Archives: Terms

Definition of Monetary Base The monetary base, also known as high-powered money, refers to the total amount of currency in circulation and reserves held by commercial banks at the central bank. It is the foundation of a country’s money supply and forms the basis for the creation of additional money […]

Definition of Monetary Aggregates Monetary aggregates refer to various measures that quantify the supply of money within an economy. These measures are typically used by central banks and policymakers to analyze and monitor the overall health and stability of the economy. Monetary aggregates provide insight into the amount of money […]

Definition of Monetarist Theory Monetarist theory is an economic theory that emphasizes the role of money supply in influencing the overall level of economic activity. Monetarists believe that controlling the money supply is the key to achieving stable economic growth and low inflation. They argue that excessive money supply growth […]

Definition of Monetarist Monetarism is an economic theory that emphasizes the importance of monetary policy in controlling inflation and promoting stable economic growth. Monetarists believe that the money supply should be carefully managed by central banks to avoid excessive inflation or deflation. They argue that changes in the money supply […]

Definition of Monetarism Monetarism is an economic theory that emphasizes the role of money supply in influencing economic growth and stability. It suggests that controlling and managing the supply of money in an economy is essential for maintaining stability and avoiding inflationary pressures. Example To understand monetarism, let’s consider a […]

Definition of Misery Index The Misery Index is an economic indicator that combines the rates of unemployment and inflation in a given country. It is used to measure the overall economic well-being and quality of life of the population. A higher Misery Index indicates a higher level of economic hardship […]

Definition of Minimum Wage Minimum wage refers to the legally mandated minimum amount of money that employers are required to pay their employees for each hour of work. It is usually set by the government and is designed to ensure that workers receive a fair and livable wage. Example Let’s […]

Definition of Minimum Efficient Scale (MES) Minimum Efficient Scale (MES) is the minimum level of output at which a firm can produce goods or services at the lowest average total cost in the long run. It represents the optimal scale of production for a company, where it achieves maximum efficiency […]

Introduction to Milton Friedman Milton Friedman was a prominent American economist and Nobel Laureate known for his influential ideas and contributions to the field of economics. Born in 1912 in Brooklyn, New York, Friedman’s work focused on the importance of free markets, limited government intervention, and individual freedom in promoting […]

Definition of Middleman A middleman is an intermediary or agent who facilitates transactions between buyers and sellers. They play a crucial role in the distribution channel by connecting producers to consumers and allowing for the smooth flow of goods and services. Middlemen can be wholesalers, retailers, brokers, or agents, depending […]