Part 3 - Institutional Asset Owners Flashcards
1
Q
Reasons for establishing SWFs
A
- Insulate revenues from reductions or volatility
- Enable central bank to offset excess liquidity
- Accrue funds for future generations
- Invest in domestic infrastructure and other initiatives that lead to economic growth
2
Q
Dutch Disease & Sterilisation
A
- Inflow of FX damages economy
3
Q
Types of foundation
A
- Operating Foundation
- Community foundation
- Corporate foundation
- Independent foundation
4
Q
Factors that lead to currency appreciation
A
- Low inflation
- High real interest rates
- Policies attracting capital flows
- Slow income growth
- Comparative advantage in export goods production
