Tag Archives: central bank

2016 looks to be a profitable year for gold investors. The price per ounce of the precious metal rose about 20% (in USD) since January. That’s not too bad for a safe asset like gold, while bondholders and savers around the world suffer from low to negative interest rates (and, in the case of Romania, outrageous retail-banking fees). Gold demand …

In chapter 1 we found out how hard it is and how long it takes to double an investment by simply put it on a bank account. And we didn’t even mention a powerful enemy for any money saver – the inflation. If I ask my friends or colleagues ‘what is inflation?‘, the answer is always the same: something like ‘when …

To understand, what is really decisive for the RON exchange rate, there are only two romanian gentlemen you need to know: Mr. Central Bank & Mr. Foreign Trade. When the rata lunara for CHF-mortgages exploded in January 2015, affected homebuyers gathered at the offices of the romanian central bank (BNR) in downtown Bucharest to protest in the hope that the mighty bank …

From time to time you hear in the news, that the central bank of Romania has changed the key interest rate. This change is rather small, in most cases 0.25% up or down. Why should I care too much about 0,25%? I have no money at the central bank anyway, you might think and switch the channel for more juicy …

Question 2: Suppose over the next 10 years the prices of the things you buy double. If your income also doubles, will you be able to buy less than you can buy today, the same as you can buy today, OR more than you can buy today? Answer: same This case seems to be clear – when you earn 1000 …