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Adjustment mechanism |
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Adjustment mechanismThe theoretical process by which a market changes in disequilibrium moving toward equilibrium if the process is stable. See Walrasian and Marshallian adjustment.Similar MatchesInternational adjustment processInternational adjustment process1. Any mechanism for change in international markets. 2. The mechanism by which payments imbalances diminish under pegged exchange rates and nonsterilization. Similar to the specie flow mechanism, exchange-market intervention causes money supplies of surplus countries to expand and vice versa, leading to price and interest rate changes that correct the current and capital account imbalances. Adjustment bondAdjustment bondA bond issued in exchange for outstanding bonds when a corporation facing bankruptcy is recapitalized. Trade adjustment assistanceTrade adjustment assistanceA program of adjustment assistance for workers and firms in industries that have suffered from competition with imports. In the U.S., TAA began with the Trade Act of 1974, and has been renewed and expanded since then, including as part of the NAFTA. Border tax adjustmentBorder tax adjustmentRebate of indirect taxes (taxes on other than direct income, such as a sales tax or VAT) on exported goods and levying of them on imported goods. May distort trade when tax rates differ or when adjustment does not match the tax paid. Adjustment assistanceAdjustment assistanceGovernment program to assist those workers and/or firms whose industry has declined, either due to competition from imports (trade adjustment assistance) or from other causes. Such programs usually have two (conflicting) goals: to lessen hardship for those affected and to help them change their behavior -- what, how, or where they produce. Further SuggestionsMarshallian adjustmenthigher rate adjustment Balance of payments adjustment mechanism Structural adjustment program Walrasian adjustment Adjustment date Structural adjustment Cumulative Translation Adjustment (CTA) account |
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