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Small open economy |
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Small open economyAn economy that is small enough compared to the world markets in which it participates that (as a good approximation) its policies do not alter world prices or incomes. The country is thus a price taker in world markets. The term is normally applied to a country as a whole, although it is sometimes used in the context of only a single product.Similar MatchesClosed economyClosed economyAn economy that does not permit economic transactions with the outside world; a country in autarky. Tiger economyTiger economyA term originally used to describe rapidly-growing economies in the Far East. Now used to describe any relatively undeveloped country where growth prospects are thought to be high. Open-economy multiplierOpen-economy multiplierThe simple Keynesian multiplier for a small open economy. Equals 1/(s+m), where s is the marginal propensity to save and m is the marginal propensity to import. Integrated World EconomyIntegrated World EconomyA hypothetical, theoretical benchmark in which both goods and factors move costlessly between countries. The IWE is associated with a retangular diagram depicting allocation of factors to countries, showing conditions for FPE. The name was coined by Dixit and Norman (1980), but the concept and technique was introduced by Travis (1964). External diseconomyExternal diseconomyNegative externality. Further SuggestionsPolitical economy of protectionBarter economy Non-market economy External economy black economy Emerging economy Radical political economy New Economy Bubble economy Open economy Goldilocks economy Market economy Political economy Mature economy Command economy Goldilocks economy Pure exchange economy Mixed economy Ministry of Economy, Trade and Industry Newly Industrializing Economy old economy stocks |
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