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Description
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Term
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Those countries the rapid development of which was allowed by export-led growth, foreign investment, investment in human capital and infrastructure, the nurturing of macroeconomic and political stability, buoyant international trade, and a focus on high-demand secondary production
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Asian Tigers
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That measure which is criticised as a measure of development as it doesn't take into account the informal economy (50.2% of total employment in Ethiopia in 1999) or income distribution and inequality
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GNI per Capita (PPP$)
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A pattern notable in most developed countries though not so for recently developing countries where development and better healthcare, incomes, etc. reduces the death rate and later the birth rate as social norms change (more women work (children have a higher opportunity cost)), leading eventually to population stability
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Demographic Transition
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A loan not backed up by collateral such as an overdraft or credit card, therefore incurring a higher interest rate due to the greater risk for the lender
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Unsecured Loan
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That which is divided into four tiers, namely; very high human development (0.8 - 1.0), high human development (0.7 - 0.79), medium human development (0.55 - 0.69), and low human development (below 0 - 0.54)
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Human Development Index
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A measure showing the number of dependents (people age 0 - 14 and 65+) in relation to the total population aged 15 to 64, being high in many less developed countries, Japan being the highest such developed country at 46th worldwide
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Dependency Ratio
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A group of economists who believed that the macroeconomy could settle in an equilibrium that was below full employment
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Keynesian School
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Those which when low may increase international competitiveness as it may attract foreign direct investment (FDI) due to the low cost of borrowing
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Interest Rates
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That type of tax the advantages of which are that they provide a high yield, are relatively cheap and convenient to collect, are often progressive, and are automatic stabilisers
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Direct Taxes
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Countries that are building up their industrial base and moving away from primary production including newly industrialised countries (NICs) like Thailand, emerging economies like India, middle-income countries like Peru, and some very low-income countries in Asia and Sub-Saharan Africa
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Developing Countries
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An initiative launched in 1995 and relaxed in 2005 to provide debt relief for heavily indebted poor countries, difficult to evaluate given the simultaneous reduction in debt-service levels in recent years
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Heavily Indebted Poor Countries (HIPC) Initiative
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Those countries which try to develop their primary industries by exploiting their factor endowments and absolute of comparative advantage, diversifying, processing more products, and raising productivity to release labour for the secondary and tertiary sectors, increasing price competitiveness and thus export revenue
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Less Developed Countries
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A group of economists prominent in the 1970s who believed that the macroeconomy always adjusts rapidly to the full-employment level of ouput, and that monetary policy should be the prime instrument for stabilising the economy
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Monetarist School
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The trend in UK government consumption expenditure (though steady since the mid-1990s and still higher than countries like Japan, the USA, and Germany), set against a backdrop of privatisation
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Downward
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Those the cutting of which could actually increase unemployment as they would not increase the jobs available if unemployment is cyclical and thus would cause the unemployed to consume less, reducing aggregate demand, and causing more unemployment
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Unemployment Benefits
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The official name for the way in which a budget surplus is used to pay down government debt, though such a move is discretionary and such a surplus may be spent elsewhere if interest rates on said debt are low
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Public Sector Debt Repayment (PSDR)
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That model which assumes that there is long-term equilibrium, i.e. withdrawals (W) (i.e. savings (S) + taxation (T) + imports (M)) equal injections (J) (i.e. investment () + government expenditure (G) + exports (X))
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Circular Flow of Income Model
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The percentage of additional income paid as tax
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Marginal Rate of Tax
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A Bangladeshi microfinance initiative, the first of its kind in the world, which has generated employment, reduced inactivity, and raised income and living conditions particuarly for women
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Grameen Bank
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That type of policy the prime goal of which since the financial crisis has been to reduce the net debt accumulated during the crisis, mostly in the form of austerity
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Fiscal Policy
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