Monetary policyMonetary policy is the policy adopted by the monetary authority of a nation to affect monetary and other financial conditions to accomplish broader objectives like high employment and price stability (normally interpreted as a low and stable rate of inflation). Further purposes of a monetary policy may be to contribute to economic stability or to maintain predictable exchange rates with other currencies.
Monetary inflationMonetary inflation is a sustained increase in the money supply of a country (or currency area). Depending on many factors, especially public expectations, the fundamental state and development of the economy, and the transmission mechanism, it is likely to result in price inflation, which is usually just called "inflation", which is a rise in the general level of prices of goods and services.Michael F. Bryan, On the Origin and Evolution of the Word "Inflation", clevelandfed.
Keynesian economicsKeynesian economics (ˈkeɪnziən ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomic theories and models of how aggregate demand (total spending in the economy) strongly influences economic output and inflation. In the Keynesian view, aggregate demand does not necessarily equal the productive capacity of the economy. Instead, it is influenced by a host of factors – sometimes behaving erratically – affecting production, employment, and inflation.
Taylor ruleThe Taylor rule is a monetary policy targeting rule. The rule was proposed in 1992 by American economist John B. Taylor for central banks to use to stabilize economic activity by appropriately setting short-term interest rates. The rule considers the federal funds rate, the price level and changes in real income. The Taylor rule computes the optimal federal funds rate based on the gap between the desired (targeted) inflation rate and the actual inflation rate; and the output gap between the actual and natural output level.
Fiscal policyIn economics and political science, fiscal policy is the use of government revenue collection (taxes or tax cuts) and expenditure to influence a country's economy. The use of government revenue expenditures to influence macroeconomic variables developed in reaction to the Great Depression of the 1930s, when the previous laissez-faire approach to economic management became unworkable.
New Keynesian economicsNew Keynesian economics is a school of macroeconomics that strives to provide microeconomic foundations for Keynesian economics. It developed partly as a response to criticisms of Keynesian macroeconomics by adherents of new classical macroeconomics. Two main assumptions define the New Keynesian approach to macroeconomics. Like the New Classical approach, New Keynesian macroeconomic analysis usually assumes that households and firms have rational expectations.
Monetary economicsMonetary economics is the branch of economics that studies the different theories of money: it provides a framework for analyzing money and considers its functions (such as medium of exchange, store of value, and unit of account), and it considers how money can gain acceptance purely because of its convenience as a public good. The discipline has historically prefigured, and remains integrally linked to, macroeconomics. This branch also examines the effects of monetary systems, including regulation of money and associated financial institutions and international aspects.
PricingPricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of product. Pricing is a fundamental aspect of product management and is one of the four Ps of the marketing mix, the other three aspects being product, promotion, and place.
New classical macroeconomicsNew classical macroeconomics, sometimes simply called new classical economics, is a school of thought in macroeconomics that builds its analysis entirely on a neoclassical framework. Specifically, it emphasizes the importance of rigorous foundations based on microeconomics, especially rational expectations. New classical macroeconomics strives to provide neoclassical microeconomic foundations for macroeconomic analysis.
Neoclassical synthesisThe neoclassical synthesis (NCS), neoclassical–Keynesian synthesis, or just neo-Keynesianism was a neoclassical economics academic movement and paradigm in economics that worked towards reconciling the macroeconomic thought of John Maynard Keynes in his book The General Theory of Employment, Interest and Money (1936). It was formulated most notably by John Hicks (1937), Franco Modigliani (1944), and Paul Samuelson (1948), who dominated economics in the post-war period and formed the mainstream of macroeconomic thought in the 1950s, 60s, and 70s.
Nominal rigidityIn economics, nominal rigidity, also known as price-stickiness or wage-stickiness, is a situation in which a nominal price is resistant to change. Complete nominal rigidity occurs when a price is fixed in nominal terms for a relevant period of time. For example, the price of a particular good might be fixed at $10 per unit for a year. Partial nominal rigidity occurs when a price may vary in nominal terms, but not as much as it would if perfectly flexible. For example, in a regulated market there might be limits to how much a price can change in a given year.
Keynesian RevolutionThe Keynesian Revolution was a fundamental reworking of economic theory concerning the factors determining employment levels in the overall economy. The revolution was set against the then orthodox economic framework, namely neoclassical economics. The early stage of the Keynesian Revolution took place in the years following the publication of John Maynard Keynes' General Theory in 1936. It saw the neoclassical understanding of employment replaced with Keynes' view that demand, and not supply, is the driving factor determining levels of employment.
Dynamic pricingDynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, is a revenue management pricing strategy in which businesses set flexible prices for products or services based on current market demands. Businesses are able to change prices based on algorithms that take into account competitor pricing, supply and demand, and other external factors in the market. Dynamic pricing is a common practice in several industries such as hospitality, tourism, entertainment, retail, electricity, and public transport.
Lambda cubeIn mathematical logic and type theory, the λ-cube (also written lambda cube) is a framework introduced by Henk Barendregt to investigate the different dimensions in which the calculus of constructions is a generalization of the simply typed λ-calculus. Each dimension of the cube corresponds to a new kind of dependency between terms and types. Here, "dependency" refers to the capacity of a term or type to bind a term or type. The respective dimensions of the λ-cube correspond to: x-axis (): types that can bind terms, corresponding to dependent types.
Typed lambda calculusA typed lambda calculus is a typed formalism that uses the lambda-symbol () to denote anonymous function abstraction. In this context, types are usually objects of a syntactic nature that are assigned to lambda terms; the exact nature of a type depends on the calculus considered (see kinds below). From a certain point of view, typed lambda calculi can be seen as refinements of the untyped lambda calculus, but from another point of view, they can also be considered the more fundamental theory and untyped lambda calculus a special case with only one type.
Lambda calculusLambda calculus (also written as λ-calculus) is a formal system in mathematical logic for expressing computation based on function abstraction and application using variable binding and substitution. It is a universal model of computation that can be used to simulate any Turing machine. It was introduced by the mathematician Alonzo Church in the 1930s as part of his research into the foundations of mathematics. Lambda calculus consists of constructing lambda terms and performing reduction operations on them.
Shock (economics)In economics, a shock is an unexpected or unpredictable event that affects an economy, either positively or negatively. Technically, it is an unpredictable change in exogenous factors—that is, factors unexplained by an economic model—which may influence endogenous economic variables. The response of economic variables, such as GDP and employment, at the time of the shock and at subsequent times, is measured by an impulse response function. A technology shock is the kind resulting from a technological development that affects productivity.
Lambda liftingLambda lifting is a meta-process that restructures a computer program so that functions are defined independently of each other in a global scope. An individual "lift" transforms a local function into a global function. It is a two step process, consisting of; Eliminating free variables in the function by adding parameters. Moving functions from a restricted scope to broader or global scope. The term "lambda lifting" was first introduced by Thomas Johnsson around 1982 and was historically considered as a mechanism for implementing functional programming languages.
Simply typed lambda calculusThe simply typed lambda calculus (), a form of type theory, is a typed interpretation of the lambda calculus with only one type constructor () that builds function types. It is the canonical and simplest example of a typed lambda calculus. The simply typed lambda calculus was originally introduced by Alonzo Church in 1940 as an attempt to avoid paradoxical use of the untyped lambda calculus. The term simple type is also used to refer extensions of the simply typed lambda calculus such as products, coproducts or natural numbers (System T) or even full recursion (like PCF).
Real versus nominal value (economics)In economics, nominal (or, in effect, "named") value refers to value measured in terms of absolute money amounts, whereas real value is considered and measured against the actual goods or services for which it can be exchanged at a given time. For example, if one is offered a salary of 40,000,inthatyear,therealandnominalvaluesareboth40,000. The following year, any inflation means that although the nominal value remains $40,000, because prices have risen, the salary will buy fewer goods and services, and thus its real value has decreased in accordance with inflation. 