Economics

Economics

basics of economics

Industry: Economy

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Economics

Big Mac index

Economy; Economics

The Big Mac index was devised by Pam Woodall of The Economist in 1986, as a light-hearted guide to whether currencies are at their "correct" level. It is based on one of the oldest concepts in ...

Part of an economic theory for valuing financial securities and calculating the cost of capital, known as the capital asset pricing model, beta measures the sensitivity of the price of a particular ...

behavioral economics

Economy; Economics

A branch of economics that concentrates on explaining the economic decisions people make in practice, especially when these conflict with what conventional economic theory predicts they will do. ...

bear

Economy; Economics

An investor who thinks that the price of a particular security or class of securities (shares, say) is going to fall; the opposite of a bull.

basis point

Economy; Economics

One one-hundredth of a percentage point. Small movements in the interest rate, the exchange rate and bond yields are often described in terms of basis points. If a bond yield moves from 5. 25% to 5. ...

Basel 1 and 2

Economy; Economics

An attempt to reduce the number of bank failures by tying a bank's capital adequacy ratio to the riskiness of the loans it makes. For instance, there is less chance of a loan to a government going ...

barter

Economy; Economics

Paying for goods or services with other goods or services, instead of with money. It is often popular when the quality of money is low or uncertain, perhaps because of high inflation or ...