Important structure
One of the most important structures in international affairs is the finance structure. In last week’s presentation, a brief reference was made to the finance structure. The presentation took place in the context of an examination of the twinning of the production and security structures. Not much attention was given to the finance structure beyond its role in international trade. This week’s article will take a closer look at the finance structure, especially its international component which was built on a system of European and North American cooperation, with a view to determining how it affects or has affected Guyana.
Components
In the world of business, the finance structure refers to the combination of debt and equity used in the firm or company. That view of the finance structure becomes very limited outside the microeconomic world of the business. It is good for measuring the leverage of the firm and its capability of using it to expand its profitability. The concept of the finance structure does not stop there. In the wider economy, the finance structure consists of the set of monetary and financial relationships that enable markets and states to play their role in allocating resources. At the domestic level, the finance structure consists of the monetary policies, institutions and laws that govern the creation, use and disposal of money within Guyana and between Guyana and the rest of the world. The set of interest rates, reserve ratios, household and government debt,