comparative advantage
A situation in which a country, individual, company or region can produce a good at a lower opportunity cost than that of a competitor.
A situation in which a country, individual, company or region can produce a good at a lower opportunity cost than that of a competitor.
The amount each year by which government spending is greater than government income.
The difference between the nation’s total exports of goods, services and transfers and its total imports of them. Current account balance does not include transactions in financial assets and liabilities.
A creditor’s measure of a consumer’s past and future ability and willingness to repay debts.
A type of insurance that protects the lender if the borrower defaults. If the loan defaults, its liability becomes a credit for payment from the CDS issuer.
A measurement of the cost of living determined by the Bureau of Labor Statistics.
Cost-benefit analysis is the examination of a public project and the evaluation of its total costs and benefits to all concerned.
A record of how a person has borrowed and repaid debt.
Property that is offered to secure a loan or other credit and that becomes subject to seizure on default. (Also called security interest.)
Failure to meet the terms of a credit agreement.
Unemployment caused by a low level of aggregate demand associated with recession in the business cycle.
The principal monetary authority of a nation, which performs several key functions, including conducting monetary policy to stabilize the economy and level of prices. The Federal Reserve is the central bank of the United States. See U.S. Central Bank history.
Incentives that benefit a specific company (e.g., loans at below-market interest rates or tax breaks) not general economic policies of the government that improve the business climate (e.g., corporate tax reductions).
Risk that a disruption at a firm, in a market segment, to a settlement system or in a similar setting will cause widespread difficulties at other firms, in other market segments or in the financial system as a whole.
Long-term joblessness caused by shifts in the economy. Often structural unemployment occurs because of changes in technology.