Classical Growth Theory Based on the concept of a mean-reverting subsistence level, this theory from Malthusian economics contends that there …
Monetary and fiscal policies can have effects on exchange rates. The CFA curriculum covers a few theories on the mechanisms …
Independent regulators are given recognition by government agencies and have power to make rules and enforce them. However, independent regulators …
The growth in potential GDP can be expressed by the following production function, called the Cobb-Douglas production function: ∆Y/Y = …
Economic growth is most often described as growth in GDP. Several factors have been shown to influence the growth and …
The Fischer relation states that the nominal rate of return is approximately the sum of the real rate and the …
The BOP is an accounting method that tracks transactions between a country and its international trading partners. It accounts for …
PPP, also known as the law of one price, states that the same goods should be have the same price …
ARCH is similar to autocorrelation, in fact it could be described as autocorrelation of the residuals of an AR model. …
The simplest form of a linear trend is: yt = b0 + b1(t) + εt where: yt = the value of the time …