Economics Definitions

This page holds our Financial Expert™ Definitions of economics jargon and terms. Cut through complex economic concepts with our easy explainer guides. Each definition page is much more than a …

Monetary Policy – Definition

Definition of monetary policy: The policies and programmes put in place typically by a central bank to control the money supply of an economy. What is monetary policy? Monetary policy …

Macroeconomics – Definition

Definition of macroeconomics: The field of economics which attempts to model the behaviour of an economy, rather than the behaviour of individual participants. What is macroeconomics? Economics is an attempt …

Inflation – Definition

Definition of inflation (economics): A measure of the general rise in consumer prices over time. What is inflation? Prices of good and services tend to go up over time. Inflation …

Hyperinflation – Definition

Definition of hyperinflation: The rapid depreciation of the value of a unit of currency, leading to a sustained rapid increase in prices. What is hyperinflation? Hyperinflation is a rare market …

Globalisation – Definition

Definition of globalisation: The trend which has seen a seismic increase in trade, commerce, ideas and culture across international borders. What is globalisation? Globalisation refers to the idea that as …

Game Theory – Definition

Definition of game theory: the study of how strategic decisions are logically made in a competitive environment where the actions of one participant can impact the success of another. The …

Free Market – Definition

Definition of a free market: a market in which buyers and sellers can transact with free choice, perfect information and without restriction. What is a free market? A free market …

Economic Moat – Definition

Definition of economic moat: A specific and persistent advantage which a company holds over existing or potential new competitors. What is an economic moat? An economic moat is a metaphor …

Command Economy – Definition

Definition of command economy: A economic model, in contrast to capitalism, in which all decisions over which goods and services are produced and in what quantity is centrally controlled, typically …

Demand – Definition

Definition of demand: the measure of market participants level of desire to buy goods or services at different prices. What is demand? Demand is an economics concept which you’ll frequently …

Comparative Advantage – Definition

Definition of comparative advantage: the efficiency and effectiveness with which an economy can produce a good or service relative to other economies. What is comparative advantage? Comparative advantage is a …