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Financial Terms | |
Stagflation |
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Definition of StagflationStagflationSimultaneous existence of high inflation and high unemployment, or simultaneous existence of rising inflation and r sing unemployment.
Related Terms:Closing entriesThe entries that transfer the balances in the revenue, expense, and dividend accounts to Retained earnings and zero out the revenue, expense, and dividend accounts for the next period. Closing purchaseA transaction in which the purchaser's intention is to reduce or eliminate a short position in Closing rangeAlso known as the range. The high and low prices, or bids and offers, recorded during the Closing saleA transaction in which the seller's intention is to reduce or eliminate a long position in a stock, Corporate processing floatThe time that elapses between receipt of payment from a customer and the Cost-Push Inflationinflation whose initial cause is cost increases rather than excess demand. See also demand-pull inflation. Cyclical Unemploymentunemployment that increases when the economy enters a recession and decreases when the economy enters a boom. ![]() Demand-Pull Inflationinflation whose initial cause is excess demand rather than cost increases. See also cost-push inflation. Direct-Response AdvertisingAdvertising designed to elicit sales to customers who can be DisinflationA reduction in the rate of inflation. Exercising the optionThe act buying or selling the underlying asset via the option contract. Federal Unemployment Tax Act (FUTA)A federal Act requiring employers to pay a tax on the wages paid to their employees, which is then used to create a Frictional Unemploymentunemployment associated with people changing jobs or quitting to search for new jobs. Hell-or-high-water contractA contract that obligates a purchaser of a project's output to make cash High-coupon bond refundingRefunding of a high-coupon bond with a new, lower coupon bond. High-low-close chartA financial chart usually used to plot the high, low, ![]() high-low methoda technique used to determine the fixed High-Powered MoneySee money base. High priceThe highest (intraday) price of a stock over the past 52 weeks, adjusted for any stock splits. High-Risk Small BusinessFirm viewed as being particularly subject to risk from an investors perspective. High-yield bondSee:junk bond. Highly leveraged transaction (HLT)Bank loan to a highly leveraged firm. Housing StartA new house on which construction has just begun. HyperinflationExtremely high inflation. In-house processing floatRefers to the time it takes the receiver of a check to process the payment and InflationThe rate at which the general level of prices for goods and services is rising. inflationRate at which prices as a whole are increasing. ![]() InflationA sustained increase in the general price level. The inflation rate is the percentage rate of change in the price level. Inflation-escalator clauseA clause in a contract providing for increases or decreases in inflation based on Inflation riskAlso called purchasing-power risk, the risk that changes in the real return the investor will Inflation TaxThe loss in purchasing power due to inflation eroding the real value of financial assets such as cash. Inflation uncertaintyThe fact that future inflation rates are not known. It is a possible contributing factor to Institutionally Induced Unemploymentunemployment due to institutional phenomena such as the degree of labor force unionization, the level of discrimination, and government policies such as unemployment insurance programs, minimum wages, or regulations on business. LeasingContract granting use of real estate, equipment, or other fixed assets for a specified time in exchange for payment, usually in the form of rent. The owner of the leased property is called the lessor, the user the lessee. Manufactured housing securities (MHSs)Loans on manufactured homes - that is, factory-built or Natural Rate of Unemployment (NRU)The level of unemployment characterizing the economy in long-run equilibrium, determined by the levels of frictional, structural, and institutionally induced unemployment. At this rate of unemployment, inflation should be constant, so it is sometimes called the nonaccelerating inflation rate of unemployment, or NAIRU. Net advantage to leasingThe net present value of entering into a lease financing arrangement rather than processing timethe actual time consumed performing the purchasing costthe quoted price of inventory minus any Purchasing power parityThe notion that the ratio between domestic and foreign price levels should equal Purchasing Power ParityTheory that says that over the long run exchange rate changes offset any difference between foreign and domestic inflation. This result assumes that the real exchange rate remains constant, something that is not true even in the long run. purchasing power parity (PPP)Theory that the cost of living in different countries is equal, and exchange rates adjust to offset inflation differentials across countries. Purchasing-power riskRelated: inflation risk Relative purchasing power parity (RPPP)Idea that the rate of change in the price level of commodities in Reversing entryAn entry that is made at the beginning of the current period so that the systems and procedures do not have to be altered to allow for previously accrued items. Reversing tradeEntering the opposite side of a currently held futures position to close out the position. SIMEX (Singapore International Monetary Exchange)A leading futures and options exchange in singapore. simultaneous engineeringan integrated approach in which Single country fundA mutual fund that invests in individual countries outside the United States. Single factor modelA model of security returns that acknowledges only one common factor. Single index modelA model of stock returns that decomposes influences on returns into a systematic factor, Single-index modelRelated: market model Single-level bill of materialA list of all components used in a parent item. Single-payment bondA bond that will make only one payment of principal and interest. Single-premium deferred annuityAn insurance policy bought by the sponsor of a pension plan for a single Single sourcingUsing a single supplier as the only source of a part. Stockless purchasingThe purchase of material for direct delivery to the production Structural Unemploymentunemployment due to a mismatch between the skills or location of labor and the skills or location required by firms. Unemployment InsuranceA program in which workers and firms pay contributions and workers collect benefits if they become unemployed. Unemployment rateThe ratio of the number of people classified as unemployed to the total labor force. Unemployment rateFraction of the labor force that is not employed. WarehousingThe interim holding period from the time of the closing of a loan to its subsequent marketing to Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |