Economics

Economics

basics of economics

Industry: Economy

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Economics

Purchasing power parity (PPP)

Economy; Economics

A method for calculating the correct value of a currency, which may differ from its current market value. It is helpful when comparing living standards in different countries, as it indicates the ...

Public-private

Economy; Economics

Using private firms to carry out aspects of government. This has become increasingly popular since the early 1980s as governments have tried to obtain some of the benefits of the private sector ...

A firm providing essential services to the public, such as water, electricity and postal services, usually involving elements of natural monopoly. Food is essential, but because it is provided in a ...

Monetary neutrality

Economy; Economics

Changes in the money supply have no effect on real economic variables such as output, real interest rates and unemployment. If the central bank doubles the money supply, the price level will double ...

Monetarism

Economy; Economics

Control the money supply, and the rest of the economy will take care of itself. A school of economic thought that developed in opposition to post-1945 Keynesian policies of demand management, echoing ...

Modern portfolio theory

Economy; Economics

One of the most important and influential economic theories about finance and investment. Modern portfolio theory is based upon the simple idea that diversification can produce the same total returns ...

Modelling

Economy; Economics

When economists make a number of simplified assumptions about how the economy, or some part of it, behaves, and then see what this implies in various different scenarios. Milton Friedman argued that ...