Category Economy

International trade is simply defined as trade between two countries it is also referred to as foreign trade. International trade is carried out between individuals or governments of different countries e.g. trade between a citizen of Kenya and a citizen…

Trade is the buying and selling of goods and services with the aim of making a profit. Importance of trade: Trade plays a vital role in any economy. The various roles played by trade in the economy include: Trade helps…

Friedman’s restatement of the quantity theory of money and supply of money Milton Friedman with other economists at Chicago developed a subtler and more relevant version of the quantity theory of money in its theoretical form in which the quantity…

This theory of money demand was postulated by Cambridge economists. Cambridge economists argued that a certain portion of money supply (Ms) where the equilibrium condition Money supply (Ms) = Money demand (Md) hence the portion of money supply will not…

 Grameen means “rural” or “village” in the Bangla language  Economic theory provides ample caution against lending to low-income households that lack collateral to secure the loans. The concept of effective demand, as applied to the theory of demand and supply,…

Microfinance has defined the methodology that employs effective collateral substitutes to deliver and recover short-term working capital loans to microentrepreneurs. The emergence of microfinance was a result of the poor performance of government programs set up in the 1960s and…

This theory was postulated by  Irving Fisher an American Economist in his book ‘The Purchasing Power of Money’  in the year 1911. This theory of money demand is classified under the classical theory of money demand In this theory of…

Economic growth implies the expansion in productive capacity or capital stock in the economy so that an increase in real national output or income is attained. Economic growth can be speeded up by accelerating the rate of saving and investment…

Money is defined as anything performing monetary functions. It must also be generally acceptable to every member of society. money has a value to individual X only when he thinks that individual Y will accept it in exchange for goods…

Monetary policy, however, plays a more limited role in developing countries for a number of reasons; Commercial banks in developing countries are less sensitive to changes in their cash base partly because many banks find themselves with excess liquidity because…