negative real interest rate

  • 31Monetary conditions index — In macroeconomics, a Monetary Conditions Index (MCI) is an index number calculated from a linear combination of a small number of economy wide financial variables deemed relevant for monetary policy. These variables always include a short run… …

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  • 32Credit channel — The credit channel mechanism of monetary policy describes the theory that a central bank s policy changes affect the amount of credit that banks issue to firms and consumers for purchases, which in turn affects the real economy. Contents 1 Credit …

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  • 33Capital budgeting — (or investment appraisal) is the planning process used to determine whether a firm s long term investments such as new machinery, replacement machinery, new plants, new products, and research and development projects are worth pursuing.Many… …

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  • 34Net capital outflow — The importance of NCO. The domestic real interest rate determined in the domestic market for loanable funds moves along the NCO curve to determine the quantity of currency available for foreign exchange. This in turn determines the real exchange… …

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  • 35Open economy — Part of a series on Economic systems Ideological systems Anarchist  …

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  • 36Cost–benefit analysis — (CBA), sometimes called benefit–cost analysis (BCA), is a systematic process for calculating and comparing benefits and costs of a project for two purposes: (1) to determine if it is a sound investment (justification/feasibility), (2) to see how… …

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  • 37P/E ratio — The P/E ratio (price to earnings ratio) of a stock (also called its earnings multiple, or simply multiple, P/E, or PE ) is a measure of the price paid for a share relative to the annual income or profit earned by the firm per share. [cite web|url …

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  • 38Investment function — The investment function is a summary of the variables that influence the levels of aggregate investments. It can be formalized as follows:I=I(r,ΔY,q) + + where r is the real interest rate, Y the GDP and q is Tobin s q. The signs under the… …

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  • 39Net Capital Outflow — (NCO) is one of two major methods of determining the nature of a country s foreign trade (the other being the current account balance). NCO is the quantity of foreign assets held by residents of a given country minus the quantity of domestic… …

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  • 40Latin American debt crisis — The Latin American debt crisis was a financial crisis that occurred in the early 1980s (and for some countries starting in the 1970s), often known as the lost decade , when Latin American countries reached a point where their foreign debt… …

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