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Okun's Law
In economics, Okun's law is an empirically observed relationship between unemployment and losses in a country's production. It is named after Arthur Melvin Okun, who first proposed the relationship in 1962. The "gap version" states that for every 1% increase in the unemployment rate, a country's GDP will be roughly an additional 2% lower than its potential GDP. The "difference version" describes the relationship between quarterly changes in unemployment and quarterly changes in real GDP. The stability and usefulness of the law has been disputed. Imperfect relationship Okun's law may more accurately be called "Okun's rule of thumb" because it is an approximation based on empirical observation rather than a result derived from theory. Okun's law is approximate because factors other than employment, such as productivity, affect output. In Okun's original statement of his law, a 2% increase in output corresponds to a 1% decline in the rate of cyclical unemployment; a 0.5% increa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ben Bernanke
Ben Shalom Bernanke ( ; born December 13, 1953) is an American economist who served as the 14th chairman of the Federal Reserve from 2006 to 2014. After leaving the Fed, he was appointed a distinguished fellow at the Brookings Institution. During his tenure as chairman, Bernanke oversaw the Federal Reserve's response to the late-2000s financial crisis, for which he was named the 2009 ''Time'' Person of the Year. Before becoming Federal Reserve chairman, Bernanke was a tenured professor at Princeton University and chaired the department of economics there from 1996 to September 2002, when he went on public service leave. Bernanke was awarded the 2022 Nobel Memorial Prize in Economic Sciences, jointly with Douglas Diamond and Philip H. Dybvig, "for research on banks and financial crises", more specifically for his analysis of the Great Depression. From August 5, 2002, until June 21, 2005, he was a member of the Board of Governors of the Federal Reserve System, proposed the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Unemployment
Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work during the reference period. Unemployment is measured by the unemployment rate, which is the number of people who are unemployed as a percentage of the labour force (the total number of people employed added to those unemployed). Unemployment can have many sources, such as the following: * new technologies and inventions * the status of the economy, which can be influenced by a recession * competition caused by globalization and international trade * policies of the government * regulation and market Unemployment and the status of the economy can be influenced by a country through, for example, fiscal policy. Furthermore, the monetary authority of a country, such as the central bank, can influence the availability and cost for money through ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rules Of Thumb
In English, the phrase ''rule of thumb'' refers to an approximate method for doing something, based on practical experience rather than theory. This usage of the phrase can be traced back to the 17th century and has been associated with various trades where quantities were measured by comparison to the width or length of a thumb. A modern folk etymology holds that the phrase is derived from the maximum width of a stick allowed for wife-beating under English common law, but no such law ever existed. This belief may have originated in a rumored statement by 18th-century judge Sir Francis Buller that a man may beat his wife with a stick no wider than his thumb. The rumor produced numerous jokes and satirical cartoons at Buller's expense, but there is no record that he made such a statement. English jurist Sir William Blackstone wrote in his '' Commentaries on the Laws of England'' of an "old law" that once allowed "moderate" beatings by husbands, but he did not mention thumbs or ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Eponyms
An eponym is a person, a place, or a thing after whom or which someone or something is, or is believed to be, named. The adjectives which are derived from the word eponym include ''eponymous'' and ''eponymic''. Usage of the word The term ''eponym'' functions in multiple related ways, all based on an explicit relationship between two named things. A person, place, or thing named after a particular person share an eponymous relationship. In this way, Elizabeth I of England is the eponym of the Elizabethan era. When Henry Ford is referred to as "the ''eponymous'' founder of the Ford Motor Company", his surname "Ford" serves as the eponym. The term also refers to the title character of a fictional work (such as Rocky Balboa of the ''Rocky'' film series), as well as to ''self-titled'' works named after their creators (such as the album ''The Doors'' by the band the Doors). Walt Disney created the eponymous Walt Disney Company, with his name similarly extended to theme parks such as ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics Laws
Economic law is a set of legal rules for regulating economic activity. In the legal system of the Soviet Union, economic law was the legal theory and system under which economic relations were a legal discipline independent of criminal law and civil law.Ferdinand Joseph Maria Feldbrugge, Gerard Pieter van den Berg, William B. Simons (1985) "Encyclopedia of Soviet Law", '' BRILL'', O. S. (Olimpiad Solomonovich) Ioffe, Mark W. Janis (1987) "Soviet Law and Economy", Martinus Nijhoff Publishers, In the Soviet legal system, the purpose of the economic law was to regulate the relations arising from the economic activities. The theory of the independence of the economic law was pursued after the 21st Congress of the CPSU of 1959, with the principal proponent being V.V. Laptev. After debate, this position was adopted by the decrees of the CPSU and the USSR Council of Ministers during 1970–1975 and finalized in the 1977 Soviet Constitution. See also *Constitutional economics *Law an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lucas Wedge
The Lucas wedge is an economic measure of how much higher the gross domestic product would have been if it grew as fast as it should have. It shows the loss from deadweight caused by poor or inefficient economic policy choices. A Lucas wedge was named after Robert E. Lucas Jr. an American who won the 1995 Nobel Memorial Prize in Economic Sciences for his research on rational expectations. The Lucas wedge is not the same as the Okun's Law. While they are similar and often confused, the gap from Okun's Law measures the difference over a period of time between the actual GDP and the GDP that would have been realized at full employment. Over time the Lucas wedge compounds and increases and so it is usually larger than the gap from Okun's Law. This shows that a real goal of economic policy should be more than just realizing full employment but should also be in investments in productivity which would reduce the Lucas wedge. The Lucas wedge is sometimes expressed in per capita to reflec ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Jobless Recovery
A jobless recovery or jobless growth is an economic phenomenon in which a macroeconomy experiences growth while maintaining or decreasing its level of employment. The term was coined by the economist Nick Perna in the early 1990s. Causes Economists are still divided about the causes and cures of a jobless recovery: some argue that increased productivity through automation has allowed economic growth without reducing unemployment. Other economists state that blaming automation is an example of the luddite fallacy and that jobless recoveries stem from structural changes in the labor market, leading to unemployment as workers change jobs or industries. Industrial consolidation Some have argued that the recent lack of job creation in the United States is due to increased industrial consolidation and growth of monopoly or oligopoly power. The argument is twofold: firstly, small businesses create most American jobs, and secondly, small businesses have more difficulty starting and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Labor Force
The workforce or labour force is a concept referring to the pool of human beings either in employment or in unemployment. It is generally used to describe those working for a single company or industry, but can also apply to a geographic region like a city, state, or country. Within a company, its value can be labelled as its "Workforce in Place". The workforce of a country includes both the employed and the unemployed (labour force). Formal and informal Formal labour is any sort of employment that is structured and paid in a formal way.Seager, Joni. 2008. The Penguin Atlas of Women in the World. 4th ed. New York: Penguin Books. Part 5 Unlike the informal sector of the economy, formal labour within a country contributes to that country's gross national product. Informal labour is labour that falls short of being a formal arrangement in law or in practice. It can be paid or unpaid and it is always unstructured and unregulated.Seager, Joni. 2008. The Penguin Atlas of Wome ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Multiplier Effect
In macroeconomics, a multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable. For example, suppose variable ''x'' changes by ''k'' units, which causes another variable ''y'' to change by ''M'' × ''k'' units. Then the multiplier is ''M''. Common uses Two multipliers are commonly discussed in introductory macroeconomics. Commercial banks create money, especially under the fractional-reserve banking system used throughout the world. In this system, money is created whenever a bank gives out a new loan. This is because the loan, when drawn on and spent, mostly finishes up as a deposit back in the banking system and is counted as part of money supply. After putting aside a part of these deposits as reserve requirements, mandated bank reserves, the balance is available for the making of further loans by the bank. This process continues multiple times, and is called the multiplier effect. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Labor Productivity
Workforce productivity is the amount of goods and services that a group of workers produce in a given amount of time. It is one of several types of productivity that economists measure. Workforce productivity, often referred to as labor productivity, is a measure for an organisation or company, a process, an industry, or a country. Workforce productivity is to be distinguished from employee productivity which is a measure employed at ''individual level'' based on the assumption that the overall productivity can be broken down to increasingly smaller units until, ultimately, to the individual employee, in order be used for example for the purpose of allocating a benefit or sanction based on individual performance (see also: Vitality curve). In 2002, the OECD defined it as "the ratio of a volume measure of output to a volume measure of input". Volume measures of output are normally gross domestic product (GDP) or gross value added (GVA), expressed at constant prices i.e. adjusted ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics
Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyzes what's viewed as basic elements in the economy, including individual agents and markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it: employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies that have impact on these elements. Other broad distinctions within economics include those between positive economics, describing "what is", and normative economics, advocating "what ought to be"; between economic theory and applied economics; between ratio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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