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 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 Intra-Industry Trade? Comparative advantage, however, at least at first glance, does not seem especially well-suited to explain other common patterns of international trade. The theory of comparative advantage suggests that trade should happen between...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Level of Trade? A nation’s level of trade may at first sound like much the same issue as the balance of trade, but these two are actually quite separate. It is perfectly possible for a country to have a very high level of trade—measured by its exports of...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Growth Consensus? A growth consensus is a prediction about the future GDP growth calculated by combining several separate growth forecasts.
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Economic Convergence? Convergence occurs when a country with smaller GDP grows (economically) faster than those of high-income countries. Since economic growth in these countries has exceeded the average of the world’s high-income economies, these countries...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Standard of Living? Standard of living concerns the degree of wealth and material comfort available to a person or community.
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Countercyclical? Cyclicality of the fiscal policy simply refers to a change in direction of government expenditure and taxes based on economic conditions. These pertain to decisions by policymakers based on the fluctuations in economic growth. There are two...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Inflation Targeting? Inflation targeting is a central bank strategy of specifying an inflation rate as a goal and adjusting monetary policy to achieve that rate. Inflation targeting primarily focuses on maintaining price stability, but its proponents also...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Quantitative Easing? The most powerful and commonly used of the three traditional tools of monetary policy—open market operations—works by expanding or contracting the money supply in a way that influences the interest rate. In late 2008, as the U.S. economy...
