Background

Under US law a new bill for the funding of the new financial year, must be approved by the House of Representatives,the Senate and   the President.

It’s been 17 years since the federal government last faced a partial shutdown because Congress and the President couldn’t agree on a spending bill.

Fiscal year

In US term is October 1 to September 30

Crisis

Ended midnight of Monday and US declared government ‘Shutdown’ Continue reading →

July 09 2013| Filed Under » Financial Crisis, Foreign Investment, Forex Fundamentals, Forex Theory, Government & Politics, Government Regulation, International Markets

Since the early 1990s, there have been many cases of currency investors who have been caught off guard, which lead to runs on currencies and capital flight. What makes currency investors and international financiers respond and act like this? Do they evaluate the minutia of an economy, or do they go by gut instinct? In this article, we’ll look at currency instability and uncover what really causes it.

What Is a Currency Crisis?
A currency crisis is brought on by a decline in the value of a country’s currency. This decline in value negatively affects an economy by creating instabilities in exchange rates, meaning that one unit of the currency no longer buys as much as it used to in another. To simplify the matter, we can say that crises develop as an interaction between investor expectations and what those expectations cause to happen. Continue reading →