A built-in stabilizer is a feature of a system that automatically tends to stabilize the system toward equilibrium or stability, particularly during economic fluctuations or disruptions.
A dirty float (also referred to as a 'managed float') is an exchange rate system in which a country's currency value is primarily determined by market forces, such as supply and demand, but with occasional intervention by the central bank. This intervention can take the form of buying or selling the country's own currency to stabilize or alter its value. The goal is often to prevent excessive short-term fluctuations and to maintain a more stable economic environment.
Double-Digit Inflation refers to an inflation rate of 10% per year or higher, significantly impacting purchasing power, savings, and economic stability.
Unsold agricultural goods. The government will often purchase certain farm surplus products in order to maintain a profitable price level for the farmers. The storage and use of farm surplus products is a controversial political problem.
Fiscal policy involves the strategic use of government spending and taxation to influence a nation's macroeconomic conditions. It plays a crucial role in managing economic cycles by affecting demand, employment, inflation, and overall economic growth.
A fiscalist is an economist who believes that government intervention in the economy, primarily through changes in taxation and government spending, is essential for managing economic stability and growth.
Hard money, also known as hard currency or hard cash, can refer to both stable, highly trusted currencies and to gold or coins as contrasted with paper currency.
Inflation targeting is a monetary policy strategy where a central bank sets an explicit target rate for inflation and uses tools such as interest rate adjustments to achieve this target. This policy was first adopted by New Zealand in 1990 and has since been implemented by over 50 countries, including the UK and a more flexible approach by the USA.
Market equilibrium is a situation in a market where the prevailing price causes producers to produce exactly the quantity demanded by consumers at that same price. A market in equilibrium will not experience changes in price or quantity produced.
The Monetary Policy Committee (MPC) is a body within central banks that is responsible for setting the interest rates and other monetary policies to achieve economic stability and growth.
A Monetary Standard is the set of procedures or policies that a government uses to ensure the value and reliability of its currency, fostering faith among the public and international markets.
Permanent income is a long-run measurement of average income, wherein temporary fluctuations in income do not significantly affect consumption patterns.
Price stabilization refers to a collection of government policies designed to halt or slow down rapid changes in prices, usually during inflationary episodes or shortages.
International reserves are holdings of foreign currencies and other assets that central banks use to manage currency values and balance payments between countries.
Revalorization of currency involves replacing one currency unit with another to counteract the effects of frequent or significant currency devaluation, often associated with high inflation rates.
A soft currency is one that is not freely convertible and typically faces restrictions on exchange, often due to economic instability or lack of demand in the international market.
The term 'Too Big to Fail' (TBTF) refers to organizations, particularly financial institutions, whose failure would pose a systemic risk to the economy. This concept gained prominence during the 2008-2009 financial crisis.
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