What is New Keynesian Economics? New Keynesian Economics is a school of thought in modern macroeconomics that is derived from Keynesian Economics. The original Keynesian economic theory was published in the 1930s; however, classical economists in the 1970s and 1980s critiqued and adjusted Keynesian Economics to create New Keynesian Economics. New Keynesian Assumptions New Keynesian…
What is a National Currency? A national currency is a currency issued by the monetary authority or central bank of a country. It is the medium through which the goods or services are purchased/sold within an economy. Currency can be anything that represents value; however, paper notes, coins, and digital cash are the most acceptable…
What is the P-value? In statistical hypothesis testing, the p-value (probability value) is a probability measure of finding the observed, or more extreme, results, when the null hypothesis of a given statistical test is true. The p-value is a primary value used to quantify the statistical significance of the results of a hypothesis test. The…
What is NAV Return? NAV return, or net asset value return, is a performance measurement for an entity’s assets minus liabilities. NAV return is typically used to measure the performance of mutual funds, open-end funds, or exchange traded funds (ETFs) because shares of the funds are typically purchased at their NAV. Net asset value return…
What is the Average Daily Rate (ADR)? The average daily rate (ADR) is a performance indicator used in the hospitality sector to measure the strength of revenues generated. It is measured as the total revenues generated by all the occupied rooms in a hotel or lodge divided by the total number of occupied rooms over…
What Does “At Par” Mean? The term “at par” means “at face value.” Bonds, preferred stocks, or other debt securities can be traded at par or at face value, below par, or above par. Par values are normally constant, as opposed to market prices, which fluctuate with consumer demand and interest rate movements. The par…
What is a Macroeconomic Factor? A macroeconomic factor is a pattern, characteristic, or condition that emanates from, or relates to, a larger aspect of an economy rather than to a particular population. The characteristic may be a significant economic, environmental, or geopolitical event that widely influences a regional or national economy. A macroeconomic factor can…
What is the Merchant Discount Rate (MDR)? The merchant discount rate, or MDR, is the rate charged to a merchant for the payment processing of debit and credit card transactions. The service is set up by the merchant, and they must agree or commit to the rate before accepting and/or authorizing debit or credit cards…
What is Monopolistic Competition? Monopolistic competition is a type of market structure where many companies are present in an industry, and they produce similar but differentiated products. None of the companies enjoys a monopoly, and each company operates independently without regard to the actions of other companies. The market structure is a form of imperfect…
What are the Basel Accords? The Basel Accords refers to a set of banking supervision regulations set by the Basel Committee on Banking Supervision (BCBS). They were developed over several years between 1980 and 2011, undergoing several modifications over the years. The Basel Accords were formed with the goal of creating an international regulatory framework…
