Economics

Economics

basics of economics

Industry: Economy

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Economics

Real exchange rate

Economy; Economics

An exchange rate that has been adjusted to take account of any difference in the rate of inflation in the two countries whose currency is being exchanged.

Real balance effect

Economy; Economics

Falling inflation and interest rates lead to higher spending (see wealth effect).

Although economists say that rationing is what the price mechanism does, what most people think of as rationing is an alternative to letting prices determine how scarce economic resources, goods and ...

Rational expectations

Economy; Economics

How some economists believe that people think about the future. Nobody can predict the future perfectly; but rational expectations theory assumes that, over time, unexpected events (shocks) will ...

Queuing

Economy; Economics

Market failure? Not necessarily. Usually a queue reflects a price that is set too low, so that demand exceeds supply, so some customers have to wait to buy the product. But a queue may also be the ...

Quartile

Economy; Economics

Part of the "ile" family that signposts positions on a scale of numbers (see also percentile). The top quartile on, say, the distribution of income, is the richest 25% of the population.

Quantity theory of money

Economy; Economics

The foundation stone of monetarism. The theory says that the quantity of money available in an economy determines the value of money. Increases in the money supply are the main cause of inflation. ...