CB Functions, Central Banking, Gross Domestic Product (GDP), Macroeconomics
Can We Still Define Banks Nowadays? According to literature in the field, the following definition is widely accepted: “a bank is a financial intermediary that offers loans and deposits, and payment services” (Casu, 2006) However, nowadays banks have diversified the...
Kinked Demand Demand Theory, Oligopoly
Forms of Oligopoly There are two forms of oligopoly structure; i. Collusive Oligopoly: In such oligopoly few firms unite together through a formal or informal agreement. The example for formal agreement is cartels and the example for informal agreement is price...
Microeconomics, Monopoly, Monopoly Inefficiency
The economic inefficiencies of monopoly can also be regarded as demerits or disadvantages of monopoly. Monopoly is definitely a harmful element of an economy as a single firm rules over the economy and sets the prices of commodity, which has no substitute in the...
Cartel Theory, Microeconomics, Oligopoly
Background Oligopoly is the kind of market structure in function in which few firms, nearly from three to fifteen or more firms compete with each other for homogeneous products on the basis of product differentiation. If the products are homogeneous then it is called...
CB Functions, Central Banking, Macroeconomics
By: Valeria Popa How did central banks appear? The European Central Bank, the Federal Reserve Bank, the Bank of England and the Reserve Bank of New Zealand are just a few examples of central banks which make the subject of the most widely read financial newspapers...
Consumer Price Index (CPI), Inflation, Macroeconomics
In previous articles you have learned about macroeconomic indicator like GDP which is highly important for understanding business cycles and economic performances and GNI which can offer a perspective on the living standards of a country’s residents. We are now going...
Microeconomics, Monopolistic Competition
Definition Monopolistic competition is a type of market structure characterized by a large number of firms or producers competing to produce a great variety of similar products that they constantly try to differentiate. In monopolistic competition there are many...
GNI, Gross Domestic Product (GDP), Macroeconomics
By Valeria Popa: Let us first distinguish between GNI, GDP and GNP to understand how is GNI different from these two measuring indicators. GNI compared to GDP and GNP While Gross Domestic Product (GDP) and Gross National Product (GNP) measure the output of an economy,...
Consumer Price Index (CPI), Inflation, Macroeconomics
Valeria Popa In previous articles you have learned about macroeconomic indicator like GDP which is highly important for understanding business cycles and economic performances and GNI which can offer a perspective on the living standards of a country’s residents. We...
GDP Growth Rate, Gross Domestic Product (GDP), Macroeconomics
What is GDP growth rate and how to calculate it Since the media often talk about the growth rate of an economy, it is important to clarify and to correctly define what the growth rate of GDP is. This indicator has a lot more meanings and it can be used to measure...
