EPEC - Homepage VLAAMS KENNISCENTRUM PPS and CELLULE D'INFORMATIONS FINANCIERES THE COMPETITION AUTHORITY Previously THE DANISH ENTERPRISE AND CONSTRUCTION AUTHORITY BUNDESMINISTERIUM FÜR VERKEHR, BAU UND STADTENTWICKLUNG and FINANZMINISTERIUM DES LANDES NORDRHEIN-WESTFALEN DER MINISTER DIRECCION GENERAL DE PRESUPUESTOS Y ANALISIS ECONOMICO DE LA COMUNIDAD DE MADRID and MINISTERIO DE FOMENTO Inflation In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time. The opposite of inflation is deflation. History Annual inflation rates in the United States from 1666 to 2004. Historically, infusions of gold or silver into an economy also led to inflation. The adoption of fiat currency by many countries, from the 18th century onwards, made much larger variations in the supply of money possible. Related definitions Measures Other common measures of inflation are: Effects where
Debt of developing countries The debt of developing countries refers to the external debt incurred by governments of developing countries, generally in quantities beyond the governments' ability to repay. "Unpayable debt" is external debt with interest that exceeds what the country's politicians think they can collect from taxpayers, based on the nation's gross domestic product, thus preventing it from ever being repaid. The causes of debt are a result of many factors. Some of the current levels of debt were amassed following the 1973 oil crisis. Increases in oil prices forced many poorer nations' governments to borrow heavily to purchase politically essential supplies. At the same time, OPEC funds deposited in western banks provided a ready source of funds for loans. Debt abolition There is much debate about whether the richer countries should be asked for money which has to be repaid. Consequences of debt abolition Debt as a mechanism in economic crisis Recent debt relief See also
Consumer debt In recent years, an alternative analysis might view consumer debt as a way to increase domestic production, on the grounds that if credit is easily available, the increased demand for consumer goods should cause an increase of overall domestic production. The permanent income hypothesis suggests that consumers take debt to smooth consumption throughout their lives, borrowing to finance expenditures (particularly housing and schooling) earlier in their lives and paying down debt during higher-earning periods. Both domestic and international economists have supported a recent upsurge in South Korean consumer debt, which has helped fuel economic expansion. The most common forms of consumer debt are credit card debt, payday loans, and other consumer finance, which are often at higher interest rates than long-term secured loans, such as mortgages. Long-term consumer debt is often considered fiscally suboptimal. See also References External links
Macroeconomics Circulation in macroeconomics. Macroeconomics (from the Greek prefix makro- meaning "large" and economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies. With microeconomics, macroeconomics is one of the two most general fields in economics. While macroeconomics is a broad field of study, there are two areas of research that are emblematic of the discipline: the attempt to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the attempt to understand the determinants of long-run economic growth (increases in national income). Basic macroeconomic concepts Output and income Unemployment Main article: Unemployment A chart using US data showing the relationship between economic growth and unemployment expressed by Okun's law. Inflation and deflation
European PPP Expertise Centre European PPP Expertise Centre (EPEC) is a collaboration between the European Investment Bank (EIB), the European Commission, and European Union member and candidate countries. Its primary mission is to strengthen the organizational capacity of the public sector to engage in Public Private Partnership (PPP) transactions, by allowing PPP taskforces in EU Member and Candidate countries to share experience and expertise, analysis and best practice relating to PPP transactions. This experience is then disseminated in terms of practical and operational guidance. Membership in EPEC is exclusively for the public sector. Key areas of activity EPEC carries out three main types of activity  Membership eligibility Membership in EPEC is strictly limited to public authorities whose role includes policy responsibility and the promotion of PPP projects or programmes at national or regional level. Members of EPEC There are currently 35 members in EPEC (July 2011). References
Unemployment Unemployment occurs when people are without work and actively seeking work. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force. During periods of recession, an economy usually experiences a relatively high unemployment rate. According to International Labour Organization report, more than 197 million people globally or 6% of the world's workforce were without a job in 2012. There remains considerable theoretical debate regarding the causes, consequences and solutions for unemployment. Classical economics, New classical economics, and the Austrian School of economics argue that market mechanisms are reliable means of resolving unemployment. Definitions, types, and theories On the other hand, cyclical unemployment, structural unemployment, and classical unemployment are largely involuntary in nature. Full employment
List of countries by public debt Public debt as a percent of GDP by CIA (2012) This is a list of countries by public debt to GDP ratio as listed by Eurostat for the EU and by CIA's World Factbook 2012 for the rest of the world. It is the cumulative total of all government borrowings less repayments that are denominated in a country's home currency. Concept Total (gross) government debt as a percent of GDP by IMF (2012) Gross government debt is the most relevant data for discussions of government default and debt ceilings. The figures here are represented as a percentage of annual gross domestic product. List See also Government debt as a percent of GDP in EU in 2012 Nation specific: Notes Jump up ^ The averaging of the two figures may not necessarily be meaningful since public debt is not necessarily equal to net debt. References External links General government gross debt 2015
External debt Map of countries by external debt as a percentage of GDP The chart depicts the share of US gross external debt by debtors.  External debt (or foreign debt) is that part of the total debt in a country that is owed to creditors outside the country. The debtors can be the government, corporations or citizens of that country. The debt includes money owed to private commercial banks, other governments, or international financial institutions such as the International Monetary Fund (IMF) and World Bank. Definition PEP defines it as "Gross external debt, at any given time, is the outstanding amount of those actual current, and not contingent, liabilities that require payment(s) of principal and/or interest by the debtor at some point(s) in the future and that are owed to nonresidents by residents of an economy". In this definition, IMF defines the key elements as follows: Outstanding and Actual Current Liabilities Principal and Interest Residence Current and Not Contingent (b) bilateral,
Exchange rate In finance, an exchange rate (also known as a foreign-exchange rate, forex rate, FX rate or Agio) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. For example, an interbank exchange rate of 119 Japanese yen (JPY, ¥) to the United States dollar (US$) means that ¥119 will be exchanged for each US$1 or that US$1 will be exchanged for each ¥119. In this case it is said that the price of a dollar in terms of yen is ¥119, or equivalently that the price of a yen in terms of dollars is $1/119. Exchange rates are determined in the foreign exchange market, which is open to a wide range of different types of buyers and sellers where currency trading is continuous: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday. Retail exchange market Quotations Exchange rates display in Thailand Main article: Currency pair
Committee publishes report on Private Finance Initiative funding Private Finance Initiative (PFI) funding for new infrastructure, such as schools and hospitals, does not provide taxpayers with good value for money and stricter criteria should be introduced to govern its use, the Treasury Select Committee has concluded in a new report published on 19 August 2011 Chairman of the Treasury Select Committee, Andrew Tyrie MP, said: "PFI means getting something now and paying later. "PFI should be brought on balance sheet. "We must also impose much more robust criteria on projects that can be eligible for PFI by ensuring that as much as possible of the risk associated with PFI projects is transferred to the private sector and is seen to have been transferred." Higher borrowing costs since the credit crisis mean that PFI is now an ‘extremely inefficient’ method of financing projects, according to the Committee. Recommendations Investment could be increased in the long run, the MPs point out, if government capital investment were used instead of PFI.
Interest rate An interest rate is the rate at which interest is paid by borrowers (debtors) for the use of money that they borrow from lenders (creditors). Specifically, the interest rate is a percentage of principal paid a certain number of times per period for all periods during the total term of the loan or credit. Interest rates are normally expressed as a percentage of the principal for a period of one year, sometimes they are expressed for different periods like for a month or a day. Different interest rates exist parallelly for the same or comparable time periods, depending on the default probability of the borrower, the residual term, the payback currency, and many more determinants of a loan or credit. For example, a company borrows capital from a bank to buy new assets for its business, and in return the lender receives rights on the new assets as collateral and interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower. is widely used.
Heavily indebted poor countries The 38 states recognized as the Heavily Indebted Poor Countries (HIPC). Countries qualifying for full HIPC relief. Countries qualifying for partial HIPC relief. Countries eligible for HIPC relief but not yet meeting the necessary conditions. The heavily indebted poor countries (HIPC) are a group of 38 developing countries with high levels of poverty and debt overhang which are eligible for special assistance from the International Monetary Fund (IMF) and the World Bank. HIPC Initiative The HIPC Initiative was initiated by the International Monetary Fund and the World Bank in 1996, following extensive lobbying by NGOs and other bodies. As of January 2012, the HIPC Initiative had identified 39 countries (33 of which are in Sub-Saharan Africa) as being potentially eligible to receive debt relief. The 36 countries that have so far received full or partial debt relief are: An additional three countries (Eritrea, Somalia and Sudan) are being considered for entry into the program.