Monetary policy is the set of instruments and techniques used by the monetary authority of a nation (be it the government or the Central Bank) in order to maintain a monetary supply (money) in accordance with the growth and expansion needs of a country, with the objective of maintaining economic stability and a security scenario…
One of the most important concepts in macroeconomics is the public deficit. This indicator helps us, together with GDP, PPP GDP and the Human Development Index, to measure the health of a nation’s economy and define its prospects for prosperity in the medium and long term.
One of the concepts we talked about in previous posts was the trade surplus. In order to better understand this idea, we must delve into its technical definition and why it is so important in the International Monetary Fund‘s reports on imbalances in the international economy. A nation is said to have a trade surplus…
Political economy is a branch of social science that studies the relationships between individuals and society and between markets and the state, using a diverse set of tools and methods drawn mainly from economics, political science and sociology. The term political economy is derived from the Greek polis, meaning “city” or “state” , and oikonomos,…
Macroeconomics is a branch of economics that studies how an economy in general and market systems that operate on a large scale behave. Macroeconomics studies economy-wide phenomena, such as inflation, price levels, the rate of economic growth, national income, gross domestic product (GDP), and changes in unemployment. Some of the key questions addressed by macroeconomics…
Microeconomics is the social science that studies the implications of human action, specifically how individual decisions affect the use and distribution of scarce resources. Microeconomics shows how and why different goods have different values, how people make more efficient or more productive decisions, and how people better coordinate and cooperate with each other. Generally speaking,…
The trickle-down effect is an economic concept where giving concessions to rich people or capital owners will ultimately encourage economic growth. Economic policy should focus on them. In doing so, they will create more jobs and income, which will ultimately trickle down to the poorest sections of society and benefit all. How the trickle-down effect…
Generally, the chief executive officer (CEO) is considered the highest-ranking official in a company, and the president is second in command. However, in corporate governance and structure, many changes in leadership can occur, so the roles of CEO and president may be different, depending on the company. Definition of CEO The word CEO is an…
A developed economy is typically characteristic of a developed country with a high level of economic growth and security. The standard criteria for evaluating a country’s level of development are per capita income or gross domestic product per capita, the level of industrialization, the general standard of living, and the amount of technological infrastructure. Non-economic…
It is stated that stagflation exists in a national economy when two factors combine in its performance: Inflation and economic slowdown, or inflation and recession. This concept is the mixture of the two mentioned concepts; when both phenomena come together, the consequences for an economy are considerably serious. The idea comes from British Finance Minister…
