Capital Flows:
Money that moves from one country to another in the form of investments or loans from private and/or government sources. Capital flow may provide a significant sum to a recipient country's economy and is sometimes implicated in the boom-and-bust cycles that affect some countries.
Capitalism:
An economic system in which private individuals and business firms carry on the production and exchange of goods and services through a complex network of prices and markets. Although rooted in antiquity, capitalism is primarily European in its origins; it evolved through a number of stages, reaching its zenith in the 19th century. From Europe, and especially from England, capitalism spread throughout the world, largely unchallenged as the dominant economic and social system until World War I ushered in modern communism (or Marxism) as a vigorous and hostile competing system.
Microsoft® Encarta® Encyclopedia 2001. © 1993-2000 Microsoft Corporation. All rights reserved.
Central Bank:
A financial institution, for example, the U.S. Federal Reserve Bank, whose function is to regulate state fiscal and monetary activities. It is responsible for the issue of bills and for controlling the flow of currency.
Encarta® World English Dictionary (North American Edition) © & (P) 2001 Microsoft Corporation. All rights reserved.
Central Planning:
In a centrally planned economy, the state has the authority to decide who produces what and at what price it will be sold. Prices and resource allocation are also decided by the central decision-making bodies. The goal is to make the economy more equitable, but the result is often increased waste and inefficiency. Centrally planned economies are also called command economies or planned economies.
R.C. Epping, A Beginner's Guide to the World Economy, 3rd ed., New York, 2001.
Chicago School:
A school of conservative economic thought associated with the University of Chicago. It promotes free markets and capitalism and relies heavily on mathematical analysis..
Encarta® World English Dictionary (North American Edition) © & (P) 2001 Microsoft Corporation. All rights reserved.
Civil Servant:
A person who works in a state or federal government department, but has not been appointed by the government.
Communism:
A concept or system of society in which the major resources and means of production are owned by the community rather than by individuals. In theory, such societies provide for equal sharing of all work according to ability and all benefits according to need. Some conceptions of communist societies assume that, ultimately, coercive government would be unnecessary and therefore that such a society would be without rulers. Until the ultimate stages are reached, however, communism involves the abolition of private property by a revolutionary movement; responsibility for meeting public needs is then vested in the state.
Microsoft® Encarta® Encyclopedia 2001. © 1993-2000 Microsoft Corporation. All rights reserved.
Contagion:
The spreading of a harmful or corrupting influence from one person or group to another. In economics, the term often refers to an increasing reluctance of lenders and investors to place or keep their money in failing or risky markets.
Corruption:
Wrongdoing by those in a special position of trust. The term is commonly applied to self-benefiting conduct by public officials and others dedicated to public service.
Encarta® World English Dictionary (North American Edition) © & (P) 2001 Microsoft Corporation. All rights reserved.
Currency Crisis:
A downward economic trend characterized by the dramatic devaluation of a country's currency relative to other currencies and the increased flow of capital out of the country.
Current Account/Capital Account:
A country's current account measures its international trade in goods and services over a given period. Current accounts measure "visible" trade, such as apples and television sets, as well as a "invisible trade, such as banking services and movies. The current account also includes financial transfers, such as money sent home by someone working abroad, payments to international organizations, and interest payments on a country's foreign debt. The current account is balanced by the "capital account," which includes all transfers of money in the opposite direction.
R.C. Epping, A Beginner's Guide to the World Economy, 3rd ed., New York, 2001.