Fascism:
A modern political ideology that seeks to regenerate the social, economic, and cultural life of a country on a heightened sense of national belonging or ethnic identity. Fascism rejects liberal ideas such as freedom and individual rights and often presses for the destruction of elections, legislatures, and other elements of democracy. Despite the idealistic goals of fascism, attempts to build fascist societies have led to wars and persecutions that caused millions of deaths. As a result, fascism is strongly associated with right-wing fanaticism, racism, totalitarianism, and violence.
Microsoft® Encarta® Encyclopedia 2001. © 1993-2000 Microsoft Corporation. All rights reserved.
Fiscal Policy:
Government policy related to taxation and public spending. Fiscal policy and monetary policy, which is concerned with money supply, are the two most important components of a government's overall economic policy, and governments use them in an attempt to maintain economic growth, high employment, and low inflation. Fiscal policy can be either expansionary or contractionary. It is expansionary or loose when taxation is reduced or public spending is increased with the aim of stimulating total spending in the economy, Fiscal policy is contractionary or tight when taxation is increased or public spending is reduced in order to restrict demand and slow down the economy.
Microsoft® Encarta® Encyclopedia 2001. © 1993-2000 Microsoft Corporation. All rights reserved.
Flight Capital:
Money that citizens, concerned about economic downturn, send to financial havens outside of their own countries. This money sometimes amounts to a large percentage of a country's total wealth. Latin Americans, for example, during times of high inflation, often buy dollars and send them to bank accounts abroad, usually in defiance of exchange control laws. Attempts by government to control transfers of money abroad often end up encouraging the practice of capital flight -- exactly what they are trying to avoid.
R.C. Epping, A Beginner's Guide to the World Economy, 3rd ed., New York, 2001.
Floating Currencies:
See "When Currencies Began to Float" essay.
Foreign Aid:
Military or economic assistance that one country provides to help another. Foreign aid can take many forms, including donations of money, goods, services, and technical expertise. Foreign aid can be bilateral, which means it is given by one country to another. It can also be multilateral -- that is, given by a group of countries. The term foreign aid is also sometimes used to describe assistance given to a country by a private organization in another country.
Microsoft® Encarta® Encyclopedia 2001. © 1993-2000 Microsoft Corporation. All rights reserved.
Foreign Debt:
Debt owed by governments or private companies to foreign lenders.
Foreign Direct Investment (FDI):
The total of all foreign investment in a country's economy. It includes "green-field" investments such as new factories and power plants, and "paper" investments, such as shares of existing companies.
R.C. Epping, A Beginner's Guide to the World Economy, 3rd ed., New York, 2001.