Stabilization policy is a macroeconomic policy that is designed to smooth out the ups and downs of the business cycle and keep the economy on track. Stabilization policy can be used to fight inflation or recession, depending on the current economic conditions. There are two main types of stabilization policy: 1. Fiscal policy: This type … Read more
. The Velocity of Money: Definition and Examples What is money supply formula? M = C + B M is the money supply, C is the amount of currency in circulation, and B is the amount of commercial bank deposits. What is M2 money velocity? M2 money velocity is a measure of the rate at … Read more
Recoupling occurs when two previously uncoupled economic variables become coupled again. For example, if inflation and unemployment were previously uncoupled, and then inflation begins to rise as unemployment falls, this would be an example of recoupling. Why is decoupling important? Decoupling is important for two reasons. First, it allows policy makers to target specific sectors … Read more
National income accounting is a method used by economists to measure the economic performance of a country. It includes measures of gross domestic product (GDP), net national product (NNP), and national income (NI). Net national product (NNP) is the market value of all final goods and services produced in a country in a given period … Read more
Y2K: What Happened and What Didn’t What is the next Y2K? There is no definitive answer to this question, as there is no clear consensus on what the next “Y2K” event could be. However, some possible contenders for the title include the following: -The global debt crisis -The looming retirement of the Baby Boomer generation … Read more
The term “green shoots” is used to describe signs of economic growth or recovery, especially after a period of recession or decline. The phrase is often used in the media to describe positive economic news, and is often used by politicians to describe their policies as being successful. What is shoot system in plants? In … Read more
An econometrician is someone who uses statistical methods to study economic data and to develop economic models. Econometricians often work in government, academia, or the private sector, and their work can involve anything from designing economic surveys to forecasting economic activity. Does econometrics have a lot of math? Econometrics does have a lot of math. … Read more
A reserve tranche is an emergency reserve of foreign currency held by a central bank. The reserve tranche allows a central bank to intervene in the foreign exchange market to stabilize the value of its currency. The size of the reserve tranche is determined by the central bank’s monetary policy. Is reserve an asset? In … Read more
A repricing opportunity is a situation in which a firm can increase its profits by adjusting its prices. This can occur when there is a change in the market conditions, such as a new entrant, or a change in the firm’s own cost structure. In order to take advantage of a repricing opportunity, the firm … Read more
Deadweight loss is a measure of the inefficiency of a market. It occurs when the market is not in equilibrium and there is a surplus or shortage of a good or service. Deadweight loss is also known as allocative inefficiency. In a perfectly competitive market, the price of a good or service would be equal … Read more
