- Industry: Economy; Printing & publishing
- Number of terms: 15233
- Number of blossaries: 1
- Company Profile:
A form of protectionism. A country imposes limits on the number of goods that can be imported from another country. For instance, France may limit the number of cars imported from Japan to, say, 20,000 a year. As a result of limiting supply, the price of the imported good is higher than it would be under free trade, thus making life easier for domestic producers.
Industry:Economy
The foundation stone of monetarism. The theory says that the quantity of money available in an economy determines the value of money. Increases in the money supply are the main cause of inflation. This is why Milton Friedman claimed that “inflation is always and everywhere a monetary phenomenon”. The theory is built on the Fisher equation, MV = PT, named after Irving Fisher (1867–1947). M is the stock of money, V is the velocity of circulation, P is the average price level and T is the number of transactions in the economy. The equation says, simply and obviously, that the quantity of money spent equals the quantity of money used. The quantity theory, in its purest form, assumes that V and T are both constant, at least in the short-run. Thus any change in M leads directly to a change in P. In other words, increase the money supply and you simply cause inflation. In the 1930s, Keynes challenged this theory, which was orthodoxy until then. Increases in the money supply seemed to lead to a fall in the velocity of circulation and to increases in real income, contradicting the classical dichotomy (see monetary neutrality). Later, monetarists such as Friedman conceded that V could change in response to variations in M, but did so only in stable, predictable ways that did not challenge the thrust of the theory. Even so, monetarist policies did not perform well when they were applied in many countries during the 1980s, as even Friedman has since conceded.
Industry:Economy
Things that can be consumed by everybody in a society, or nobody at all. They have three characteristics. They are:
* non-rival – one person consuming them does not stop another person consuming them;
* non-excludable – if one person can consume them, it is impossible to stop another person consuming them;
* non-rejectable – people cannot choose not to consume them even if they want to. Examples include clean air, a national defense system and the judiciary. The combination of non-rivalry and non-excludability means that it can be hard to get people to pay to consume them, so they might not be provided at all if left to market forces. Thus public goods are regarded as an example of market failure, and in most countries they are provided at least in part by government and paid for through compulsory taxation. (See also global public goods. )
Industry:Economy
Opposition to free trade. Although intended to protect a country’s economy from foreign competitors, it usually makes the protected country worse off than if it allowed international trade to proceed without hindrance from trade barriers such as quotas and tariffs.
Industry:Economy
A theory of “irrational” economic behavior. Prospect theory holds that there are recurring biases driven by psychological factors that influence people’s choices under uncertainty. In particular, it assumes that people are more motivated by losses than by gains and as a result will devote more energy to avoiding loss than to achieving gain. The theory is based on the experimental work of two psychologists, Daniel Kahneman (who won a Nobel Prize for economics for it) and Amos Tversky (1937–96). It is an important component of behavioral economics.
Industry:Economy
When a firm charges different customers different prices for the same product. For producers, the perfect world would be one in which they could charge each customer a different price: the price that each customer would be willing to pay. This would maximize producer surplus. This cannot happen, not least because sellers do not know how much any individual would pay. Yet some price discrimination is possible if an overall market can be segmented into somewhat separate markets and the equilibrium price in each of these markets is different, perhaps because of differences in consumer tastes, perhaps because in some segments the firm enjoys some market power. But this will work only if the market segments can be kept apart. If it is possible and profitable to buy the product in a low-price segment and resell it in a high-price segment, then price discrimination will not last for long.
Industry:Economy
In equilibrium, what balances supply and demand. The price charged for something depends on the tastes, income and elasticity of demand of customers. It depends on the amount of competition in the market. Under perfect competition, all firms are price takers. Where there is a monopoly, or firms have some market power, the seller has some control over the price, which will probably be higher than in a perfectly competitive market. By how much more will depend on how much market power there is, and on whether the firm(s) with the market power are committed to profit maximization. In some cases, firms may charge less than the profit-maximizing price for strategic or other reasons (see predatory pricing).
Industry:Economy
无法预测下一个步骤。有效市场理论认为，许多金融资产，如股票，遵循随机游走。换句话说，没有办法知道价格未来的变化是向上或向下，或有多少的上升或下降。原因是在一个有效的市场，所有的信息，允许投资者预测未来价格变动早已体现在目前的价格。这种信念使得一些经济学家认为，投资者不能一致优于市场。但一些经济学家认为，资产价格是可以预见的（他们遵循一个非随机游走），市场并不是有效的。
Industry:Economy
当人们被通货膨胀误导的以为他们是越来越富，而实际上货币的价值正在下降。无论如何，经济学家认为人是被通货膨胀所迷惑。货币幻觉，由凯恩斯创造的一个词，被一些经济学家认为，少量的通货膨胀可能不是一件坏事，甚至是有益的，有助于“grease the wheels”的经济。由于货币幻觉，工人想看到自己的名义工资上升，给他们误以为他们的情况正在改善,尽管在现实(通货膨胀)的条件下他们可能没有更好。高通货膨胀期间两位数的工资的增长(比如,说,大增加他们的家的价值),可以让人感觉富裕,即使他们并不是真正的更好。当通货膨胀率低,实际收入的增长几乎可以登记。
Industry:Economy
Nói rộng ra, là một giai đoạn tăng trưởng kinh tế tiêu cực hoặc chậm, thường đi kèm với tỷ lệ thất nghiệp tăng cao. Các chuyên gia kinh tê có thêm 2 định nghĩa chính xác khác về suy thóai. Định nghĩa đầu tiên mà có thể chứng minh là khi nền kinh tế tăng trưởng thấp hơn tỷ lệ tăng trưởng có tính xu hướng dài hạn và không có khả năng. Định nghĩa thứ 2 là hai quý giảm tỷ lệ GDP liên tục.
Industry:Economy
