Economics

Economics

basics of economics

Contributors in Economics

Economics

A way to measure economic success, albeit one that can be manipulated quite easily. It is calculated by expressing the economic gain (usually profit) as a percentage of the capital used to produce ...

Random walk

Economy; Economics

Impossible to predict the next step. Efficient market theory says that the prices of many financial assets, such as shares, follow a random walk. In other words, there is no way of knowing whether ...

R squared

Economy; Economics

An indicator of the reliability of a relationship identified by regression analysis. An R2 of 0. 8 indicates that 80% of the change in one variable is explained by a change in the related variable.

Quota

Economy; Economics

A form of protectionism. A country imposes limits on the number of goods that can be imported from another country. For instance, France may limit the number of cars imported from Japan to, say, ...

Recession

Economy; Economics

Broadly speaking, a period of slow or negative economic growth, usually accompanied by rising unemployment. Economists have two more precise definitions of a recession. The first, which can be hard ...

Real terms

Economy; Economics

A measure of the value of money that removes the effect of inflation. Contrast with nominal value.

Real options theory

Economy; Economics

A newish theory of how to take investment decisions when the future is uncertain, which draws parallels between the real economy and the use and valuation of financial options. It is becoming ...