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Chapter 9 Political

TermDefinition
Hyperinflation Uncontrolled inflation.
Hard currency Money that can be readily converted to leading world currencies.
Managed float Manages the otherwise free-floating currencies.
Supply Determined by the amount of money a government prints.
Devaluation A unilateral move to reduce the value of one's own currency by changing a fixed or official exchange rate.
Central bank Enforced self discipline and enhances public trust in the value of money.
Discount rate The interest rate the government charges when it loans money to private banks.
World bank A source of loans to reconstruct the Western European economies after the war to help states through future financial difficulties.
International monetary fund Coordinates international currency exchange. the balance of international payments and national accounts.
Balance of payments The financial statement of a company
Government transactions Military and foreign grants, as well as salaries and pensions paid to the government employees abroad.
Capital flows Foreign investments in and by a country.
Interest rates Reflect the inherent dynamic growth.
Keynesian economics Governments sometimes spend more on programs than they take in from tax revenue.
Fiscal policy Government decisions about spending and taxation.
Monetary policy Decisions about printing and circulating money.
Created by: mamack22203
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