European Economic Community (EEC)
Now incorporated in the European Union (EU).
Similar financial termsEuropean Central Bank (ECB)
The Central Bank for the new European Monetary Union.
European Union (EU)
The European Union (EU) is a union of twenty-five independent states based on the European Communities and founded to enhance political, economic and social co-operation. The union was formerly known as the European Community (EC) and European Economic Community (EEC).
The common currency in the EU is the euro (EUR. Still, some countries have chosen to stay outside the European Monetary Union.
At the moment, the 25 member states are:
- Austria (EUR)
- Belgium (E ...
European Economic Area (EEA)
The European Economic Area (EEA) came into being on 1 January 1, 1994 following an agreement between the European Free Trade Association (EFTA) and the European Union (EU). It was designed to allow EFTA countries to participate in the European Single Market without having to join the EU. In a referendum, Switzerland (ever keen on neutrality) chose not to participate in the EEA (although it is linked to the European Union by bilateral agreements similar in content to the EEA agreement), so the cu ...
The economic cycle are predictable long-term pattern changes in national income. As for business cycles, the economic cycle has four (similar) stages:
After a recession, an expansion can start again. Some economists believe that major stock price movement patterns precede the stages of the economic cycle.
Statistical indexes, rates, and other measurements of national financial and social trends, used to predict overall business climate and growth patterns.
Leading economic indicators
Economic series that tend to rise or fall in advance of the rest of the economy.
The subdivision of the discipline of economics that studies and strives to explain the functioning of the economy as a whole -- the total output of the economy, the overall level of employment or unemployment, movements in the average level of prices (inflation or deflation), total savings and investment, total consumption and so on. The focus of much of macroeconomic theory is analysis of the ways in which conscious government policies (and the unintended secondary consequences of these policie ...
The economic theory that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability.
Country economic risk
Developments in a national economy that can affect the outcome of an international financial transaction.
The subdivision of the discipline of economics that studies the behavior of individual households and firms interacting through markets, how prices and levels of output of individual products are determined in these markets, the interconnections by which different markets affect each other, and how the price mechanism allocates resources and distributes income.
The dominant theory of economics from the 18th century to the 20th century, when it evolved into neo-classical economics. Classical economists, who included Adam Smith, David Ricardo and John Stuart Mill, believed that the pursuit of individual self-interest produced the greatest possible economic benefits for society as a whole through the power of the "Invisible hand". They also believed that an economy is always in equilibrium or moving towards it. Equilibrium was ensured in the labor mar ...
The study of environmental issues including the depletion of non renewable resources.
A surplus paid to any factor of production over its supply price. Economic rent is the difference between what a factor of production is earning (its return) and what it would need to be earning to keep it in its present use. It is in other words the amount a factor is earning over and above what it could be earning in its next best alternative use (its transfer earnings).