Dictionary of Economics 中⇄英

Absolute advantage (绝对优势 jué duì yōu shì) is a kind of advantage (优势 yōu shì) which refers to the condition that the country can produce the same quantity of a good or service using less quantity of inputs. Part 1: Breakdown of Words "Absolute" (绝对 jué duì) as in "absolute value"(绝对值(...)

Accommodating policy (适应性政策 shì yìng xìng zhèng cè) is used to boost the economy when economic growth is slow. The common methods include increasing the money supply and lowering interest rates. For example, facing a possible economic recession, the central bank decides to implement a policy(...)

Accounting profit (会计利润 kuài jì lì rùn) is a company's amount of revenue remaining after subtracting explicit costs such as the costs of factors of production and expenses for the running of the business. See also: economic profit; profit. Accounting profit differs from economic profit as(...)

Acyclical (非周期性 fēi zhōu qí xìng) describes the irregular movements of the business cycle instead of recurring or moving in cycles regularly. Also see: countercyclical (逆周期 nì zhōu qí). Part 1: Breakdown of Words "Acyclical" is the antonym of cyclical. The prefix "a" as (非 fēi) refers to(...)

Adaptive expectations (适应性预期 shì yìng xìng yù qī) is an economic theory that assumes that people will form their expectations about the future according to recent past events, experience, and data. Also see: rational expectations. Part 1: Breakdown of Words "Adaptive" (适应性 shì yìng(...)

Address (地址 dì zhǐ) or bitcoin address (比特币地址 bǐ tè bì dì zhǐ) is a unique string consisting of digits and characters that indicates where to send or receive cryptocurrency. See: Bitcoin (比特币 bǐ tè bì). Part 1: Breakdown of Words “地” (dì) as "land" (土地 tǔ dì; 土, soil; 地, land), "place"(...)

Adverse selection (逆向选择 nìxiàng xuǎnzé) is a problem caused by asymmetric information when one party has more or better information than the other party. An example is “the market of lemons" raised by George Akerlof. In a used-car market, the seller knows the real quality of the car while the(...)

Aggregate  (总计 zǒng jì) refers to the constituting or amounting of the economy to a whole. Aggregate or total (总 zǒng) as in aggregate demand (总需求 zǒng xū qiú; 总 zǒng, total). When translating phrases like "aggregate demand" (总需求 zǒng xū qiú), "aggregate" will only be translated into a(...)

Aggregate demand (总需求 zǒng xū qiú) is the total demand for all the final goods and services produced by an economy, given a certain time period. Demand (需求 xū qiú) as in demand of food (食物需求 shíwù xūqiú; 需 xū,  need; 求 qiú, seek). When translating phrases like "aggregate demand" (总需求(...)

Aggregate supply (总供给 zǒng gōng jǐ) is the total supply of final goods and services produced by an economy, given a certain time period. Supply as in "petrol supply" (汽油供给 qì yóu gōng jǐ; 供 gōng, provide; 给 jǐ, give). When translating phrases like "aggregate demand" (总需求 zǒng xū qiú),(...)

Animal spirit (动物精神 dòng wù jīng shén) describes the psychological and emotional factors that drive investors and consumers to make financial decisions in a market economy. People will act according to their emotions and feelings instead of fully based on rational analysis. Part 1:(...)

An anti-dumping duty (反倾销关税 fǎn qīng xiāo guān shuì) refers to a tariff imposed by the domestic government on foreign imports which are considered to be too low below the fair market price. Duty as in on duty (值班 zhí bān). Duty as in import duties (进口税 jìn kǒu shuì; duty or tax 关税, guān shuì).(...)

Appreciation (增值zēngzhí) refers to the increase in monetary value over time. It is a relative concept, i.e. there is an increase in the value of the property relative to the others. An example is the rise of the value of one currency to another. Appreciation (增值 zēngzhí) as in capital(...)

Appreciation (升值 shēng zhí) refers to an increase (提升 tí shēng) in the price or value (价值 jià zhí) of assets. (值 zhí) comes from (亻rén) which means people and (直 zhí) which means payroll or salary in ancient Chinese; (值 zhí) is usually associated with the concept of value like (值钱 zhí qián;(...)

Arbitrage (套利tàolì) describes the practice of buying an item in one market and selling it almost simultaneously in another market at a higher price to take advantage of price discrepancies. Arbitrage as in labor arbitrage (劳动力套利láodònglì tàolì) and arbitrage opportunity (套利机会tàolì jīhuì;(...)

Arbitrage (套利 tào lì) refers to the purchase and sale behavior that can make a profit (利润 lì rùn) from a difference in the asset's price between markets. Part 1: Breakdown of Words  “套” (tào) as in "trap" (圈套 quān tào) or "quilt" (被套 bèi tào). “利” (lì) as in "beneficial"(有利 yǒu lì) or(...)

Asian Infrastructure Investment Bank (亚洲基础设施投资银行 yà zhōu jī chǔ shè shī tóu zī yín háng or 亚投行 yà tóu háng) is a multilateral development bank with a mission to foster social and economic development and provide sustainable infrastructure construction in Asia. It was set up in Beijing, China(...)

Asset (资产 zīchǎn) refers to the property owned by a person or company which has economic value, such as cash and cash equivalents, inventory, equipment, stock, patents, etc. Also see: liablity. 资 as in funds (资金 zījīn) or investment (投资 tóuzī).

Assets (资产 zī chǎn) are resources with economic values and expected future benefits that an entity like an individual, corporation, or country possesses. Part 1: Breakdown of Words “资” (zī) as in "capital" (资本 zī běn), "investment" (投资 tóu zī), or "funds" (资金 zī jīn). “产” (chǎn) as in(...)

Asymmetric cryptography (非对称式密码学 fēi duì chèn shì mì mǎ xué) or public-key cryptography, is a process using a pair of keys -- one public and one private -- to encrypt and decrypt a message while protecting this message from outside unauthorized access. Also see: cryptography (密码学 mì mǎ(...)

Asymmetric information (信息不对称 xìn xī bù duì chèn) refers to a situation of unequal knowledge where one party is well informed in comparison to another. One of the problems caused by asymmetric information is adverse selection. Part 1: Breakdown of Words “信息” (xìn xī) as in(...)

Asymmetric shock (非对称冲击 fēi duì chèn chōng jí) refers to the economic shock (冲击 chōng jí) which does not affect all sectors or regions uniformly. (This challenge can be often faced by the common monetary area like the European Union.) Part 1:  “非” (fēi) as in "very" (非常 fēi cháng),(...)

Automatic stabilizer (自动稳定器 zì dòng wěn dìng qì) is a type of fiscal policies used to offset slumps or overheat (primarily the former) in a nation's economic activity without direct governmental intervention. The goal of it is to stabilize the economy, i.e. prevent drastic growth and(...)

The average propensity to consume (平均消费倾向 píng jūn xiāo fèi qīng xiàng) measures the percentage of income consumed. It is calculated by dividing total consumption (C) by total disposable income (Y) in a given period. Formula: APC = Consumption / Income. Part 1: Breakdown of(...)

The backing ratio (支持比率 zhī chí bǐ lǜ) indicates the fraction of the money supply that is backed by reserves on the central bank balance sheet. Part 1: Breakdown of Words Backing (支持 zhī chí) derives from: “支” (zhī) as in "pay" (支付 zhī fù), "dominate" (支配 zhī pèi), "support" (支撑(...)

Bailout (纾困 shū kùn) refers to the act of giving financial assistance or support to a failing business or economy to rescue it from collapse or bankruptcy. Part 1: Breakdown of Words “纾” (shū) as in "relieve" (纾解 shū jiě) or in "ease" (纾缓 shū huǎn). “困” (kùn) as in "difficult" (困难 kùn(...)

Balance (收支 shōu zhī) is the net sum of income (收入 shōu rù) and expenditures (支出 zhī chū). Part 1: Breakdown of Words “收” (shōu) as in "income" (收入 shōurù), "collect" (收集 shōu jí), "receive" (接收 jiē shōu), "earnings" (收益 Shōuyì), or "reward" (收获 shōu huò). “支” (zhī) as in "pay" (支付 zhī(...)

A balance sheet (资产负债表 zī chǎn fù zhài biǎo) is a financial statement that reflects a firm's total assets, liabilities, and shareholders' equity in a given time period. It can help stakeholders and financial analysts to get an overview of the company's general financial position and net(...)

A balanced budget (平衡预算 píng héng yù suàn) refers to a situation when total expenditures are equal to total revenues and not create a surplus or deficit for the entity. Part 1: Breakdown of Words Balanced (平衡 píng héng) as in "balanced diet" (平衡饮食 píng héng yǐn shí).  Budget (预算(...)

A bank (银行 yín háng) is a financial institution where people and business can save and borrow money. It also provides financial services such as wealth management, currency exchange, trade finance, etc. Part 1: Breakdown of Words “银” (yín) as in "silver" (白银 bái yín),(...)

Bank capital (银行资本 yín háng zī běn) refers to the net worth, i.e., the difference between bank's assets and its liabilities. The capital of a bank ensures the efficient running of a bank and protects the bank's creditors in case the bank would liquidate its assets. Part 1: Breakdown(...)

A bank run (银行挤兑 yín háng jǐ duì) occurs when a large number of bank customers withdraw their bank deposits because they don't trust that the bank possesses enough deposits for withdrawal and this bank might fail. Part 1: Breakdown of Words "Bank" (银行 yín háng) derives from: “银”(...)

Banking crises (银行危机 yín háng wéi jī) occur when there is an abnormal amount of bank runs when people don't trust that the bank will have sufficient deposits for withdrawal in the future, thus leading to serious solvency or liquidity problems. Part 1: Breakdown of Words "Bank" (银行 yín(...)

Bankruptcy (破产 pò chǎn) refers to a legal proceeding that a debtor's property is administered and evaluated under the bankruptcy laws. When a person or business is unable to repay the debts, the debtor or corresponding creditors can petition for bankruptcy, and the debtor's assets will be(...)

Base currency (基准货币 jī zhǔn huò bì) is the first currency that appears in a forex pair quotation. In the foreign exchange market, one currency will always be quoted in relation to another because investors are buying one while selling the other. Part 1: Breakdown of Words "Base" (基准 jī(...)

Beggar-thy-neighbor policy (以邻为壑政策 yǐ lín wéi hè zhèng cè) refers to the policies that a country implemented to alleviate its economic difficulties which consequently worsens the economic problems of other countries. Part 1: Breakdown of Words The phrase (以...为 yǐ ... wéi) means(...)

Bilateral trade (双边贸易 shuāng biān mào yì) is the international trade (贸易) between two (双/二/两  shuāng/èr/liǎng) countries or sides (边 biān).  Part 1: Breakdown of Words "Bilateral" (双边 shuāng biān) derives from: “双” (shuāng) as in "bilingual" (双语 shuāng yǔ), "double" (双重 shuāng chóng),(...)

Bitcoin (比特币 bǐ tè bì) is a decentralized digital cryptocurrency with its implementation released as open-source software. Part 1: Breakdown of Words “比特” (bǐ tè) is the transliteration of the term "bit". “比” (bǐ) as in "contrast" (对比 duì bǐ), "competition" (比赛 bǐ sài), or(...)

Black market (黑市 hēi shì) refers to a market outside governmental supervision that has some aspect of illegality or some form of noncompliant behavior according to the official law and regulations. Part 1: Breakdown of Words “黑” (hēi) as in "darkness" (黑暗 hēi àn), "blackboard" (黑板 hēi(...)

Block (区块 qū kuài) refers to an immutable digital file, which stores all actions that occur on the blockchain network. Each block has its own timestamp, Merkle tree hash value, digital signature, and transaction records. Part 1: Breakdown of Words “区” as in "free trade area" (自贸区 zì mào(...)

Block hash (区块散列值 qū kuài sàn liè zhí) is a reference number for a block in the blockchain. Also see:  block, hash. Part 1: Breakdown of Words "Block" (区块 qū kuài) derives from: “区” as in "free trade area" (自贸区 zì mào qū) and "dining area" (用餐区 yòng cān qū). “块” as in "woodblock" (木块(...)

Block height (区块高度 qū kuài gāo dù) refers to the number of blocks preceding the particular block in the blockchain. Also see: block. Part 1: Breakdown of Words "Block" (区块 qū kuài) derives from: “区” as in "free trade area" (自贸区 zì mào qū) and "dining area" (用餐区 yòng cān qū). “块” as(...)

Blockchain (区块链 qū kuài liàn) is an ordered, back-linked, and growing list of blocks (区块 qū kuài) of transactions that are linked using cryptography. Also see: block. Part 1: Breakdown of Words "Block" (区块 qū kuài) derives from: “区” as in "free trade area" (自贸区 zì mào qū) and(...)

Bloom filter (布鲁姆过滤器 bù lǔ mǔ guò lǜ qì) is a probabilistic data structure that uses computers spaces efficiently. This data structure is used to test whether a set contains a certain element. Part 1: Breakdown of Words “布鲁姆” (bù lǔ mǔ) is the transliteration of "Bloom", the person who(...)

Bond (债券 zhài quàn) refers to a loan made by an investor to a borrower. The borrower, typically a corporation or government, is obligated to repay a certain amount on a future date, and the investor can benefit from the interests.  Part 1: Breakdown of Words “债” (zhài) as in "debt"(...)

Border effects (边界效应 biān jiè xiào yìng) refer to asymmetric trade pattern between either cities of different countries that share the same national border (边界; 边 side; 界 border), or regions within one country. “效应” as in greenhouse effect (温室效应 wēn shì xiào yìng). Part 1: Breakdown of(...)

Borrowing constraint (借款约束 jiè kuǎn yuē shù) is the limitation on the amount of money a person could borrow from the institutions or individuals. Part 1: Breakdown of Words Borrowing (借款 jiè kuǎn) as in "commercial borrowing" (商业借款 shāng yè jiè kuǎn), or "cost of borrowing" (借款成本(...)

A budget deficit (预算赤字 yù suàn chì zì) occurs when current expenses exceed the available revenue to pay for such expenses. Part 1: Breakdown of Words "Deficit" (赤字 chì zì) as in "trade deficit" (贸易赤字 mào yì chì zì) and in "fiscal deficit" (财政赤字 cái zhèng chì zì). “赤” (chì)(...)

A budget surplus (预算盈余 yù suàn yíng yú) occurs when the amount of money available exceeds expenditures. See "budget deficit" (预算赤字 yù suàn chì zì). Part 1: Breakdown of Words "Budget" (预算 yù suàn) as in "defense budget" (国防预算 guó fáng yù suàn) and in "project budget" (项目预算 xiàng mù(...)

Business cycle (经济周期 jīng jì zhōu qī) refers to a cycle of economic activity alternates between the phase of expansions and contractions due to the natural rise and fall of economic growth over time.  Part 1: Breakdown of Words In this phrase, "business" has been translated into(...)

Business services (商业服务 shāng yè fú wù) refers to a set of services which does not produce a tangible commodity and does not possess a physical form. Part 1: Breakdown of Words "Business" (商业 shāng yè) as in Central Business District (CDB, 中心商业区zhōngxīn shāngyè qū). “商” (shāng) as(...)

Byzantine Generals Problem (拜占庭将军问题 bài zhàntíng jiāng jūn wèn tí) refers to the classical problem in distributed computing when different ends try to agree on a course of action or the state of a system by exchanging information over an unreliable and potentially compromised network. Part(...)

Candidate block (候选区块 hòu xuǎn qū kuài) refers to a temporary block created by miners in order to receive the block reward. Then this miner will receive a block reward as long as the candidate block he/she produced is with a valid block hash and this block has been broadcasted to the(...)

Capital (资本 zīběn) refers to (1) money and funds owned by an individual or organization used to invest or start a business to produce more wealth; (2) accumulated machinery and assets devoted to the production of other goods to bring in income, but which do not make money directly. Capital(...)

Capital (资本 zī běn) refers to assets (资产 zī chǎn) that can be used for producing (产/生产 chǎn/shēng chǎn) economic value. "Das Kapital" (资本论 zī běn lùn), literally "theory of capital" in Chinese, is a work by Karl  Marx. Part 1: Breakdown of Words “资” (zī) as in "assets" (资产 zī chǎn),(...)

Capital control (资本管控 zī běn guǎn kòng) refers to any measure adopted by an authoritative entity like the government or central bank, to regulate (管理 guǎn lǐ) and manage (控制 kòng zhì) the free flow of foreign capital (资本 zī běn) in or out of the domestic economy.  Part 1: Breakdown of(...)

Capital requirement (资本要求 zī běn yāo qiú) refers to the least amount of money a bank and other depository institution are required to have. It is set by regulators in order to protect investors and ensure the solvency of the bank since it ensures the bank sustains unexpected operating losses(...)

A central bank (中央银行 zhōng yāng yín háng), sometimes, in short, “央行” (yāng háng), refers to a national financial institution which has the authority to control the money supply, regulate the interest rates, establish monetary and fiscal policies, and regulate member banks. It is very(...)

Central bank (中央银行 zhōngyāng yínháng) is a financial institution which is given the privilege to give control over the production and distribution of money and credit.

A central bank balance sheet (中央银行资产负债表 zhōng yāng yín háng zī chǎn fù zhài biǎo) summarizes the financial position of the bank, including assets, liabilities, and equity. A balance sheet (资产负债表 zī chǎn fùz hài biǎo) is a financial statement that reports a company's assets, liabilities, and(...)

Central bank independence (中央银行独立性 zhōng yāng yín háng dú lì xìng) refers to the autonomy (独立性 dú lì xìng/自主性 zì zhǔ xìng) of the central bank from the direct influence of political or governmental entities in the conduct of policy. See "central bank" (中央银行 zhōng yāng yín(...)

Central trusted authority (中央可信权威 zhōng yāng kě xìn quán wēi) refers to a centralized third party trusted to validate an identity of a user or authorize certain requests from the users. Part 1: Breakdown of Words "Central" (中央 zhōng yāng) as in "central government" (中央政府 zhōng yāng zhèng(...)

Classical dichotomy (古典二分法 gǔ diǎn èr fēn fǎ) refers to a view of classical economics that real variables such as output, unemployment, and real interest rates are only determined by real factors and are independent of nominal variables, while nominal variables are simply determined by(...)

Classical model (古典模型 gǔ diǎn mó xíng) refers to an economic model assuming that prices are perfectly flexible, which adjust to different demand levels and bring the market to the market-clearing level. The long-run supply curve is thus inelastic, and the employment tends to stabilize at(...)

The Clean Power Plan (清洁能源计划 qīng jié néng yuán jì huà), announced by the Obama administration in August 2015, refers to a policy aimed at combating anthropogenic climate change (like global warming). The plan sets the first-ever limits on carbon pollution on the United States' domestic power(...)

A closed economy (封闭经济 fēng bì jīng jì) refers to a type of economy that has no international trade, that is, there are no imports and exports and produce everything consumer demanded within the country. The economy is completely self-sufficient. Also see: open economy. Part 1:(...)

Cobb–Douglas production function (柯布-道格拉斯生产函数 kē bù dào gé lā sī shēng chǎn hán shù) is an equation that describes the relationship between inputs and outputs. Usually, only two input factors, labor, and capital are taken into account, and the function describes how much output will be(...)

The "coinbase" (币营 bì yíng) is the "input" of a generation transaction, and a generation transaction has no parent but creates new coins from scratch instead. A coinbase is able to contain any arbitrary form of data. "Coinbase" is also a name for a bitcoin exchange platform. Part 1:(...)

Coinbase transaction (生成交易 shēng chéng jiāo yì) is also known as generation (生成 shēng chéng) transaction. Each block on the bitcoin blockchain will contain one or more transactions, the first of which is called a coinbase transaction. Also see: coinbase (币营 bì yíng). "Coin" can be used as(...)

Commercial bank (商业银行 shāng yè yín háng) is a kind of bank (银行 yín háng) in the financial industry (行业 háng yè) that support business (商业 shāng yè) by accepting deposits and makes various loans, whose benefits are mainly from earning interest of loans. Part 1: Breakdown of(...)

Commodity money (商品货币 shāng pǐn huò bì) refers to money in the forms of a physical commodity, which is used as a medium of exchange. The object has intrinsic value on its own as well as for use as money. Examples of commodity money include gold, silver, copper, salt, shells, tea, alcohol,(...)

Common property (公共财产 gōng gòng cái chǎn) is defined as something that has more than one person or one group as owners. Part 1: Breakdown of Words "Common" (公共 gōng gòng) derives from: “公” (gōng) as in "Duke" (公爵 gōng jué), "civil servant" (公务员 gōng wù yuán), or "public" (公开 gōng(...)

Comparative advantage (比较优势 bǐ jiào yōu shì) is a kind of advantage (优势 yōu shì) which refers to the condition that the country can produce the same quantity of a good or service with a lower opportunity cost compared (比较bǐ jiào) to another country. Also see: absolute advantage (绝对优势 jué duì(...)

Competition (竞争 jìng zhēng) is the rivalry between companies providing similar products and services. Their goals are to capture revenue, profits, and a larger market share. Part 1: Breakdown of Words “竞” (jìng) as in "contest" (竞赛 jìng sài), "bidding" (竞标 jìng biāo), or "race-walk"(...)

Consumption (消费 xiāo fèi) refers to the purchase and using up of goods and services by consumers. Part 1: Breakdown of Words “消” (xiāo) as in "elimination" (消灭 xiāo miè), "disinfect" (消毒 xiāo dú), or "digestion" (消化 xiāo huà). “费” (fèi) as in "cost" (费用 fèi yòng), "laborious" (费力(...)

Conditional convergence (条件收敛 tiáo jiàn shōu liǎn) suggests that poorer countries tend to grow faster than richer countries to eventually “catch-up” the wealthier economies in terms of income per capita. If economies have access to the same technology and the same population growth rate, we(...)

Confirmation (确认 què rèn) refers to the verification of a certain or a certain series of transaction information. On the Bitcoin blockchain, each transaction must be confirmed by six different nodes to be considered successful. In general cases, confirmation usually refers to the action of(...)

Consensus (共识 gòng shì) refers to the state in which the entire network agrees on certain practices or rules. Part 1: Breakdown of Words “共” (gòng) as in "common" (共同 gòng tóng), "shared" (共享 gòng xiǎng), or "community" (共同体 gòng tóng tǐ). “识” (shì) as in "common sense" (常识 cháng(...)

Consensus attack (共识攻击 gòng shì gōng jí) refers to the type of attack launched by miners by using their hashing power for dishonest or destructive purposes. If a miner or group of miners achieves a significant share of the mining power, they can attack the consensus mechanism to disrupt the(...)

Consensus rules (共识规则 gòng shì guī zé) refer to the basis and rules for collaboration between all bitcoin nodes which are responsible for the convergence of all local perspectives into a single consistent blockchain across the entire network. Part 1: Breakdown of Words "Consensus" (共识(...)

Constant returns to scale (规模报酬不变 guī mó bào chóu bù biàn) occurs when an increase in the factors of production employed causes the corresponding output increases in exactly the same proportion. For instance, if the inputs are increased by 20%, then the output will increase by 20% as(...)

Consumer price index (消费者价格指数 xiāo fèi zhě jià gé zhǐ shù) refers to a measurement of change in prices of a basket of commonly purchased goods and services in a base period. The change in CPI represents the change in the average price level, hence indicates the amount of inflation over a(...)

Consumer surplus (消费者剩余 xiāo fèi zhě shèng yú) occurs when the price that consumers' willingness to pay for a certain product or service is higher than the actual price of it.  Surplus as in surplus cash (剩余现金 shèng yú xiàn jīn). Part 1: Breakdown of Words "Consumer" (消费者 xiāo fèi zhě)(...)

Consumption function (消费函数 xiāo fèi hán shù) represents the functional relationship between consumption and the various factors determining it. A common example indicates the relationship between disposable income and consumer spending: C = a + b (Y - T), where C stands for consumption, a(...)

Consumption loss (消费损失 xiāo fèi sǔn shī), or consumption distortion loss (消费扭曲损失 xiāo fèi niǔ qū sǔn shī) is the loss caused by the reduction of demand due to increasing tariff in domestic market price. 消费 as in consumer (消费者 xiāo fèi zhě; 者, people, often in the form of "-ist" or(...)

A contagion (蔓延 màn yán; 蔓, to spread; 延, to extend) refers to the spread of an economic crisis from one market or region to another and trigger adverse changes in market sentiment both domestically and internationally. Part 1: Breakdown of Words “蔓” (màn) as in "vine" (藤蔓 téng màn), or(...)

Contingent commitment (或有承诺 huò yǒu chéng nuò) refers to the obligation to the external parties and the occurrence of the obligations is dependent on the outcome of specific future events. Part 1: Breakdown of Words "Contingency" (或有; 或, maybe; 有, to exist) refers to the situation(...)

Contractionary policy (紧缩性政策 jǐn suō xìng zhèng cè) is is a type of macroeconomic tool used to fight inflation and slow down the economy when the economy is overheated. For instance, the central bank may increase interest rates to reduce the money supply and make borrowing more expensive. If(...)

Convergence (收敛 shōu liǎn) refers to a tendency of economies of different countries to become more similar to reach a common level of development and wealth. Part 1: Breakdown of Words “收” as in "collect" (收集 shōu jí), "income" (收入 shōu rù), or "receipt" (收据 shōu jù). “敛” as in(...)

Cooperative arrangement (合作安排 hé zuò ān pái) is an arrangement (安排 ān pái) among nations that establishes a cooperative (合作的 hé zuò de) relationship in economic development. Part 1: Breakdown of Words "Cooperative" (合作 hé zuò) derives from: “合” (hé) as in "merge" (合并 hé bìng),(...)

According to UNFCCC (The United Nations Framework Convention on Climate Change), the COP21 Paris agreement (COP21巴黎协定 bā lí xié dìng) is a treaty aiming at strengthening the global response to "the threat of climate change by keeping a global temperature rise this century well below 2 degrees(...)

According to UNFCCC (The United Nations Framework Convention on Climate Change), the COP21 Paris agreement (COP21巴黎协定 bā lí xié dìng) is a treaty aiming at strengthening the global response to "the threat of climate change by keeping a global temperature rise this century well below 2 degrees(...)

Corners hypothesis (角点假设 jiǎo diǎn jiǎ shè) refers to the view that countries should get out of the middle and move to the corners when it comes to risky intermediate regimes. In this view, only the two extremes, which are a hard peg or a true float, are recommended by economists. Part 1:(...)

A corporate income tax (公司所得税 gōngsī suǒdéshuì) refers to a tax imposed on the profits received by a corporation. Part 1: Breakdown of Words "Corporate" (公司 gōng sī) as in corporate image (公司形象 gōng sī xíng xiàng). “公” (gōng) as in "public" (公共 gōng gòng), "fair" (公平 gōng píng),(...)

Corporation (公司 gōng sī) refers to an organization authorized by the state to act as a legal entity. Part 1: Breakdown of Words “公” (gōng) as in "public" (公共 gōng gòng), "fair" (公平 gōng píng), or "park" (公园 gōng yuán). “司” (sī) as in "driver" (司机 sī jī), "commander" (司令 sī lìng), "master(...)

Cost of capital (资本成本 zī běn chéng běn) refers to the rate of return the firm expects to earn from its investment. It can be understood as the opportunity cost of making a specific investment decision. Part 1: Breakdown of Words "Capital" (资本 zī běn) as in "venture capital" (风险资本(...)

Cost-push inflation (成本推动型通货膨胀 chéng běn tuī dòng xíng tōng huò péng zhàng) refers to an increase in overall price level known as inflation due to an increase in the cost of factors of production. Higher costs lead to a decrease in aggregate supply and drive prices up. See: Demand-push(...)

Countercyclical (逆周期 nì zhōu qí) refers to the situation when economic activities moving in the direction opposite to the overall state of an economy. For instance, the total output increase during recessions, which does not follow the normal business pattern. Also see: acyclical (非周期性 fēi(...)

Countervailing duty (反补贴税 fǎn bǔ tiē shuì) is a type of trade import duty approved by the World Trade Organization in order to harmonize the adverse impacts of subsidies. Part 1: Breakdown of Words "Counter" means “反” (fǎn) or “逆” (nì) in Chinese, as in "counterattack" (反击 fǎn jī), or(...)

Country premium, or country risk premium, (国家风险溢价 guó jiā fēng xiǎn yì jià) refers to differences in the risk attached to investing in different countries which share the same currency. For example, both Spain and Germany use the euro (€), however, there might be differences in the risk(...)

Covered interest parity (CIP) (抛补利率平价 pāo bǔ lì lǜ píng jià) is a theoretical condition in which the relationship between interest rates and the spot and forward currency values of two countries are in equilibrium (平衡 píng héng). Example: Assume Country X's currency is trading at(...)

COVID-19 recession (新型冠状病毒肺炎经济衰退 xīn xíng guān zhuàng bìng dú fèi yán jīng jì shuāi tuì) refers to a global economic recession caused by the massive shock of the coronavirus pandemic. The global health and economic emergency hit domestic demand and supply, trade, and finance and led to(...)

CPI (消费者价格指数 xiāo fèi zhě jià gé zhǐ shù) is the abbrevia of "consumer price index". See:  "consumer price index".  

Crawling peg (爬行钉住汇率制 páxíng dīng zhù huìlǜ zhì) refers to an exchange rate (汇率 huì lǜ) system (制度 zhì dù) in which a currency with a fixed (固定 gù dìng) exchange rate is allowed to fluctuate within the trading band. Part 1: Breakdown of Words "Crawling" (爬行 páxíng) is used to(...)

Creative destruction (创造性毁灭 chuàng zào xìng huǐ miè) refers to the process of how disruptive innovation revolutionizes the economic structure. As entrepreneurs introduce new innovation, old industries and firms, which are no longer profitable, close down to make way for improved methods of(...)

Credibility (公信力 gōng xìn lì) refers to the extent to which individuals and firms believe that the government will carry out promising macro-economic policies which might benefit individuals and firms. Part 1: Breakdown of Words “公” (gōng) as in "public" (公众 gōng zhòng), "firm" (公司 gōng(...)

A credit crunch (信用紧缩 xìn yòng jǐn suō) refers to an economic condition when there is a sudden reduction in the general availability of credit from banks and other financial institutions. Individuals and companies will find it more difficult to get loans. It is usually caused by adverse(...)

Cross rate (交叉汇率 jiāo chā huì lǜ) often refers to the exchange rate (汇率 huìl ǜ) between two non-U.S. dollar currencies which is calculated from the basic rate. Part 1: Breakdown of Words "Cross" (交叉 jiāo chā) as in "cross-currency swap" (交叉货币掉期 jiāo chā huò bì diào qī). “交” (jiāo) as(...)

Crowding out (挤出 jǐ chū) occurs when government spending fails to boost the overall aggregate demand because higher government spending leads to a fall in private sector spending and investment simultaneously. As the government finances its spending through borrowing more, interest rates go(...)

Cryptographic puzzle (密码学难题 mì mǎ xué nán tí) refers to a script that is used to dictate how funds can be spent in the future. It is also known as a locking script. See "Cryptographic"  (密码学 mì mǎ xué). Part 1: Breakdown of Words "Cryptographic/cryptography" (密码学 mì mǎ xué) derives(...)

Cryptography (密码学 mì mǎ xué) refers to the practice and study of techniques for securing communication in the presence of third parties called adversaries. Part 1: Breakdown of Words "Crypto-" (加密 jiā mì; 加 jiā, to augment; 密 mì, to conceal). “密” (mì) as in "password" (密码 mì mǎ),(...)

Currency (货币 huò bì) refers to money in any form that is in circulation as a medium of exchange. Usually, the currency is issued by a country's government and has a particular face value to be measured for exchange. Examples:  United States dollar (USD), Euro (EUR), China Yuan(...)

A currency board (货币发行局 huò bì fā xíng jú) refers to a type of monetary authority which is required to maintain a fixed exchange rate with a foreign currency (货币 huò bì) and functions as an extreme form of a pegged exchange rate. Board as in "board of directors" (董事局 dǒng shì jú, or 董事会 dǒng(...)

Currency board (货币发行局 huòbì fāxíng jú or 货币局 huòbì jú) refers to a kind of monetary authority that controls the value of its currency by fixing the exchange rate of its currency to another widely used and dominant foreign currency. Part 1: Breakdown of Words See: "Currency" (货币 huò(...)

Currency board (货币委员会 huòbì wěiyuánhuì) refers to the monetary authority that has direct instructions to back the domestic currency in circulation with foreign currency, which usually exercises an extreme form of a pegged exchange rate. board (委员会 wěiyuánhuì) is often used to refer to a(...)

Currency–deposit ratio (通货存款比 tōng huò cún kuǎn bǐ) refers to the ratio of cash in circulation to demand deposits in commercial banks. It has an inverse relationship with the money multiplier. Part 1: Breakdown of Words “通货” (tōng huò) here is an abbreviation of "currency in(...)

A currency exchange (货币兑换 huò bì duì huàn) is a business that is legal to convert/exchange (兑换 duì huàn) a currency (货币 huò bì) which its customers currently hold for another currency. There also exist black-market currency exchanges. Part 1: Breakdown of Words "Currency" (货币 huò bì) as(...)

Currency premium (货币风险溢价 huò bì fēng xiǎn yì jià) is identical to the country premium if that country's currency is exclusively used by that country, i.e. aside from few special cases including (1) currency union, (2) fixed exchange rate pegs, or (3) pathologies, such as the phenomenon of(...)

Currency (or monetary) union (货币联盟 huò bì lián méng) is an intergovernmental union (联盟 lián méng) that involves two or more states sharing the same currency (货币 huò bì). Part 1: Breakdown of words "Currency" (货币 huò bì) as in "electronic currency" (电子货币 diàn zǐ huò bì) or "legal(...)

A customs union (关税同盟 guān shuì tóng méng) refers to an agreement by which member countries charges a universal set of tariffs to the rest of the world while granting free trade among members so that goods can flow freely among members. Part 1: Breakdown of Words Literally, “关税同盟”(...)

Cyclical unemployment (周期性失业 zhōu qī xìng shī yè) refers to a type of periodic unemployment caused by a downturn in the business cycle. During recessions, the aggregate demand falls, and firms lay off workers to cut costs, causing a rise in cyclical unemployment. Cyclical unemployment is(...)

Cyclically adjusted budget deficit (周期调整性预算赤字 zhōuqī tiáozhěngxìng yùsuàn chìzì) refers to a type of government budget deficit occurs when the economy activity and employment is at a normal level. It is evaluated based on the expectation of change in taxation and spending instead of change(...)

Deadweight loss (无谓损失 wúwèi sǔnshī) occurs due to market inefficiency. Market is inefficient when supply and demand are out of equilibrium. 无 (wú) as in not interesting (无趣 wúqù), no taste (无味 wúwèi) or no sound (无声 wúshēng). 谓 (wèi) as in saying (所谓 suǒwèi), appellation (称谓 chēngwèi)(...)

Debt (债务 zhàiwù) refers to something, especially money, owned to someone else, or liability or an obligation to pay or render something; a state of being under obligation to pay or a state of owing. 债 (zhài) as in paying back debt (还债 huánzhài), creditors (债主 zhàizhǔ) or creditor's right(...)

Debt-deflation theory (债务-通货紧缩理论 zhàiwù-tōnghuò jǐnsuō lǐlùn) refers to a macroeconomic concept proposes that excessive will cause borrowers experiencing a decrease in the real value of properties, goods, or services. By repaying the debt, consumers gradually lose purchasing power, and lower(...)

Debt finance (债务融资 zhàiwù róngzī) occurs when a firm borrows, such as making a bank loan or issuing debt securities, in order to finance its business activities. 债务 (zhàiwù) derives from 债 (zhài) as in paying back debt (还债 huánzhài), creditors (债主 zhàizhǔ) or creditor’s right(...)

Decentralized consensus (去中心化共识 qù zhōngxīn huà gòngshí) refers to the spontaneous product of thousands of independent and seperated participants following simple rules through asynchronous interaction to reach a perfect agreement. All the properties of bitcoin, including currency,(...)

Decentralized System (去中心化系统 qù zhōngxīnhuà xìtǒng) is an flat and diversified information system emerged in Web2.0, in which every netizen becomes a small and independent information provider and exists no authority. 去 (qù) as in remove (去除 qùchú), coming back (回去 huíqù) or loss(...)

Default crisis (违约危机 wéiyuē wēijī), or sovereign debt crisis (主权债务危机 zhǔquán zhàiwù wéijī), refers to the failure of a country's government to fulfill its external debt repayment obligations in time. 违约 (wéiyuē) derives from 违 (wéi) as in violating (违反 wéifǎn) or seperating/ being(...)

Deflation (通货紧缩 tōnghuò jǐnsuō) refers to the case where the amount of money in the market is less than the amount of money needed in commodity circulation It leads to currency appreciation and price decline. Also see: disinflation, inflation. 通 (tōng) as in circulation (流通 liútōng),(...)

Deflator (平减指数 píng jiǎn zhǐshù) refers to a statistic factor used to remove the effect of inflation which enable economists to compare price level in different time periods and get an idea of the inflation-adjusted purchasing power. 平 (píng) as in flat (平坦 píngtǎn), even (平均 píngjūn) or(...)

Demand (需求 xūqiú) refers to the need and intent that people are willing and able to buy a specific commodity at various possible prices in a certain period of time. 需 (xū) as in needing (需要 xūyào) or requiring (所需 suǒxū). 求 (qiú) as in requesting (要求 yāoqiú) or pursuit (追求(...)

Demand deposits (活期存款 huóqí cúnkuǎn) refers to funds deposit in a bank account that can be directly withdrawn at any time without prior notice. 活 (huó) as in life (生活 shēnghuó), alive (活着 huózhē) or vigour (活力 huólì). 期 (qí) as in date (日期 rìqī) or final (期末 qīmò). 存 (cún) as in(...)

Demand-pull inflation (需求拉动型通货膨胀 xūqiú lādòng xíng tōnghuò péngzhàng) refers to inflation arises when aggregate demand exceeds aggregate supply and hence pushes up the price level.  需求 (xūqiú) derives from:  需 (xū) as in needing (需要 xūyào) or requiring (所需 suǒxū). 求 (qiú) as in(...)

Demand shocks (需求冲击 xūqiú chōngjī) are unexpected disruptions that dramatically increase or decrease the demand for goods and services temporarily. 需求 (xūqiú) derives from 需 (xū) as in needing (需要 xūyào) or requiring (所需 suǒxū). 求 (qiú) as in requesting (要求 yāoqiú) or pursuit(...)

Demographics (人口统计数据 rénkǒu tǒngjì shùjù) refers to the socio-economic statistics of the human population, such as data characterizing income, birth and death rates, education, employment, etc. Analyzing demographics can help corporations to define consumer demand, design business(...)

Depreciation (贬值 biǎnzhí) refers to a decease (贬低 biǎndī) in the price or value (价值 jiàzhí) of assets.   贬 (biǎn) contains (贝 bèi) which means shell or money, and (乏 fá) which means lack of sth.. 贬 (biǎn) as in disparaging (贬低 biǎndī) or negative words (贬义词 biǎnyìcí). 值 (zhí) as in value(...)

Depreciation (贬值 biǎnzhí) refers to a fall in the value of a currency relative to other currencies in the foreign exchange market. Also see: appreciation. 贬 (biǎn) contains (贝 bèi) which means shell or money, and (乏 fá) which means lack of sth.. 贬 (biǎn) as in(...)

Depreciation (折旧 zhéjiù) refers to a decrease in the value of an asset over time. It is used to allocate the cost of an asset over the period of time the asset is expected to be used. 折 (zhé) as in discount (打折 dǎzhé), folding (对折 duìzhé) or turning point (转折 zhuǎnzhé). 旧 (jiù) as in old(...)

Depression (萧条 xiāotiáo) refers to a deep downturn in overall economic activities which lasts for a long time. During the depression, GDP falls significantly, the total output decrease and there is mass unemployment. It is a very severe and prolonged form of recession. 萧 (xiāo) as in(...)

Derivative (衍生品 yǎnshēng pǐn) is a kind of financial instrument, which is generally expressed as an agreement between two entities, and its price is determined by the price of other underlying securities.  衍 (yǎn) as in evolution (衍变 yǎnbiàn). The underlying radical is 氵(shui) which(...)

Devaluation (法定贬值 fǎdìng biǎnzhí) is one way of exchange rate change under the fixed exchange rate system. The government or central bank of a country reduces the value of its own currency in the form of regulations, so as to reduce the exchange rate of its own currency to foreign currency.(...)

Devaluation (货币贬值 huòbì biǎnzhí) refers to the decline of the value in the unit currency. The devaluation of currency usually causes the rise of price. 货 (huò) as in commodity or goods (货品 huòpǐn), money (通货 tōnghuò). The underlying radical is 贝 (bei), which contains the meaning of(...)

Devaluation (法定贬值 fǎdìng biǎnzhí) is one way of exchange rate change under the fixed exchange rate system. The government or central bank of a country reduces the value of its own currency in the form of regulations, so as to reduce the exchange rate of its own currency to foreign(...)

Differentiated goods (差异产品 chāyì chǎnpǐn) refer to competing products which have strong substitutability (可替换性 kě tìhuàn xìng) and are not identical with other products. The differences (差异 chāyì) of goods (产品 chǎnpǐn) may lie in the aspects including function, appearance, location and(...)

Difficulty (挖矿难度 wākuàng nándù) is a measure of the computing power required to find a hash value that meets a given target. Also see: block. 挖 (wā) as in digging (挖开 wākāi) or sarcasm (挖苦 wākǔ). 矿 (kuàng) as in mineral (矿产 kuàngchǎn) or oil deposit (油矿 yóukuàng). 难 (nán) as in hard(...)

Difficulty retargeting (难度调整 nándù tiáozhěng) refers to the adjustment (调整 tiáozhěng) in the difficulty level. After every 2016 blocks (two weeks later), the bitcoin network will adjust the difficulty of mathematical puzzles based on the calculation time and computing power of the previous(...)

Difficulty target (难度目标 nándù mùbiāo) refers to the difficulty level required to make the computing power of the entire network generate a block approximately every 10 minutes.  Also see: difficulty. 难度 (nándù) derives from 难 (nán) as in hard (难的 nándē), ill (难受 nánshòu) or blame (责难(...)

Digital currency (数字货币 shùzì huòbì) is a form of virtual currency that is based on node network and digital encryption algorithm. It can be used as a means of payment, or be transferred, stored or traded electronically on digital computer system. 数字 (shùzì) as in digital marketing (数字营销(...)

Digital key (数字钥匙 shùzì yàoshi) refers to a number created and stored by users in a file or simple database/program called a wallet. 数字 (shùzì) as in digital marketing (数字营销 shùzì yíngxiāo), digital television (数字化电视 hùzìhuà diànshì) or digital code (数字代码 shùzì dàimǎ). 钥匙 (yàoshi) as in(...)

Digital notary service (数字公证服务 shùzì gōngzhèng fúwù) refers to a type of service using an electronic method to create permanent evidence for notary purpose. It is achieved by using the transaction scripting language to take advantage of the security and resilience of the distributed and(...)

Digital signature (数字签名 shùzì qiānmíng) refers to a proof to show that the user knows the private key connected to a public key without having to show the actual private key. 数字 (shùzì) as in digital devices (数字设备 shùzì shèbèi, or 电子设备 diànzǐ shèbèi) or digital marketing (数字营销 shùzì(...)

Diminishing marginal product (边际产量递减 biānjì chǎnliàng dìjiǎn) refers to an economic principle indicating that when continue increasing one input factor while keeping everything else the same, there will be a decline in the marginal product corresponding to the per unit increase in the input(...)

Discount rate (贴现率 tiēxiàn lǜ) refers to the interest rate charged to the commercial banks and other financial institutions for the short-term loans taken from the Federal Reserve Bank. 贴 (tiē) as in subsidy (补贴 bǔtiē), approaching (贴近 tiējìn) or sticker (贴画 tiēhuà). 现 (xiàn)as in(...)

Discouraged workers (丧志工人 sàngzhì gōngrén) refers to people of working age who are eligible for work, but is currently unemployed and have not actively found employment in the last four weeks. These workers could have given up looking for jobs due to failure in attempting to search for jobs,(...)

Discriminating monopoly (差别垄断 chābié lǒngduàn, or 歧视性垄断 qíshì xìng lǒngduàn) occurs when a producer sells a homogeneous commodity or services to different buyers at different prices. Discriminating (区别对待的 qūbié duìdài de, or 歧视性的 qíshì xìng de) refers to making a distinction. Monopoly (垄断(...)

Disinflation (反通货膨胀 fǎn tōnghuò péngzhàng) refers to a slowdown in the rate of inflation. It is different from deflation as even price inflation slows down temporarily, the inflation rate remains positive. Also see: deflation, inflation. 反 (fǎn) as in objecting (反对 fǎnduì),(...)

Disposable income (可支配收入 kě zhīpèi shōurù) refers to the income that can be used with free control. It is usually the amount left after the payment of taxation and necessities. 可 (kě) as in being able to (可以 kěyǐ), permission (许可 xǔkě) or cute (可爱 kěaì). 支配 (zhīpèi) as in(...)

Dispute settlement (争端解决 zhēngduān jiějué) is the crucial pillar of the multilateral trading mechanism, which is applied by the World Trade Organization (WTO). This system is aimed at settling down dispute among member countries. It has made preeminent contributions to the stability of the(...)

Dispute settlement procedure (争端解决程序 zhēngduān jiějué chéngxù) refers to the process of the WTO resolving disputes, which consists three main stages: (i) consultations between member countries; (ii) adjudication by panels; (iii) the implementation of adjudication. 争 (zhēng) as in arguing(...)

Diversification (多样化 duōyàng huà) refers to the act of spreading investments among a variety of securities to reduce risk. It works for risk management by constructing different kinds of assets, so it will not be seriously affected when facing a failure in one of the(...)

Dollarization (美元化 měiyuán huà) refers to the act of the government of a country or economy to use dollar to replace or add to its own currency. 美元 (měiyuán) as in USDX (美元指数 měiyuán zhǐshù) or USD exchange rate (美元汇率 měiyuán huìlǜ). 化 (huà) as in change (变化 biànhuà) or chemistry(...)

Dollarization (美元化 měiyuán huà) refers to the act of the government of a country or economy to use dollar to replace or add to its own currency. 美元 (měiyuán) as in USDX (美元指数 měiyuán zhǐshù) or USD exchange rate (美元汇率 měiyuán huìlǜ). 化 (huà) as in change (变化 biànhuà) or chemistry (化学(...)

Domestic credit (国内信用 guónèi xìnyòng) refers to lending or credit that is only given to entities in the same country or region. 国内 (guónèi) as in domestic flights (国内航班 guónèi hángbān) or domestic market (国内市场). 信用 (xìnyòng) as in credit history (信用记录 xìnyòng jìlù) or credit card (信用卡(...)

Double coincidence of wants (需求的双向一致性 xūqiú de shuāngxiàng yīzhì xìng) refers to a situation where two parties have mutually wants that match up precisely with the goods each of them wants to trade. In simple words, they swap their goods because each of them wants the other's goods at the(...)

Double spending (双重支付 shuāngchóng zhīfù, or 双重花费 shuāngchóng huāfèi) refers to the situation that the same digital currency is spent (支付 zhīfù) twice at the same time by controlling the hash power of the network. It will cause a serious decline in the price of the cryptocurrency on the(...)

Dumping (倾销 qīngxiāo) refers to the act of exporting a product at a price lower than its normal price to another country or region. 倾 (qīng) as in incline or slope (倾斜 qīngxié) or tendency (倾向 qīngxiàng). 销 (xiāo) as in sales (销售 xiāoshòu) or destroy (销毁 xiāohuǐ). Dumping (倾销(...)

Duopoly (双头垄断 shuāngtóu lǒngduàn) is a form of oligopoly, referring to a market type in which there are only two sellers (or two manufacturers) in an industry, also known as bilateral monopoly (双边垄断 shuāngbiān lǒngduàn). 双 (shuāng) as in double room (双人间 shuāngrénjiān) or even number (双数 (...)

ECDSA (椭圆曲线数字签名算法保障 tuǒyuán qūxiàn shùzì qiānmíng suànfǎ bǎozhàng) stands for Elliptic Curve Digital Signature Algorithm which is a public key encryption algorithm based on elliptic curve cryptography. 椭圆 (tuǒyuán) as in elliptic equation (椭圆方程 tuǒyuán fāngchéng). 曲线 (qūxiàn) as in(...)

Economic integration (经济一体化 jīngjì yītǐ huà) refers to two or more countries in the same region gradually cede part or even all of their economic sovereignty to adopt common economic policies and form exclusive economic groups. 经济 (jīngjì) as in economics (经济学 jīngjìxué) or economic(...)

Economic profit (经济利润 jīngjì lìrùn) refers to revenue remained after subtracting both explicit and implicit costs. Opportunity cost, which is implicit cost, measures the cost of foregone an alternative opportunity. Also see: accounting profit, profit. 经济 (jīngjì) as in economics(...)

Effective exchange rate (有效汇率 yǒuxiào huìlǜ) refers to the type of exchange rate that can measure the value of the domestic currency against the weighted value of a basket of foreign currencies. 有效 (yǒuxiào) derives from 有 (yǒu) as in own (拥有 yōngyǒu) or useful (有用 yǒuyòng); 效 (xiào)(...)

Effective factor abundance (有效要素丰裕 yǒuxiào yàosù fēngyù) refers to the factor endowment of a country, which determines the appropriate or feasible range of factor use proportion of its industries; it also determines the appropriate or feasible range of factor price. 有效 (yǒuxiào) derives(...)

Effective factor endowment (有效要素禀赋 yǒuxiào yàosù bǐngfù) refers to the quantity of various factors of production (including land, labor, capital and Entrepreneurship) owned by a country and used for production and manufacturing. If the supply of a certain factor in a country's factor endowment(...)

Effective factor scarcity or scarce in that effective factor (该有效要素稀缺 gāi yǒuxiào yàosù xīquē) is the opposite of factor abundance. It means that the supply of a certain factor of production in one country or region is less than that in another country or region. 有效 (yǒuxiào) derives(...)

Effective labor force (有效劳动力 yǒuxiào láodònglì) refers to the physical and mental labor that the laborer is engaged in to achieve the expected purpose. This kind of expected purpose mostly refers to the use value of labor products. Labor force consists of all the people who can work in a(...)

Efficiency of labor (劳动效率 láodòng xiàolǜ) describes how efficient the workers can accomplish a task. It is measured based on quantity and quality of goods and services produced in a given time under certain conditions. Factors that can affect the efficiency of labor include education,(...)

Efficiency units of labor (劳动的效率单位 láodòng de xiàolǜ dānwèi) measures the average producing efficiency workers by dividing total value of output produced within a time period by the number of workers. 劳动 (láodòng) as in Labor Day (劳动节 láodòngjié) or labor law (劳动法 láodòngfǎ). 效率(...)

Efficiency-wage theory (效率工资理论 xiàolǜ gōngzī lǐlùn) state that firms can set wages above the market equilibrium level to better motivate workers and increase worker productivity and efficiency. Firms profit from paying higher wages if the benefit outweighs the additional costs.  效率(...)

Efficient markets hypothesis (有效市场假说 yǒuxiào shìchǎng jiǎshuō) refers to the fact that in the stock market with sound laws, good functions, high transparency and full competition, all valuable information has been timely, accurately and fully reflected in the stock price trend, including the(...)

Elasticity (弹性 tánxìng) refers to the responsiveness of one variable to a change in another variable. It is usually shown as the percentage change in a factor in response to a 1% change in another. 弹性 (tánxìng) as in elasticity of demand (需求弹性 xūqiú tánxìng) or fabric elasticity(...)

Emergent consensus (新兴共识 xīnxīng gòngshí) refers to the process of achieving consensus asynchronously. It exists in Bitcoin mining and network. 新兴 (xīnxīng) as in emergent states (新兴国家 xīnxīng guójiā) or emerging market (新兴市场 xīnxīng shìchǎng). 共识 (gòngshí) derives from 共(gòng)(...)

Encryption (加密 jiāmì) refers to the method of using coding, data or image to keep information safe and confidential. The authorized receiver of information can receive the information sent by the other party through an agreed decoding method. 加 (jiā) as in improving (加强 jiāqiáng), adding(...)

Endogenous growth theory (内生增长理论 nèishēng zēngzhǎng lǐlùn) suggests that economic growth is generated from internal factors of an economy. Long-term growth in productivity is directly tied to technological development relies on improvements in innovation, knowledge, and human(...)

Endogenous growth theory (内生增长理论 nèi shēng zēngzhǎng lǐlùn) suggests that economic growth is generated from internal factors of an economy. Long-term growth in productivity is directly tied to technological development relies on improvements in innovation, knowledge, and human(...)

An endogenous variable (内生变量 nèishēng biànliàng) refers to the variables to be determined by the model. Endogenous variables can be explained in the model system, while exogenous variables themselves cannot be explained in the model system.  内生 (nèishēng) derives from 内 (nèi) as in(...)

Entropy (熵 shāng, 无序状态 wúxù zhuàngtài) measures the randomness of a system. 熵 (shāng) as in 熵增 (shāngzēng) or a unit measure of heat energy (熵值 shāngzhí). 无序 (wúxù), 无 (wú) means none, 序 (xù) means order; 无序 (wúxù) as in unregulated development (无序发展 wúxù fāzhǎn). 状态 (zhuàngtài) as in(...)

Equilibrium (平衡 pínghéng) refers to a state of balance between two opposing forces, resulting in a stable system. For instance, equilibrium is reached when the market demand and market supply balance each other and thus ead to a stable price level. 平 (píng) as in equal (平等 píngděng)(...)

Equilibrium (均衡 jūnhéng) refers to the economic condition in which market supply and demand become balanced (平均 píngjūn) with each other, thus leading to stable prices. 均 (jūn) as in equal (平均 píngjūn) or even (均匀 jūnyún). 衡 (héng) as in balanced (平衡 pínghéng) or measure (衡量(...)

Equilibrium (平衡 pínghéng) refers to a state of balance between two opposing forces, resulting in a stable system. For instance, equilibrium is reached when the market demand and market supply balance each other and thus lead to a stable price level. 平 (píng) as in equal (平等(...)

Equity finance (股权融资 gǔquán róngzī) refers to the financing method that the shareholders of an enterprise give up some ownership to new shareholders in order to increase capital of the enterprise. The new shareholders will share the profits and growth of the enterprise with the old(...)

An equivalent import tariff (等值进口关税 děng zhí jìnkǒu guānshuì) refers to a tariff which discourages imports in order to promote domestic industries and companies. Instances of an equivalent import tariff include but are not limited to import quotas and licensing restrictions. 等值 (děng zhí;(...)

Escape clause (免责条款 miǎnzé tiáokuǎn) refers refers to the clause agreed by the parties to exempt or limit their future contractual liability. 免 (miǎn) as in free (免费 miǎnfèi) or avoiding (避免 bìmiǎn). 责 (zé) as in responsibility (责任 zérèn) or blame (指责 zhǐzé). 条款 (tiáokuǎn) derives(...)

Euler’s theorem (欧拉定理 ōu lā dìnglǐ) states that if a production function involves constant returns to scale and every input factor is paid the value of its marginal product, the total product will be disposed of without any surplus or deficit. It can be used to prove that economic profit(...)

Ex-ante real interest rate (事前实际利率 shìqián shíjì lìlǜ) refers to the prediction of the real interest rate, which is the nominal interest rate minus the prospective inflation rate.  事前 (shìqián) as in prior audit (事前审计 shìqián shěnjì) or prior supervision (事前监督 shìqián jiāndū).(...)

Ex-post real interest rate (事后实际利率 shìhòu shíjì lìlǜ) refers to the real interest rate actually receive, which is the nominal interest rate minus the actual inflation rate. 事后 (shìhòu) as in post supervision (事后监督 shìhòu jiāndū). Ex-post (事后 shìhòu) is Latin for post (后 hòu) the(...)

Excess reserves (超额准备金 chāo é zhǔnbèi jīn) refers to the cash held by a bank or financial institution that exceeds the reserve requirement set by the authority. 超(chāo) as in super (超级 chāojí) or exceed (超过 chāoguò). 额 (é) as in face value (面额 miàné) or forehead (额头 étóu). 准(...)

Exchange rate (汇率 huìlǜ) is the rate (比率 bǐlǜ) which one foreign currency (外汇 wàihuì) will be exchanged for another. 汇 (huì) as in (汇款 huìkuǎn), (汇钱 huìqián) or converge (汇合 huìhé). 率 (lǜ) as in ratio (比率 bǐlǜ), heart rate (心率 xīnlǜ), probability (几率 jīǜ), or efficiency (功率(...)

Exchange rate crisis (汇率危机 huìlǜ wēijī) refers to the phenomenon that the fluctuation of exchange rate is beyond the range of a country's affordability, which usually shown as a sharp decline in the value of the exchange rate of a country's currency. 汇 (huì) as in (汇款 huìkuǎn), (汇钱(...)

Exchange rate regimes (汇率制度 huìlǜ zhìdù) refer to the institutions adopted by a country's monetary authority to manage its currency in relation to other currencies. 汇 (huì) as in (汇款 huìkuǎn), (汇钱 huìqián) or converge (汇合 huìhé). 率 (lǜ) as in ratio (比率 bǐlǜ), heart rate (心率 xīnlǜ),(...)

Exchange rate target (汇率目标 huìlǜ mùbiāo) refers to the target (目标 mùbiāo) level of the exchange rate (汇率 huìlǜ) that monetary policymakers want to achieve. 汇 (huì) as in (汇款 huìkuǎn), (汇钱 huìqián) or converge (汇合 huìhé). 率 (lǜ) as in ratio (比率 bǐlǜ), heart rate (心率 xīnlǜ), probability(...)

Exogenous variable (外生变量 wàishēng biànliàng) refers to a variable that is not affected by other variables in a model in which it is used. In other words, an exogenous variable is independent of the states of other variables of the model. 外生 (wàishēng) derives from 外 (wài) as in(...)

Expansionary policy (扩张性政策 kuòzhāngxìng zhèngcè) refers to a type of macroeconomic policy that aims to stimulate economic growth. It is used by central banks or governments during economic downturns to counteract the adverse impact on the economy. Common tools include providing transfer(...)

Expected rate of depreciation (预期折旧率 yùqī zhéjiù lǜ) is the expected (预期 yùqí) rate (率 lǜ) at which the value of an asset is reduced each year. 预期 (yùqī) derives from  预 (yù) as in predetermined (预设 yùshè) or preview (预习 yùxí); 期 (qī) as in date (日期 rìqī) or expectation (期望(...)

Expected rate of return (预期回报率 yùqī huíbào lǜ) refers to the rate of return of an investment in the future under uncertain conditions. Most companies apply CAPM model to calculate the number. 预期 (yùqī) derives from  预 (yù) as in predetermined (预设 yùshè) or preview (预习 yùxí); 期 (qī)(...)

Export (出口 chūkǒu) is the activity of having the goods produced in one country be sold (卖出 mài chū) to another country, usually delivered via a port (港口/口 gǎngkǒu/kǒu). 出 (chū) as in selling (卖出 mài chū), going out (出去 chūqu) or coming out (出来 chūlai). 口 (kǒu) as in entrance (门口(...)

Export subsidy (出口补贴 chūkǒu bǔtiē) refers to the government policy of giving its exporters cash allowance or financial support in order to encourage export, as well as to reduce the price of export goods and improve the international competitiveness of export commodities. 出口 (chūkǒu)(...)

Externality (外部性 wàibùxìng) is a negative impact resulted by an industrial or commercial activity on other parties and the impact is not reflected in the market. 外 (wài) as in outside (外面 wàimiàn), foreign (国外 guówài) or outgoing (外向 wàixiàng). 部 (bù) as in department (部门 bùmén) or(...)

Extra nonce (额外单次使用数字 éwài dāncì shǐyòng shùzì) is a field used to store the nonce which is part of the coinbase transaction. Also see: nonce. 额外 (éwài) as in extra charge (额外收费 éwài shōufèi) or extra work (额外工作 éwài gōngzuò). 单次 (dāncì), 单 (dān) means single or once, 次 (cì) is a unit(...)

Factor abundance (要素丰裕 yàosù fēngyù) equals to abundant in that factor (该要素丰裕 gāi yàosù fēngyù). It determines the appropriate or feasible allocation range of factor use in its industries; it also determines the appropriate or feasible range of factor price. 要素 (yàosù) as in key factor(...)

Factors of production (生产要素 shēngchǎn yàosù) refer to all kinds of social resources needed for social production and operation activities. They are the basic factors that needed to be possessed in the process of maintaining the operation of economy and market entities. The four factors of(...)

Factor price (要素价格 yàosù jiàgé) refers to the price that an individual pays for the factors needed to produce an output. For instance, an entrepreneur pays a certain wage to obtain the labor for production. 要素 (yàosù) as in key factor (关键要素 guānjiàn yàosù) or common factor (共同要素 gòngtóng(...)

Factor scarcity (要素稀缺 yàosù xīquē) equals to scarce in that factor (该要素稀缺 gāi yàosù xīquē). It is the opposite of factor abundance, meaning that the supply of a certain factor of production in one country or region is less than that in another country or region. 要素 (yàosù) as in key(...)

Factor share (要素份额 yàosù fèn'é) refers to income paid for a factor of production as a proportion of total income. 要素 (yàosù) as in common factor (共同要素 gòngtóng yàosù) or key factor (关键要素 guānjiàn yàosù). 份额 (fèn'é) as in market share (市场份额 shìchǎng fèn'é) or share of (...)

Factors of production (生产要素 shēngchǎn yàosù) refer to all kinds of social resources needed for social production and operation activities. They are the basic factors that needed to be possessed in the process of maintaining the operation of economy and market entities. The four factors of(...)

Fear of floating (浮动恐惧 fúdòng kǒngjù) refers to the fact that some countries announce that they are implementing floating exchange rate system or flexible exchange rate system, but the floating range is very small. This reflects the fear of floating exchange rates in these countries,(...)

Federal funds rate (联邦基金利率 liánbāng jījīn lìlǜ) refers to the interest rate at which banks and other depository institutions charge when lending money to each other overnight. 联邦 (liánbāng) as in federal budget (联邦政府预算 liánbāng zhèngfǔ yùsuàn) or federal funding (联邦资助 liánbāng(...)

Federal Reserve (联邦储备银行 liánbāng chǔbèi yínháng or 美联储 měiliánchǔ) refers to the U.S. central bank. 联邦 (liánbāng) as in federal budget (联邦政府预算 liánbāng zhèngfǔ yùsuàn) or federal funding (联邦资助 liánbāng zīzhù). 储备 (chǔbèi) as in  petroleum reserve (石油储备 shíyóu chúbèi) or gold(...)

Fee (手续费 shǒuxù fèi) refers to the compensation offered to the bitcoin miners for securing the network. 手 (shǒu) as in phone (手机 shǒujī), watch (手表 shǒubiǎo) or assistant (助手 zhùshǒu). 续 (xù) as in continuing (继续 jìxù) or refill (续杯 xùbēi). 费 (fèi) as in free (免费 miǎnfèi), waste (浪费(...)

Fiat money (法定货币 fǎdìng huòbì) is a government-issued currency with no intrinsic value or being backed up by a physical commodity. Its value is determined by the government and people in an economy trust the value of the currency.  法 (fǎ) as in law (法律 fǎlǜ), rules (法规 fǎguī) or(...)

Financial crisis (金融危机 jīnróng wēijī) refers to a crisis that happened in the financial market, marked by a severe deterioration in main financial indicators. It is usually characterized by significant currency depreciation, reduction in total economic output, increase in unemployment, a(...)

Financial institutions (金融机构 jīnróng jīgòu) refers to organizations that act like financial intermediaries to deal with financial-related businesses such as deposits, loans, currency exchanges, insurance, and investment services. 金融 (jīnróng) as in financial institution(...)

Financial intermediaries (金融中介 jīnróng zhōngjiè) refers to institutions or people that act as medium or bridges between the supply and demand side of funds in the financial market. A financial intermediary facilitates financial transactions and helps to meet the financial objectives of(...)

Financial intermediation (金融中介化 jīnróng zhōngjiè huà) refers to the process of facilitating financial transactions between the party who has surplus funds and want to lend and those with a shortage of funds who want to borrow. Financial intermediaries develop products and services to connect(...)

Financial markets (金融市场 jīnróng shìchǎng) refer to the to the general term for the places of monetary fund borrowing, foreign exchange trading, securities trading, bond and stock issuance, gold and other precious metal trading. The financial market helps to allocate resources, create(...)

A financial system (金融系统 jīnróng xìtǒng) refers to a network of financial institutions and financial markets that facilitates the transfer of funds. It allocates funds of those who want to save to borrowers and investors and reconcile the different needs of the two(...)

Financing constraint (融资限制 róngzī xiànzhì) refers to a restriction on the amount of funds a firm can finance to support its business. 融资 (róngzī) as in project financing (项目融资 xiàngmù róngzī) or debt financing (债务融资 zhàiwù róngzī). 限制 (xiànzhì) as in a budget constraint (预算限制(...)

Fire sale (降价销售 jiàngjià xiāoshòu) means that the seller sells his goods by lowering the selling price. It has relative long-term, universality and stability. It usually happens when market enters bear market or the company is in financial distress. 降价 (jiàngjià) derives(...)

First-generation crisis model (第一代危机模型 dì yī dài wēijī móxíng) assumes that if a fiscal policy inconsistent with a fixed exchange rate is adopted (for example, excessive monetary growth), the exchange rate will be doomed to collapse. 第一代 (dì yī dài) as in first-generation immigrants(...)

Fiscal dominance (财政主导 cáizhèng zhǔdǎo) refers to a situation of fiscal dominance in which the monetary authorities ultimately have no independence. Fiscal dominance occurs when the fiscal authority is so profligate that a rigorous monetary authority is carried out to restrain the(...)

Fiscal policy (财政政策 cáizhèng zhèngcè) refers to the macroeconomic policy by which the government adjusts its spending levels and tax rates to influence the economy and achieve certain goals.  财政 (cáizhèng) as in fiscal policy (财政政策 cáizhèng), finance minister (财政部长 cáizhèng) or(...)

Fisher effect (费雪效应 fèi xuě xiàoyìng) is a discovery by the famous economist Fisher to reveal the relationship between expected inflation rate and nominal interest rate. It points out that when expected inflation rate rises, real interest rate will also rise. More specifically, real interest(...)

Fisher effect (费雪效应 fèi xuě xiàoyìng) is a discovery by the famous economist Fisher to reveal the relationship between expected inflation rate and nominal interest rate. It points out that when expected inflation rate rises, real interest rate will also rise. More specifically, real interest(...)

Fisher equation (费雪方程 fèi xuě fāngchéng) represents the quantitative relationship between national income level, price level and money supply. It states that the nominal interest rate is equal to the real interest rate plus expected inflation. The formula is expressed as i = r + π or1 + i  =(...)

Fixed exchange rate (固定汇率 gùdìng huìlǜ) refers to a country's exchange rate regime in which the government or central bank ties the value of its currency to another widely-used currency, gold, or a basket of currencies. 固 (gù) as in solid (坚固 jiāngù) or firm and stable (稳固 wěngù). (...)

A fixed line (固定线 gùdìng xiàn) refers to a vertical line in the graphical analysis of the central bank balance sheet when exchange rate is fixed. The central bank balance sheet must correspond to points on the vertical fixed line. 固 (gù) as in solid (坚固 jiāngù) or firm and stable(...)

Fixed (or pegged) exchange rates (固定汇率 gùdìng huìlǜ) is a type of exchange rate regime in which a currency's value is fixed/pegged by a monetary authority against another currency.  固 (gù) as in solid (坚固 jiāngù) or firm and stable (稳固 wěngù). 定 (dìng) as in certain (确定 quèdìng),(...)

Flexible prices (弹性价格 tánxìng jiàgé) refer to prices that can be adjusted in response to change in market demand or supply. In other words, consumers and producers will negotiate prices and there will be no market surplus or shortage in the long term. 弹性 (tánxìng) as in flexible working(...)

Floating exchange rate (浮动汇率 fúdòng huìlǜ) refers to a country's exchange rate regime in which the value of the currency is determined by its supply and demand on the foreign exchange market. 浮 (fú) as in buoyancy (浮力 fúlì),  emersion (浮出 fúchū) or floating clouds (浮云 fúyún). The(...)

A floating line (浮动线 fúdòng xiàn) refers to a 45-degree line in the graphical analysis of the central bank balance sheet when exchange rate is floating. The central bank balance sheet must correspond to points on the 45-degree line. 浮 (fú) as in buoyancy (浮力 fúlì),  emersion (浮出 fúchū) or(...)

Floating (or flexible) exchange rates (浮动汇率 fúdòng huìlǜ) refers to a type of exchange rate regime, under which the value of a country's currency against foreign currency is allowed to fluctuate freely according to the supply and demand situation in the foreign exchange market, and the(...)

A flow (流量 liúliàng) refers to a variable that is defined with reference to the length of time. In other words, it is measured over a time period. One example is the national income. Also see: stock. 流 (liú) as in current (水流 shuǐliú, 气流 qìliú, or 电流 diànliú), drift (漂流 piāoliú) or(...)

Foreign direct investment (外商直接投资 wàishāng zhíjiē tóuzī) is an investment (投资 tóuzī) from a foreign (外国的 wàiguó de) entity into a business in another country which is under the investor’s direct (直接的 zhíjiē de) control or ownership and establishes a lasting and controlling(...)

Foreign exchange (forex or FX) market (外汇市场 wàihuì shìchǎng) is an over-the-counter (OTC) market where traders can buy, sell, and exchange currencies. This marketplace determines the exchange rate for currencies of different countries. 外 (wài) as in outside (外部 wàibù or 外面 wàimiàn) or(...)

Foreign outsourcing (国际外包 guójì wàibāo, or 对外外包 duìwài wàibāo) is the practice of having goods or services produced or performed by companies outside the home country. 国 (guó) as in country (国家 guójiā). 际 (jì) as in boundary (际 jì or 边界 biānjiè). 外 (wài) as in go out (外出 wàichū) or(...)

Fork (分叉 fēn chà) refers to temporary inconsistency between versions of the blockchain. It describes that the bitcoin network may briefly diverge, with two parts of the network following two different branches of the blockchain for a short time. 分 (fēn) as in grade (分数 fēnshù) or(...)

Forward contract (远期合约 yuǎnqī héyuē) is an agreement (合约 héyuē) between two parties to buy or sell an asset at a specified price on a specified future date. 远 (yuǎn) as in distant place (远方 yuǎnfāng) or distant relative (远亲 yuǎnqīn). 期 (qī) as in date (日期 rìqī) or deadline (期限(...)

Forward exchange rate (远期汇率 yuǎn qí huìlǜ) is an exchange rate (汇率 huìlǜ) of a currency applicable to a forward contract which will take place at an agreed-upon future date. 远 (yuǎn) as in distant place (远方 yuǎnfāng) or distant relative (远亲 yuǎnqīn). 期 (qī) as in date (日期 rìqī) or(...)

Forward premium (远期升水 yuǎn qí shēngshuǐ) refers to the situation in which the expected future price for a currency is higher than the spot price. It often indicates that the current domestic exchange rate is going to increase (升高 shēng gāo) against the other currency. The Chinese(...)

Fractional-reserve banking (部分准备金银行制度 bùfèn zhǔnbèi jīn yínháng zhìdù) refers to a system in which banks lends out money while keeping a small portion of customer deposits on hand for withdrawal requests. Also see: 100-percent-reserve banking. 部分 (bùfèn) refers to element or component. (...)

Free float exchange rate regime (自由浮动汇率制度 zìyóu fúdòng huìlǜ zhìdù) refers to the exchange rate regime which allows a currency's value to be freely (自由地 zìyóude) determined by market forces based on the market demand ans supply of the currency. The exchange rate is not constrained by(...)

A free-trade agreement (自由贸易协定 zìyóu màoyì xiédìng) is a legally binding contract between two or more countries that reduces trade restriction and promotes economic efficiency. One of its goals is to eliminate trade barriers (贸易壁垒 màoyì bìlěi; 壁 bì, wall; 垒 lěi, base; 土 tǔ, soil/land/ground)(...)

Free-trade area (自由贸易区 zìyóu màoyì qū) is a district (区域 qūyù) that countries can trade (贸易 màoyì ) freely (自由地 zìyóu de) with each other without trade barriers. 贸 (mào) as in commerce (商贸 shāngmào or 商业 shāngyè). 易 (yì ) as in deal or transaction (交易 jiāoyì). 贸 (mào) and 易 (yì) both(...)

Free-trade equilibrium (自由贸易均衡 zìyóu màoyì jūnhéng) is a trade policy that does not restrict imports or exports. 贸 (mào) as in commerce (商贸 shāngmào or 商业 shāngyè). 易 (yì ) as in deal or transaction (交易 jiāoyì). Equilibrium (均衡 jūnhéng; 均 jūn, well-distributed; 衡 héng, balanced)(...)

Frictional unemployment (摩擦性失业 mócā xìng shīyè) refers to temporary unemployment that naturally occurs as workers leave their current jobs and search for new ones. It is always present as workers change their jobs occasionally. Also see: structural unemployment. 失 (shī) as in lose (失去(...)

Function (函数 hánshù) refers to a mathematical expression or rule that defines the relationship between a set of input variables and another set of output variables where each input is assigned to exactly one output. 函 (hán) as in letter (信函 xìnhán). 数 (shù) as in number (数字 shùzì) or(...)

Game theory (博弈论 bóyì lùn) refers to the study of strategic decision making and mathematical models of negotiation between different players. Players try to maximize gains and minimize losses in a prescribed setting, and each player’s pay-off is affected by the decision made by others. A(...)

See gross domestic product.

GDP deflator (GDP平减指数 píng jiǎn zhǐshù) measures the change in the price level of all goods and services that are produced in a country. In other words, it shows the effect of inflation on the