Economics

Economics

basics of economics

Industry: Economy

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Economics

credit crunch

Economy; Economics

When banks suddenly stop lending, or bond market liquidity evaporates, usually because creditors have become extremely risk averse.

Making loans. Often the amount of credit creation is subject to regulation. Lenders may have limits on the amount of loans they can make relative to the assets they have, so that they run little risk ...

credit

Economy; Economics

A loan extended or (sometimes) taken by, for example, delayed payment of an invoice.

cost-benefit analysis

Economy; Economics

A method of reaching economic decisions by comparing the costs of doing something with its benefits. It sounds simple and common-sensical, but, in practice, it can easily become complicated and is ...

cost of capital

Economy; Economics

The amount a firm must pay the owners of capital for the privilege of using it. This includes interest payments on corporate debt, as well as the dividends generated for shareholders. In deciding ...

corruption

Economy; Economics

Being corrupt is not just bad for the soul, it also harms the economy. Research has found that in countries with a lot of corruption, less of their GDP goes into investment and they have lower growth ...

contestable market

Economy; Economics

A market in which an inefficient firm, or one earning excess profits, is likely to be driven out by a more efficient or less profitable rival. A market can be contestable even if it is dominated by a ...