Macroeconomics/Related Articles

Glossary

• Built-in stabilisers [r]: the stabilising characteristic of an economy that arises from the fact when output falls, taxes fall and government spending rises, both of which tend raise output - and from the fact that when output rises, taxes rise and government spending, both of which tend to reduce output. ^[e]
• Credit crunch [r]: the failure of the banking system to satisfy the economy's need for credit. ^[e]
• Deflation [r]: a persistent sequence of reductions in the general level of prices. ^[e]
• IS-LM model [r]: Model of simultaneous equilibrium in the product and money markets - shown graphically as two intersecting interest rate/spending graphs, one depicting the investment/savings (I/S) relation and the other the liquidity/money (L/M) supply relation (also known as the Hicks-Hansen model). ^[e]
• Mundell-Fleming Model [r]: An open-economy version of the IS-LM model that allows for international trade and international capital flows. ^[e]
• Output gap [r]: the percentage difference between the current value of the output of an economy, and that economy's normal output trend. ^[e]
• Quantitative easing [r]: Add brief definition or description
• Recession [r]: Add brief definition or description
• Supply-side measures [r]: measures taken with the purpose of increasing a country's economic efficiency, e.g. by removing barriers to competition or counter market failures. ^[e]