Archives: Terms

Definition of Post-Keynesian Economics Post-Keynesian economics is a school of economic thought that builds upon the ideas of John Maynard Keynes. It emphasizes the importance of demand in the economy, inherent market instability, and the role of government intervention to mitigate these instabilities. Post-Keynesians argue that markets do not naturally […]

Definition of Pork Cycle The Pork Cycle is an economic theory that explains the cyclical fluctuations in the prices and production of pork and other types of agricultural products. This cycle is driven by the reaction of farmers to price signals. When pork prices are high, farmers increase production to […]

### Population Economics Definition of Population Economics Population Economics is a branch of economics that deals with the size, distribution, and structure of populations and how these factors influence economic outcomes. It examines how demographic trends such as birth rates, death rates, aging, and migration impact labor markets, productivity, economic […]

Definition of Policy Ineffectiveness Proposition The Policy Ineffectiveness Proposition (PIP) is a theory in macroeconomics that asserts the ineffectiveness of monetary policies, particularly in the form of systematic monetary policy actions to influence real economic variables such as output and unemployment. Developed by economists Thomas Sargent and Neil Wallace in […]

Definition of Policy Mix Policy mix refers to the combination of monetary policies and fiscal policies that a government uses to influence the economic conditions of a country. Monetary policy involves the management of interest rates and the total supply of money in circulation and is generally carried out by […]

The Polak Model is a theoretical framework often discussed in the realm of development economics, specifically in the context of exchange rate policy and economic stabilization in developing countries. Definition of the Polak Model The Polak Model, developed by Jacques J. Polak in 1957 as part of his work with […]

Definition of Pigouvian Tax A Pigouvian tax, named after the economist Arthur Cecil Pigou, is a tax imposed on any market activity that generates negative externalities (costs not internalized by the market). The tax is intended to correct an undesirable or inefficient market outcome, and does so by being set […]

Definition of Pigou Effect The Pigou Effect, named after economist Arthur Cecil Pigou, is a macroeconomic concept suggesting that a general price level decline increases the real wealth of individuals, thereby encouraging them to consume more. This hypothesis posits that deflation increases the real value of money, enabling consumers to […]

Definition of Physiocracy Physiocracy is an economic theory that emerged in the 18th century, primarily in France, as a challenge to the prevailing mercantilist doctrine of the time. It posits that the wealth of nations is derived from the value of “land agriculture” or “land development” and that agricultural products […]

Definition of Personal Property Personal property, often called chattel or movable property, refers to any asset that is not fixed permanently to one location and can be moved from one place to another without altering its form or essence. This differentiates personal property from real property, like land or buildings, […]