Chapter 2 Macroeconomics Definitions

A record of the money flows into and out of a country in a year

• Balance of payments

• Net exports

• Current account

• Capital and financial accounts

A small account on the balance of payments that includes debt forgiveness, patents, copyrights, franchises, leases and land ownership

• Balance of payments

• Financial account

• Current account

• Capital account

Trade in goods, trade in services, income flows and transfers on the balance of payments

• Balance of payments

• Financial account

• Current account

• Capital account

Direct capital investment (FDI), financial investment (portfolio investment) and banking flows and reserves

• Balance of payments

• Financial account

• Current account

• Capital account

_____________ count: A monthly count of people claiming unemployment related benefits. JSA in the UK

____: A measure of the changes in the price of a representative basket of consumer goods and services. Differs from RPI in methodology and coverage

A situation in which the average level of prices is falling (negative inflation)

• Inflation

• Deflation

• Disinflation

• Rising inflation

A decrease in the rate of inflation

• Inflation

• Deflation

• Disinflation

• Rising inflation

Occurs when a country experiences very high and usually accelerating rates of inflation, rapidly eroding the real value of the currency

• Inflation

• Deflation

• Disinflation

• Hyperinflation

A sustained rise in the general price level

• Inflation

• Deflation

• Disinflation

• Hyperinflation