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Description
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Term
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A sale and repurchase agreement whereby one financial institution sells a financial asset to another with an agreement to buy it back at an agreed future date so as to accommodate a short-run shortage of funds
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Repo
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That type of tax the disadvantages of which are that they may disincentivise consumption and thus reduce output, are regressive, the level at which they are set is prone to information failure, and they can cause inflation via a general increase in the price level
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Indirect Taxes
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The nine member (four being appointed by the Chancellor) body of the Bank of England which meets eight times a year to act on its responsibility over the conduct of monetary policy
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Monetary Policy Committee
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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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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)
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Asian Tigers
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Those three categories of development that superseded the First World, Second World, and Third World classification
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Developed Countries, Developing Countries, Less Developed Countries
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That which monetary policy usually focuses more on than directly changing the money supply as the money supply is difficult to measure and said factor is particularly effective in countries with high household debt
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Interest Rates
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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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The average level of income per person in the population of a country measured in purchasing power parity dollars so as to eliminate the effect of exchange rate variation, commonly used as a measure of development
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GNI per Capita (PPP$)
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Where a less developed country is unable to export the goods which it can't produce domestically, necessary for development, because of a shortage of foreign exchange, avoided by the Asian Tigers due to export-led growth
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Foreign Currency Gap
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Where government revenue exceeds government spending having the effect of reducing demand-pull inflation
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Budget Surplus
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That the core functions of which are issuing notes and coins, handling government tax revenue, expenditure, borrowing, and lending, holding commercial bank deposits (for a charge above bank rate if above the agreed range), managing foreign exchange reserves, promoting monetary and financial stability, acting as lender of last resort, and implementing monetary policy
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Bank of England
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Those two things which a country may use when policy measures (supply side, etc.) are insufficient to achieve macroeconomic objectives, alphabetically
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Controls and Regulations
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A hypothesis that the price of primary commodities declines relative to the price of manufactured goods over time, causing the terms of trade of primary product-based economies to deteriorate
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Prebisch-Singer Hypothesis
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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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That which appears on the money demand and supply curve where the downward sloping money demand curve meets the perfectly inelastic money supply curve
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Equilibrium Interest Rate
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That which countries may try and improve so as to encourage economic growth, by investing in education and training allowing for the production of higher value-added output, as well as in healthcare, together assuming wages increase, helping to break the poverty cycle
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Human Capital
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Those countries in which the presence of MNCs may lead to a net currency outflow if the repatriation of profits and foreign worker wages, and the cost of purchasing imports exceeds the capital flow and contribution to exports
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Less Developed Countries
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The amount the government must borrow each year to cover the fiscal deficit
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Public Sector Net Cash Requirement (PSNCR)
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The long-run equilibrium level of output to which monetarists believe the macroeconomy will always trend, resulting in a vertical long-run aggregate supply curve
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Natural Rate of Output
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