Macroeconomics

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100 Per Cent Gold Backing
Macroeconomics Banking
A monetary rule where currency issued is fully backed by gold reserves at a fixed conversion rate.
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Absorption
International Economics Macroeconomics
Domestic spending on consumption, investment, and government purchases, often used to analyze trade and current-account balances.
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Abstinence
Economics Macroeconomics
An older economic term for postponing present consumption in order to save and invest for the future.
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Accelerator
Macroeconomics
A macro idea linking investment to changes in output: rising output raises desired capital and therefore investment.
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Accommodatory Monetary Policy
Macroeconomics Banking
A monetary-policy stance that keeps financial conditions easy to support spending, output, and employment.
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Adaptive Expectations
Macroeconomics
A backward-looking expectations rule in which forecasts are adjusted gradually in response to past forecast errors.
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Adjustable Peg
International Economics Macroeconomics
An exchange-rate regime that keeps a currency near a fixed parity most of the time but allows occasional realignment.
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Adjustment
Economics Macroeconomics
The process by which markets, firms, households, or data series move toward a new position after a shock or new information.
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Adjustment Costs
Microeconomics Macroeconomics
Costs that make firms or households change prices, employment, investment, or other decisions gradually instead of instantly.
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Adjustment Programme
International Economics Macroeconomics
A package of policies used to correct a balance-of-payments crisis, restore external financing, and stabilize the economy.
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Advanced Economies
Development Economics Macroeconomics
Countries with high incomes, diversified production, stronger institutions, and typically deeper financial and policy capacity than emerging economies.
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Adverse Supply Shock
Macroeconomics
A negative shock that raises firms' costs or reduces productive capacity, pushing prices up and output down in the short run.
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Age-Dependency Ratio
Macroeconomics Public Finance
A ratio comparing dependent age groups with the working-age population, used to gauge demographic pressure on labor income and public finances.
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Aggregate Demand
Macroeconomics
Total planned spending on final goods and services in an economy at each overall price level.
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Aggregate Demand Schedule
Macroeconomics
A schedule showing planned expenditure at different levels of income or output in the Keynesian-cross framework.
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Aggregate Production Function
Macroeconomics
A relationship showing how total output depends on aggregate inputs such as capital, labor, and productivity.
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Aggregate Supply
Macroeconomics
The amount of real output firms are willing to produce at different overall price levels, given input costs, expectations, and productive capacity.
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Aggregation
Economics Macroeconomics
The process of combining many individual values into macro-level totals, averages, or indexes.
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Aggregation Problem
Economics Macroeconomics
The difficulty of representing a heterogeneous economy with a few aggregate variables without distorting the underlying relationships.
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Animal Spirits
Behavioral Economics Macroeconomics
A Keynesian idea describing how confidence, sentiment, and spontaneous optimism can influence spending and investment.
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Announcement Effect
Macroeconomics Investments
A change in prices or decisions today caused by credible news about future policy, earnings, or other economically relevant events.
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Annualized Growth Rate
Macroeconomics Statistics
A short-period growth rate converted into a one-year equivalent by assuming the same pace continues and compounds.
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Anticipated Inflation
Macroeconomics
Inflation that households and firms expect and incorporate into wages, prices, and nominal interest rates.
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Asian Financial Crisis (1997–1998)
International Economics Macroeconomics
A regional crisis of capital-flow reversals, currency collapses, and banking distress across several Asian economies.
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Asset Motive (Speculative Motive for Holding Money)
Macroeconomics Economics
The reason people hold money when they prefer liquidity over interest-bearing assets.
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Asymmetric Shocks
Macroeconomics International Economics
Economic shocks that affect regions, sectors, or countries differently rather than uniformly.
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Augmented Phillips Curve
Macroeconomics Economics
A Phillips-curve framework that adds inflation expectations to the inflation-unemployment relationship.
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Austerity Measures
Public Finance Macroeconomics
Policies that reduce budget deficits through lower public spending, higher taxes, or both.
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Automatic Stabilizers
Public Finance Macroeconomics
Built-in features of the fiscal system that soften booms and recessions without new legislation.
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Autonomous Consumption
Macroeconomics
Understanding autonomous consumption - the component of consumption that is independent of current income.
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Autonomous Investment
Macroeconomics Economics
Investment spending that does not depend directly on current income or output.
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Backdoor Monetary Policy
Macroeconomics Banking
Non-transparent central bank actions that influence liquidity, rates, or markets outside standard public channels.
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Bad Money Drives Out Good (Gresham’s Law)
Macroeconomics Banking
When two forms of money circulate at a fixed rate, undervalued ‘good’ money is hoarded while overvalued ‘bad’ money remains in circulation.
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Balance
Economics Macroeconomics
A condition of equality or offsetting forces used in economics to describe stable relationships or positions.
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Balance of Payments
International Economics Macroeconomics
The record of a country's transactions with the rest of the world over a period.
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Balance of Trade
International Economics Macroeconomics
The difference between a country’s exports and imports of goods; a core part of the current account.
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Balance-of-Payments Crisis
International Economics Macroeconomics
A situation where a country cannot finance external payments sustainably, triggering reserve losses, currency pressure, or default risk.
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Balanced Budget
Public Finance Macroeconomics
A budget in which government revenue equals government expenditure over the chosen period.
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Balanced Budget Amendment
Public Finance Macroeconomics
A proposed constitutional rule requiring government expenditures not to exceed revenues within a fiscal year.
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Balanced Budget Multiplier
Macroeconomics Public Finance
In Keynesian models, equal increases in government spending and taxes raise output by exactly the spending increase.
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Balanced Growth Path
Macroeconomics
A trajectory where key aggregates—output, capital, and often consumption—grow at the same constant rate, keeping ratios stable.
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Balances with the Bank of England
Banking Macroeconomics
Reserve balances UK commercial banks hold at the Bank of England to settle payments and meet liquidity needs.
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Bank
Banking Macroeconomics Credit and Lending
A financial institution that takes deposits, extends credit, and provides payment and financial services.
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Bank Deposit
Banking Macroeconomics
Money placed at a bank that becomes a bank liability and a depositor asset.
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Bank Note
Banking Macroeconomics
A paper currency claim issued under monetary authority and used as a medium of exchange.
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Bank of England
Banking Macroeconomics
The United Kingdom's central bank, responsible for monetary stability and key financial-system functions.
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Bank Rate
Banking Macroeconomics
The key interest rate set by a central bank as a benchmark for monetary conditions.
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Bank Run
Banking Macroeconomics
A rush by depositors to withdraw funds because they fear a bank may not be able to repay them.
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Banking System
Banking Macroeconomics
The network of banks, central-bank institutions, and supporting rules through which credit and payments are organized.
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Base Money
Banking Macroeconomics
The most liquid form of money, consisting mainly of currency in circulation and bank reserves.
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Base-Weighted Index
Statistics Macroeconomics
An index number that measures change using weights fixed in a chosen base period.
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Baumol's Law
Macroeconomics Public Finance
Baumol's law says service sectors with slow productivity growth become relatively more expensive as economy-wide wages rise.
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Bear Market
Investments Macroeconomics
A bear market is a broad, sustained decline in asset prices accompanied by pessimism, tighter financial conditions, or both.
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Beggar-My-Neighbour Policy
International Economics Macroeconomics
A beggar-my-neighbour policy tries to improve one country's economy by shifting demand, unemployment, or adjustment costs onto other countries.
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Behavioural Equation
Econometrics Macroeconomics
A behavioural equation is a structural equation that represents how households, firms, or other agents respond to incentives and constraints.
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Beveridge Curve
Labor Economics Macroeconomics
The Beveridge curve plots unemployment against job vacancies and is used to study labor-market tightness and matching efficiency.
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Biological Interest Rate
Macroeconomics Economics
The biological interest rate is the return generated by population growth in simple overlapping-generations models.
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Black Monday
Investments Macroeconomics
Black Monday was the global stock-market crash of October 19, 1987, when equity prices fell sharply in a single day.
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Blue Book
Macroeconomics Statistics
The Blue Book is the United Kingdom's main national-accounts publication, reporting GDP, income, expenditure, and related macroeconomic data.
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Boom
Macroeconomics Economics
A boom is a phase of rapid economic expansion marked by strong spending, rising output, tight labor markets, and often upward pressure on prices.
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Consumer Price Index
Macroeconomics Statistics
A price index tracking changes in the cost of a representative basket of consumer goods and services (a common inflation measure).
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Disposable Income
Macroeconomics
Income available for consumption or saving after direct taxes and mandatory contributions (as defined in national accounts).
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Economic Growth
Macroeconomics
A sustained increase in real output, usually measured by real GDP (often per capita) over time.
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Escalator Clause
Labor Economics Macroeconomics
A contract clause that adjusts wages, rents, or prices over time using an inflation index (such as the CPI).
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Gross Domestic Product (GDP)
Macroeconomics
The market value of all final goods and services produced within a country in a given period.
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Increase in the Book Value of Stocks and Work in Progress
Macroeconomics
An accounting measure of inventory and work-in-progress changes; in national accounts it relates to change in inventories within investment.
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Juglar Cycle
Macroeconomics Economics
A medium-term business cycle, often linked to investment and credit dynamics, lasting roughly 7 to 11 years.
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Kondratieff Cycle
Macroeconomics
A hypothesized long wave (about 40-60 years) in economic activity, often linked to major technological shifts; evidence is debated.
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Maastricht Treaty
International Economics Macroeconomics
The 1992 Treaty on European Union that created the EU and set the roadmap for Economic and Monetary Union and the euro.
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Menu Costs
Macroeconomics Economics
The real costs firms face when changing prices, which can generate aggregate price stickiness.
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Monetary Control
Macroeconomics Banking
How central banks steer short-term interest rates and monetary conditions to achieve inflation and employment goals.
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Money Multiplier
Macroeconomics Banking
The ratio linking the monetary base to broader money in simplified banking models.
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National Income Accounts
Macroeconomics Accounting
The accounting framework that measures an economy's production, income, and spending (GDP, GNP, national income).
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New Deal
Macroeconomics Public Finance
The package of policies adopted in the US in the 1930s under President Franklin D. Roosevelt to promote economic recovery from the Great Depression.
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Paasche Price Index
Macroeconomics Statistics
A price index that uses current-period quantities as weights to compare current prices to base-period prices.
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Producer Good
Microeconomics Macroeconomics
A good intended for use as a capital good or intermediate product by producers, rather than for direct use by consumers.
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Seigniorage
Macroeconomics Public Finance
Revenue a government obtains by issuing money, closely related to the inflation tax.
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Speculative Bubble
Macroeconomics Investments
A run-up in asset prices driven largely by expectations of resale at higher prices rather than fundamentals.
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