What are Special Drawing Rights? Special Drawing Rights (SDRs) are an international reserve asset created by the International Monetary Fund (IMF) to supplement the existing official reserves of member countries. They were established in 1969 as a way to address the limitations of gold and national currencies as reserve assets. … …
Overview of the Smoot-Hawley Tariff Act Background The Smoot-Hawley Tariff Act was enacted in response to the economic downturn of the 1930s, which was characterized by high unemployment rates and a decline in international trade. The act aimed to protect American industries from foreign competition and stimulate domestic production. The … …
Definition of Subsidies A subsidy is a financial aid or support provided by the government or any other organization to individuals, businesses, or industries. It is a form of financial assistance that aims to promote economic growth, social welfare, or specific policies. Subsidies can be in the form of direct … …
An Overview of Lawful Money Lawful money refers to a form of currency that is recognized and accepted by the government as a legal tender. It is a type of money that is authorized by the government and is considered valid for the payment of debts and obligations. Lawful money … …
Definition of Financial System A financial system refers to a complex network of institutions, markets, and intermediaries that facilitate the flow of funds between lenders and borrowers. It plays a crucial role in the economy by mobilizing savings and allocating them to productive investments. The financial system consists of various … …
Definition of Deflation Deflation is an economic phenomenon characterized by a sustained decrease in the general price level of goods and services in an economy over a period of time. It is the opposite of inflation, where prices rise continuously. Deflation can have significant implications for an economy and its … …
All About Fiscal Policy: Importance and Examples Fiscal policy plays a crucial role in the economic management of a country. It refers to the government’s use of taxation and spending to influence the overall economy. By adjusting tax rates and government spending, fiscal policy aims to stabilize the economy, promote … …