Index
- A
- adverse selection
- definition
- aggregate consumption function
- definition
- aggregate demand
- and multiplier model
- definition
- shifts in
- shocks
- see also shocks
- aggregate demand function
- aggregate expenditure
- definition
- aggregate investment
- and interest rate changes
- and profit expectations
- aggregate investment function
- definition
- Amazon
- deforestation of
- non-compete clause
- American Recovery and Reinvestment Act of 2009
- anchored inflation expectations
- see also inflation
- antitrust policies
- see competition (antitrust) policies
- appreciation
- definition
- real
- Arctic sea ice
- decline of
- Argentina
- economy
- exchange rate policy
- inflation
- use of monetary finance
- Arrow, Kenneth
- asset price bubble
- definition
- asset prices
- and consumer expenditure
- definition
- assets
- and price bubbles
- and risk
- definition
- asymmetric information
- definition
- Auerbach, Alan
- austerity
- definition
- Australia
- economy
- labour market
- mining and construction
- autocracy
- definition
- automatic stabilizers
- definition
- automation
- effect on market incomes
- autonomous consumption
- definition
- autonomous demand
- definition
- autonomous investment
- definition
- average cost
- average product of capital
- definition
- average product of labour
- B
- ‘bail-in’
- definition
- balance sheet
- definition
- Bangladesh
- economic growth
- garment industry
- microfinance
- trade
- bank contagion
- bank deposits
- as means of exchange
- bank insolvency
- bank money
- definition
- Bank of England
- see also central bank
- bank runs
- definition
- banking crisis, 2007
- see ‘great recession’ 2007
- banknotes
- circulation of
- banks
- regulation of
- role of
- see also central bank, role of; commmercial banks
- ‘bargaining curve’
- bargaining gap
- definition
- barter economy
- base money
- definition
- Better Life Index
- BNP Paribas
- bond market
- definition
- bonds
- and interest rate changes
- definition
- boom-bust cycles
- Botswana
- economic growth
- institutions
- investment share of GDP
- Brazil
- voting rights in
- Bretton Woods
- bubble
- see asset price bubble; house price bubble
- business cycle
- definition
- model
- C
- California
- energy transition
- Canada
- 2023 wildfires
- inflation targeting
- capacity constrained
- definition
- capacity utilization
- definition
- low
- capital
- definition
- capital adequacy
- capital adequacy requirements
- definition
- capital controls
- capital gain
- definition
- capital goods
- definition
- capital intensity
- definition
- capital mobility
- and exchange rates
- and interest rates
- capital productivity
- capitalism
- definition
- capitalist economy
- carbon capture and storage
- carbon emissions
- and living standards
- carbon tax
- carbon trap
- see global warming and carbon trap
- carbon-based transport
- Castro, Fidel
- catch-up growth
- definition
- causation
- definition
- central bank
- assets
- balance sheet
- interest rate setting
- liabilities
- role of
- central bank independence
- definition
- ceteris paribus
- CFA common currency area
- CFA franc
- Chile
- Allende economic programme
- China
- COVID effect on economy
- economic transformation of
- exchange rate regime
- growth rates
- output and capital growth
- party governance
- China shock
- circular flow of income
- civil liberties
- definition
- climate change
- and government policy
- see also environmental crisis modelling; global warming
- climate investment
- co-insurance
- definition
- collateral
- definition
- in housing finance
- colonization
- and economic growth
- commercial banks
- reserves
- see also banks, role of
- commodity markets
- definition
- commodity money
- definition
- commodity price shocks
- see also shocks
- common currency
- definition
- common currency area
- and exchange rate
- and long-run inflation
- definition
- demand shocks in
- see also CFA common currency area; eurozone
- competition
- and market power
- and wage-setting
- in product market
- competition (antitrust) policies
- compound annual growth rate (CAGR)
- confidence
- effect on spending
- conflict of interest
- constant prices
- definition
- constant returns technology
- constrained choice problem
- definition
- consumer price index (CPI)
- definition
- consumer price inflation
- consumption
- and credit constraints
- autonomous
- definition
- domestic
- life cycle model
- volatility
- consumption smoothing
- definition
- limits
- convergence
- definition
- coordination game
- coordination problems
- and low growth
- Coronavirus Aid, Relief, and Economic Security (CARES) Act 2020
- corporate bond
- and risk
- see also bonds
- correlation
- definition
- correlation vs causation
- cost of living
- country comparisons
- cost of living crisis, 2022
- ‘cost push’ inflation
- see also inflation
- COVID-19
- economic effects
- creative destruction
- definition
- credit constraints
- and consumption behaviour
- definition
- credit market exclusion
- definition
- crowd out
- definition
- currency
- see bank money
- currency union
- see common currency area
- cyclical unemployment
- definition
- see also unemployment
- D
- Danish flexicurity triangle
- debt
- bilateral
- financing
- debt financing
- decile
- definition
- decoupling
- definition
- default
- definition
- default premium
- definition
- default risk
- deflation
- and pandemic
- definition
- degrowth
- and carbon emissions
- definition
- demand
- autonomous
- fluctuations in
- price elasticity
- demand shock
- and monetary policy
- definition
- negative
- demand side
- definition
- demand-pull inflation
- see also inflation
- democracy
- and economic policy
- and inequality
- components of
- definition
- growth and decline
- democratic accountability
- and principal-agent relationship
- Denmark
- effect of COVID-19
- exchange rate regime
- labour market and employment
- unemployment rate
- depreciation
- definition
- real
- developmental states
- definition
- discretionary fiscal policy
- definition
- see also fiscal policy
- disequilibrium growth
- disinflation
- definition
- disposable income
- definition
- diversification
- definition
- dividends
- ‘dollarization’
- definition
- duration curve of government
- ‘Dutch disease’
- E
- Eastern Europe
- collapse of planned economy
- economic competition
- economic dynamics
- definition
- economic growth
- measuring
- economic infeasibility
- definition
- economic models
- economic profit
- definition
- economic rent
- definition
- see also rent-seeking
- economically feasible
- definition
- economically inactive
- definition
- education
- and inequality
- effect on economic growth
- effect on price-setting curve
- El Niño
- economic effects of
- El Salvador
- transition to democracy
- elections
- in democracy
- electric vehicles
- adoption of
- and green values
- electricity consumption and GDP
- employment rate
- employment rent
- definition
- endogenous growth
- definition
- energy imports
- and WS-PS model
- energy transition
- and social movements
- energy use per person
- environmental crisis modelling
- environmental dynamics curve (EDC)
- see also price dynamics curve (PDC)
- environmental policies
- equilibrium
- definition
- stable
- unstable
- equities
- and risk
- definition
- see also shares
- equity
- definition
- investment
- ‘euro-ization’
- European Central Bank
- eurozone
- eurozone crisis 2010
- excess demand
- definition
- excess supply
- definition
- exchange rate
- and inflation
- and monetary policy
- and unemployment
- definition
- depreciation
- effect on trade
- fixed
- flexible
- in common currency area
- nominal
- real
- regimes globally
- Exchange Rate Mechanism (ERM)
- exchange rate regimes
- and inflation
- and rate setting
- fixed
- global
- ‘managed’
- ‘shadow’
- ‘target’
- see also exchange rate; ‘fixed’ rate regime; flexible exchange rate regime
- exchange rate, fixed
- see exchange rate; ‘fixed’ exchange rate regime
- exchange rate, flexible
- see exchange rate
- exogenous
- definition
- exogenous growth
- definition
- exogenous shock
- definition
- ‘expectations-driven’ inflation
- see expected inflation
- expected inflation
- definition
- see also inflation
- exports
- definition
- external effects
- definition
- extractive colony
- F
- factors of production
- definition
- fairness
- definition
- fallacy of composition
- definition
- feasible frontier
- definition
- feasible set
- definition
- Federal Reserve Economic Data (FRED)
- Federal Trade Commission
- feedback
- see negative feedback; positive feedback
- ‘fiat’ money
- financial accelerator
- definition
- financial crisis 2007
- see ‘great recession’ 2007
- financial intermediaries
- definition
- financial markets
- financial sector
- and debt
- composition
- role of
- financial system
- instability in
- fire sale
- definition
- firms
- definition
- investment funding
- price-setting
- fiscal contraction
- fiscal multiplier
- recession
- see also multiplier model
- fiscal policy
- definition
- discretionary
- fiscal stimulus
- Fisher equation
- see also interest rates
- Fix regime
- see fixed exchange rate regime
- fixed exchange rate
- definition
- fixed exchange rate regime
- and capital mobility
- and rate setting
- definition
- see also exchange rate, fixed
- fixed investment
- definition
- flexible exchange rate
- definition
- see also exchange rate; flexible exchange rate regime
- flexible exchange rate regime
- and inflation
- and monetary policy
- and rate setting
- with inflation target
- with no inflation target
- ‘flexicurity’
- FlexIT regime
- see flexible exchange rate regime with inflation target
- FlexNIT regime
- see flexible exchange rate regime with no inflation target
- fossil fuels
- as share of energy consumption
- Frederiksen, Mette
- free rider
- definition
- free rider problem
- Friedman, Milton
- Fukuyama, Francis
- fundamental uncertainty
- see uncertainty
- G
- GDP
- see gross domestic product
- GDP deflator
- definition
- see also gross domestic product (GDP)
- gearing
- definition
- see also leverage
- general equilibrium
- definition
- general equilibrium analysis
- Germany
- economic effects of reunification
- employment rate
- inflation rate over time
- labour market
- macroeconomic performance
- worker-employer relations
- gig economy
- Gini coefficient
- definition
- Gini, Corrado
- global capital mobility
- see capital mobility
- global economic shocks
- see also shocks
- global financial crisis, 2007
- see ‘great recession’ 2007
- global income, median
- see median global income
- global warming
- and carbon trap
- and environmental policy
- see also carbon emissions; climate change; Paris Accord 2015;
- gold
- use as money
- goods market equilibrium
- definition
- Gorodnichenko, Yuriy
- governance
- and inflation
- quality of
- government
- and economic security provision
- and poverty alleviation
- and provision of public goods
- as economic actor
- borrowing
- budget
- budget deficit
- capacity constraints
- climate change policy
- definition
- GDP spending
- inflation and popularity of
- information function
- regulation
- role in economy
- see also government corruption; government failure; government spending
- government austerity policy
- government bonds
- and risk
- see also bonds
- government budget deficit
- definition
- see also government, budget
- government corruption
- government debt
- and hyperinflation
- and quantitative easing
- government failure
- government spending
- definition
- government transfers
- definition
- Great Depression (1920s/30s)
- ‘Great Divergence’
- ‘great recession’ 2007
- and bank reforms
- green growth
- and carbon emissions
- definition
- gross domestic product (GDP)
- and climate change
- and non-market activity
- and underground economy
- calculation of
- components of
- cross-country comparison
- definition
- imports and exports
- interpreting
- nominal
- real
- gross fixed capital formation
- definition
- growth dynamics curve
- definition
- growth dynamics model
- and growth rates
- definition
- growth rates
- and rule of 70
- measuring
- see also economic growth
- growth transitions
- growth, barriers to
- H
- Habakkuk, John
- harmonized index of consumer prices (HICP)
- Harris, Seymour
- Hayek, Friedrich
- hedonic quality adjustment
- high-technology equilibrium
- Hirschman, Albert O.
- Exit, Voice and Loyalty 1970
- hockey stick growth
- definition
- hockey stick growth model
- Hotelling model
- and economic competition
- Hotelling, Harold
- house price bubble
- household wealth inequality
- housing
- as investment
- rate of return on
- housing collateral
- housing market
- booms and busts
- positive and negative feedback
- human capital
- definition
- Human Development Index
- hyperinflation
- definition
- I
- illegal economy
- illiquid
- definition
- import prices
- effects of rise in
- imports
- definition
- imputed rent
- definition
- incentives
- and public policy
- income
- disposable
- market
- income distribution
- global
- in egalitarian systems
- income inequality
- in high-income countries
- India
- growth rates
- state of democracy
- indifference curve
- definition
- inequality
- economic
- effect of democracy on
- effect of democracy on
- global
- income
- political
- inflation
- and discontent
- and election outcomes
- and exchange rate
- and governance
- and monetary policy dilemma
- and oil shocks
- and pandemic
- and unemployment
- causes
- ‘cost push’
- definition
- effects of
- expected
- global rates of
- long-run rate
- measuring
- targeting
- see also cost of living crisis, 2022
- inflation target
- definition
- see also inflation
- inflation targeting
- definition
- inflation-depreciation spiral
- inflation-stabilizing unemployment rate
- definition
- see also unemployment rate
- information and communications technology (ICT)
- infrastructure
- effect on economic growth
- initial equilibrium
- initial public offering (IPO)
- innovation rent
- definition
- innovation rents
- definition
- institutions
- and growth
- definition
- economic
- political
- interbank market
- interest rate
- and monetary policy
- definition
- nominal
- policy
- real
- inventory
- definition
- inventory investment
- definition
- investment
- and present value
- autonomous
- fall in
- household
- in multiplier model
- share of GDP
- investment and saving
- see also investment
- investment spending
- and interest rates
- effects of fall in
- volatility
- ‘invisible hand of the market’
- see also Smith, Adam
- involuntary unemployment
- definition
- see also unemployment
- J
- Japan
- deflation in
- GDP growth over time
- K
- Kalecki, Michał
- ‘Determinants of the distribution of national income’
- ‘The Political Aspects of Full Employment’
- Kennedy, John F.
- Keynes, John Maynard
- Keynes’ General Theory
- L
- labour force
- definition
- labour market
- aggregate
- definition
- employment rate
- matching
- participation rate
- power
- primary
- productivity
- secondary
- segmented
- supply-side policies
- unemployment rate
- labour productivity
- definition
- labour strikes
- labour unions
- definition
- legal tender
- definition
- Lehman Brothers
- collapse of
- see also ‘great recession’ 2007
- leverage
- and investing
- definition
- in banking
- liabilities
- definition
- life cycle model of consumption
- definition
- limited liability
- line of best fit
- definition
- liquid
- definition
- liquidity
- definition
- liquidity risk
- living standards
- and capital accumulation
- global
- Lorenz curve
- and WS-PS model
- definition
- Lorenz, Max
- low-technology equilibrium
- M
- macroeconomics
- definition
- Malthus, Thomas
- ‘managed’ exchange rate regime
- see exchange rate regimes, ‘managed’
- marginal cost
- definition
- marginal private benefit
- definition
- marginal propensity to consume (MPC)
- definition
- marginal propensity to import
- definition
- marginal rate of substitution (MRS)
- definition
- marginal rate of transformation (MRT)
- definition
- marginal social benefit
- definition
- marginal social cost
- definition
- market economy
- see capitalist economy
- market failure
- and government action
- definition
- market income
- definition
- markets
- matching
- product
- markup
- matching market
- definition
- see also markets
- maturity
- definition
- McDonald’s
- non-compete clause
- means of exchange
- definition
- median
- definition
- median global income
- median voter model
- menu costs
- definition
- merit goods
- definition
- microeconomics
- definition
- Milei, Javier
- see also Argentina
- Modigliani model
- Modigliani, Franco
- monetary base
- see also base money
- monetary finance
- monetary policy
- and exchange rate regimes
- and inflation
- definition
- transmission to economy
- monetary regimes
- types of
- see also exchange rate; ‘fixed’ exchange rate regime; flexible exchange rate regime
- monetary union
- definition
- see also common currency area
- money
- commodity
- definition
- role of
- money creation
- ‘money printing’
- see monetary finance
- money supply
- measurement
- MONIAC machine
- monopsony power
- see also labour market power
- moral hazard
- definition
- mortgage
- definition
- Multi-Fibre Agreement (MFA) 1974
- multiplier model
- and aggregate demand
- and consumption behaviour
- and government spending
- and investment spending
- and net exports
- definition
- investment and saving
- multiplier process
- definition
- N
- Nash equilibrium
- and unemployment
- and voting behaviour
- Nash, John
- national accounts
- definition
- natural experiments
- definition
- Mafia example
- women’s voting rights example
- negative feedback
- and climate change
- and poverty traps
- definition
- net present value
- definition
- net worth
- definition
- no-shirking wage
- nominal appreciation
- nominal exchange rate
- definition
- see also exchange rate
- nominal interest rate
- definition
- see also interest rate
- nominal wage
- definition
- non-accelerating inflation rate of unemployment (NAIRU)
- see also unemployment
- non-compete clause
- Nordic egalitarianism
- Norway
- labour market
- nutrition taxes
- O
- O’Brien, James Bronterre
- OECD
- oil price shocks
- 1970s
- see also shocks
- Operation Barga
- opportunity cost
- definition
- output
- aggregate
- equilibrium level of
- output growth
- P
- Pakistan
- economic growth
- female participation rate in economy
- institutional weakness
- paradox of thrift
- definition
- Pareto efficiency
- definition
- Paris Accord 2015
- see also global warming
- Paris Agreement
- see Paris Accord 2015
- partial equilibrium
- definition
- partial equilibrium analysis
- PED
- see price elasticity of demand
- perfect competition
- Petty, William
- Phillips curve
- and bargaining gap
- definition
- see also unemployment and inflation
- Phillips, William (Bill)
- planned economy
- policy dilemma
- policy interest rate
- and investment
- definition
- impact on demand
- see also interest rate
- political competition
- and economic policy
- and rent-seeking
- and taxation
- see also rent-seeking
- political economy
- political infeasibility
- political influence
- and financial contribution
- political institutions
- definition
- political rent
- definition
- see also rent-seeking
- population of working age
- definition
- positive feedback
- and climate change
- and house price shock
- definition
- poverty alleviation
- poverty trap dynamics curve (PTDC)
- poverty traps
- pre-distribution
- definition
- precautionary
- definition
- precious metals
- use as money
- preferences
- definition
- present bias
- definition
- present value
- and asset prices
- definition
- price dynamics curve (PDC)
- definition
- for housing assets
- price elasticity of demand (PED)
- definition
- price-setting (PS) curve
- price-setting real wage
- primary deficit
- primary labour market
- definition
- see also labour market
- principal-agent relationship
- definition
- product markets
- competition in
- production function
- definition
- production, factors of
- see factors of production
- productivity
- labour
- profit margin
- definition
- profit-push (sellers’) inflation
- see also inflation
- profits
- maximization
- protectionist policies
- definition
- prudential policy
- definition
- public goods
- definition
- government provision of
- purchasing power parity (PPP)
- definition
- Q
- quantitative easing (QE)
- and government debt
- definition
- quartile groups
- definition
- quartiles
- definition
- R
- rate of interest
- definition
- see also interest rate
- rate of return
- definition
- ratio scale
- definition
- real appreciation
- definition
- real depreciation
- definition
- real estate
- definition
- real exchange rate
- definition
- depreciation of
- see also exchange rate
- real interest rate
- see also interest rate
- real wage
- definition
- price-setting curve
- recession
- definition
- regulation
- see government regulation
- renewable energy
- and consumer preferences
- rent-seeking
- and taxation
- under democracy
- under dictatorship
- reservation wage
- definition
- reserve requirements
- resolution
- definition
- resolution regimes
- resource curse
- retained earnings
- reverse causality
- definition
- risk
- definition
- risk and uncertainty
- risk premium
- definition
- risk-averse
- definition
- Royal Rover’s Articles
- rule of 70
- and growth rates
- rule of law
- definition
- Russia
- post-Soviet economic transition
- see also Soviet Union
- Russia-Ukraine war
- effect on energy prices
- effect on global economies
- effect on inflation
- monetary policy response
- supply shocks
- S
- Samuelson, Paul
- savings accounts
- as risk-free investments
- secondary labour market
- definition
- see also labour market
- segmented labour market
- definition
- see also labour market
- self-insurance
- definition
- Senegal
- inflation rate
- settler colony
- shadow banks
- ‘shadow’ exchange rate regime
- see exchange rate regimes, ‘shadow’
- Shanghai
- shares
- definition
- shocks
- effect on households
- exogenous
- silver
- use as money
- slave trade
- economic effects of
- Smith, Adam
- ‘invisible hand of the market’
- social movements
- and energy transition
- ‘solidarity wage policy’
- South Africa
- transition to democracy
- South Korea
- growth rates
- output and capital growth
- savings and investment
- sovereign debt crisis
- definition
- Soviet Union
- collapse of planned economy
- planned economy in
- Spain
- inflation rate over time
- labour market
- macroeconomic performance
- unemployment
- worker-employer relations
- stable equilibrium
- definition
- see also equilibrium
- stock market
- definition
- Stockholm-Jakarta comparison
- stocks
- see shares
- store of value
- definition
- strikes
- see labour strikes
- structural unemployment
- definition
- see also unemployment
- structural unemployment rate
- definition
- see also unemployment rate, structural
- ‘sub-prime’ mortgages
- substitution bias
- sugar tax
- supply shock
- government responses to
- see also supply-side shock
- supply-side
- definition
- policies
- shock
- see also shocks
- supply-side equilibrium
- definition
- supply-side policies
- definition
- supply-side shock
- and monetary policy dilemma
- definition
- sustainable economic growth
- and carbon reduction
- definition
- Sweden
- ‘solidarity wage policy’
- unemployment
- wage-setting
- T
- Tanzania
- economic growth
- industrialization strategy
- investment share of GDP
- target wealth
- definition
- ‘target’ exchange rate regimes
- see exchange rate, target; exchange rate, fixed; fixed exchange rate regimes
- tax
- definition
- taxes
- and WS-PS model
- effects of rise in
- Taylorism
- technological progress
- and economic growth
- technology
- effect on investment
- terms of trade
- definition
- thrift, paradox of
- see paradox of thrift
- tipping point
- definition
- environmental
- ‘too big to fail’ problem
- total factor productivity
- definition
- trade balance
- definition
- trade deficit
- definition
- trade surplus
- definition
- trade unions
- definition
- traded securities
- U
- uncertainty
- uncovered interest parity (UIP)
- definition
- unemployed
- definition
- unemployment
- and exchange rate
- and inflation
- and real wage growth
- cyclical
- definition
- involuntary
- structural
- voluntary
- unemployment benefit
- definition
- unemployment rate
- inflation-stabilizing
- structural
- union voice effect
- definition
- unions
- bargaining power
- see labour unions; trade unions
- unit of account
- definition
- United Kingdom
- 1970s recessions
- and energy shocks
- effects of pandemic
- effects of Russia-Ukraine war
- employment rate
- GDP growth over time
- growth of government over time
- inflation rate over time
- inflation targets
- participation rate
- policy response to supply shocks
- unemployment rate
- United States
- adoption of democracy
- COVID-19 effects
- effects of ‘great recession’
- employment rate
- Federal Trade Commission
- house prices
- household wealth and debt
- household wealth inequality
- housing bubble
- housing credit boom
- income inequality in
- nominal wage index
- participation rate
- trade unions
- unemployment rate
- Voting Rights Act 1965
- voting rights in
- wage-setting curve
- women’s suffrage in
- unstable equilibrium
- definition
- see also equilibrium
- utility
- definition
- V
- value added
- definition
- voluntary unemployment
- definition
- see also unemployment
- voting rights
- and government spending
- W
- wage inflation
- definition
- wage markdown
- definition
- wage subsidy
- definition
- wage subsidy policy
- wage-price spiral
- definition
- wage-setting (WS) curve
- wages
- nominal
- real
- Wantchekon, Leonard
- wealth
- definition
- West Bengal
- land reforms
- WS-PS model
- and inflation
- and profit share
- definition
- effectiveness of
- role of tax
- Y
- Yuan Yang
- Z
- zero lower bound
- definition
- ‘zero-hours contracts’
