold production in Canada, which differs from the classic Hubbert´s curve, is modeled, and a short-term forecast is made, via the Fundamental Equation of Mineral Production (FEMP). For intervals of time with a variable production to reserves ratio, a discrete piecewise version of the equation updates the reserves and the Production to Reserves Ratio (PRR) by units of time. These piecewise linear portions of the PRR correspond to sub-cycles of rising and declining production embedded in the overall history of production. This version of the FEMP allows modelling of any pattern of mineral production at a universal range of scales. The Hubbert´s linearization indicates the official account of reserves underestimates the real amount of gold resources in Canada. The equivalence between the Hubbert's formula and the FEMP is introduced. The Hubbert curve is shown as a case study of the Fundamental Equation, featured as the product of a quadratic function of the cumulative production and a rational function of the PRR with time. The forecast for Canada's current gold production illustrates the metal output is about to peak with an all-time record high in the near future, unless new findings or influential global economic factors are introduced (i.e., a sharp and sustained growth of gold demand from regional markets), allowing an increase of the slope of the linear function featured by the PRR of the FEMP-based model. [ABSTRACT FROM AUTHOR]

This research examines the long-run Initial Public Offerings (IPO) stock performance of a large Chinese sample, and in particular the relationship between initial reserves (capital reserves and revenue reserves immediately after the IPO) and long-run IPO stock performance. In general, Chinese IPOs do not underperform the market/industry benchmarks, but they significantly underperform their sizematched industry peers. More importantly, Chinese IPO firms tend to issue a large amount of bonus shares (also called as a 'capitalization issue', i.e. capitalization of the reserves) after the IPO. Consistent with bonus share signaling hypothesis, Chinese IPO firms exhibit increased operating/stock performance subsequent to bonus issues. Interestingly, the size of the initial reserves is positively associated with long-run IPO stock performance. This research adds another piece of empirical evidence to the literature whether IPOs underperform in the long run, by confirming that the choice of performance measures and benchmarks could affect the conclusion on the IPO long-run performance. Further, it discovers that size of initial reserves could signal superior IPO stock performance in the long run. [ABSTRACT FROM AUTHOR]

Following an analysis of the forces behind the so-called "global capital flows paradox" observed in the era of advancing financial globalization, this paper sets out to investigate the opportunity costs of self-insurance through precautionary reserve holdings. We reject the idea of reserves as low-cost protection against the vagaries of global finance. And we also deny that arrangements giving rise to their rapid accumulation may be sustainable in the first place. Alternative policy options open to developing countries are explored, designed to limit both the risks of financial globalization and costs of insurance-type responses. We propose comprehensive capital account management as an alternative to full capital account liberalization. The aims of a permanent regulatory regime of capital controls, both with respect to the aggregate size and the composition of capital flows, are twofold. The first aim is to maintain sufficient macro policy space. The second aim is to assure a good micro fit of external expertise incorporated in FDI with a country's development strategy. [ABSTRACT FROM AUTHOR]

Focuses on the economic cooperation between India and the United Arab Emirates in the 1990s. Maintenance of a high level of per capita income by United Arab Emirates; Amount of gross international reserves of India; Contribution of the oil sector to the UAE's gross domestic product.

Investigates the doubling of reserve requirements between August 1936 and May 1937 of the Federal Reserve in the U.S. Effect on the increase of reserve ratio on bank lending; Need of additional capital on banks; Increase of business loans.

Studies the feasibility and applicability of a currency board system in Turkey. Types of currency board systems; Feasibility conditions of a currency board; Money-supply theory in a currency board system; Relationship between the reserve money, foreign trade balance, public deposits and the foreign exchange deposit accounts; Cointegration analysis of the variables affecting the money-supply and reserve money.

En a series of papers, Taylor (1971, 1977, 1979) has proposed a theoretical model of Credit Union behavior emphasizing their non-profit and cooperative nature. Taylor (1979) represents the model in its most developed form. In this note his work is surveyed and a modification is proposed, namely the incorporation of current period endogenous reserve accumulation, which is very important in practice and which, it is suggested, fills a significant gap and makes his model more satisfactory as a representation of credit union behaviour in periods of asset growth or decline. [ABSTRACT FROM AUTHOR]

There is a significant view being expressed lately, fortunately to date a minority opinion, that federal government deficits do not matter much. Or in any event, there is no urgency in coming to grips with them. In fact, deficits do matter. Over the long term, they have a corrosive effect on the economy, and it is from this perspective that the case for bringing down the deficit is compelling. More important, the long run is rapidly turning into the short run. If one does not act promptly, the imbalances in the economy are such that the effects of the deficit will be increasingly felt and with some immediacy. The effects of the federal budget deficits over the past several years have been muted by two circumstances, both of which are currently changing rapidly. One was the rather large degree of slack in the economy in the early years of the current expansion. This slack meant that the economy could accommodate growing demands from both the private and public sectors. In addition, to the extent that these demands could not be accommodated from U.S. resources, the industrialists went abroad and imported them. This can be seen in our large trade and current-account deficits.

Tests the validity of 'reserve price setting' and 'reserve quantity setting' behavior of the monetary authorities. Control of the monetary authorities on short-term interest rates as an exogenous policy instrument; Role of market forces in the determination of long-term rates; Dependence of long-term rates on market participants' collective expections of the level of future short-term rates.

Develops a simultaneous model of demand for and supply of international reserves. Theoretic specifications of the demand and supply functions of international reserves; Elimination of the assumption of elastic supply by specifying a supply function; Incorporation of the gold price into the model.

Looks at the contemporaneous reserve accounting (CRA) of the Federal Reserve System aimed to strengthen the relationship between reserve growth and money growth in the U.S. Recognition of the joint influence of the Federal Reserve, the banks and the public; Procyclical gyrations in reserve growth; Advantages of CRA over lagged reserve accounting; Adoption of short and long-term variable-rate financial instruments.

Discusses the saving-leakage effect of financial intermediation on financial reserve requirements. Amount of bank lending; Shifts of funds from savings deposits; Decrease in household demand deposits; Increase in thrift-owned demand deposits.

Numerous studies find shifts in the interest-rate response to money-announcement surprises following the Federal Reserve policy changes of October 1979, October 1982, and February 1984. In recent issues of this journal, LeSage used a multiprocess mixture model to detect shifts in the interest-rate response and reported that shifts occur at times other than these dates. We provide stimulations that show that use of the mixture model produces inaccurate estimates of when response shifts occur and often identifies shifts when none occur. These results are consistent with existing work that shows that detecting structural change is difficult when the independent variable has zero mean. [ABSTRACT FROM AUTHOR]

This article presents views of several economics experts on the need to reform the international monetary system in the U.S. Several problems associated with the monetary system are explained. The financial role of the U.S. within the world economy has been essential in achieving international economic growth and trade liberalization. The functions served by the outflow of U.S. capital and aid are described. The total net reserves of the U.S. and Great Britain was about $17 billion. A difference existing between reserve assets and an international reserve asset is highlighted.