The main distinguishing feature of the British economy is that the country does not develop on the basis of the principles of a social market economy, like Germany or France, but uses the neoliberal, Anglo-Saxon model of development. Therefore, the model of the British economy is closest to the United States and is very different […]
Tag: Credit
Money supply model. Money multiplier
The supply of money (Ms) includes cash (C) outside the banking system and deposits (D), which economic agents can use for transactions if necessary (in fact, this is the Ml aggregate) Ms = C+D The modern banking system is a system with partial reserve coverage: only a part of their deposits banks keep in the […]
The essence and types of fiscal policy
Fiscal (fiscal) policy – measures of the government to change public spending, taxation and the state of the state budget, aimed at ensuring full employment, balance of payments equilibrium, economic growth in the production of non-inflationary GDP (GNP). The main instruments for the implementation of fiscal policy are tax and budget regulators. Tax regulators include […]