International relation

The effects of inflation on the economy depend on the intensity of higher prices and that can foresee whether or not these increases. If prices rise a moderate its effects will not be too important, but if you get too the effects can be quite negative. Effects of inflation on income distribution:: savers and prestamistan be harmed, pensioners or employees affected in a negative way, borrowers benefit from inflation, holders of assets also benefit. / / Financial Intermediaries banking: banks, savings and credit cooperatives. nonbank intermediaries: investment companies and funds, pension funds, insurance companies, leasing agencies, entities factoring, venture capital entities. / / Assets are financial securities that are recognized by a debt of the issuer and that give the holder the right to its recovery. Features: profitability, risk, liquidity. / / The monetary policy: is constituted by the decisions that the monetary authority takes just about the interest rate and money supply in order to facilitate economic growth, employment and stability prices. The instruments are open market operations, the legal reserve ratio or minimum reserves, standing facilities. PM Expansiva: promoting economic creciimento empleo.Prestar and creating more money in the weekly auctions or lower interest rate. Or recessive restrictive: if prices are rising far the ECB pays less money to banks, interest rate rises and increases the reserve requirement. / / The balance of payments accounting is a document that reflects all international financial and economic exchanges within a country over a period of time. Inside it you distinguish the current account, the balance of capital and financial account balance. The current account: b.Comercial of serivicios, income, current transfers. The capital account balance: the Transference of capital and income and payment of the purchase or sale of intangible assets. Surplus, deficit and balance. The financial account balance: Net change in liabilities, net assets, the difference between the two. / / In Spain: the current account and capital has been negative, you pay more abroad than it is entered. Major deficit in trade balance, service balance is always positive, the income balance resultaod usually has a negative, positive balance of transfers before now negative (immigration), the surplus of the capital account is maintained. The financial balance: the Spanish deficit has led to the continuing need for international financing. To compensate for the negative results of the other two scales, our country has used to reduce their savings or to borrow abroad. / / A currency is a currency that is not itself used within a country.