Definition of investment: Investment is the addition to Capital Stock of the economy – e.g. factories, machines, or any item that is used to produce other goods and services Note saving money in a bank is not investment in economic terminology The value of capital stock depreciates over time as it wears out and is …
Accommodative monetary policy means a policy of allowing the money supply to rise in line with national income and the demand for money. Accommodative monetary policy will also usually involve lower interest rates. Accommodative monetary policy may also be known as ‘easy monetary policy’ / loose monetary policy / expansionary monetary policy. The aim of …
Saltwater economists are associated with economists from the Universities on the east and west coast of the US. In particular universities such as Berkeley, Harvard, MIT, Princeton, Pennsylvania Columbia and Yale. Economic thought from these universities tends to be more suspicious of free markets and advocate a greater role for government regulation and discretionary fiscal …
I am currently writing a book on economics. The target audience is: People who want to understand economics, especially economics which features in the news. Non-academic, though would be good summer reading for students. Features As much as possible it will avoid technical jargon and be accessible to non-students of economics. It will answer commonly …
A concise definition of economics Economics is the study of how to deal with the problem of scarcity and opportunity cost of decisions. Economics is concerned with the optimal distribution of scarce resources in particular What to Produce? How to Produce? Whom to Produce? To this end, economists investigate economic decisions made by individuals, firms …
An economic stimulus package is an attempt by the government to boost economic growth and lead the economy out of a recession or economic slowdown. The two main ways for stimulating the economy are expansionary monetary policy and expansionary fiscal policy. Though it tends to refer to fiscal policy. Fiscal policy This involves a change …
Readers Question: What policies could be used to ease pressure on housing market? Firstly, the main pressure in the UK housing market is the persistent and continued above inflation price increases. Back in 2004, Kate Barker’s report into housing market trends found that the UK would need to build 250,000 houses to reduce the house …
Readers Question: what is the difference between disguised unemployment and involuntary unemployment Definition of disguised unemployment. This is when people do not have productive full-time employment but are not counted in the official unemployment statistics. This may include: People with sickness/disability benefits (but, would be able to do some jobs) People doing part-time work. (sometimes …