As of 2014, Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union make up the G20. The members represent the world's most advanced economies, accounting for roughly 85 percent of global GDP and more than 75 percent of world trade.
The G20 was formed in 1999 as a result of the global financial crisis, with the group aiming to improve the future of the global economy. During its annual leaders summit, established in 2008, the presidents of each member country converge, inviting several guest and nonmember nations to gain international input. Discussion is centered around improving financial regulation, implementing key economic reforms needed in member counties and reforming international financial institutions. By establishing measures to limit the collapse of financial markets, the G20 is credited with creating or saving millions of jobs that might otherwise have been destroyed.
Worldwide organizations supporting the G20 include the Organisation for Economic Co-operation and Development, Financial Stability Board, International Labour Organisation, International Monetary Fund, United Nations, World Bank and World Trade Organization. In addition to 2014 host Australia, previous sites of the summit have included the United States, the United Kingdom, Canada, Republic of Korea, France, Mexico and Russia.Learn More
The formula for the market value of debt is E((1-(1/(1 + R)^Y))/R) + T/(1 + R)^Y, where E is the annual interest expense, R is the cost of debt, T is the total debt and Y is the average maturity, in years, of the debt. However, calculating the market value of debt can be tricky, because not many firms carry their debt in bond form.Full Answer >
An example of the way a market economy works is how new technology is priced very high when it is first available for purchase, but the price goes down when more of that technology becomes available. This kind of price fluctuation is a central component of a market economy. That is, supply and demand dictates prices.Full Answer >
Economics and economic education are important for providing people with valuable insight into how foreign and domestic markets operate, which allows them to make reasoned and rational choices for short-term and long-term financial benefits. Studying economics also allows people to learn how to manage and most effectively use scare and finite resources such as time and money. Studying economics equips people with varying levels of financial literacy, which allows them to effectively manage their own finances and even advise others in financial management and planning, too.Full Answer >
According to the International Monetary Fund, inflation is an important economic statistic because it affects the value of money and indicates the overall stability of a country's economy. Inflation is a gradual continuous increase in the price of goods and services. A stable yearly inflation amount is typically between two and four percent, reports Economics Help.Full Answer >