by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Plutonomy?A Plutonomy is an economy driven by spending by individuals in the highest economic class. It is characterized by a small middle class, with extreme disparity in wealth and income between the upper and lower classes. How Does a Plutonomy Work In a...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Smithsonian Agreement?The Smithsonian Agreement was an agreement signed by 10 top industrialized countries in 1971to regulate international payment and exchange at that moment. The agreement made an amendment to the fixed exchange rates stipulated in the...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Permanent Income Hypothesis?This is a hypothesis stating that consumers will spend at a level relative to their expected level of long-term income. The consumer sees a certain level of income as recurring or permanent. How is the the Permanent Income...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Experimental Economics?Experimental economics is a branch of economics where experimental methods are applied in the study of economic theories and economic behaviors. This branch of economics relies heavily on data, laboratory-controlled and scientifically...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Neutrality Of Money?The neutrality of money is a theory that maintains that changes in the supply of money in an economy only affect nominal variables and not real variables. This means that when the Cbetra bank decides to change the supply of money,...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Robin Hood Effect?The Robin Hood effect is an economic situation whereby wealth is stolen from the rich to give to the poor in society in order to reduce economic inequality. The Robin Hood Effect entails the redistribution of wealth in the economy in...
