Like direct investments, portfolio investments are a form of international capital flows, which is reflected in the balance of payments. Portfolio investment is a group of balance of payments items showing the relationship between residents and non-residents in connection with the sale of financial instruments that do not give the right to control the object […]
Tag: demand
Competition: essence, forms, methods of competition
The interaction between supply and demand and the functioning of the price mechanism occur in the market in conditions of competition between buyers and between sellers. Competition (translated from Latin means “to converge”, “to collide”) is an economic rivalry, the competitiveness of isolated commodity producers and consumers for obtaining maximum income. A. Smith figuratively called […]
Reproduction structure of the national economy
The reproductive structure of the national economy reflects such a functional aspect as the ability of the economy to resume the reproduction process in the future on the basis of its own resources, i.e. on the basis of the accumulation fund. Therefore, it is important to take into account the natural-material and cost structure of […]
Monetary policy. Objectives and tools
Monetary policy objectives are classified into final and intermediate. Ultimate goals: (a) Economic growth; b) full-time employment; c) price stability; d) stable balance of payments. Intermediate targets: (a) The money supply; b) interest rate; c) exchange rate. Monetary policy instruments include: a) credit limits; direct regulation of the interest rate; b) changes in the rate […]