Speculation, Buying a currency because traders expect to sell it later for profit., Floating exchange rate, An exchange rate decided by demand and supply of the currency., Revaluation, Another term for a rise in the value of a currency., Devaluation, Another term for a fall in the value of a currency., Price elasticity of demand, How strongly demand changes after a change in price., Current account deficit, When the value of imports is greater than the value of exports., Current account surplus, When the value of exports is greater than the value of imports., Cost-push inflation, Inflation caused by higher production costs., Demand-pull inflation, Inflation caused by too much demand in the economy., Disinflation, When prices are still rising, but more slowly than before., Deflation, A fall in the average price level., Labour force participation rate, The percentage of people who are either working or actively looking for work., Economically inactive, People who are not working and not actively looking for work., Current expenditure, Day-to-day government spending on running public services., Capital expenditure, Government spending on infrastructure and capital equipment., Transfer payments, Government payments where no goods or services are exchanged., Fiscal deficit, When government spending is greater than government revenue., Fiscal surplus, When government revenue is greater than government spending., National debt, The total amount of money the government owes., Quantitative easing, A monetary policy where the central bank increases the money supply., Contractionary fiscal policy, Higher taxes or lower government spending used to reduce demand., Expansionary fiscal policy, Lower taxes or higher government spending used to increase demand., Supply-side policy, Policy aimed at increasing the productive potential of the economy., Productive potential, The maximum output an economy can produce using its resources., Deregulation, Removing or reducing government rules on firms., Privatisation, Transfer of firms or services from public ownership to private ownership., Pollution permits, Permission for firms to pollute up to a certain limit., Negative externality, A harmful side effect of production or consumption on third parties., Infant industry, A new industry that may need protection before it can compete globally., Dumping, Selling goods abroad at very low prices, often below normal market price..

econ

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