GS101 Lecture Notes - Lecture 13: Greek Drachma, Gross Domestic Product, Reserve Currency
Document Summary
Drivers of economic growth: foundations of economic growth-everything feeds economic growth, productivity, technology and inventions, research and knowledge, social institutions, natural resources, human resources. Just concerns economic growth isn"t concerned with wellbeing, happiness, growth of quality of peoples lives. Interest rates: represent the price of money- the cost you pay to borrow money, (the cost of borrowing money) Monetary policy: control of the money supply by a semi - autonomous central bank which sets the interest rate. Fiscal policy: how governments raise revenue through taxation and spend money. In ation: the overall increase in the price of goods and services in an economy over time. De ation: a downward spiral of falling prices and falling asset values; encourages saving instead of spending; causes the economy to shrink. When the world invests in your country, the value of your currency increases or appreciates when the reverse happens, currency depreciates.
