|
Description
|
Term
|
|
Those which when low may increase international competitiveness as it may attract foreign direct investment (FDI) due to the low cost of borrowing
|
Interest Rates
|
|
The banker to the government, performing a range of functions which may include issue of coins and banknotes, acting as banker to the commercial banks, and acting as regulator of the financial system
|
Central Bank
|
|
That which can lead to development by increasing the output of goods and services, usually increasing people's standard of living and potential investment in healthcare, education, and infrastructure
|
Economic Growth
|
|
Those countries that face problems from multinational companies and globalisation in that they become less able to negotiate effectively and thus face downward pressure on taxes and regulations
|
Less Developed Countries
|
|
That group of countries which ensured an accumulation of savings and entrepreneurship by encouraging the inward immigration of entrepreneurs and the moving-in of multinational corporations (MNCs)
|
Asian Tigers
|
|
Those changes in which to achieve macroeconomic objectives is problematic as they are subject to time lags, may not be effective if the transmission mechanism is interrupted by firms instead borrowing from abroad, can cause liquidity traps, and can reduce confidence in the economy
|
Interest Rates
|
|
A model of how real goods and services, and money flows in the economy, there being long-term equilibrium whereby withdrawals (W) = injections (J)
|
Circular Flow of Income
|
|
That the growth of which can increase development as it will result in more people being available for labour and production, thereby increasing output and incomes, and thus potentially expenditure and investment ceteris paribus
|
Population
|
|
That region that has failed to develop - its GNI per capita being lower in 2000 than in 1975 - as it has specialised in primary production of plentiful or low-demand goods while seeing little domestic and foreign investment, alongside endemic corruption
|
Sub-Saharan Africa
|
|
The ratio of a bank's capital to its current liabilities and risk-weighted assets
|
Capital Adequacy Ratio
|
|
|
Description
|
Term
|
|
A company in which the ability to invest is limited to a small group of 'invited' shareholders, limiting liabilities but also reducing the liquidity of shares reducing the ability to raise large amounts of capital
|
Private Limited Company
|
|
That policy the primary objectives of which are to correct for market failure (public goods, externalities, etc.) and reduce x-inefficiency (together with the previous achieving a public-private sector balance) and to influence income distribution
|
Fiscal Policy
|
|
That which governments try to achieve via monetary stability such as maintaining a low and stable inflation rate, financial stability such as maintaining sufficient liquidity, fiscal stability such as reducing fiscal deficits and the national debt, and policies allowing for the accommodation of external shocks
|
Macroeconomic Stability
|
|
That virus and subsequent syndrome that has much harmed development in Sub-Saharan Africa by reducing productivity and increasing health expenditure
|
HIV and AIDS
|
|
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
|
Less Developed Countries
|
|
Those schemes which are criticised as it is difficult to know at what to set the minimum and maximum prices due to uncertainty of the equilibrium price, storage is expensive and perhaps unsustainable indefinitely, and non-member countries can undermine them
|
Buffer Stock Schemes
|
|
The percentage of additional income paid as tax
|
Marginal Rate of Tax
|
|
That a rise in which would reduce demand-pull inflation but increase cost-push inflation by raising the cost of firms' past borrowing
|
Interest Rates
|
|
That which in a less developed country may not allow for investment as stated under the Harrod-Domar Model as there is often not many skilled entrepreneurs with the knowledge to identify and exploit investment opportunities, while most people particularly rural persons don't use financial institutions (i.e. keeping money under the bed) which is not then available for firms or entrepreneurs to borrow
|
Saving
|
|
That which in the absence of, countries may try to alleviate poverty and inequality by implementing macroeconomic policies such as progressive taxes or welfare benefits that will improve income distribution and the living standards of the poorest in society
|
Economic Growth
|
|
