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World Bank

This refers to the United Nations agency responsible for providing loans for infrastructure projects to developing nations. The official name of the World Bank is the International Bank for Reconstruction and Development (IBRD). its official goal is to reduce poverty. World Bank is a term normally found in business economics and financial management

IMF

This refers to the International Monetary Fund, a United Nations agency. The IMF is responsible for promoting exchange rate stability, promoting monetary co-operation and dealing with Balance of Payments adjustments, and providing international coordination to responses to financial crises. IMF is a term normally found in business economics and financial management.

GATT

This refers to the General Agreement on Tariffs and Trade. GATTwas established in 1947 in order to overcome significant international barriers to trade which existed at the time. It instituted a rule-based multilateral system for trade in both goods and services through a series of negotiations (called ’rounds’). In 1995 GATT was replaced by World… Read more

Currency Deflation

This refers to a period when less money becomes available without a drop in production. Currency Deflation can cause the exchange rate of the currency to fall, making imports more costly and affecting the economy’s balance of payments. Currency Deflation is a term normally found in business economics and financial management.

Dirty Rate

In business economics, this refers to the management of currency exchange rates through a combination of floating rates and intervention. Dirty Rates, also known as Dirty Floating Rates, combine elements of floating and fixed rates. Whilst the rates are floating, intervention is undertaken to limit differences between the currencies (similar to fixed rates). Dirty Rates… Read more

Floating Rate

In business economics, this refers to a currency exchange rate where currency values are free to move against each other. Changes in floating exchange rates reflect the relative supply and demand for the currencies and their broader economic position. Floating Rate is a term normally found in business economics and financial management.

Fixed Rate

In business economics, this refers to a currency exchange rate where currency values are tied to the value of a specific currency or precious metal, e.g. gold. More generally fixed rate can refer to any transaction where the rate of return is fixed, e.g. fixed rate interest on loans or deposits. Fixed rate is a term… Read more

Structural Deficit

This refers to the level of deficit (when government spending exceeds taxation income) which occurs even then the economy is at full employment. Structural Deficits ignore one-off or short term factors and continue for a longer period. As deficits are funded by borrowing, over time a large structural deficit will undermine confidence in the country’s… Read more

Current Account

In business economics this refers to a measure of a countries exports and imports. The current account measures trade in Goods (visible trade), trade in services (invisible trade), investment incomes and Net transfers (international aid). A deficit on the current account typically means that the value of imports is greater than the value of exports.… Read more

Invisible Trade

This is an economic term which refers to the trade in services. Invisible Trade forms part of an economy’s Current Account of Balance of Payments. Invisible Trade is a term normally found in business economics and financial management.