Economic Terms (G - I)

 

G

GAME THEORY

Game theory is the study of mathematical models of strategic interactions among rational agents.

General Agreement on Tariffs and Trade (GATT)

The General Agreement on Tariffs and Trade (GATT) is a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas.

G7, G8, G20, G21, G22, G26

The G7, G8, G20, G21, G22, and G26 are groups of major advanced and developing economies that convene to discuss and coordinate economic policy.

GDP

Gross Domestic Product (GDP) is the total monetary value of all finished goods and services produced within a country's borders in a specific time period.

GEARING

Gearing, also known as leverage, refers to the degree to which a company's operations are financed by debt versus equity.

GENERAL AGREEMENT ON TARIFFS AND TRADE

The General Agreement on Tariffs and Trade (GATT) is a legal agreement between many countries aimed at promoting international trade by reducing or eliminating trade barriers such as tariffs or quotas.

GENERAL EQUILIBRIUM

General equilibrium refers to a state in which supply, demand, and prices are balanced across all markets in an economy.

GENERATIONAL ACCOUNTING

Generational accounting is a method of evaluating the fiscal impact of government policies on different generations over time.

GIFFEN GOODS

Giffen goods are rare cases of products that experience an increase in demand when their price rises, contrary to the basic law of demand.

GILTS

Gilts are UK government bonds issued by the HM Treasury to raise funds for public spending.

GINI COEFFICIENT

The Gini coefficient is a measure of income inequality within a country, ranging from 0 (perfect equality) to 1 (perfect inequality).

GLOBAL PUBLIC GOODS

Global public goods are goods and services that benefit everyone and are not adequately provided by the market.

GLOBALISATION

Globalisation refers to the increased interconnectedness and interdependence of countries through trade, communication, and technology.

GNI

Gross National Income (GNI) is the total income earned by a country's residents, including income from abroad.

GNP

Gross National Product (GNP) is the total value of all final goods and services produced by a country's residents, both domestically and abroad.

GOLD

Gold is a precious metal often used as a store of value and a form of investment.

GOLD STANDARD

The gold standard is a monetary system where a country's currency is directly convertible into a specific amount of gold.

GOLDEN RULE

The golden rule in economics states that a government should aim to borrow and spend in a way that ensures sustainable economic growth.

GOVERNMENT

Government refers to the central authority that makes and enforces laws and regulations within a country.

GOVERNMENT EXPENDITURE

Government expenditure is the amount of money spent by the government on various goods, services, and programs.

GREENSPAN, ALAN

Alan Greenspan is a former chairman of the Federal Reserve of the United States, known for his influence on monetary policy.

GRESHAM'S LAW

Gresham's Law is an economic principle stating that bad money tends to drive out good money from circulation.

GROWTH

Growth refers to the increase in the production of goods and services in an economy over time.

H

HARD CURRENCY

In macroeconomics, hard currency, safe-haven currency, or strong currency is any globally traded currency that serves as a reliable and stable store of value. Factors contributing to a currency's hard status might include the stability and reliability of the respective state's legal and bureaucratic institutions, level of corruption, long-term stability of its purchasing power, the associated country's political and fiscal condition and outlook, and the policy posture of the issuing central bank.

HAWALA

Hawala is a popular and informal value transfer system based on the performance and honour of a huge network of money brokers (known as hawaladars).

HAYEK, FRIEDRICH

Friedrich Hayek was an economist and philosopher known for his defense of classical liberalism and free-market capitalism.

HEDGE

A hedge is a risk management strategy used to offset potential losses in one investment by taking an opposite position in a related asset.

HEDGE FUNDS

Hedge funds are investment funds that pool capital from accredited individuals or institutional investors and use various strategies to generate high returns.

HERFINDAHL-HIRSCHMAN INDEX

The Herfindahl-Hirschman Index (HHI) is a measure of market concentration used to evaluate competition within an industry.

HORIZONTAL EQUITY

Horizontal equity is a principle of taxation that suggests individuals with similar incomes should be subject to similar tax burdens.

HORIZONTAL INTEGRATION

Horizontal integration is the process of a company acquiring or merging with its competitors to strengthen its market presence.

HOT MONEY

Hot money refers to short-term capital that moves quickly in and out of financial markets to exploit short-term interest rate differences.

HOUSE PRICES

House prices refer to the cost of purchasing residential properties and are influenced by various economic and market factors.

HUMAN CAPITAL

Human capital refers to the skills, knowledge, and experience possessed by individuals that contribute to their economic productivity.

HUMAN DEVELOPMENT INDEX

The Human Development Index (HDI) is a composite measure of a country's development based on factors such as health, education, and income.

HYPER-INFLATION

Hyper-inflation is an extremely high and typically accelerating rate of inflation, leading to a significant decrease in the purchasing power of money.

HYPOTHECATION

Hypothecation is the practice of using an asset as collateral to secure a loan while retaining ownership of the asset.

HYSTERESIS

Hysteresis refers to the persistence of economic effects even after the initial cause of those effects has been removed.

I

International Labour Organization (ILO)

The International Labour Organization (ILO) is a United Nations agency whose mandate is to advance social and economic justice by setting international labour standards.

International Monetary Fund (IMF)

The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world."

IMPORTS

Imports refer to goods and services purchased by a country from foreign sources, contributing to the country's trade balance.

INCOME

Income is the money or cash flow received by an individual or entity as a result of work, investment, or other financial activities.

INCOME EFFECT

The income effect refers to the change in consumer demand due to a change in real income, affecting the quantity of goods and services purchased.

INCOME TAX

Income tax is a tax imposed by governments on individuals and businesses based on their earnings and other forms of income.

INCUMBENT ADVANTAGE

Incumbent advantage refers to the favorable position that existing companies or individuals have in a market due to factors such as brand recognition and resources.

INDEX NUMBERS

Index numbers are statistical measures used to represent changes in a group of related variables over time.

INDEXATION

Indexation refers to the adjustment of prices, wages, or financial instruments according to changes in a specific price index or inflation rate.

INDIFFERENCE CURVE

An indifference curve is a graphical representation of different combinations of two goods that yield equal satisfaction or utility to a consumer.

INDIRECT TAXATION

Indirect taxation involves levying taxes on goods and services rather than directly on income or profits.

INELASTIC

Inelastic refers to a situation where changes in price have a relatively small impact on the quantity demanded or supplied of a good or service.

INEQUALITY

Inequality refers to disparities in income, wealth, or opportunities among individuals or groups within a society.

INFERIOR GOODS

Inferior goods are products for which demand decreases as consumer income increases.

INFLATION

Inflation is the sustained increase in the general price level of goods and services in an economy, leading to a decrease in purchasing power.

INFLATION TARGET

Inflation targeting is a central bank's policy of aiming to keep inflation within a specific target range to achieve stable economic growth.

INFORMATION

Information refers to data or knowledge that is relevant and useful for decision-making and economic analysis.

INFRASTRUCTURE

Infrastructure includes the basic physical and organizational structures needed for the operation of a society or enterprise.

INNOVATION

Innovation refers to the creation and application of new ideas, processes, products, or services that result in improved outcomes.

INSIDER TRADING

Insider trading involves buying or selling securities based on non-public information, which is illegal and unethical.

INSTITUTIONAL INVESTORS

Institutional investors are large organizations that invest on behalf of others, such as pension funds and insurance companies.

INSURANCE

Insurance is a financial arrangement in which an individual or entity pays a premium to an insurer in exchange for coverage against potential losses or risks.

INTANGIBLE ASSETS

Intangible assets are non-physical assets, such as intellectual property and brand recognition, that have value and contribute to a company's success.

INTELLECTUAL CAPITAL

Intellectual capital refers to the collective knowledge, skills, and capabilities possessed by individuals and organizations that contribute to their competitive advantage.

INTEREST

Interest is the cost of borrowing money or the return on investment for lending money.

INTEREST RATE

The interest rate is the percentage charged or paid for the use of money, typically expressed as an annual rate.

INTERNATIONAL AID

International aid refers to financial, technical, or humanitarian assistance provided by one country or international organization to another.

INTERVENTION

Intervention refers to deliberate actions taken by governments or central banks to influence or control economic conditions.

INVESTMENT

Investment is the allocation of resources, such as money and assets, with the expectation of generating income or achieving capital appreciation.

INVISIBLE HAND

The invisible hand is a metaphor used by Adam Smith to describe how self-interested individuals unintentionally contribute to the collective good in a market economy.

INVISIBLE TRADE

Invisible trade refers to the exchange of services, such as tourism, shipping, and financial services, between countries.

INWARD INVESTMENT

Inward investment refers to foreign capital or funds invested in a country by individuals, companies, or governments.


Economic Terms (E - F)

Economic Terms (K - L)


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