Archives: Terms

Definition of Feldstein–Horioka Puzzle The Feldstein–Horioka puzzle is an economic phenomenon first identified by economists Martin Feldstein and Charles Horioka in 1980. This puzzle questions the widely held assumption of perfect capital mobility across borders by presenting empirical evidence that suggests a strong correlation between saving and investment within national […]

Definition of the Feldman–Mahalanobis Model The Feldman–Mahalanobis model is an economic model developed in the early 20th century, primarily focused on the economic planning and growth strategies of the Soviet Union. Named after Russian economist Grigori Feldman and Indian statistician Prasanta Chandra Mahalanobis, the model emphasizes the importance of heavy […]

Definition of the Fei–Ranis Model of Economic Growth The Fei–Ranis model of economic growth, also known as the dual economy model, is an economic theory developed by economists John C. H. Fei and Gustav Ranis. It is based on the earlier work of W. Arthur Lewis and seeks to explain […]

Definition of the Fed Model The Fed model is an economic theory that proposes a relationship between the earnings yield of stocks and the yield on long-term Treasury bonds. The model suggests that when the earnings yield of the Standard & Poor’s 500 Index (or any broad stock market index) […]

Definition of the Federal Reserve System The Federal Reserve System (often referred to as the Federal Reserve or simply “the Fed”) is the central banking system of the United States. Established by Congress in 1913, its primary purpose is to provide the nation with a safe, flexible, and stable monetary […]

Definition of Federal Open Market Committee (FOMC) The Federal Open Market Committee (FOMC) is a committee within the Federal Reserve System, the central bank of the United States, tasked with overseeing the nation’s open market operations. This means the FOMC is responsible for making key decisions about interest rates and […]

Definition of Faustmann’s Formula Faustmann’s formula, developed by Martin Faustmann in 1849, is a method used in forest economics to determine the optimal rotation age for a forest stand, maximizing its economic value. The formula calculates the present value of a piece of land based on the revenue from the […]

Fascism is a far-right, authoritarian ultra-nationalist political ideology and movement characterized by dictatorial power, forcible suppression of opposition, as well as strong regimentation of society and the economy. Originating in early 20th-century Europe, fascism emerged most notably in Italy under Benito Mussolini and later in Nazi Germany under Adolf Hitler. […]

Understanding the Fair Trade Debate The concept of fair trade has sparked widespread discussion and debate among economists, businesses, and consumers globally. At its core, fair trade aims to achieve more equitable trading conditions, improve sustainability, and offer better support to producers in developing countries. This often involves higher prices […]

Definition of Fair Trade Fair trade is a trading partnership, based on dialogue, transparency, and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers. Fair trade organizations (backed by consumers) are […]