Routledge Dictionary of Economics Second edition phần 10 pot

His work, as indicated by his lectures at Lund Univer-sity where he was a professor from 1901, shows that he was eager to synthesize the capital theory of the AUSTRIAN SCHOOLwith Walrasi

bad state of affairs, e.g incompetence,

deceit and fraud

white-collar worker (J2)

A non-manual worker employed in an

office, laboratory or shop; a manager,

professional worker, clerk, technician or

sales assistant There have been

proportio-nately more of these workers in the labour

force because of technological change, the

growth of the public sector and the

in-creasing bureaucratization of firms in

oli-gopolistic industries It was feared in the

1950s that this shift in the occupational

structure would lead to the demise of

TRADE UNIONSbut instead new trade unions

specializing in the organization of

white-collar workers have emerged, especially in

the public sector This upgrading of the

labour force has contributed to rising

labour costs

white good (D0, L6)

1 A consumer durable, such as a washing

machine, cooker or refrigerator, which

is usually painted white

2 Household linen (the original meaning

of the term)

See also: brown good;consumer durable

white knight (G3)

A friendly bidder for a company already

facing a hostile takeover bid

white market (D4)

A legal market not in contravention of any

governmental regulation; the opposite of a

BLACK MARKET

white noise (C1)

A completely random time series, all

lagged correlations being zero; its

spec-trum density is constant

white revolution (Q1)

An agricultural revolution, particularly

promoted in India, which encouraged the

growth of herds of dairy cattle

white squire (G3)

A company or several companies acting

jointly in support of aWHITE KNIGHTin the

fight against a predatory company pating in aTAKEOVERbattle

partici-whole life insurance (G2)Insurance which both promises to pay astated amount on the death of the insuredand has an accumulated cash value avail-able as collateral for a loan

wholesale bank (G2)

A bank acquiring its deposits from porations and the interbank market.See also: retail bank

cor-wholesale money market (G1)

An interbank market in which banks offer

or obtain large deposits from each other.This is an important way for MERCHANT,INVESTMENT and other SECONDARY BANKS toobtain deposits as they do not receivedeposits directly from the public

wholesale price index (E3)

UK index of the group of commoditiesbought and sold by wholesalers Changes

in this index precede and indicate likelychanges in theRETAIL PRICE INDEX

See also: coincident indicators

Wicksell, Knut, 1861–1926 (B3)Leading Swedish economist whose ideaswere to inspire theSTOCKHOLM SCHOOL andform a basis for a macroeconomic theoryalternative to KEYNESIANISM Educated atUppsala University in mathematics, Wick-sell soon showed himself to be a coura-geous liberal, especially in propagatingNEO-MALTHUSIAN views – like John StuartMILLhe was arrested for doing so Incomefrom journalism and various grants en-abled him to undertake independent study

in 1885–1900; he came under the influence

of Bo¨HM-BAWERK and acquired a great miration for his theory of capital Thisinfluence was clear in his celebrated Value,Capital and Rent (1893, original Germanedition) and Interest and Prices (1898,original German edition) A major theme

ad-of his work was the relationship betweenNATURAL RATES andMARKET RATES OF INTER- ESTwhich, he believed, are at the heart of

cumulative processes of expansion and

contraction in the economy His work, as

indicated by his lectures at Lund

Univer-sity (where he was a professor from 1901),

shows that he was eager to synthesize the

capital theory of the AUSTRIAN SCHOOLwith

Walrasian GENERAL EQUILIBRIUM notions

and otherNEOCLASSICALinsights

See also: pure credit economy

References

Gardlund, T (1958) The Life of Knut

Wicksell, Stockholm: Almqvist & Wiksell

Uhr, G.C (1960) The Economic Doctrines

of Knut Wicksell, Berkeley, CA:

Califor-nia University Press

wide monetary base (E4)

Notes and coins in circulation with the

public plus banks’ till money plus bankers’

balances with the Bank of England (UK)

wider share ownership (G0)

Widespread ownership of the shares of

public companies throughout the

popula-tion It is argued that encouragement of this,

as in the UK, makes private capitalism more

acceptable throughout the country and that

companies are less vulnerable toTAKEOVER

as private shareholders retain their shares

longer thanINSTITUTIONAL INVESTORSdo In

the UK, PRIVATIZATION has increased the

number of persons holding shares

widget (D0)

A convenient term for a non-specified

product or service used in discussions of

the principles of costing or industrial

processes

widow’s cruse (E0)

1 The Cambridge expression, used by

KAHNand Joan ROBINSON, to refer to an

economy which continues at the same

level of output, neither expanding nor

contracting as any spending of

entre-preneurs’ profits leads to an equal

creation of other profits elsewhere in

the economy

2 The money-creating process of

continu-ally increasing money through bank

lending

Williamson, Oliver Eaton, 1932– (B3)Educated at MIT, Stanford and CarnegieMellon Universities Apart from a time asassistant professor at Berkeley, University

of California, in 1963–5, he has been aprofessor at the University of Pennsylva-nia from 1965 His work on TRANSACTION COSTS, organizational hierarchies andANTI- TRUSTpolicy have made him a leader of therevived school ofINSTITUTIONAL ECONOMICS.References

Williamson, O.E (1970) Corporate Controland Business Behavior, Englewood Cliffs,NJ: Prentice Hall

—— (1975) Markets and Hierarchies, NewYork: Free Press

—— (1986) Economic Organization: Firms,Markets and Policy Control, Brighton:Harvester Wheatsheaf

windfall gain or loss (E0)

An unexpected increase or decrease in expost income; if it had been expected, itwould have been included in ex anteincome These windfalls are part of TRAN- SITORY INCOME but not of PERMANENT IN- COME

windfall profit (D0, E0)

An unexpected PROFIT arising from a cumstance not controlled by a firm or anindividual These profits constituteTRANSI- TORY INCOME and can give rise to unusualconsumer behaviour

cir-window dressing (G2)Interbank borrowing to improve the ap-pearance of a bank’s balance sheet Thiswas abandoned by UKCLEARING BANKS in

1946 but is still practised in some bankingsystems, e.g in France

winner’s curse (C7)Paying more for an item than its value.This is measured by the difference between

a winner’s bid and the next lower bid in asingle unit auction

withdrawal (E0)Not spending income on domesticallyproduced goods and services but using it

to buy imports, pay taxes or make savings

with the consequence that the value of the

MULTIPLIER is reduced The CIRCULAR FLOW

OF INCOME distinguishes withdrawals from

INJECTIONS Also known as a leakage

withholding tax (H2)

A tax on earnings, interest or dividend

payments deducted at source This tax is

designed to simplify the collection of tax

and to ensure that tax is not evaded By

taxing dividends due for repatriation, it is

hoped that foreign-owned companies will

be encouraged to invest in the country

where their subsidiaries are located

women economists (B3) seefemale

economists

Wootton, Barbara, 1897–1988 (B3)

Economist and social scientist noted for her

works on INCOMES POLICY, PLANNING and

criminology She was educated at Girton

College, Cambridge, where she originally

read classics before a reading of

MAR-SHALL’s Principles of Economics caused her

to specialize in economics Although being

awarded first-class honours with

distinc-tion, university regulations prevented her,

as a woman, from taking her degree Soon

she was made a fellow of Girton and

Director of Studies in Economics In

1922, she became a research officer of the

Trades Union Congress From 1926 to

1928 she was Principal of Morley College

for Working Men and Women, then

Di-rector of Studies for Tutorial Classes in the

University of London (1928–45), Professor

of Social Studies (1945–52) and at the end

of her career a Nuffield research fellow

Her achievements were recognized by

the award of many honorary degrees, a life

peerage and being made a Companion of

Honour Throughout her works there is a

practical utilitarian concern to relate

pro-blems to reality Her attack on Lionel

ROBBINS’s definition of economics in her

Lament for Economics and her approach

to planning and wage policy all indicated

her desire to influence policy-makers by

using an empirical approach Much of her

knowledge of economy and society came

from membership of many committeesand commissions on leading public issuescovering topics ranging from criminalstatistics, hallucinogens and broadcasting

to taxation, shop hours and the CivilService She married John Wesley Woottonwhen she was 20; he was killed five weekslater in the First World War She wasmarried a second time in 1934 to astudent, George Wright

ReferencesBean, P and Whynes, D (eds) (1986)Barbara Wootton Social Science andPublic Policy Essays in her Honour,London and New York: Tavistock.Wootton, B (1934) Plan or No Plan,London: Gollancz

—— (1938) Lament for Economics, don: Allen & Unwin

—— (1945) Freedom under Planning, don: Allen & Unwin

Lon-—— (1959) Social Science and SocialPathology, London: Allen & Unwin

—— (1964) The Social Foundations ofWage Policy: A Study of ContemporaryBritish Wage and Salary Structure, 2ndedn, London: Allen & Unwin

—— (1967) In a World I Never Made:Autobiographical Reflections, London:Allen & Unwin

workable competition (D4, L1)Competition meeting only some of theconditions for PERFECT COMPETITION; anabsence of ANTI-COMPETITIVE PRACTICES It is

aSECOND-BESTsituation The criteria for anindustry being in a state of workablecompetition are its level of profits relative

to normal profits, its costs relative to those

of the most efficient scale, the extent of itsproduct variation and selling costs and itsrate of technical progress relative to what

is considered satisfactory These tions indicate how NORMATIVE the concept

condi-is The notion is central to the tation of USANTITRUSTpolicy and increas-ingly used in UKCOMPETITION POLICY.References

implemen-Clark, J.M (1961) Competition as a namic Process, Washington, DC: Brook-ings Institution

Dy-Sosnick, S.H (1958) ‘A critique of

con-cepts of workable competition’,

Quar-terly Journal of Economics 72: 380–423

Utton, M.A (1986) The Economics of

Regulating Industry, Oxford: Basil

Blackwell

work classification (J2)

A method of classifying work

require-ments which is an alternative to job

description The elements in the

classifica-tion are the work range, the work

struc-ture (how changeable work goals are),

work control (how much discretion is

involved) and the cognitive effort required

This classification has been applied to

knowledge-intensiveWHITE-COLLARwork

worker compensation insurance (I3)

Sickness and accident benefits financed by

employers’ premiums In the USA the

amount of such insurance varies from

state to state and according to the accident

record of the firm

workers’ participation (L2)

The participation of employees in the

management of their firms In Europe, a

major example since 1950 has been

Ger-many There, two basic laws govern such

schemes: the works constitution law

(Be-triebsverfassungsgesetz) and

co-determina-tion law (Mitbestimmungsgesetz) Under

the former, works councils, which can

determine several matters including

work-ing hours and vacations, can be formed if

more than five workers are regularly

em-ployed Co-determination law deals with

the structure of the supervisory board that

exists in addition to an executive board

and has worker representatives The law,

originally applied only to the iron, steel

and coal industries, stipulated an equal

number of employee and shareholder

re-presentatives on supervisory boards

Gra-dually, this type of workers’ participation

has spread to private sector firms In 1976,

the law was extended to all companies

with over 2,000 employees, an extension to

smaller companies being strongly resisted

by employers The chairman, a

share-holders’ representative, has a second

(cast-ing) vote and the representation of seniorstaff on the supervisory board has, it isargued, weighted the composition in fa-vour of the management

See also: industrial democracy

workfare (J2, J6)

US schemes of community work ing the unemployed for social securitybenefits The idea was first used by theRoosevelt Administration in the 1930s.The US Federal Act of 1981, the OmnibusBudget Reconciliation Act, forced all re-cipients of federal or state aid to registerfor work or job training and gave thestates the powers to require such persons

qualify-to participate in work incentive, job search

or work experience programmes Theseschemes have been criticized for creatingslave labour, for displacing existing work-ers, for adding to administrative costs andfor reducing the chance of the unemployedseeking good jobs The most enthusiasticimplementation of the scheme has been inWest Virginia Other countries, e.g Swe-den, have versions of such schemes to keepdown the level of unemployment

ReferencesRavallion, M (1999) ‘Appraising Work-fare’, World Bank Research Observer 14:31–48

working capital (M2)Current assets minus current liabilities;capital available to provide short-termfinancing for a firm CLASSICAL ECONOMISTSregarded this as mainly the raw materialsand the WAGES FUND Today it is oftenregarded as a measure of the LIQUIDITYof

a firm

working capital ratio (M4) seecurrentratio

working hours (J2)The total number of hours a person worksper day or per week The view thatreduced hours increases workers’ welfareand chances of employment is based ontoo simplistic an analysis: a reduction inhours often raises unit labour costs which,

in turn, reduces international

competitive-ness and profit margins on traded goods

leading to lower economic growth and

employment If reduced working hours

raise PRODUCTIVITY, no extra demand for

labour results In France, working hours

were reduced from forty to thirty-nine per

week, with full compensation, in January

1982; in West Germany, the Metalworkers

Union demanded in 1984 a reduction from

forty to thirty-five hours with partial

compensation

MARX made the length of the working

day a key issue: he argued that working

hours longer than those spent in

produ-cing subsistence for workers created

SUR-PLUS VALUE Paradoxically, working hours

have been longer in socialist countries,

being forty-two to forty-five hours per

week But in the developing countries of

Africa and Asia weekly working hours are

often as much as fifty or fifty-five Japan,

which has industrialized only recently, still

has long average working hours, about

forty-eight per week (three-quarters of the

labour force works a six-day week)

working population (J2) seelabour force

working-time regime (J2)

The rules set down in theEUROPEAN SOCIAL

CHAPTERstating the maximum length of the

working week and working day and the

dispersion of hours Full-time and

part-time work are both covered

See also: annualized-hours system;

flex-ible working-time schemes

work sharing (J6)

A method of reducing unemployment by

splitting a full-time job into two part-time

jobs Parents sometimes do this in order to

share in domestic duties and child rearing

Occupations introducing this form of

shar-ing include school teachshar-ing and social

work

See also: job sharing

World Bank (F3, G2)

Popular name for the International Bank

for Reconstruction and Development

which was conceived at BRETTON WOODS in

1944 and started business in 1947; it wasintended that it should be linked to theINTERNATIONAL MONETARY FUND by membercountries belonging to both It aims toencourage the provision of private, ratherthan public, investment Of its initialauthorized capital of $10 million, one-tenth was paid in dollars and gold Fed-eral and state bonds of the bank issued inthe USA raised a substantial amount ofthe original capital At different phases ofits life, it has been a bank of reconstruc-tion, a development bank and a policyreformer

Current aims suggested for the bankinclude the major provision of funds andtechnical advice to Third World borrowers,the co-ordination of aid to less developedcountries and theoretical leadership in de-velopment policy Some people in the USAregard the World Bank as a means ofspreading US political philosophy andmonetarism, but the financial rise of Japan

as the world’s major lender increasinglydiminished US influence In recent years,the bank has lent about 90 per cent of itsadvances for infrastructure projects, e.g.education, health, irrigation and telecom-munications Currently, recipient countriesare being asked to adopt price reforms andmarket-related trading reforms

world debt problem (F3)The consequences of the large debts of lessdeveloped countries accumulated since

1970 The magnitude of this indebtednesshas given rise to problems of debt servi-cing and the stability of the bankingsystem The significance of the debts hasoften been measured by the ratios of debt

to gross national product or of debt toservice, but it has been asserted that abetter measure is the comparison of therate of growth of export earnings with therate of interest Several approaches havebeen suggested to reduce this indebted-ness, e.g in 1986 the World Bank sug-gested SECTOR ADJUSTMENT LENDING as ameans of reducing the indebtedness of

certainTHIRD WORLDcountries Some

coun-tries have reduced their indebtedness by a

policy of exchanging debt for equity but

there are limits to such conversions as

many national governments are alarmed

to see more foreign ownership of domestic

companies Major Western banks have

gradually written off these loans as bad

debts

See also: debt service indicators; Jubilee

2000

References

Griffith-Jones, S (ed.) (1988) Managing

World Debt, Brighton: Harvester

Wheatsheaf

Holley, H.A (1987) Developing Country

Debt: The Role of the Commercial

Banks, London: Routledge

World Economic Forum (F0)

An annual meeting of leading politicians

and bankers at Davos, Switzerland, to

discuss strategies to keep the world

econ-omy on an even course In 1970 Professor

Klaus Schwab convened an informal

gath-ering of Europe’s chief executives at Davos

under the patronage of the Commission of

European Communities and the following

year created a non-profit-making

founda-tion, the European Management Forum,

subsequently renamed the World

Eco-nomic Forum in 1987 It has expanded its

activities to organize meetings for all

major world regions and brought together

heads of states and governments too

Increasingly it has been lobbied at its

meetings by protestors against global

ca-pitalism

world inflation (E3)

The rates of inflation country by country

around the world, measured by annual

rates of increase of consumer or producer

prices Countries with high post-war

infla-tion records include Argentina, Brazil,

Israel, Mexico and Yugoslavia; countries

with low post-war inflation records

in-clude Japan, Switzerland, the USA, and

West Germany before reunification

ReferencesBrown, A.L (1985) World Inflation since

1950, Cambridge: Cambridge UniversityPress

Horsman, G (1988) Inflation in the tieth Century, Brighton: HarvesterWheatsheaf

Twen-World Intellectual Property tion (O3)

Organiza-A Geneva-based body concerned withupholding international conventions onprotected ideas and with harmonizing na-tional laws concerning such property.See also: intellectual property

world monetary reserve assets (F3)The total of the assets of all the countries

of the world, in the form of specialdrawing rights, gold and reserve curren-cies

See also: reserve assets

world monetary system (F3)The institutional mechanism for settlingintercountry indebtedness and for provid-ing loans to increase the liquidity ofcountries in need After the GOLD STAN- DARD, there was a world institutional gapuntil the BRETTON WOODS system was de-vised Although the arrangements for peg-ging exchange rates ended in 1971, theINTERNATIONAL MONETARY FUND and theWORLD BANK remain as pillars of a worldsystem

See also: European Monetary System

world stock market indices (G1) see

Appendix B

world systems perspective (O0)

A method of analysing economic ment which uses a structural approach toput FOREIGN AID in the context of beingpart of the world economy and measuresthat country’s relationship with the rest ofthe world economy

develop-world trade (F1)The sum total volume of exports orimports of every national ECONOMY The

growth of trading within MULTINATIONAL

CORPORATIONS, much of it measured at

ARTI-FICIAL TRANSFER PRICES, has made it more

difficult to gain a precise idea of the value

of exports of particular countries The

volume of world trade fluctuates

accord-ing to the state of major economies,

especially the USA, and grows at different

rates within particular trading blocs and

between them

World Trade Organization (F1)

The successor to GATT inaugurated in

1995 and based in Geneva, Switzerland It

administers the global rules of trade of a

multilateral trading system to facilitate

and to encourage world trade It has over

140 member countries and covers morethan 90 per cent of world trade Decisions

on trade disputes are settled consensually.The WTO also administers trade agree-ments and reviews national trade policies.worst case consequence analysis (Q2)

A form of risk management in whichcontrolled experiments provide an aware-ness of the consequences of an extremeevent This is used as part of environmen-tal controls

writer (G1)

ACALLseller in an option market who sellsOPTIONS against shares he or she alreadyowns in order to improve their perfor-mance

X-efficiency (D4)

LEIBENSTEIN’s concept of efficiency that

re-jects the technical efficiency notion of profit

maximizing and cost minimizing He argued

that individual workers are free to choose

their effort level and interpret their own

jobs The equilibrium position for a firm will

be when every individual is in his or her

‘inert area’, an effort point which, if moved

away from, would reduce utility This level

of ‘efficiency’ and associated cost is

com-fortable for a firm’s individuals Prices are

fixed using conventional formulae

References

Leibenstein, H (1976) Beyond Economic

Man: A New Foundation for

Macroeco-nomics, Cambridge, MA: Harvard

Uni-versity Press

—— (1978) General X-Efficiency Theory

and Economic Development, New York

and London: Oxford University Press

—— (1980) Inflation, Income Distribution

and X-Efficiency Theory, London: Croom

Helm; New York: Barnes & Noble

Xenophon, 430–354 BC (B3)

A follower of Socrates before embarking

on military campaigns, including the

ex-pedition of Cyrus The three works

attrib-uted to him most relevant to economics

are Ways and Means to Increase theRevenues of Athens, perhaps the first work

on PUBLIC FINANCE in which he argued forstate intervention to expand silver mining,Oeconomicus which included a discussion

of the nature of wealth and incomedifferentials and Cyropaedia which ex-plains that theDIVISION OF LABOURis limited

by the extent of the market

See also: Ancient Greeks;Aristotle;Plato

Xetra (G1)The electronic cash market trading systemfor securities of the Frankfurt exchange.Both auctions and continuous trading areused for dealing in over 5,000 equities andover 10,000 warrants Safety mechanismssuch as volatility interruptions are in force.The trading platform of the iX interna-tional exchanges

X-form (L2)

A hybrid type of business enterprise that is

a mixture of theH-andM-FORMS.See also: U-form

ReferencesWilliamson, O.E (1986) Economic Organi-zation: Firms, Markets and Policy Control,

ch 4, Brighton: Harvester Wheatsheaf

See also: government bond

yellow dog contract (J5)

An individual employment contract

whereby a worker promises not to join a

TRADE (LABOR) UNION This standard practice

of many US firms in the 1920s was used to

impede the growth of union membership

It was outlawed by theNORRIS–LA GUARDIA

ACT

yellow stripe price (G1)

A stock market price shown on a screen of

the STOCK EXCHANGE AUTOMATED QUOTATION

SYSTEMwhich refers to largeBARGAINSof a

particular stock

yield (D2, G0)

1 Return to an investment measured by

dividend or interest receivable divided

by price of that security

2 The annual produce from cultivating a

piece of land

See also: redemption yield

yield curve (G0)

The relationship between the percentage

yield of a bond and the number of years to

its maturity An inverse yield curve isdownward sloping, a positive yield curveupward sloping and a flat yield curvehorizontal In most cases the yield, deter-mined in a secondary market, is for apreviously issued bond The yield is also aguide to the pricing of new bond issues.The TERM STRUCTURE OF INTEREST RATES

determines the curve, e.g if short-term

rates are higher than long-term, there will

be an inverse yield curve

See also: term structure of interest rates

yield gap (G0)

The YIELD on equities minus the yield on

bonds Inflation after 1959 depressed the

capital values of bonds, raising their yields

in both the UK and the USA: this created

a reverse yield that has fluctuated between

about 1 per cent and 9 per cent

Young, Allyn Abbott, 1876–1929 (B3)

Educated at Hiram College, Ohio, and the

University of Wisconsin His many demic appointments included professor-ships at Stanford and, from 1913, atCornell His wide-ranging articles includeddemography and many aspects of appliedeconomics, public finance and antitrustpolicy He will long be remembered forhis immensely influential article on IN- CREASING RETURNS TO SCALE that both ad-vanced the theory ofECONOMIC GROWTHandchallenged the Marshallian THEORY OF THE FIRM Tragically, he died relatively young

aca-of influenza in London

ReferencesYoung, A.A (1928) ‘Increasing returnsand economic progress’, Economic Jour-nal 38: 527–42

yuppie, yuppy (J1)

A young urban professional Most ofthese aggressive young graduates are em-ployed in financial centres such as NewYork and London These health-con-scious workaholics firmly believe in freemarket economics Their high salarieshave made it possible for them to con-tribute to the GENTRIFICATION of inner cityareas

zaibatsu (L2)

A Japanese group of large companies

owned by a family-controlled holding

Under Islamic law, a tax on surplus

wealth, e.g on buried treasure acquired

through little labour, or on a herd above a

certain size The tax is levied to help the

poor and needy

zero base budgeting (H6)

A method of governmental budgeting

which begins with an appraisal of all

spending projects on their merits and then,

by aggregation, produces a budget total It

was intended, when it was introduced by

the Carter Administration in the USA in

the 1970s, to replace the traditional budget

method of deciding first on an expenditure

total and then allocating that sum among

different programmes In practice, it is

questionable whether this method can be

implemented as project analysis is long,

costly and difficult – and not applicable to

all parts of a budget

References

Sarant, P.C (1978) Zero-base Budgeting in

the Public Sector: A Pragmatic

Ap-proach, Reading, MA: Addison-Wesley

zero coupon bond (G1)

A bond bearing no interest As the bond isissued at a discount, it has a REDEMPTION YIELD

See also: junk bond

zero growth (E0, O4)The characteristic of an economy in aSTATIONARY STATE CLASSICAL ECONOMISTSfeared the movement of the economy tostationarity, excepting John Stuart MILLwho was willing to approve of no growth,providing that there was a satisfactoryincome distribution In modern advancedeconomies this has been suggested as agoal on the grounds that growth of theGROSS NATIONAL PRODUCT generates SOCIAL COSTS in the form of pollution, congestionand more arduous work, as well as run-ning down non-renewable resources toorapidly Zero growth is often expressed as

a condemnation of all growth rather than

an attack on particular undesirable nomic activities However, changes tomore environmentally-friendly productiontechniques make economic growth moreacceptable

eco-See also: Club of Rome

zero–infinity dilemma (Q2)

A problem in environmental economicswhen the probability of damage is smallbut the impact of a pollutant is potentiallylarge

zero population growth (J1)

The goal of many twentieth-century

dis-ciples of MALTHUSusually taking the form

of advocating birth control In many West

European countries the use of

contracep-tive pills since the 1960s has brought the

natural rate of increase below the

replace-ment level

See also: neo-Malthusians

zero priced (D0)

Free This term enables the prices of

everything to be placed on a continuum

from zero to a considerable sum Many

goods and services provided by the public

sector are given freely to consumers, e.g

most of the health care provided by the

UK’s National Health Service Although

goods can be free to a consumer, they are

not costless because of the scarcity of

factor inputs

zero profit (D0)

The absence ofSUPERNORMAL PROFITSin the

long run, under conditions ofPERFECT

COM-PETITION, as firms earn onlyNORMAL PROFITS

which are included in average costs

zero-rated good (H2)

A good not subject to VALUE-ADDED TAX

Exemptions from value-added tax vary

from country to country but the principal

items excluded in some countries have

been food, clothing and educational

mat-erials

zero real interest (E4)

A nominal rate of interest equal to the

rate of inflation of that country

zero-sum game (C7)

Economic activities in which gains to the

winners equal losses to the losers There

are many examples of these games, e.g the

attempt of all major trading countries to

have export surpluses

Zeuthen, Frederik Ludvig Baug, 1888–

1959 (B3)

Danish mathematical economist who

graduated from Copenhagen University in

1912 and was employed by the Danish

social security system from 1912 to 1930before beginning his academic career Hedeveloped a theory of COLLECTIVE BARGAIN- ING based upon the possible outcomes ofexpected conflict, as perceived by manage-ment and labour, and developed the the-ory ofDUOPOLYby expanding the notion ofPRODUCT DIFFERENTIATION

ReferencesZeuthen, F.L.B (1930) Problems of Mono-poly and Economic Welfare, London: G.Routledge & Sons

—— (1959) Economic Theory and Method,Cambridge, MA: Harvard UniversityPress

Zipf ’s law (R1)

A linear relationship between the rithm of the largest cities and the loga-rithm of those cities’ populations afterranking the cities by size starting with thelargest It is claimed to be universally trueand to reflect constantRETURNS TO SCALEincities

loga-See also: Gibrat’s law

ReferencesZipf, G (1949) Human behaviour and theprinciple of last effort, Cambridge, MA:Addison-Wesley

zone of freedom (D0, L9)

A price range of the tariffs set by majorairlines The ‘zone’ is the range below andabove a single reference level within which

an air tariff must be set

zoning (Q3)

A local government method of regulatingland use By the prohibition of certaintypes of building in particular areas, land

values and the nature of economic activity

are affected

Z-score (G0, M2)

A measure of the overall performance of a

company which takes the form of a

weight-ed index The index is a + b profitability

c  gearing In this expression, a is aconstant and b and c are coefficientsreflecting the relative importance of eachratio The score for an individual company

is compared with a test score to judgewhether the company is a financial failure

or a success

Appendix A

Currencies of the world (F3)

Afghani: Afghanistan

A/Guilder: Netherlands Antilles

Australian dollar: Australia, Kiribati,

Nauru Islands, Tuvalu

Bahama dollar: Bahamas

Baht: Thailand

Balboa: Panama

Barbados dollar: Barbados

Belgian franc: Belgium

Belize dollar: Belize

Bermuda: Bermudian dollar

Bolivar: Venezuela

Boliviana: Bolivia

Brunei dollar: Brunei

Burundi franc: Burundi

Canadian dollar: Canada

Cedi: Ghana

CFA franc: Benin, Burkina Faso,

Camer-oon, Central African Republic, Chad,

Congo, Coˆte d’Ivoire, Equatorial

Gui-nea, French Community/Africa, Gabon,

Guinea-Bissau, Mali Republic, Niger

Republic, Senegal, Togo Republic

CFP franc: French Pacific Islands

Chilean peso: Chile

CI dollar: Cayman Islands

Colombian peso: Colombia

Colon: Costa Rica, El Salvador

Comoros franc: Comoros

Congo franc: Congo Democratic Republic

Cuban peso: Cuba

CV escudo: Cape Verde

Cyprus pound: Cyprus

Dalasi: Gambia

Danish krone: Denmark, Faroe Islands,Greenland

Denar: MacedoniaDeutschmark: GermanyDinar: Algeria, Bahrain, Sudan Republic,Tunisia

Dirham: Morocco, United Arab EmiratesDjibouti franc: Djibouti

Dobra: Sa˜o Tome´

Dominican peso: Dominican RepublicDong: Vietnam

Drachma: GreeceDram: ArmeniaEast Caribbean dollar: Antigua, Dominica,Grenada, Montserrat, St Christopher,

St Lucia, St VincentEgyptian pound: EgyptEscudo: Azores, Madeira, PortugalEthiopian birr: Ethiopia

Falkland pound: Falkland IslandsFiji dollar: Fiji Islands

Florin: ArubaForint: HungaryFrench franc: Andorra, France,Guadeloupe, Monaco, Re´union Island,

St Pierre & MiquelonGibraltar pound: GibraltarGold cordoba: NicaraguaGourde: Haiti

Guarani: ParaguayGuilder: NetherlandsGuinea franc: GuineaGuyanese dollar: GuyanaHong Kong dollar: Hong Kong

Hryvna: Ukraine

Icelandic krona: Iceland

Indian rupee: India

Iraqi dinar: Iraq

Jamaican dollar: Jamaica

Jordanian dinar: Jordan

Kenya shilling: Kenya

Kina: Papua New Guinea

Koruna: Czech Republic, Slovakia

Krona: Sweden

Kroon: Estonia

Kuna: Croatia

Kuwaiti dinar: Kuwait

Kwacha: Malawi, Zambia

Leone: Sierra Leone

Leu: Moldavia, Romania

Lev: Bulgaria

Liberian dollar: Liberia

Libyan dinar: Libya

Lilangeni: Swaziland

Lira: Italy, San Marino, Turkey, Vatican

Litas: Lithuania

Local franc: French Guiana, Martinique

Luxemburg franc: Luxemburg

Maltese lira: Malta

Namibian dollar: Namibia

Nepalese rupee: Nepal

New dinar: Yugoslavia

New kip: Laos

New shilling: Uganda

New sol: Peru

New Zealand dollar: New Zealand,

Pit-cairn Islands

Ngultrum: Bhutan

Norwegian krone: NorwayOuguiya: MauritaniaPa’anga: Tongo IslandsPakistan rupee: PakistanPataca: Macao

Peso: Argentina, PhilippinesPeso Uruguayo: UruguayPound: St Helena, United KingdomPound sterling: Pitcairn IslandsPula: Botswana

Punt: Irish RepublicQuetzal: GuatemalaRand: South AfricaReadj kwanza: AngolaReal: Brazil

Renminbi: ChinaRial: Iran, Yemen RepublicRial Omani: OmanRiel: CambodiaRinggit: MalaysiaRiyal: Qatar, Saudi ArabiaRouble: Belarus, RussiaRufiya: Maldive IslandsRupiah: IndonesiaRwanda franc: RwandaSchilling: AustriaSDR: Special Drawing Right (IMF)Seychelles rupee: Seychelles

Shekel: IsraelShilling: Somali Republic, TanzaniaSingapore dollar: SingaporeSolomon Islands dollar: Solomon IslandsSom: Kyrgyzstan

Spanish peseta: Andorra, Balearic Islands,Canary Islands, Spain, Spanish ports

in North AfricaSri Lanka rupee: Sri LankaSum: Uzbekistan

Surinam guilder: SurinamSwiss franc: Liechtenstein, SwitzerlandSyrian pound: Syria

Taiwanese dollar: TaiwanTaka: BangladeshTala: Western SamoaTenge: KazakhstanTolar: SloveniaTrinidadian dollar: Trinidad & TobagoTugrik: Mongolia

US dollar: Ecuador, Guam, Puerto Rico,

Turks and Caicos, United States of

America, Virgin Islands

D2 Production and organisationsD3 Distribution

D4 Market structure and pricingD5 General equilibrium anddisequilibrium

D6 Economic welfareD7 Analysis of collectivedecision-makingD8 Information and uncertaintyD9 Intertemporal choice and growth

E Macroeconomics and monetaryeconomics

E0 GeneralE1 General aggregative modelsE2 Consumption, saving, produc-tion, employment and investmentE3 Prices, business fluctuations andcycles

E4 Money and interest ratesE5 Monetary policy, central bank-ing, and the supply of money andcredit

E6 Macroeconomic aspects ofpublic finance, macroeconomicpolicy and general outlook

F International economicsF0 General

These classifications are as used in The Economic Journal (the journal of The RoyalEconomic Society) and the Journal of Economic Literature

G1 General financial markets

G2 Financial institutions and

H2 Taxation and subsidies

H3 Fiscal policies and the behaviour

of economic agents

H4 Publicly provided goods

H5 National government

expendi-tures and related policies

H6 National budget, deficit and debt

H7 State and local government:

in-tergovernmental relations

I Health, education and welfare

I1 Health

I2 Education

I3 Welfare and poverty

J Labour and demographic economics

J0 General

J1 Demographic economics

J2 Time allocation, work behaviour

and employment determination

J3 Wages, compensation and labour

costs

J4 Particular labour markets

J5 Labour management relations:

trade unions and collective

K2 Regulation and business law

K4 Legal procedure, the legal system

and illegal behaviour

L Industrial organisationL0 General

L1 Market structure, firm strategyand market performanceL2 Firm objectives, organisation andbehaviour

L3 Non-profit organisations andpublic enterprise

L4 Anti-trust policyL5 Regulation and industrial policyL6 Industry studies: manufacturingL7 Industry studies: primaryproducts and constructionL8 Industry studies: servicesL9 Industry studies: utilities andtransport

M Business administration and businesseconomics; marketing; accountingM0 General

M1 Business administrationM2 Business economicsM3 Marketing and advertisingM4 Accounting

N Economic historyN0 GeneralN1 Macroeconomics: growth andfluctuations

N2 Financial markets andinstitutions

N3 Labour, demography, education,income and wealth

N4 Government, law and regulationN5 Agriculture, natural resourcesand extractive industriesN6 Manufacturing and constructionN7 Transport, trade, energy andother services

O Economic developmentO0 General

O1 Economic developmentO2 Development, planning andpolicy

O3 Technological changeO4 Economic growth and aggregateproductivity

O5 Economy-wide country studies

P Economic systemsP0 GeneralP1 Capitalist systemsP2 Socialist systemsP3 Socialist institutions

P4 Other economic institutions

P5 Comparative economic systems

Q Agricultural and natural resource

R4 TransportR5 Regional government analysis

Z Other topicsZ1 Cultural economics

A General economics and teaching

human scale economics

Institute of Economic Affairs

Lausanne SchoolManchester Schoolmarginalistsmercantilismneeds of tradeneoclassical economicsneo-MalthusiansPhysiocratsreal bills doctrineStockholm Schoolutilitarianismvalue in usewages fund theoryWealth of NationsB2 History of economic thought since 1925African–American economistsAustrian School

Cambridge CircusCambridge Economic Policy GroupCambridge School

Chicago SchoolCowles Commissionfemale economistsFrench Circuit SchoolGandhian economics

German Historical School

New Cambridge economics

new classical economics

transaction cost economics

B3 History of economic thought:

Arrow, Kenneth Joseph, 1921–

Ayres, Clarence Edwin, 1891–1972

Bauer, Peter Thomas, 1915–

Baumol, William Jack, 1922–

Bo¨hm–Bawerk, Eugen von, 1851–1914

Boisguilbert, Pierre Le Pesant de,

1646–1714

Boulding, Kenneth Ewart, 1910–92

Buchanan, James McGill, 1919–

Burns, Arthur Frank, 1904–87

Cantillon, Richard, c.1680–c.1734

Cassel, Karl Gustav, 1866–1945

Chamberlin, Edward Hastings,

1899–1967

Chenery, Hollis Burnley, 1918–

Child, Sir Francis, 1684?–1740

Clark, Colin Grant, 1905–89

Clark, John Bates, 1847–1938Coase, Ronald Harry 1910–

Commons, John Rogers, 1862–1945Cournot, Antoine Augustin, 1801–77Deane, Phyllis Mary, 1918–

Fisher, Irving, 1867–1947Fogel, Robert William, 1926–

Fourier, Charles, 1772–1837Friedman, Milton, 1912–

Frisch, Ragnar Anton Kittil,1895–1973

Galbraith, John Kenneth, 1908–George, Henry, 1839–97Giffen, Sir Robert, 1837–1910Gossen, Hermann Heinrich, 1810–58Haavelmo, Trygve, 1911–

Haberler, Gottfried, 1900–1995Hahn, Frank Horace, 1925–

Hansen, Alvin Harvey, 1887–1975Harrod, Sir Roy Forbes, 1900–78Harsanyi, John Charles, 1920–2000Hawtrey, Sir Ralph, 1879–1971Hayek, Friedrich A von, 1899–1992Heckman, James Joseph 1944–Heckscher, Eli Filip, 1879–1952Hicks, Sir John Richard, 1904–89Hirschman, Albert Otto, 1915–Hume, David, 1711–76Isard, Walter, 1919–

Jevons, William Stanley, 1835–82Johnson, Harry Gordon, 1923–79Kahn, Richard Ferdinand, 1905–89Kaldor, Nicholas 1908–86

Kalecki, Michal, 1899–1970Kantorovich, Leonid Vitalievich,1912–

Keynes, John Maynard 1883–1946Klein, Lawrence R., 1920–

Knight, Frank Hyneman, 1885–1973Koopmans, Tjalling Charles 1910–84Kornai, Janos, 1928–

Krueger, Anne Osborn, 1934–Kuznets, Simon S., 1901–85Lachmann, Ludwig, 1906–90

Lauderdale (James Maitland), Eighth

Earl of, 1759–1830

Law, John, 1671–1729

Lelbenstein, Harvey, 1922–92

Leontief, Wassily W., 1906–99

Lerner, Abba Ptachya, 1903–82

Lewis, William Arthur, 1915–91

Liberman, Yevsei, 1912–

Lipsey, Richard George, 1928–

List, Friedrich, 1789–1846

Loyd, Samuel Jones, 1796–1883

Lucas, Robert E., Jr, 1937–

Lundberg, Erik Filip, 1907–89

Minsky, Hyrnan Philip, 1919–96

Mirrlees, James A., 1936–

Mises, Ludwig Edler von, 1881–1973

Mitchell, Wesley Clair, 1874–1948

Nash, John Forbes, 1928–

Nobel Prize for Economics

North, Douglass Cecil, 1920–

Penrose, Edith Tilton, 1914–96

Petty, Sir William, 1623–87

Phillips, Alban William Housego,

1914–75

Pigou, Arthur Cecil, 1877–1959

Plato, 428/7–348/7 BC

Polanyi, Karl, 1886–1964Prebisch, Rau´l D., 1901–86Quesnay, Franc¸ois, 1694–1774Reid, Margaret, 1896–1991Ricardo, David, 1772–1823Robbins, Lionel, 1898–1984Robertson, Dennis Holme, 1890–1963Robinson, Joan Violet, 1903–83Rostow, Walt Whitman, 1916–Saint-Simon, Claude-Henri deRouvroy de, 1760–1825Samuelson, Paul Anthony, 1915–Say, Jean Baptiste, 1767–1832Scholes, Myron S., 1941–

Schultz, Theodore William, 1902–Schumacher, Ernst Friedrich, 1911–77Schumpeter, Joseph Alois, 1883–1950Schwartz, Anna Jacobson, 1915–Scitovsky, Tibor, 1910–

Selten, Reinhard, 1930–

Sen, Amartya K, 1933–

Senior, Nassau William, 1790–1864Shackle, George Lennox Sharman,1903–92

Sharpe, William, 1934–

Simon, Herbert Alexander, 1916–Simons, Henry Calvert, 1899–1946Slutsky, Evgeny Evgenievich,1880–1948

Smith, Adam, 1723–90Solow, Robert M., 1924–

Spence, Andrew Michael, 1943–Sraffa, Piero, 1898–1983Stigler, George Joseph, 1911–91Stiglitz, Joseph Eugene 1943–

Stone, John Richard Nicholas, 1913–Thornton, Henry, 1760–1815Thu¨nen, Johann Heinrich von,1783–1850

Tinbergen, Jan, 1903–94Tobin, James, 1918–2002Torrens, Robert, 1780–1864Turgot, Anne-Robert Jacques, 1727–81Vanek, Jaroslav, 1930–

Veblen, Thorstein Bunde, 1857–1929Vickrey, William Spencer, 1914–96Viner, Jacob, 1892–1970

von Neumann, John, 1903–57Walras, Marie Esprit Le´on, 1834–1910Wicksell, Knut, 1861–1926

Williamson, Oliver Eaton, 1932–Wootton, Barbara, 1897–1988Xenophon, 430–354 BCYoung, Allyn Abbott, 1876–1929

Zeuthen, Frederik Ludvig Baug, 1888–

coefficient of multiple correlation

coefficient of multiple determination

dummy variableDurbin–Watson statisticeconometrics

efficient estimatorerror

exogenous variableextremum

F testfrequency curvefrequency distributionfrequency polygongeneralized least squaresgeometric meanGerschenkron effectGini coefficientGranger causalityharmonic meanheteroscedasticityheuristic

histogramhomoscedasticityidentification problemindex numberinput–output analysisinterval estimateJ-shaped frequency curveKalman filter

kurtosislagged variableLaspeyres indexleast squares methodlevel of significancelinear programminglinear regressionLorenz curveloss functionlower quartileMarkov chain modelmaximum likelihood estimatormean

mean deviationmedianmodemomentsmoving averagesmulticollinearitymultimodal frequency curvemultiple correlationmultivariate analysisnoise

reduced form equation

reverse J-shaped frequency curve

aggregation problemeconometricsrecursive systemC5 Econometric modellingARMA

Bayesian econometricschange point analysisCobb–Douglas production functioncobweb

constant elasticity of substitutionproduction function

economic forecastingEPA

error-correction modelevent study

INTERLINKlarge-scale modelslinkage modelslogit modelMCMnon-parametric modelpattern modelprobit modelsoft modellingTobit modeltop-down linkage modelTreasury model

vector autoregressionvector autoregressive modelC6 Mathematical methods andprogramming

arithmetic progressioncontinuous variablederivative

difference equationdifferentiationdiscrete variabledomainexogenous variableextremum

fractal Brownian motiongeometric progressionhomogeneous functionhomothetic functionimpulse response functionmathematical economicsoptimal control

C7 Game theory and bargaining theory

Bayesian equilibrium

evolutionary game theory

fair division problem

C8 Data collection and data estimation

methodology; computer programmes

automatic neural network modelling

extreme value theory

Family Expenditure Survey

General Household Survey

longitudinal data

microsimulation model

panel data

raw data

speculative price data

time budget survey

time seriesC9 Design of experimentsbandit problemexperimental economicsMonte Carlo methodssimulation model

D MicroeconomicsD0 Generalaccession taxadjustment costadjustment speedadverse selectionagency costall-pay auctionaltruismarc elasticityassetasymmetric informationauction

average incremental costaverage total costbasic commoditybehaviour lineBernoulli hypothesisbid

bounded rationalitybudget constraintbundlingcapacity utilizationcapital

cardinal utilitycertainty equivalentceteris paribuschange in demand or supplychaos theory

chargeChoquet expected utilitycirculating capitalclearing

clearing marketcognitive consonancecognitive dissonancecommodity

common costcomplementcomplexity theorycompliance costcomposite commodityconcentration economyCondorcet criterionconstant pricesconsumer durable

hard commodityhazard

hedonic pricehiding handhold-uphomo economicushomogeneous goodhomo sovieticusimplicit costincentive compatibleincome

income and substitution effectsincome–consumption curveincome elasticity of demandincome–offer curve

incomplete contractindifference curveindirect costindivisibilityinducement goodinelasticityinferior goodinsuranceintangible wealthintellectual propertyinterest riskintermediate goodinternal economy of scaleinterpersonal utility comparisonsinverse elasticity rule

invisible handisocostisolated market equilibriumJapanese auction

joint costjust pricelabour disutility theorylabour theory of valuelaw of satiable wantslaw of value

long period

luxury

marginal cost

marginal private cost

marginal product of labour

marginal revenue

marginal revenue product

marginal social cost

point elasticitypositional goodpraxeologypreference falsificationpremium

present valuepriceprice–consumption curveprice determinationprice discriminationprice effect

price elasticity of demandprice flexibility

price incentiveprice–offer curveprice perceptionprice rigidityprice systemprime costprincipal–agentprivate costprivate goodproduction possibility frontierproduct market

profit motivequeuing systemRamsey pricesrational decisionrationingreaction curvereal pricerecontractregrettableregular economyrelative pricerent seekingreservation pricereverse auctionrisk

risk aversionrisk loverrisk neutralrisk premiumrival goodSamaritan’s dilemmascarcity

scarcity indexsealed bid auctionsearch costsearch good

valuevalue addedvalue in exchangevariable costVeblen goodvehicle biasVickrey auctionvisible handvolatilitywage-rental ratiowaste

white goodwidgetwindfall profitzero pricedzero profitzone of freedomD1 Household behaviour and familyeconomics

aggregate demandaxioms of preferencebehavioural economicsbrand loyalty

characteristics theory of consumerdemand

compensated demand curveconsumer equilibriumconsumerism

consumer protection legislationconsumer society

consumer sovereigntyconsumer’s surpluscornucopiadiminishing marginal rate of substitu-tion

diminishing marginal utility laweconomics and psychologyfad

Family Expenditure Surveyfeminist economicsfootball poolfree riderHicksian demand functionhome economics

household behaviourhousehold decision makinghousehold work

individualismintra-household economics

sociological utility theory

strategic bequest motive

chain index method

Cobb–Douglas production function

increasing opportunity costs law

increasing returns to scale

indirect factor content

law of variable proportionslinkage

marginal physical productmarginal productivity theorymarginal rate of transformationMarshallian long periodMarshallian short periodMicroproduction functionmiddle product

minimum efficient scalemothballing

netputoutput capacityoutsourcingPareto efficiencypotential outputproducer’s surplusproduction quotaproduct life cyclequota

re-switchingreturns to scaleRicardo effectroundabout method of productionscarcity

servicesspecializationsunk cost fallacysupply controlteam worktechnical efficiencyunit cost

value addedvegetative controlyield

D3 Distributionabstinenceadding-up controversyCambridge controversiesclass savings theorycontribution standarddifferential theory of rentdisposable incomedistributionearningseconomic profiteconomic rentegalitarianismEuler’s theoremfactor incomefalling rate of profitfree cash flow

functional income distribution

Gini coefficient

Haig–Simons definition of income

Hicksian income measure

English auctionexchange standpoint epistemologyfactor market

fair pricefalse tradingfirst-degree price discriminationfirst-price auction

flawed marketplacefloor pricefree marketfull-cost pricinghedonic pricing methodhybrid auction

incomplete marketindirect cost recoveryinefficient equilibriuminformation trapintegrated fareintersection priceinverse demand functionkinked supply curvelimited general competitive biddinglimit price

list pricemarginal cost pricingmarket

market segmentationmark-up

mark-up pricingmatching functionnodal pricingnormal priceparametric pricingpeak-load pricingpredatory pricingprice bunchingprice discovery processprice gap

price leadershipprice-makerprice staggeringscarcity pricingscissors diagramsecond-price auctionsellers’ marketStackelberg duopoly modelsurvival process

net economic welfareordinalist revolutionPareto improvementPareto optimumphysical quality of life indexprosperity indicatorspublic interest theoryRawlsian difference principleScitovsky reversal testsocial cost of monopolysocial cost of unemploymentsunspot theory

sympathetic impartial observertop-level efficiency

welfare economicswell-beingD7 Analysis of collective decision-makingbargaining

impossibility theoremsocial choice theorystate theoriesteam theoryD8 Information and uncertaintyeconomics of informationframing effects

information externalityinformation theorylemons marketprospect theoryregret

signallingstate preference theoryuncertainty

D9 Intertemporal choice and growthoverlapping generations modelRicardian equivalence theoremsocial rate of discountsocial time preference rate

E Macroeconomics and monetaryeconomics

E0 Generalaccounting identityadaptive expectationsadverse supply shockbad equilibriumbutterfly effectCambridge controversies

gross domestic product

gross national product

gross social product

Keynes’s General Theory

labour’s share of national income

stationary statesteady state economystock and flow conceptsstylized fact

surplus economySystem of National Accountstemporary equilibriumtraverse

wealthwidow’s crusewindfall gain or losswindfall profitwithdrawalzero growthE1 General aggregative modelscircular flow

classical modelcoconut modelCOMETcomparative staticsdynamic economicseconomic modelendogenizing the exogenousendogenous variableflow of funds accountIS

IS–LM–BP modelIS–LM curvesKeynesian cross diagramLucas supply functionmaterial balanceMundell–Fleming modelnet acquisition of financial assetsoutput gap

point-input, point-output modelproduction function

pseudo production functionRobinson Crusoe economy

Say’s law

static model

structural model

E2 Consumption, saving, production,

employment and investment

absolute income hypothesis

average propensity to consume

average propensity to save

balanced budget multiplier

gross domestic fixed capital formation

import penetration ratio

interest elasticity of savings

internal rate of return

Premium Savings Bondproject appraisalpropensity to consumepropensity to saveputty-clayputty-puttyRamsey saving ruleratchet effectrelative income hypothesisreplacement investmentreproduction

Robertsonian lagsavings

savings functionsavings ratiosocial capitalsocial profitstock adjustment principlesuper-multiplier

test rate of discountthrift

vintage effectwealth creationwealth effectE3 Prices, business fluctuations and cyclesacyclical

administered inflationautomatic stabilizerBarber boombell-wether of the economyboom

boom and bustbusiness cycleceilingcoincident indicatorsconflicting claims approach toinflation

constant pricesconsumer price indexcore inflation ratecost-push inflationcountercyclical policyCPI-U

Price Commissionprice controlsprices policyproducer price indexP-star modelpure inflationreal business-cycle theoryreal income

recessionrecession exposure scoring systemrecovery

reference cyclereputational equilibriumretail price indexrevalorizationRPI
XRPI
Ysacrifice ratioSandilands Reportshock inflationshoe leather costs of inflationslump

slumpflationstagflationstop–gostructural inflationsunspot theorysuppressed inflationtax-based incomes policytrade cycle

underlying inflation rateunintended investmentwage–price spiralwage-push inflationwage–tax spiralwholesale price indexworld inflationE4 Money and interest ratesagio theory of interestannual percentage rate (of interest)asset motive

broad moneybuffer stockbullioncall moneyCantillon effect

European Unit of Account

expected monetary value

expensive easy money

flight from money

minimum lending ratemonetarism

monetary veilmoneymoney at callmoney illusionmoney multipliermoneynessmoney supplymonkeyMundell–Tobin effectnatural rate of interestnear money

neutrality of moneyneutral real rate of interestnon-interest-bearing M1nume´raire

optimum quantity of moneyoutside money

overnight moneyown rate of interestpaper moneypetrocurrencyplastic moneypopulist interest rateprecautionary demand for moneypreferred habitat theory

prime rate of interestprivate sector liquidity (UK)pure interest rate

quantity theory of moneyrate of interest

real interest rateRegulation Qremittancereverse causation hypothesisseignorage

single currencyspecie

speculative demand for moneysterling

sterling M3store of valueterm spreadterm structure of interest ratestime value of money

token moneytransactions demand for moneytransmission mechanismuncovered interest parity