Archives: Terms

Definition of Sterilization Sterilization is a monetary policy operation conducted by a country’s central bank to mitigate the effects of foreign exchange interventions on the domestic money supply. Essentially, when a central bank buys or sells foreign currency to influence the exchange rate, it compensates by selling or buying government […]

Definition of Steady State The steady state in economics refers to a situation where all key economic variables cease to change over time. In other words, it is a condition of equilibrium where the capital stock, output, and other economic factors remain constant. This concept is often used in growth […]

Definition of Statutory Monopoly A statutory monopoly is a type of market structure where a single entity is granted exclusive rights by the government to produce or provide a particular good or service. This exclusivity is established through legislation, giving the monopoly legal protection against any competition within its specified […]

Definition of Statistical Adjustment Statistical adjustment refers to a range of techniques used in statistical analysis to account for potential confounding factors or biases in the data. These adjustments are essential for producing more accurate and reliable results. Commonly, statistical adjustments are applied during data cleaning or analysis phases to […]

Definition of Statistic Statistics refers to both the science of collecting, analyzing, interpreting, and presenting data, and the numerical results derived from such processes. It is a critical tool in economics for summarizing complex data, making inferences about populations based on samples, and predicting future trends or behaviors. Statistics can […]

Definition of Stationary Process A stationary process in economics and statistics is a stochastic process whose statistical properties, such as mean, variance, and autocorrelation, are constant over time. This means that the process does not change its behavior or characteristics over time, making it predictable and easier to model. Stationary […]

Definition of Static Equilibrium Static equilibrium refers to a situation where there is no net force or net moment acting on a system, meaning the system is at rest or remains in a constant state without any movement. In economic terms, static equilibrium usually pertains to a market condition where […]

Definition of States of the World States of the World refer to all possible scenarios or outcomes that can occur in an uncertain environment. In economics and decision-making theory, identifying these states helps in analyzing risks, predicting future events, and making more informed decisions. Each state represents a different way […]

Definition of a State-Owned Company A state-owned company, also known as a state enterprise, is a business entity where the government owns a significant share, if not all, of the company’s equity. These companies are established and operated by governmental bodies to achieve a range of economic and social goals, […]

Definition of State Enterprise A state enterprise, also known as a state-owned enterprise (SOE), is a business organization created, owned, and operated by the government. Such entities are designed to undertake commercial activities on behalf of the government. State enterprises can be found in various sectors, including energy, telecommunications, transportation, […]