Mean Squared Error (MSE)
Mean Squared Error (MSE) - Definition, Applications, and Analytical Frameworks
Mean-Variance Preferences
Understanding mean-variance preferences in investment portfolio choice.
Means Test
An assessment method used to determine eligibility for certain benefits based on income and assets.
Means-Tested Benefits
A comprehensive overview of means-tested benefits, including definitions, analytical frameworks, comparative analysis, and related terms.
Measurement Error
The difference between the true value of a quantity and the measured value, including systematic and random errors.
Mechanism Design
The construction of a game of strategic interaction that achieves a specific outcome in economics.
Median
The median of the distribution of a random variable and its significance in statistical analysis.
Median Voter Theorem
A theorem in voting theory that asserts the outcome of majority voting will be the preference of the median voter.
Medicaid
A US government scheme to pay for medical treatment for individuals with low incomes.
Medicare
A US government scheme to pay for medical treatment for those over the age of 65.
Medium of Exchange
A detailed account of the concept of a medium of exchange in economics.
Medium-Dated Security
A security with a maturity period of between 5 and 15 years when first issued
Medium-Term Financial Strategy (MTFS)
Medium-Term Financial Strategy (MTFS) is a policy adopted by the UK government in 1980 aimed at controlling inflation through long-term reductions in government borrowing and money supply growth.
member bank
A bank that belongs to a clearing system or, in the US, a bank that is part of the Federal Reserve System
Menu Costs
The real costs firms face when changing prices, which can generate aggregate price stickiness.
Menu Costs of Inflation
An exploration of the concept, causes, and economic implications of the menu costs of inflation.
Mercado Común del Sur (MERCOSUR)
A Latin American common market established in 1991 by Argentina, Brazil, Paraguay, Uruguay, and Venezuela, aimed at promoting economic integration and free trade among member states.
Mercantilism
An economic theory popular in the 16th to 18th centuries that viewed a nation’s supply of capital as the determinant of welfare.
Merchandise Account
The part of the balance-of-payments accounts referring to visible trade, or merchandise imports and exports.
Merchant Bank
Merchant Bank deals mainly with the financing of international activities of firms.
Merger
A combination of two or more firms into a single new firm, involving the consolidation of assets and liabilities and division of shares among original shareholders.
Merit Goods
Merit goods are goods or services whose consumption is deemed beneficial for society beyond the immediate individual benefits, often warranting government intervention.
Meta-Analysis
Combining results from multiple studies addressing similar research hypotheses to produce an overall conclusion.
Method of Moments Estimator
An estimator of the unknown parameters of a distribution obtained by solving equations equating moments of distribution to their sample counterparts.
Microeconometrics
Microeconometrics: Analytical Tools for Individual-Level Economic Data
Microeconomics
Comprehensive overview of microeconomics, focusing on the decision-making processes of individuals and firms, economic equilibria, and the impact of government policies on economic outcomes.
Mid-Market Price
A comprehensive look at the concept of the mid-market price, its definitions, applications, and significance in financial markets.
Migrants’ Remittances
Money sent by migrant workers in foreign countries to their former homes for various purposes.
Migration
An in-depth examination of the term 'migration,' its economic implications, historical context, and related analytical frameworks.
Military–Industrial Complex
Exploration of the term 'military–industrial complex,' its origins, impact, and significance in economic and political realms.
Millennium Development Goals
A comprehensive overview of the Millennium Development Goals, adopted by world leaders in 2000 with a target for achievement by 2015.
Millennium Round
The Millennium Round refers to the latest series of trade negotiations under the World Trade Organization that started in 1999 but failed to reach an agreement initially.
Minimal State
Definition and meaning of the minimal state in economics
Minimax
A decision rule that chooses the action that minimizes the worst-case (maximum) loss; central in zero-sum game theory.
Minimax Regret
A decision rule in decision theory for minimizing the maximum potential regret across various actions under uncertainty.
Minimum Efficient Scale
The minimum level of any activity at which all known economies of scale have been exhausted.
Minimum Lending Rate
The concept of Minimum Lending Rate (MLR) as used in UK financial policy between 1971 and 1981, and its subsequent replacement by the base rate.
Minimum Wage
A comprehensive analysis of the concept and implications of minimum wage in economic theory and practice.
Minority Shareholder
A shareholder who owns only a minority of the voting shares of a company.
Mint
Definition and explanation of a mint, its functions, and historical significance in the production of coinage.
Mirrlees Review
A comprehensive review of the UK tax system organized by the Institute for Fiscal Studies and chaired by Sir James Mirrlees, offering key recommendations on tax and benefit system reform.
Misaligned Exchange Rate
An examination of misaligned exchange rates and their economic implications.
Misery Index
An index of overall economic performance, formed by adding the unemployment rate and the inflation rate.
Mismatch
Understanding the concept of mismatch in the labor market, referring to the differences between the skills and location of unemployed workers and available job vacancies.
Missing Market
The absence of a market for trading a good.
Mitigation
Policies and actions aimed at limiting the extent of global warming primarily by reducing the level of greenhouse gases emitted into the atmosphere.
Mix of Policies
The strategic combination of multiple policy instruments to achieve economic objectives.
Mixed Economy
Definition and meaning of a mixed economy
Mixed Strategy
The use of a random mixture of strategies in a game
Mobility of Labour
The ability of workers to change jobs, occupations, locations, or countries, and the various obstacles they face in doing so.
Modal Choice Models
An exploration of modal choice models, discrete choice models for analyzing individual transportation mode choices.
Mode
The most frequent or most likely value in a dataset.
Modigliani–Miller Theorem
An exploration of Modigliani–Miller Theorem and its implications in the field of corporate finance within a perfect capital market.
Moment Generating Function
Moment Generating Function (mgf) is utilized to calculate moments of the distribution of a random variable X.
Moment of Distribution
Understanding the Moment of Distribution in Economics
Moment-Generating Function
Moment Generating Function (mgf) is utilized to calculate moments of the distribution of a random variable X.
Monetarism
An economic theory emphasizing the central role of the money supply in determining nominal incomes and economic stability.
Monetary Base
Definition and meaning of the term monetary base or base money, its relationship to the broader money supply, and differing economic theories on its control and impact.
Monetary Control
How central banks steer short-term interest rates and monetary conditions to achieve inflation and employment goals.
Monetary Economics
A deep-dive into the field of monetary economics, exploring its conduct, institutions, and impact on various economic variables.
Monetary Overhang
An in-depth exploration of monetary overhang and its impact on the economy.
Monetary Policy
The use by the government or central bank of interest rates or controls on the money supply to influence the economy.
Monetary Policy Committee
A committee established within the Bank of England to advise on monetary policy and interest rates, consisting of a mix of internal and external members.
Monetary Rule
A systematic rule used by a central bank to determine its choice of monetary policy.
Monetary System
The system by which an economy is provided with money, ensuring financial stability and economic growth.
Monetary Union
An overview of the economic term 'monetary union', including meaning, history, and key concepts.
Money
Entry defining the term 'money' as a medium of exchange and store of value, including different forms and historical contexts.
Money at Call and Short Notice
An exploration of the definition, meaning, and context of 'money at call and short notice,' specifically focusing on its liquidity, uses, and relevance in the banking sector.
Money Illusion
An economic concept where nominal changes are mistaken for real changes.
Money Laundering
An entry exploring the concept, historical context, and economic implications of money laundering.
Money Market
An exploration of the money market, its functions, and its role in the economy.
Money Multiplier
The ratio linking the monetary base to broader money in simplified banking models.
money supply
The amount of money in an economy, encompassing both the country's own money and any foreign money utilized within the system.
Money Wages
Definition and meaning of wage rates measured in monetary terms
Monitoring
The process of checking whether individuals or firms are actually behaving as they should.
Monopolies and Mergers Commission
A UK body appointed to investigate monopolies, mergers, and anti-competitive practices referred to it by certain authorities.
Monopolistic Competition
A market structure characterized by many firms selling differentiated products where each firm has some degree of market power but no long-term economic profit.
Monopoly
A market condition in which there is only one seller.
Monopoly Policy
An overview of government policy towards monopolies, including motivations, strategies, and approaches.
Monopoly Power
The degree of control that a seller can exercise over a market, indicated by industry concentration or price mark-up over marginal cost.
monopoly profit
Profit in excess of normal profit earned by a firm that is able to exploit monopoly power.
Monopsony
A market situation with only one buyer.
Monopsony Power
The degree of control that a buyer exerts in a market, primarily measured by the concentration of the industry. It is the counterpart of monopoly power.
Monte Carlo method
Definition and exploration of the Monte Carlo method in economics
Montreal Protocol
An international agreement reached in 1987 to reduce the production and consumption of chlorofluorocarbons (CFCs) and halon, substances which deplete the ozone layer in the upper atmosphere.
Moody’s
A comprehensive examination of Moody's as a leading US credit-rating agency.
Moral Hazard
The observation that a contract promising payment for certain events changes behavior to increase the likelihood of these events.
Moratorium
A suspension of the obligation to repay debts, often instituted to allow time for refinancing and to prevent financial panic.
Mortgage
A comprehensive analysis of mortgages as loans using real assets as collateral, including types and economic implications.
Mortgage Interest Relief at Source (MIRAS)
Definition and historical context of mortgage interest relief at source (MIRAS) in the UK.
Mortgage-Backed Security (MBS)
A bond-like security backed by the cash flows from a pool of mortgage loans.
Most Favoured Nation
A comprehensive overview of the 'Most Favoured Nation' status in international trade agreements, its historical context, and major analytical frameworks.
Moving Average
A class of data-smoothing techniques used in the analysis of economic and financial time series
Moving Average Process MA(q), of Order q
A detailed exploration of the moving average process MA(q), a key concept in time series analysis
Multi-Fibre Arrangement
Definition, historical context, analytical frameworks, and impact of the Multi-Fibre Arrangement (MFA)
Multi-plant Firm
Definition and meaning of a firm that operates two or more plants, either as branches or through subsidiary companies.
Multi-product Firm
A Firm Which Produces Multiple Types of Products
Multicollinearity
An examination of multicollinearity within multiple regression analysis, its impacts, and possible remedies.
Multilateral Trade
Trade involving multiple countries where trade does not need to be balanced bilaterally, facilitated by convertible currencies.
Multilateralism
An approach to international economic cooperation based on common rules across many countries.