by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Dollarize? Most countries have different currencies, but not all. Sometimes small economies use an economically larger neighbor’s currency. For example, Ecuador, El Salvador, and Panama have decided to dollarize—that is, to use the U.S. dollar as their...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Exports as Percentage of GDP?Exports as a percentage of GDP is simply the dollar value of all exports divided by the total GDP (measured by what is consumed or what is produced). Related Topics Trade Balance: Surplus and Deficit Mercantilism J Curve National...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Flow of Capital?Capital flows are transactions involving financial assets between international entities. Financial assets to be included can be bank deposits, loans, equity securities, debt instruments, etc. Capital outflow generally results from economic...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Unilateral Transfer? Recorded when transfers of resources that affect a nation’s income or product in the current period occur without a quid pro quo; the country receiving the transfer neither provides nor promises to provide anything of...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Financial Capital? Financial capital most commonly refers to assets needed by a company to provide goods or services, as measured in terms of money value. What is Economic Capital? Economic capital is the estimated amount of money needed to cover possible...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Tariff? A tariff is a customs duty or tax levied on imports of merchandise goods. Most of the time a tariff is an ad valorem tariff (percentage of value) or a specific tariff. Less often, it can be a compound tariff made up of both of these elements...
