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.[1] 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,[2] 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. The spot exchange rate refers to the current exchange rate. Retail exchange market[edit] Quotations[edit]
Externality In economics, an externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit.[1] Implications[edit] External costs and benefits Voluntary exchange is considered mutually beneficial to both parties involved, because buyers or sellers would not trade if either thought it detrimental to themselves. However, a transaction can cause additional effects on third parties. A voluntary exchange may reduce societal welfare if external costs exist. On the other hand, a positive externality would increase the utility of third parties at no cost to them. There are a number of potential means of improving overall social utility when externalities are involved. Laissez-faire economists such as Friedrich Hayek and Milton Friedman sometimes refer to externalities as "neighborhood effects" or "spillovers", although externalities are not necessarily minor or localized. Examples[edit] Negative[edit] Barry Commoner commented on the costs of externalities:
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. Interest-rate targets are a vital tool of monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment. Interest rate notations[edit] Historical interest rates[edit] Interest rates in the United States[edit] is widely used. where: Risk[edit] so
Gross national product Gross national product (GNP) is the market value of all the products and services produced in one year by labor and property supplied by the citizens of a country. Unlike Gross Domestic Product (GDP), which defines production based on the geographical location of production, GNP allocates production based on ownership. GNP does not distinguish between qualitative improvements in the state of the technical arts (e.g., increasing computer processing speeds), and quantitative increases in goods (e.g., number of computers produced), and considers both to be forms of "economic growth".[1] Basically, GNP is the total value of all final goods and services produced within a country in a particular year, plus income earned by its citizens (including income of those located abroad)(no need to minus income of non resident as income includes of only its citizen). GNP measures the value of goods and services that the country's citizens produced regardless of their location. Use[edit] GNP Growth[edit]
Globalization Globalisation (or globalization) is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture.[1][2] Advances in transportation and telecommunications infrastructure, including the rise of the telegraph and its posterity the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities.[3] Though scholars place the origins of globalization in modern times, others trace its history long before the European age of discovery and voyages to the New World. Some even trace the origins to the third millennium BCE.[4][5] In the late 19th century and early 20th century, the connectedness of the world's economies and cultures grew very quickly. Overview[edit] Humans have interacted over long distances for thousands of years. Airline personnel from the "Jet set" age, circa 1960. Etymology and usage[edit] Sociologists Martin Albrow and Elizabeth King define globalization as:
Producer price index A Producer Price Index (PPI) measures the average changes in prices received by domestic producers for their output. It is one of several price indices. Its importance is being undermined by the steady decline in manufactured goods as a share of spending.[1] Related measures[edit] A number of countries that now report a Producer Price Index previously reported a Wholesale Price Index. PPIs around the world[edit] United States[edit] In the US, the PPI was known as the Wholesale Price Index, or WPI, up to 1978. India[edit] See also[edit] References[edit] Jump up ^ The Economist, Volume 387, May 31 - June 6, 2009, page 109Jump up ^ BLS Handbook of Methods, Chapter 14 Producer Prices, Background (found online at: up ^ Senate Committee on Finance, Wholesale Prices, Wages, and Transportation, Senate Report No. 1394, “The Aldrich Report,” Part I, 52nd Congress, 2d sess., March 3, 1893; and U.S. External links[edit]
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.[1] 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.[2][3] 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.[4] The opposite of inflation is deflation. History[edit] 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[edit] Measures[edit] Other common measures of inflation are: Effects[edit] where
Gini coefficient Gini coefficient of national income distribution around the world. This is based on 1989 to 2009 data, estimated by the CIA. Some are pre-tax and transfer, others post-tax income. The Gini coefficient (also known as the Gini index or Gini ratio) (/dʒini/) is a measure of statistical dispersion intended to represent the income distribution of a nation's residents. It was developed by the Italian statistician and sociologist Corrado Gini and published in his 1912 paper "Variability and Mutability" (Italian: Variabilità e mutabilità).[1][2] The Gini coefficient measures the inequality among values of a frequency distribution (for example levels of income). There are some issues in interpreting a Gini coefficient. Definition[edit] Graphical representation of the Gini coefficient The graph shows that the Gini coefficient is equal to the area marked A divided by the sum of the areas marked A and B. that is, Gini = A / (A + B). Calculation[edit] This may be simplified to: where and , then , so that
Consumer price index A graph of the US CPI from 1913 to 2013 (in blue), and its percentage annual change (in red) A consumer price index (CPI) measures changes in the price level of a market basket of consumer goods and services purchased by households. The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. Sub-indexes and sub-sub-indexes are computed for different categories and sub-categories of goods and services, being combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the index. It is one of several price indices calculated by most national statistical agencies. Introduction[edit] The index is usually computed monthly, or quarterly in some countries, as a weighted average of sub-indices for different components of consumer expenditure, such as food, housing, clothing, each of which is in turn a weighted average of sub-sub-indices. or . where the
Government debt Government debt (also known as public debt, national debt and sovereign debt)[1][2] is the debt owed by a central government. (In federal states, "government debt" may also refer to the debt of a state or provincial, municipal or local government.) By contrast, the annual "government deficit" refers to the difference between government receipts and spending in a single year, that is, the increase of debt over a particular year. Government debt is one method of financing government operations, but it is not the only method. Governments can also create money to monetize their debts, thereby removing the need to pay interest. As the government draws its income from much of the population, government debt is an indirect debt of the taxpayers. History[edit] The sealing of the Bank of England Charter (1694) During the Early Modern era, European monarchs would often default on their loans or arbitrarily refuse to pay them back. Government and sovereign bonds[edit] By country[edit] Risk[edit] U.S.
Global governance Global governance or world governance is a social movement toward political integration of transnational actors aimed at solving problems that affect more than one state or region when there is no power of enforcing compliance. The modern question of world governance exists in the context of globalization. In response to the acceleration of interdependence on a worldwide scale, both between human societies and between humankind and the biosphere, the term "world governance" may also be used to designate laws, rules, or regulations intended for a global scale. Definition[edit] In a simple and broad-based definition of world governance, the term is used to designate all regulations intended for organization and centralization of human societies on a global scale.[1] Traditionally, government has been associated with "governing," or with political authority, institutions, and, ultimately, control. Usage[edit] Context[edit] Need[edit] Crisis of purpose[edit] World government[edit] Issues[edit]
Construction price and cost indices The quarterly Department for Business, Innovation and Skills (BIS) construction price and cost indices (PCIs) are produced for use in estimating, cost checking and fee negotiation on public sector construction works. The PCIs are published as an online service by Aecom under contract to BIS. The publication provides comprehensive public sector construction price and cost information in Great Britain, including the following indices: tender price index of public sector building non-housing, social housing, and road construction resource cost indices for buildings, roads, infrastructure and building maintenance output price indices for construction sectors output price indices for direct labour location and function studies The UK Statistics Authority has designated these statistics as National Statistics, in accordance with the Statistics and Registration Service Act 2007 and signifying compliance with the Code of Practice for Official Statistics.
Unemployment Unemployment occurs when people are without work and actively seeking work.[1] 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.[2] 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.[3] There remains considerable theoretical debate regarding the causes, consequences and solutions for unemployment. In addition to these comprehensive theories of unemployment, there are a few categorizations of unemployment that are used to more precisely model the effects of unemployment within the economic system. Definitions, types, and theories[edit] Classical unemployment[edit] Cyclical unemployment[edit] Marxian theory of unemployment[edit] Measurement[edit]