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Internal Purchasing Power

The internal purchasing power of a currency is the amount of goods and services that can be purchased with a...

Moral Suasion

The process which a central bank or monetary authority follows to persuade banks and other financial institutions under its supervision...

Managed Float

A regime of floating exchange rates in which central banks intervene to control currency fluctuations, so that the exchange rate...

Mexican Shock

The financial and economic negative effect on South American equity markets and currencies that was triggered by the Mexican peso...

Multi-Beta CAPM

A capital asset pricing model (CAPM) which views risk as coming from several sources. More specifically, in this model, systematic...

Mexican Peso Crisis

A financial crisis, also known as the tequila crisis, that was originated in Mexico over the span of the years...

Multiyear Restructuring Agreement

A bank debt rescheduling tool, originally introduced in 1984-1985, which provides creditor banks of a medium-term perspective for loan restructuring...

MacPPP

A price index (introduced by The Economist in 1986) that uses the McDonald's Big Mac sandwich as a bundle of...

Debt-Equity Swap

A financial transaction in which a multinational company (MNC) buys the debt of a country from its original creditor at...

Debt Repudiation

A complete default on debt repayment and service by a debtor nation. This constitutes an outright cancellation of all current...