Devaluation

In modern monetary policy, a devaluation is an official lowering of the value of a country's currency within a fixed exchange rate system, by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency or currency basket. In contrast, a depreciation is a decrease in a currency's value (relative to other major currency benchmarks) due to market forces under a floating exchange rate, not government or central bank policy actions.

A central bank maintains a fixed value of its currency by standing ready to buy or sell foreign currency with its own currency at a stated rate; a devaluation is a change in this stated rate that renders the foreign currency more expensive in terms of the home currency.

The opposite of devaluation, a change in the fixed rate making the foreign currency less expensive, is called a revaluation.

Related but distinct concepts include inflation, which is a market-determined decline in the value of the currency in terms of goods and services (related to its purchasing power). Altering the face value of a currency without reducing its exchange rate is a redenomination, not a devaluation or revaluation.

Historical usage

Devaluation is most often used in a situation where a currency has a defined value relative to the baseline. Historically, early currencies were typically coins struck from gold or silver by an issuing authority which certified the weight and purity of the precious metal. A government in need of money and short on precious metals might decrease the weight or purity of the coins without any announcement, or else decree that the new coins have equal value to the old, thus devaluing the currency.

Later, with the issuing of paper currency as opposed to coins, governments decreed them to be redeemable for gold or silver (a gold standard). Again, a government short on gold or silver might devalue by decreeing a reduction in the currency's redemption value, reducing the value of everyone's holdings.

In modern economies

UK economy

1949 devaluation

At the outbreak of World War II, in order to stabilise sterling, the pound was pegged to the US dollar at the rate of $4.03 with exchange controls restricting convertibility volumes. This rate was confirmed by the Bretton Woods agreements of 1944.[1]

After the war ended, US lend-lease funding, which had helped finance the UK’s high level of wartime expenditure, was abruptly ended and further US loans were conditional upon progress towards sterling becoming fully convertible into US dollars thereby aiding US trade.[2] In July 1947, sterling became convertible but the resultant drain on the UK’s reserves of US dollars was such that 7 weeks later, convertibility was suspended, rationing tightened and expenditure cuts made.[3] The exchange rate reverted to its pre-convertibility level, a devaluation being avoided by the new Chancellor the Exchequer Stafford Cripps choking off consumption by increasing taxes in 1947.

By 1949, in part due to a dock strike, the pressure on UK reserves supporting the fixed exchange rate mounted again at a time when Cripps was seriously ill and recuperating in Switzerland.[4][5] Prime Minister Clement Attlee delegated a decision on how to respond to 3 young ministers, whose jobs included economic portfolios, namely Hugh Gaitskell, Harold Wilson and Douglas Jay, who collectively recommended devaluation.[6] Wilson was despatched with a letter from Attlee to tell Cripps of their decision, expecting that the Chancellor would object, which he did not.[7] On 18 September 1949 the exchange rate was reduced from $4.03 to $2.80 and a series of supporting public expenditure cuts imposed soon afterwards.[1][8]

1967 devaluation

When the Labour Government of Prime Minister Harold Wilson came to power in 1964, the new administration inherited an economy in a more parlous state than expected with the estimated balance of payments deficit for the year amounting to £800 million, twice as high as Wilson had predicted during the election campaign.[9] Wilson was opposed to devaluation, in part due to the bad memories of the 1949 devaluation and its negative impact on the Attlee government, but also due to the fact that he had repeatedly asserted that Labour was not the party of devaluation.[10] Devaluation was avoided by a combination of tariffs and raising $3bn from foreign central banks.[11] It has been suggested that, following the crisis, Wilson was so keen to avoid further pressure on sterling that in 1965 he publicly announced the British government would not use force to prevent Rhodesia declaring independence, thereby removing the one major uncertainty holding back the Rhodesian government from doing just that.[12]

By 1966, pressure on sterling was intensifying, due in part to the seamen's strike, and the case for devaluation being articulated in the higher echelons of government, not least by the deputy prime minister George Brown.[13] Wilson resisted and eventually pushed through a series of deflationary measures in lieu of devaluation including a 6 month wage freeze.[14] As a consequence Brown resigned but then changed his mind and remained in the government.[15][16]

After a brief period in which the deflationary measures relieved sterling, pressure mounted again in 1967 as a consequence of the Six-Day War, the Arab oil embargo and a dock strike.[17] After failing to secure a bail-out from the Americans or the French, a devaluation in the parity rate of £1 from $2.80 to $2.40 was announced at 9:30 p.m. on Saturday 18 November 1967.[18] [16] In a broadcast to the nation the following day, Wilson said, “Devaluation does not mean that the value of the pound in the pocket in the hands of the…British housewife…is cut correspondingly. It does not mean that the pound in the pocket is worth 14% less to us now than it was.” This wording is often misquoted as “the pound in your pocket has not been devalued.”[19]

Harold Wilson infamously declared that although the British pound would be worth a lower amount abroad it would still be worth as much at home.[20]

Other economies

China devalued its currency twice within two days by 1.9% and 1% in July 2015. India devalued its currency by 35% in 1977.[21]

Causes

Fixed exchange rates are usually maintained by a combination of legally enforced capital controls and the central bank standing ready to purchase or sell domestic currency in exchange for foreign currency. Under fixed exchange rates, persistent capital outflows or trade deficits will involve the central bank using its foreign exchange reserves to buy domestic currency, to prop up demand for the domestic currency and thus to prop up its value. However, this activity is limited by the amount of foreign currency reserves the central bank owns; the prospect of running out of these reserves and having to abandon this process may lead a central bank to devalue its currency in order to stop the foreign currency outflows.

In an open market, the perception that a devaluation is imminent may lead speculators to sell the currency in exchange for the country's foreign reserves, increasing pressure on the issuing country to make an actual devaluation. When speculators buy out all of the foreign reserves, a balance of payments crisis occurs. Economists Paul Krugman and Maurice Obstfeld present a theoretical model in which they state that the balance of payments crisis occurs when the real exchange rate (exchange rate adjusted for relative price differences between countries) is equal to the nominal exchange rate (the stated rate).[22] In practice, the onset of crisis has typically occurred after the real exchange rate has depreciated below the nominal rate. The reason for this is that speculators do not have perfect information; they sometimes find out that a country is low on foreign reserves well after the real exchange rate has fallen. In these circumstances, the currency value will fall very far very rapidly. This is what occurred during the 1994 economic crisis in Mexico.

Effects

After a devaluation, the new lower value of the domestic currency will make it less expensive for foreign consumers to obtain local currency with which to buy locally produced export goods, so more exports will be sold, helping domestic businesses. Further, the new exchange rate will make it more expensive for local consumers to obtain foreign currency with which to import foreign goods, hurting domestic consumers and causing less to be imported. The combined effect will be to reduce or eliminate the previous net outflow of foreign currency reserves from the central bank, so if the devaluation has been to a great enough extent the new exchange rate will be maintainable without foreign currency reserves being depleted any further.

See also

References

  1. ^ a b "Dollar Exchange Rate from 1940". miketodd.net. Retrieved 14 October 2018.
  2. ^ Jenkins, Roy (1998). The Chancellors. London: Macmillan. p. 448. ISBN 0333730577.
  3. ^ Beckett, Francis (1997). Clem Attlee. London: Richard Cohen Books. p. 235. ISBN 1860661017.
  4. ^ Pimlott pp134-6
  5. ^ Beckett p278
  6. ^ Pimlott pp136-7
  7. ^ Pimlott pp138-9
  8. ^ Beckett p278
  9. ^ Pimlott, Ben (1992). Harold Wilson. London: Harper Collins. p. 350. ISBN 0002151898.
  10. ^ Campbell, John (2014). Roy Jenkins - A Well-rounded Life. London: Jonathan Cape. p. 280-1. ISBN 9780224087506.
  11. ^ Pimlott pp352-4
  12. ^ Pimlott p375
  13. ^ Pimlott p414
  14. ^ Campbell p281
  15. ^ Pimlott pp425-8
  16. ^ a b Healey, Denis (1989). The Time of my Life (Penguin paperback 1990 ed.). London: MIchael Joseph. p. 333. ISBN 0140153942.
  17. ^ Campbell p303
  18. ^ Pimlott pp477-82
  19. ^ Pimlott pp483-4
  20. ^ "BBC ON THIS DAY - 19 - 1967: Wilson defends 'pound in your pocket'". news.bbc.co.uk.
  21. ^ Doerer, Kristen (Aug 17, 2015). "Your guide to China's devaluation of its currency". PBS NewsHour.
  22. ^ Krugman, Paul; Obstfeld, Maurice (1999). "17 [Appendix II]". International Economics (5th ed.). Longman. ISBN 978-0-321-07727-1.

External links

1973–74 stock market crash

The 1973–74 stock market crash caused a bear market between January 1973 and December 1974. Affecting all the major stock markets in the world, particularly the United Kingdom, it was one of the worst stock market downturns in modern history. The crash came after the collapse of the Bretton Woods system over the previous two years, with the associated 'Nixon Shock' and United States dollar devaluation under the Smithsonian Agreement. It was compounded by the outbreak of the 1973 oil crisis in October of that year. It was a major event of the 1970s recession.

Akçe

The akçe (Ottoman Turkish: آقچه‎) (Turkish pronunciation: [aktʃe]) was the chief monetary unit of the Ottoman Empire, a silver coin. Three akçes were equal to one para. One-hundred and twenty akçes equalled one kuruş. Later after 1687 the kuruş became the main unit of account, replacing the akçe. In 1843, the silver kuruş was joined by the gold lira in a bimetallic system. Its weight fluctuated, one source estimates it is between 1.15 and 1.18 grams. The name akçe originally referred to a silver coin but later the meaning changed and it became a synonym for money.

The mint in Novo Brdo, a fortified mining town in the Serbian Despotate rich with gold and silver mines, began to strike akçe in 1441 when it was captured by the Ottoman forces for the first time.The Suleiman Mosque in Istanbul is said to have cost 59 million akçe when it was constructed in the 1550s. This amount is said to have equalled 700,000 ducats in gold (probably Venetian).

Banking in Argentina

This article is about the banking system of Argentina, including an overview of the recent past. For details on the economy at large, see Economy of Argentina.During the 1990s, marked by President Carlos Menem's policies of liberalization, Argentina's financial system saw a significant consolidation and strengthening, in large part through foreign investment. In addition to high reserve and capital-adequacy requirements, the Central Bank of Argentina maintained a repurchase agreement with a consortium of international banks to provide a $6,000 million safety net in the event of a liquidity squeeze.

Mergers and acquisitions, which decreased the number of Argentine banks from nearly 300 in 1990 to fewer than 100 at the end of 1999, were expected to continue and lead to improvements in management and efficiency. The foreign currency reserves of the Central Bank stood at nearly $25,000 million in December 1999, or over 9 months of imports. However, these reserves were used to back the monetary liabilities of the Central Bank and were not available for conducting monetary policy; by the terms of the Convertibility Law, each Argentine peso in circulation was to be matched by one American dollar in the reserves.

Despite the recession (started in 1998 after the international economic shock due to the 1998 Russian financial crisis), bank deposits continued to grow until 2001, although at a much slower rate than in previous years. Total deposits in the banking system stood at nearly $80,000 million by mid-2001 — more than twice that of June 1995, when deposits hit a low of $37,000 million. Foreign-controlled banks held over 40% of total deposits, and six of the top 10 commercial banks were in the hands of American and European financial institutions.

Still, the level of bank utilization in Argentina remained relatively low, and bank intermediation represented only about 30% of the GDP — a much lower ratio than those of Chile, Mexico, or Brazil, for example.

Nevertheless, the banking system suffered a fatal flaw: it lent dollars and took deposits in Argentine pesos (nominally argendollars). By early 2001, deposits had reached $87,000 million, but when the economy took a second dip, capital started flowing out of Argentina, and deposits started to move away from the weaker players of the financial system, namely provincial banks and large local banks.

This eventually led to a run on all banks in the system, a freeze in deposits, and a currency devaluation, which included an asymmetric devaluation of loans and deposits. Banks were forced to collect their dollar loans at a conversion rate much lower than the rate applied to its dollar deposits. This made many banks technically bankrupt and destroyed the confidence of the public in the financial system, which was held responsible for many of the economic ills of the country.

Deposits fell to less than $40,000 million by the end of 2002. Foreign banks fled the country during 2002 and 2003, selling their operations to smaller local banks at a fraction of their original investments. Only a few large foreign banks decided to stay.

In 2004, the government compensated the banks for the impact of the asymmetric devaluation of deposits and loans through a series of "compensation bonds".

Currently banks are again gaining deposits, which amounted to more than $44,000 million by February 2006, and have been increasing their lending portfolios. Their operations are leaner, due to the massive layoffs of 2002, that reduced their working force by more than 30%. However, the public still remains wary of taking long term loans, and rates are high in real terms given Argentina's low rates of inflation. Banking penetration remains low and banking costs high.

The Argentine banking sector is currently dominated by state-owned banks, with the largest being the Banco de la Nación Argentina. In 2005, for the first time since the 2001 collapse, the banking system made a profit, according to a Central Bank report released in February 2006. The total profits amounted to 1,958 million pesos (more than $650 million).

Black Wednesday

Black Wednesday occurred in the United Kingdom on 16 September 1992, when John Major's Conservative government was forced to withdraw the pound sterling from the European Exchange Rate Mechanism (ERM) after it was unable to keep the pound above its agreed lower limit in the ERM. In 1997, the UK Treasury estimated the cost of Black Wednesday at £3.4 billion. In 2005, documents released under the Freedom of Information Act indicated that the actual cost may have been slightly less, £3.3 billion. At that time, the United Kingdom held the Presidency of the European Communities.

The trading losses in August and September were estimated at £800 million, but the main loss to taxpayers arose because devaluation could have made them a profit. The Treasury papers show that if the government had maintained $24 billion foreign currency reserves and the pound had fallen by the same amount, the UK would have made a £2.4 billion profit on the pound sterling's devaluation.

Capital flight

Capital flight, in economics, occurs when assets or money rapidly flow out of a country, due to an event of economic consequence. Such events could be an increase in taxes on capital or capital holders or the government of the country defaulting on its debt that disturbs investors and causes them to lower their valuation of the assets in that country, or otherwise to lose confidence in its economic strength.

This leads to a disappearance of wealth, and is usually accompanied by a sharp drop in the exchange rate of the affected country—depreciation in a variable exchange rate regime, or a forced devaluation in a fixed exchange rate regime.

This fall is particularly damaging when the capital belongs to the people of the affected country, because not only are the citizens now burdened by the loss in the economy and devaluation of their currency, but probably also, their assets have lost much of their nominal value. This leads to dramatic decreases in the purchasing power of the country's assets and makes it increasingly expensive to import goods and acquire any form of foreign facilities, e.g. medical facilities.

Currency war

Currency war, also known as competitive devaluations, is a condition in international affairs where countries seek to gain a trade advantage over other countries by causing the exchange rate of their currency to fall in relation to other currencies. As the exchange rate of a country's currency falls, exports become more competitive in other countries, and imports into the country become more and more expensive. Both effects benefit the domestic industry, and thus employment, which receives a boost in demand from both domestic and foreign markets. However, the price increases for import goods (as well as in the cost of foreign travel) are unpopular as they harm citizens' purchasing power; and when all countries adopt a similar strategy, it can lead to a general decline in international trade, harming all countries.

Historically, competitive devaluations have been rare as countries have generally preferred to maintain a high value for their currency. Countries have generally allowed market forces to work, or have participated in systems of managed exchanges rates. An exception occurred when a currency war broke out in the 1930s when countries abandoned the gold standard during the Great Depression and used currency devaluations in an attempt to stimulate their economies. Since this effectively pushes unemployment overseas, trading partners quickly retaliated with their own devaluations. The period is considered to have been an adverse situation for all concerned, as unpredictable changes in exchange rates reduced overall international trade.

According to Guido Mantega, former Brazilian Minister for Finance, a global currency war broke out in 2010. This view was echoed by numerous other government officials and financial journalists from around the world. Other senior policy makers and journalists suggested the phrase "currency war" overstated the extent of hostility. With a few exceptions, such as Mantega, even commentators who agreed there had been a currency war in 2010 generally concluded that it had fizzled out by mid-2011.

States engaging in possible competitive devaluation since 2010 have used a mix of policy tools, including direct government intervention, the imposition of capital controls, and, indirectly, quantitative easing. While many countries experienced undesirable upward pressure on their exchange rates and took part in the ongoing arguments, the most notable dimension of the 2010–11 episode was the rhetorical conflict between the United States and China over the valuation of the yuan. In January 2013, measures announced by Japan which were expected to devalue its currency sparked concern of a possible second 21st century currency war breaking out, this time with the principal source of tension being not China versus the US, but Japan versus the Eurozone. By late February, concerns of a new outbreak of currency war had been mostly allayed, after the G7 and G20 issued statements committing to avoid competitive devaluation. After the European Central Bank launched a fresh programme of quantitative easing in January 2015, there was once again an intensification of discussion about currency war.

Economy of Ivory Coast

The economy of Ivory Coast is stable and currently growing, in the aftermath of political instability in recent decades. The Ivory Coast is largely market-based and depends heavily on the agricultural sector. Almost 70% of the Ivorian people are engaged in some form of agricultural activity. GDP per capita grew 82% in the 1960s, reaching a peak growth of 360% in the 1970s. But this proved unsustainable and it shrank by 28% in the 1980s and a further 22% in the 1990s. This coupled with high population growth resulted in a steady fall in living standards. Gross national product per capita, now rising again, was about US$727 in 1996. (It was substantially higher two decades ago.) After several years of lagging performance, the Ivorian economy began a comeback in 1994, due to the devaluation of the CFA franc and improved prices for cocoa and coffee, growth in non-traditional primary exports such as pineapples and rubber, limited trade and banking liberalization, offshore oil and gas discoveries, and generous external financing and debt rescheduling by multilateral lenders and France. The 50% devaluation of franc zone currencies on 12 January 1994 caused a one-time jump in the inflation rate to 26% in 1994, but the rate fell sharply in 1996-1999. Moreover, government adherence to donor-mandated reforms led to a jump in growth to 5% annually in 1996-99. A majority of the population remains dependent on smallholder cash crop production. Principal exports are cocoa, coffee, and tropical woods.

Eduardo Duhalde

Eduardo Alberto Duhalde (Spanish pronunciation: [eˈðwaɾdo alˈβeɾto ˈðwalde]; born October 5, 1941) is an Argentine politician who served as President of Argentina from 2002 to 2003. Born in Lomas de Zamora, he was elected for the local legislature and appointed mayor in 1973. He was deposed during the 1976 Argentine coup d'état, and elected again when democracy was restored in 1983 after the tyranny of soldiers raiding homes. He was elected vice-president of Argentina in 1989, under President Carlos Menem.

Duhalde resigned as vice president and was elected Governor of Buenos Aires Province in 1991, and re-elected in 1995. He ran for president in 1999, being defeated by Fernando de la Rúa. De la Rúa resigned during the December 2001 riots, and Congress appointed the governor of San Luis Province Adolfo Rodríguez Saá as president. When Rodríguez Saá also resigned, Congress appointed Duhalde. During Duhalde's term in office, a huge currency devaluation and an increase of the exchange rate led to a gradual recovery. He successfully supported the obscure candidate Néstor Kirchner against Menem, who sought a new presidential term. Duhalde had political disputes with Kirchner in later years, and is largely retired from politics since his defeat in the 2011 presidential elections.

History of the rupee

The history of the Rupee traces back to the Ancient India in circa 6th century BC. Ancient India was the earliest issuers of coins in the world, along with the Chinese wen and Lydian staters.

The word "rupee" is derived from a Sanskrit word "rūpa", which means "wrought silver, a coin of silver", in origin an adjective meaning "shapely", with a more specific meaning of "stamped, impressed", whence "coin". It is derived from the noun rūpa "shape, likeness, image". The word rūpa itself could have Vedic or Dravidian roots.

Vedic origin is more likely, as Sanskrit rūpa, n.,m. a form, beauty (Rigveda), rūpaka adjective and n.,m. a particular coin Pañcatantra, rūpya,*rūpiya-, adj. beautiful, bearing a stamp Pāṇini., n. silver Mahabharata. There is no evidence of transmission to Indo-Aryan from Dravidian and textual evidence dates to well before any references in the later Dravidian.Arthashastra, written by Chanakya, prime minister to the first Maurya emperor Chandragupta Maurya (c. 340–290 BCE), mentions silver coins as rūpyarūpa, other types including gold coins (suvarṇarūpa), copper coins (tāmrarūpa) and lead coins (sīsarūpa) are mentioned. Rūpa means form or shape, example, rūpyarūpa, rūpya – wrought silver, rūpa – form.Sher Shah Suri, during his five-year rule from 1540 to 1545, set up a new civic and military administration and issued a coin of silver, weighing 178 grains, which was termed the Rupiya. The silver coin remained in use during the Mughal period, Maratha era as well as in British India. Among the earliest issues of paper rupees include the Bank of Hindostan (1770–1832), the General Bank of Bengal and Bihar (1773–75, established by Warren Hastings), and the Bengal Bank (1784–91).

The Indian rupee was a silver-based currency during much of the 19th century, which had severe consequences on the standard value of the currency, as stronger economies were on the gold standard. During British rule, and the first decade of independence, the rupee was subdivided into 16 annas. Each anna was subdivided into 4 paisas. So one rupee was equal to 64 pice (paisa) In 1957, decimalisation occurred and the rupee was divided into 100 naye paise (Hindi/Urdu for new paisas). After a few years, the initial "naye" was dropped.

For many years in the early and mid-20th century, the Indian rupee was the official currency in several areas that were controlled by the British and governed from India; areas such as East Africa, Southern Arabia and the Persian Gulf.

Huvishka

Huvishka (Kushan: Οοηϸκι, "Ooishki") was the emperor of the Kushan Empire from the death of Kanishka (assumed on the best evidence available to be in 140 CE) until the succession of Vasudeva I about forty years later. His rule was a period of retrenchment and consolidation for the Empire.

Idealization and devaluation

In psychoanalytic theory, when an individual is unable to integrate difficult feelings, specific defenses are mobilized to overcome what the individual perceives as an unbearable situation. The defense that helps in this process is called splitting. Splitting is the tendency to view events or people as either all bad or all good. When viewing people as all good, the individual is said to be using the defense mechanism idealization: a mental mechanism in which the person attributes exaggeratedly positive qualities to the self or others. When viewing people as all bad, the individual employs devaluation: attributing exaggeratedly negative qualities to the self or others.

In child development, idealization and devaluation are quite normal. During the childhood development stage, individuals become capable of perceiving others as complex structures, containing both good and bad components. If the development stage is interrupted (by early childhood trauma, for example), these defense mechanisms may persist into adulthood.

Internal devaluation

Internal devaluation is an economic and social policy option whose aim is to restore the international competitiveness of some country mainly by reducing its labour costs – either wages or the indirect costs of employers. Sometimes internal devaluation is considered as alternative to 'standard' external devaluation when nominal exchange rates are fixed, although social implications and speed of economic recovery can significantly differ between the two options. While proponents usually blame fiscal profligacy or loss of competitiveness as the reason for a need to devalue internally, critics oftentimes view macroeconomic imbalances and the absence of a fiscal transfer mechanism within a currency union as culprits.Internal devaluation was first considered during the Sweden economic crisis during the 1990s and Finland's accession to the European Union in 1995. Internal devaluation gained popularity during the economic recession of 2008–2010 when several countries pursued such policies with aim to restore competitiveness and to balance national budgets.

Latvia is often named as successful case of internal devaluation by popular media, although its poor performance in the international development indices (e.g. Global competitiveness indices, European Union Innovation Scoreboard, the miserable rating levels had not changed in the following year as well ) as well as severe emigration have been claimed to prove the negative impact of internal devaluation on the development of the human resources and potential GDP (whose performance can be measured by the notable inflation rate).

Kazakhstani tenge

The tenge (Kazakh: теңге, Kazakh pronunciation: [teŋˈge]; Russian: тенге́, Russian pronunciation: [tʲɪn⁽ʲ⁾ˈɡʲe]; sign: ₸ ; code: KZT) is the currency of Kazakhstan. It is divided into 100 tıyn (тиын, also transliterated as tiyin or tijin). The ISO-4217 code is KZT.

Reactive devaluation

Reactive devaluation is a cognitive bias that occurs when a proposal is devalued if it appears to originate from an antagonist. The bias was proposed by Lee Ross and Constance Stillinger (1988).Reactive devaluation could be caused by loss aversion or attitude polarization, or naïve realism.

Rogernomics

The term Rogernomics, a portmanteau of "Roger" and "economics", was coined by journalists at the New Zealand Listener by analogy with Reaganomics to describe the neoliberal economic policies followed by Roger Douglas after his appointment in 1984 as Minister of Finance in the Fourth Labour Government of New Zealand. Rogernomics was characterised by market-led restructuring and deregulation and the control of inflation through tight monetary policy, accompanied by a floating exchange rate and reductions in the fiscal deficit. Douglas came from a background of Labour Party politics. His adoption of policies more usually associated with the political right (or New Right), and their implementation by the Fourth Labour Government, were the subject of lasting controversy.

Superclásico de Quito

The Superclásico de Quito (Spanish: Super Derby of Quito) is a football rivalry between Ecuadorian clubs Aucas and LDU Quito, both from the capital city of Quito.

The Gold (Control) Act, 1968

The Gold (Control) Act, 1968 is a repealed Act of the Parliament of India which was enacted to control sale and holding of gold in personal possession. However excessive demand for gold in India with negligible indigenous production is met with gold imports leading to drastic devaluation of Indian rupee and depletion of foreign exchange reserves to alarming levels. Devaluation of Indian rupee is also leading to steep rise in food commodity prices due to costlier petroleum products imports. In these circumstances, the gold import policy of India aims at curbing the gold imports to manageable level time to time by imposing taxes and legal restrictions.

The Learning Company

The Learning Company (TLC) is an American educational software company, currently owned by Houghton Mifflin Harcourt. It produced a grade-based system of learning software and tools to improve productivity. Products for preschoolers through second graders include Reader Rabbit, and software for more advanced students include The ClueFinders. The company is also known for publishing licensed educational titles featuring characters such as Arthur, Scooby-Doo, Zoboomafoo, and Caillou.

Zimbabwean dollar

The Zimbabwean dollar (sign: $, or Z$ to distinguish it from other dollar-denominated currencies) was the official currency of Zimbabwe from 1980 to 12 April 2009. During this time, it was subject to periods of above-average inflation, followed by a period of hyperinflation.The Zimbabwean dollar was introduced in 1970 to directly replace the Rhodesian dollar at par (1:1), at a similar value to the US dollar. Over time, hyperinflation in Zimbabwe reduced the Zimbabwe dollar to one of the lowest valued currency units in the world. It was redenominated three times (in 2006, 2008 and 2009), with denominations up to a $100 trillion banknote issued. The final redenomination produced the "fourth dollar" (ZWL), which was worth 1025 ZWD (first dollars).

Use of the Zimbabwean dollar as an official currency was effectively abandoned on 12 April 2009. It was demonetised in 2015, with outstanding accounts able to be reimbursed until April 30, 2016. In place of the Zimbabwean dollar, currencies including the South African rand, Botswana pula, pound sterling, Indian rupee, euro, Japanese yen, Australian dollar, Chinese yuan, and the United States dollar are now regularly used.

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