1.
Stockholm
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The city is spread across 14 islands on the coast in the southeast of Sweden at the mouth of Lake Mälaren, by the Stockholm archipelago and the Baltic Sea. The area has settled since the Stone Age, in the 6th millennium BC. It is also the capital of Stockholm County, Stockholm is the cultural, media, political, and economic centre of Sweden. The Stockholm region alone accounts for over a third of the countrys GDP and it is an important global city, and the main centre for corporate headquarters in the Nordic region. The city is home to some of Europes top ranking universities, such as the Stockholm School of Economics, Karolinska Institute and it hosts the annual Nobel Prize ceremonies and banquet at the Stockholm Concert Hall and Stockholm City Hall. One of the citys most prized museums, the Vasa Museum, is the most visited museum in Scandinavia. The Stockholm metro, opened in 1950, is known for its decoration of the stations. Swedens national football arena is located north of the city centre, Ericsson Globe, the national indoor arena, is in the southern part of the city. The city was the host of the 1912 Summer Olympics, and hosted the equestrian portion of the 1956 Summer Olympics otherwise held in Melbourne, Victoria, Australia. Stockholm is the seat of the Swedish government and most of its agencies, including the highest courts in the judiciary, and the official residencies of the Swedish monarch and the Prime Minister. The government has its seat in the Rosenbad building, the Riksdag is seated in the Parliament House, and the Prime Ministers residence is adjacent at the Sager House. After the Ice Age, around 8,000 BCE, there were already a number of people living in the present-day Stockholm area. Thousands of years later, as the ground thawed, the climate became tolerable, at the intersection of the Baltic Sea and lake Mälaren is an archipelago site where the Old Town of Stockholm was first built from about 1000 CE by Vikings. They had a positive impact on the area because of the trade routes they created. Stockholms location appears in Norse sagas as Agnafit, and in Heimskringla in connection with the legendary king Agne, the earliest written mention of the name Stockholm dates from 1252, by which time the mines in Bergslagen made it an important site in the iron trade. The first part of the name means log in Swedish, although it may also be connected to an old German word meaning fortification, the second part of the name means islet, and is thought to refer to the islet Helgeandsholmen in central Stockholm. Stockholms core, the present Old Town was built on the island next to Helgeandsholmen from the mid 13th century onward. The city originally rose to prominence as a result of the Baltic trade of the Hanseatic League, Stockholm developed strong economic and cultural linkages with Lübeck, Hamburg, Gdańsk, Visby, Reval, and Riga during this time
2.
Stefan Ingves
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Stefan Nils Magnus Ingves is a Swedish banker, economist and civil servant currently serving as the Governor of Sveriges Riksbank, the central bank of Sweden. Ingves has a Finland Swedish background, in 1984, he earned a Ph. D. in Economics at the Stockholm School of Economics. Ingves was named Governor of Sveriges Riksbank in 2006, in response to the Icelandic financial crisis of 2008, Ingves argued that in times of uncertainty and turmoil, the central banks have a responsibility to cooperate. In 2011, Ingves became the Chairman of the Basel Committee on Banking Supervision, in a statistical overview derived from writings by and about Stefan Ingves, OCLC/WorldCat encompasses roughly 40+ works in 50+ publications in 3 languages and 150+ library holdings
3.
Sweden
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Sweden, officially the Kingdom of Sweden, is a Scandinavian country in Northern Europe. It borders Norway to the west and Finland to the east, at 450,295 square kilometres, Sweden is the third-largest country in the European Union by area, with a total population of 10.0 million. Sweden consequently has a low density of 22 inhabitants per square kilometre. Approximately 85% of the lives in urban areas. Germanic peoples have inhabited Sweden since prehistoric times, emerging into history as the Geats/Götar and Swedes/Svear, Southern Sweden is predominantly agricultural, while the north is heavily forested. Sweden is part of the area of Fennoscandia. The climate is in very mild for its northerly latitude due to significant maritime influence. Today, Sweden is a monarchy and parliamentary democracy, with a monarch as head of state. The capital city is Stockholm, which is also the most populous city in the country, legislative power is vested in the 349-member unicameral Riksdag. Executive power is exercised by the government chaired by the prime minister, Sweden is a unitary state, currently divided into 21 counties and 290 municipalities. Sweden emerged as an independent and unified country during the Middle Ages, in the 17th century, it expanded its territories to form the Swedish Empire, which became one of the great powers of Europe until the early 18th century. Swedish territories outside the Scandinavian Peninsula were gradually lost during the 18th and 19th centuries, the last war in which Sweden was directly involved was in 1814, when Norway was militarily forced into personal union. Since then, Sweden has been at peace, maintaining a policy of neutrality in foreign affairs. The union with Norway was peacefully dissolved in 1905, leading to Swedens current borders, though Sweden was formally neutral through both world wars, Sweden engaged in humanitarian efforts, such as taking in refugees from German-occupied Europe. After the end of the Cold War, Sweden joined the European Union on 1 January 1995 and it is also a member of the United Nations, the Nordic Council, Council of Europe, the World Trade Organization and the Organisation for Economic Co-operation and Development. Sweden maintains a Nordic social welfare system that provides health care. The modern name Sweden is derived through back-formation from Old English Swēoþēod and this word is derived from Sweon/Sweonas. The Swedish name Sverige literally means Realm of the Swedes, excluding the Geats in Götaland, the etymology of Swedes, and thus Sweden, is generally not agreed upon but may derive from Proto-Germanic Swihoniz meaning ones own, referring to ones own Germanic tribe
4.
Swedish krona
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The krona has been the currency of Sweden since 1873. Both the ISO code SEK and currency sign kr are in use, the former precedes or follows the value. In English, the currency is referred to as the Swedish crown. The Swedish krona was the 11th most traded currency in the world by value in April 2013, one krona is subdivided into 100 öre. However, all öre coins have been discontinued as of 30 September 2010, goods can still be priced in öre, but all sums are rounded to the nearest krona when paying with cash. The introduction of the krona, which replaced at par the riksdaler, was a result of the Scandinavian Monetary Union, which came into effect in 1876 and lasted until the beginning of World War I. The parties to the union were the Scandinavian countries, where the name was krona in Sweden and krone in Denmark and Norway, the three currencies were on the gold standard, with the krona/krone defined as 1⁄2480 of a kilogram of pure gold. After dissolution of the union in August 1914, Sweden, Denmark. On 11 September 2012, the Riksbank announced a new series of coins with new sizes to replace the 1 and 5 kronor coins which arrived in October 2016. The design of the coins follows the theme of singer-songwriter Ted Gärdestads song, Sol, vind och vatten and this also included the reintroduction of the 2 kronor coin, while the current 10 kronor coin remained the same. The new coins also have a new portrait of the king in the design, one of the reasons for a new series of coins is to end the use of nickel. It is expected that vending machines and parking meters will to a high degree stop accepting coins. Cash is already used in Sweden, with many young people avoiding cash as much as possible. Between 1873 and 1876, coins in denominations of 1,2,5,10,25, and 50 öre and 1,2,10, and 20 kronor were introduced. The 1,2 and 5 öre were in bronze, the 10,25,50 öre and 1 krona and 2 kronor were in silver, gold 5 kronor coins were added in 1881. In 1873 the Scandinavian Monetary Union currency was fixed so that 248,000 öre purchased 1 kg of gold, in 2017 the price of gold is 365,289 kronor per kg. So one öre in 1873 bought as much gold as 1.47 krona in 2017, so if it is reasonable to have the smallest denomination coin 1 krona today, in 1873 a reasonable smallest denomination coin was 1 öre. A10 kr gold coin weighed 4.4803 grams with 900 finess so that the weight was 4.03327 grams or exactly 1/248th of a kilogram
5.
ISO 4217
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The ISO4217 code list is used in banking and business globally. ISO4217 codes are used on tickets and international train tickets to remove any ambiguity about the price. The first two letters of the code are the two letters of the ISO 3166-1 alpha-2 country codes and the third is usually the initial of the currency itself, so Japans currency code is JPY—JP for Japan and Y for yen. This eliminates the problem caused by the dollar, franc, peso and pound being used in dozens of different countries. Also, if a currency is revalued, the currency codes last letter is changed to distinguish it from the old currency. Other changes can be seen, however, the Russian ruble, for example, changed from RUR to RUB and these currency units are denominated as one troy ounce of the specified metal as opposed to USD1 or EUR1. The code XTS is reserved for use in testing, the code XXX is used to denote a transaction involving no currency. There are also codes specifying certain monetary instruments used in international finance, the codes for most supranational currencies, such as the East Caribbean dollar, the CFP franc, the CFA franc BEAC and the CFA franc BCEAO. The predecessor to the euro, the European Currency Unit, had the code XEU, the use of an initial letter X for these purposes is facilitated by the ISO3166 rule that no official country code beginning with X will ever be assigned. Because of this rule ISO4217 can use X codes without risk of clashing with a country code. ISO3166 country codes beginning with X are used for private custom use, consequently, ISO4217 can use X codes for non-country-specific currencies without risk of clashing with future country codes. The inclusion of EU in the ISO 3166-1 reserved codes list, the ISO4217 standard includes a crude mechanism for expressing the relationship between a major currency unit and its corresponding minor currency unit. This mechanism is called the exponent and assumes a base of 10. For example, USD is equal to 100 of its currency unit the cent. So the USD has exponent 2, the code JPY is given the exponent 0, because its minor unit, the sen, although nominally valued at 1/100 of a yen, is of such negligible value that it is no longer used. Usually, as with the USD, the currency unit has a value that is 1/100 of the major unit, but in some cases 1/1000 is used. Mauritania does not use a decimal division of units, setting 1 ouguiya equal to 5 khoums, some currencies do not have any minor currency unit at all and these are given an exponent of 0, as with currencies whose minor units are unused due to negligible value. There is also a code number assigned to each currency
6.
Excess reserves
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In banking, excess reserves are bank reserves in excess of a reserve requirement set by a central bank. In the United States, bank reserves for a bank are held in part as a credit balance in an account for the commercial bank at the applicable Federal Reserve bank. This credit balance is not separated into separate minimum reserves and excess reserves accounts, the total amount of FRB credits held in all FRB accounts for all commercial banks, together with all currency and vault cash, form the M0 monetary base. Holding excess reserves has an opportunity cost if higher risk-adjusted interest can be earned by putting the funds elsewhere, other banks may instead choose, however, to hold their excess reserves to facilitate upcoming transactions or to meet contractual clearing balance requirements. On October 3,2008, Section 128 of the Emergency Economic Stabilization Act of 2008 allowed the Federal Reserve banks to begin paying interest on reserve balances as well as required reserves. The Federal Reserve banks began doing so three days later, in comparison, the increase in reserve balances reached only $65 billion after September 11,2001 before falling back to normal levels within a month. Were going to experiment with this and try to find what the right spread is, the Congressional Budget Office estimated that payment of interest on reserve balances would cost the American taxpayers about one tenth of the present 0. On January 7,2009, the Federal Open Market Committee had decided that and it also will have to scale back the use of emergency lending programs and reduce the size of the balance sheet and level of excess reserves. Some of this scaling back will occur naturally as market conditions improve on account of how these programs have been designed, on April 1,2009, reserve balances had again increased to $806 billion. By August 2011, they had reached $1.6 trillion, on March 20,2013, excess reserves stood at $1.76 trillion. St. Louis Fed president James B, bullard said, paying them something of the order of $50 billion more than the entire profits of the largest banks. Foreign banks have also increased their excess reserves at the Fed which the Financial Times said could aggravate the Fed’s PR problem. By October 2013, the reserves at the Federal Reserve had exceeded $2.3 trillion. Sweden and Denmark have paid negative interest on excess reserves as a monetary policy measure. The Swedish Riksbank had previously paid positive interest rates on all overnight deposits, the Bank of England started to pay interest of 0. 5% on reserves on 5 March 2009. Technically these are not excess reserves, because the United Kingdom does not have reserve requirements, research by personnel at the Fed has resulted in claims that interest paid on reserves helps to guard against inflationary pressures. Now when central bank pays interest on excess reserves the link between the level of reserves and willingness of banks to lend is broken. The post-GFC low interest-rate environment has therefore persisted in spite of, specifically, the demand for risk-free assets has dominated the effect of paying interest on reserves on overall interest rates
7.
Central bank
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A central bank, reserve bank, or monetary authority is an institution that manages a states currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries, Central banks in most developed nations are institutionally designed to be independent from political interference. Still, limited control by the executive and legislative bodies usually exists, prior to the 17th century most money was commodity money, typically gold or silver. However, promises to pay were widely circulated and accepted as value at least five hundred years earlier in both Europe and Asia. The Song dynasty was the first to issue generally circulating paper currency, in 1455, in an effort to control inflation, the succeeding Ming Dynasty ended the use of paper money and closed much of Chinese trade. The Bank of Amsterdam, established in the Dutch Republic in 1609, is considered to be the forerunner to modern central banks. The Wisselbanks innovations helped lay the foundations for the birth and development of the banking system that now plays a vital role in the worlds economy. Along with a number of local banks, it performed many functions of a central banking system. Lucien Gillard calls it the European guilder, and Adam Smith devotes many pages to explaining how the bank guilder works, the model of the Wisselbank as a state bank was adapted throughout Europe, including the Bank of Sweden and the Bank of England. Established by Dutch-Latvian Johan Palmstruch in 1668, Sveriges Riksbank is often considered by many as the worlds oldest central bank, the lenders would give the government cash and also issue notes against the government bonds, which could be lent again. A Royal Charter was granted on 27 July through the passage of the Tonnage Act 1694, the bank was given exclusive possession of the governments balances, and was the only limited-liability corporation allowed to issue banknotes. The £1. 2M was raised in 12 days, half of this was used to rebuild the Navy and these modern central banking functions evolved slowly through the 18th and 19th centuries. The currency crisis of 1797, caused by panicked depositors withdrawing from the Bank led to the government suspending convertibility of notes into specie payment. The bank was accused by the bullionists of causing the exchange rate to fall from over issuing banknotes. Nevertheless, it was clear that the Bank was being treated as an organ of the state, henry Thornton, a merchant banker and monetary theorist has been described as the father of the modern central bank. An opponent of the real bills doctrine, he was a defender of the bullionist position, thorntons process of monetary expansion anticipated the theories of Knut Wicksell regarding the cumulative process which restates the Quantity Theory in a theoretically coherent form. Until the mid-nineteenth century, commercial banks were able to issue their own banknotes, many consider the origins of the central bank to lie with the passage of the Bank Charter Act of 1844. Under this law, authorisation to issue new banknotes was restricted to the Bank of England, at the same time, the Bank of England was restricted to issue new banknotes only if they were 100% backed by gold or up to £14 million in government debt
8.
Johan Palmstruch
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Johan Palmstruch was a Dutch merchant credited with the introduction of paper money to Europe. He became a commissioner in the National Board of Trade after his arrival in Sweden in 1647, the first two such proposals were rejected but the third, which promised half the banks profits to the crown, was accepted. Stockholms Banco was thus founded in 1657 with Palmstruch appointed as general manager, the bank itself was nothing new as it was simply an imitation of the successful public deposit banks of Amsterdam and Hamburg, however Palmstruch himself added two important innovations. These were very successful, but the bank lending more than it could afford and printed too many banknotes without the necessary collateral. Palmstruch was charged with irresponsible book-keeping and with not having the cash to repay these credit notes due to miscalculation and he was unable to make up this shortage and in 1668 was sentenced to loss of his title, loss of his banking privilege, and eternal exile or death. The government reprieved the death penalty and Palmstruch was instead imprisoned and he remained in prison until 1670 and died the following year at the age of 60
9.
Monarchy of Sweden
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The Monarchy of Sweden concerns the monarchical head of state of Sweden, which is a constitutional and hereditary monarchy with a parliamentary system. The Kingdom of Sweden has been a monarchy since time immemorial, Sweden in the present day is a representative democracy in a parliamentary system based on popular sovereignty, as defined in the current Instrument of Government. The monarch and the members of the Royal Family undertake a variety of official, unofficial and other duties within Sweden. Carl XVI Gustaf became King on 15 September 1973 on the death of his grandfather, Sweden has been a kingdom since prehistoric times. Originally, the Swedish king had combined powers limited to that of a war chief, a judge, the Royal Court of Sweden, however, does count Olofs father as Swedens first king. The king was elected from a favored dynasty at the Stones of Mora. The ceremonial stones were destroyed around 1515 and that dynasty formed a pre-Kalmar Union Sweden into a strong state, and finally king Magnus IV even ruled Norway and Scania. Following the Black Death, the union was weakened, and Scania was reunited with Denmark. In 1397, after the Black Death and domestic power struggles, Queen Margaret I of Denmark united Sweden, Denmark, continual tension within each country and the union led to open conflict between the Swedes and the Danes in the 15th century. The unions final disintegration in the early 16th century led to prolonged rivalry between Denmark-Norway and Sweden for centuries to come. Catholic bishops had supported the King of Denmark, Christian II, Gustav Vasa was elected King of Sweden by the Estates of the Realm, assembled in Strängnäs on 6 June 1523. Inspired by the teachings of Martin Luther, Gustav I used the Protestant Reformation to curb the power of the Roman Catholic Church. In 1527 he persuaded the Estates of the Realm, assembled in the city of Västerås, to church lands. At the same time, he broke with the papacy and established a state church. Legally Sweden has only been a monarchy since 1544 when the Riksdag of the Estates, through Västerås arvförening. Crown tax revenues increased, but more importantly the new system was perceived as fairer, a war with Lübeck in 1535 resulted in the expulsion of the Hanseatic traders, who previously had had a monopoly on foreign trade. With its own burghers in charge, Swedens economic strength grew rapidly, Sweden now built the first modern army in Europe, supported by a sophisticated tax system and an efficient bureaucracy. At the death of King Gustav I in 1560, he was succeeded by his oldest son Eric XIV and his reign was marked by Swedens entrance into the Livonian War and the Northern Seven Years War
10.
Riksdag of the Estates
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Riksdag of the Estates was the name used for the Estates of Sweden when they were assembled. Until its dissolution in 1866, the institution was the highest authority in Sweden next to the king, the actual first meeting is likely the one that took place at Uppsala in 1436 after the death of rebel leader Engelbrekt. At the Riksdag in 1517, regent Sten Sture the Younger, at Västerås in 1527 Lutheranism was adopted as the new state religion instead of Roman Catholicism. At Arboga in 1561, the term Riksdag was used for the first time, at Söderköping in 1595, duke Charles was elected regent of Sweden instead of king Sigismund, who was a Catholic and the king of both Sweden and Poland. In 1612 the Riksdag gave the nobility the privilege and right to all higher offices of government. The first open conflict between the different estates happened in 1650, at the Riksdag in 1680 a large scale reduction was enacted, and Sweden became an absolute monarchy. In 1719, the Riksdag elected Ulrika Eleonora as heir in place of her sisters son. In 1809, the Riksdag elected Charles XIII king after his nephew Gustav IV Adolf had been deposed, at the sessions in 1634,1719,1720,1772 and 1809 new constitutions were adopted. The constitution of 1809 divided the powers of government between the monarch and the Riksdag of the Estates, and after 1866 between the monarch and the new Riksdag. In 1866 all the Estates voted in favor of dissolution and at the time to constitute a new assembly. The four former estates were abolished, the House of Nobility, Swedish, Riddarhuset, remains as a quasi-official representation of the Swedish nobility. The modern Centre Party which grew out of the Swedish farmers movement, following the Finnish War in 1809, Sweden ceded its eastmost provinces to the Russian Empire. Comprising much of present-day Finland, these became a Grand Duchy under the Emperor, the Finnish estates assembled in 1809 at Porvoo to confirm the change in their allegiance. This Diet of Finland followed the forms of the Swedish Riksdag, however, during the reigns of Alexander I and Nicholas I it was not assembled and no new legislation was enacted. The diet was next assembled by tsar Alexander II in 1863, after this the Diet met regularly until 1905, when it passed an act forming a new unicameral parliament. That assembly has been Finlands legislative body since then, the Finnish House of Nobility — Finnish, Ritarihuone, Swedish, Riddarhuset — carries on the tradition of the Estate of Nobility, but no new families have been ennobled since 1906. History of Sweden History of Finland History of the Riksdag Riksdagsmusiken
11.
Riksdag
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This is a list of Members of the Riksdag, the national parliament of Sweden. The Riksdag is an assembly with 349 Members of Parliament. In the Riksdag, Members are seated per constituency and not party, the following MPs were elected in the Swedish general election,2006 and will serve until the Swedish general election,2010. Members of the center-right Cabinet of Fredrik Reinfeldt, the coalition during this term, are marked in bold. Members of the Riksdag in alphabetical order
12.
Tumba, Sweden
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Tumba is a bimunicipal locality and the seat of Botkyrka Municipality in Stockholm County, Sweden with 37,852 inhabitants in 2010. A part of its urban area, called Rönninge, is in Salem Municipality. The Swedish krona banknotes are printed by Crane AB at Tumba Bruk, Tumba is situated half-way between Stockholm and Södertälje and is considered a Stockholm suburb. In Tumba and Rönninge there are stations on the Stockholm commuter rail network, Tumba also holds a High School with almost 1.000 students. The Alfa Laval company was founded in Tumba by Gustaf de Laval and remains present in the suburb, as does DeLaval, Tumba is very diverse with both high-rise apartment buildings and single-family houses. Tumba also has a mall, Tumba Centrum, situated by the railway station. The melodic death metal band Amon Amarth is from Tumba, what makes Tumba different from the communities in northern Botkyrka is that it doesn’t stem from a big farm with roots way back in time. The people of prehistory preferred to close to the shores. That’s why traces of man during prehistory are relatively rare, the big change took place during 1755 when the bank of Sweden bought a small farm and started a papermill. Around the papermill came a community developed with its own school. The next big step was taken when the railroad came in 1860, soon afterwards a society started to grow around the stationhouse. This society had commerce, police, and a movie theatre, a few houses from that period are still left. In 1894 ‘Separator’ bought Hamra Gard and transformed it into a specialized in milkprocessing. It soon became a big industry, from the beginning these three parts were separate but grew together. The communities of both the papermill and Hamra are well kept
13.
Interest
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Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum. It is distinct from a fee which the borrower may pay the lender or some third party, in the case of savings, the customer is the lender, and the bank plays the role of the borrower. Interest differs from profit, in that interest is received by a lender, whereas profit is received by the owner of an asset, the rate of interest is equal to the interest amount paid or received over a particular period divided by the principal sum borrowed or lent. Compound interest means that interest is earned on prior interest in addition to the principal, due to compounding, the total amount of debt grows exponentially, and its mathematical study led to the discovery of the number e. In practice, interest is most often calculated on a daily, monthly, or yearly basis, according to historian Paul Johnson, the lending of food money was commonplace in Middle Eastern civilizations as early as 5000 BC. The argument that acquired seeds and animals could reproduce themselves was used to justify interest, early Muslims called this riba, translated today as the charging of interest. The First Council of Nicaea, in 325, forbade clergy from engaging in usury which was defined as lending on interest above 1 percent per month, ninth century ecumenical councils applied this regulation to the laity. Catholic Church opposition to interest hardened in the era of scholastics, in the medieval economy, loans were entirely a consequence of necessity and, under those conditions, it was considered morally reproachable to charge interest. For the same reason, interest has often been looked down upon in Islamic civilization, medieval jurists developed several financial instruments to encourage responsible lending and circumvent prohibitions on usury, such as the Contractum trinius. In the Renaissance era, greater mobility of people facilitated an increase in commerce, given that borrowed money was no longer strictly for consumption but for production as well, interest was no longer viewed in the same manner. The first attempt to control interest rates through manipulation of the supply was made by the Banque de France in 1847. The latter half of the 20th century saw the rise of interest-free Islamic banking and finance, a movement that applies Islamic law to financial institutions, some countries, including Iran, Sudan, and Pakistan, have taken steps to eradicate interest from their financial systems. All financial transactions must be asset-backed and it does not charge any interest or fee for the service of lending, in economics, the rate of interest is the price of credit, and it plays the role of the cost of capital. Over centuries, various schools of thought have developed explanations of interest and interest rates, the School of Salamanca justified paying interest in terms of the benefit to the borrower, and interest received by the lender in terms of a premium for the risk of default. In the sixteenth century, Martín de Azpilcueta applied a time preference argument, accordingly, interest is compensation for the time the lender forgoes the benefit of spending the money. On the question of why interest rates are normally greater than zero, in 1770, French economist Anne-Robert-Jacques Turgot, for the land value to remain positive and finite keeps the interest rate above zero. Adam Smith, Carl Menger, and Frédéric Bastiat also propounded theories of interest rates, in the 1930s, Wicksells approach was refined by Bertil Ohlin and Dennis Robertson and became known as the loanable funds theory. Other notable interest rate theories of the period are those of Irving Fisher, simple interest is calculated only on the principal amount, or on that portion of the principal amount that remains
14.
Income
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Income is the consumption and savings opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. However, for households and individuals, income is the sum of all the wages, salaries, profits, interests payments, rents, in a given period of time. In the field of economics, the term may refer to the accumulation of both monetary and non-monetary consumption ability, with the former being used as a proxy for total income. Income per capita has been increasing steadily in almost every country, many factors contribute to people having a higher income such as education, globalisation and favorable political circumstances such as economic freedom and peace. Increase in income tends to lead to people choosing to work less hours. Developed countries have higher incomes as opposed to developing countries tending to have lower incomes, from labor services, as well as ownership of land and capital. In consumer theory income is another name for the budget constraint, the basic equation for this is Y = P x ⋅ x + P y ⋅ y This equation implies two things. First buying one unit of good x implies buying P x P y less units of good y. So, P x P y is the price of a unit of x as to the number of units given up in y. Second, if the price of x falls for a fixed Y, the usual hypothesis is that the quantity demanded of x would increase at the lower price, the law of demand. The generalization to more than two goods consists of modelling y as a composite good, the theoretical generalization to more than one period is a multi-period wealth and income constraint. For example, the person can gain more productive skills or acquire more productive income-earning assets to earn a higher income. In the multi-period case, something might happen to the economy beyond the control of the individual to reduce the flow of income. Changing measured income and its relation to consumption over time might be modeled accordingly, full income refers to the accumulation of both the monetary and the non-monetary consumption-ability of any given entity, such as a person or a household. According to what the economist Nicholas Barr describes as the definition of income, income may be defined as the. Sum of the value of rights exercised in consumption and the change in the value of the store of property rights. Since the consumption potential of non-monetary goods, such as leisure, cannot be measured, as such, however, it is criticized for being unreliable, i. e. failing to accurately reflect affluence of any given agent. It omits the utility a person may derive from non-monetary income and, on a macroeconomic level, according to Barr, in practice money income as a proportion of total income varies widely and unsystematically
15.
Value (economics)
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Economic value is a measure of the benefit provided by a good or service to an economic agent. It is generally measured relative to units of currency, and the interpretation is therefore what is the amount of money a specific actor is willing. Note that economic value is not the same as market price, if a consumer is willing to buy a good, it implies that the customer places a higher value on the good than the market price. The difference between the value to the consumer and the price is called consumer surplus. It is easy to see situations where the value is considerably larger than the market price. The economic value of a good or service has puzzled economists since the beginning of the discipline, first, economists tried to estimate the value of a good to an individual alone, and extend that definition to goods which can be exchanged. From this analysis came the concepts value in use and value in exchange, Value is linked to price through the mechanism of exchange. When an economist observes an exchange, two important value functions are revealed, those of the buyer and seller. Just as the buyer reveals what he is willing to pay for a amount of a good. Additional information about market value is obtained by the rate at which transactions occur, said another way, value is how much a desired object or condition is worth relative to other objects or conditions. Economic values are expressed as how much of one condition or commodity will. Among the competing schools of economic theory there are differing metrics for value assessment, Value theories are a large part of the differences and disagreements between the various schools of economic theory. In neoclassical economics, the value of an object or service is seen as nothing but the price it would bring in an open. This is determined primarily by the demand for the relative to supply in a perfectly competitive market. Many neoclassical economic theories equate the value of a commodity with its price, as such, everything is seen as a commodity and if there is no market to set a price then there is no economic value. In classical economics, the value of an object or condition is the amount of discomfort/labor saved through the consumption or use of an object or condition. Though exchange value is recognized, economic value is not, in theory, dependent on the existence of a market and price and this is complicated, however, by the efforts of classical economists to connect price and labor value. In this tradition, Steve Keen makes the claim that value refers to the worth of a commodity
16.
Credit (finance)
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In other words, credit is a method of making reciprocity formal, legally enforceable, and extensible to a large group of unrelated people. The resources provided may be financial, or they may consist of goods or services, Credit encompasses any form of deferred payment. Credit is extended by a creditor, also known as a lender, to a debtor, Credit does not necessarily require money. The credit concept can be applied in barter economies as well, based on the exchange of goods. However, in societies, credit is usually denominated by a unit of account. Bank issued credit makes up the largest proportion of credit in existence, the traditional view of banks as intermediaries between savers and borrower is incorrect. Modern banking is about credit creation, Credit is made up of two parts, the credit and its corresponding debt, which requires repayment with interest. The majority of the money in the UK economy is created as credit, when the debt is fully repaid, the credit and debt are cancelled, and the money disappears from the economy. Meanwhile, the debtor receives a cash balance, but also an equivalent negative liability to be repaid to the bank over the duration. Most of the credit created goes into the purchase of land and property, creating inflation in those markets, when a bank creates credit, it effectively owes the money to itself. If a bank issues too much bad credit, the bank will become insolvent, if it fails to do this it risks bankruptcy. In this instance, the bank uses sale of the collateral to reduce its liabilities, examples of secured credit include consumer mortgages used to buy houses, boats etc. and PCP credit agreements for automobile purchases. Movements of financial capital are normally dependent on credit or equity transfers. The global credit market is three times the size of global equity, Credit is in turn dependent on the reputation or creditworthiness of the entity which takes responsibility for the funds. Credit is also traded in financial markets, the purest form is the credit default swap market, which is essentially a traded market in credit insurance. There are many types of credit, including but not limited to bank credit, commerce, consumer credit, investment credit, international credit, public credit, in commercial trade, the term trade credit refers to the approval of delayed payment for purchased goods. Credit is sometimes not granted to a buyer who has financial instability or difficulty, companies frequently offer trade credit to their customers as part of the terms of a purchase agreement. Organizations that offer credit to their customers frequently employ a credit manager, Consumer debt can be defined as money, goods or services provided to an individual in the absence of immediate payment
17.
Copyright
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Copyright is a legal right created by the law of a country that grants the creator of an original work exclusive rights for its use and distribution. This is usually only for a limited time, the exclusive rights are not absolute but limited by limitations and exceptions to copyright law, including fair use. A major limitation on copyright is that copyright protects only the expression of ideas. Copyright is a form of property, applicable to certain forms of creative work. Some, but not all jurisdictions require fixing copyrighted works in a tangible form and it is often shared among multiple authors, each of whom holds a set of rights to use or license the work, and who are commonly referred to as rights holders. These rights frequently include reproduction, control over derivative works, distribution, public performance, copyrights are considered territorial rights, which means that they do not extend beyond the territory of a specific jurisdiction. While many aspects of copyright laws have been standardized through international copyright agreements. Typically, the duration of a copyright spans the authors life plus 50 to 100 years, some countries require certain copyright formalities to establishing copyright, but most recognize copyright in any completed work, without formal registration. Generally, copyright is enforced as a matter, though some jurisdictions do apply criminal sanctions. Most jurisdictions recognize copyright limitations, allowing fair exceptions to the exclusivity of copyright. Copyright came about with the invention of the press and with wider literacy. As a legal concept, its origins in Britain were from a reaction to printers monopolies at the beginning of the 18th century, Copyright laws allow products of creative human activities, such as literary and artistic production, to be preferentially exploited and thus incentivized. Different cultural attitudes, social organizations, economic models and legal frameworks are seen to account for why copyright emerged in Europe and not, for example, however, with copyright laws, intellectual production comes to be seen as a product of an individual, with attendant rights. The most significant point is that patent and copyright laws support the expansion of the range of human activities that can be commodified. This parallels the ways in which led to the commodification of many aspects of social life that earlier had no monetary or economic value per se. Often seen as the first real copyright law, the 1709 British Statute of Anne gave the rights for a fixed period. The act also alluded to individual rights of the artist and it began, Whereas Printers, Booksellers, and other Persons, have of late frequently taken the Liberty of Printing. Books, and other Writings, without the Consent of the Authors. to their very great Detriment, and too often to the Ruin of them and their Families
18.
Profit (economics)
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Profit or normal profit is a component of costs and not a component of business profit at all. It represents the opportunity cost, as the time that the owner spends running the firm could be spent on running a different firm. In other words, the cost of normal profit varies both within and across industries, it is commensurate with the associated with each type of investment. Only normal profits arise in circumstances of perfect competition when long-run economic equilibrium is reached, the same is likewise true of the long run equilibria of monopolistically competitive industries and, more generally, any market which is held to be contestable. Normally, a firm that introduces a differentiated product can initially secure a temporary power for a short while. At this stage, the price the consumer must pay for the product is high. When this finally occurs, all monopoly associated with producing and selling the product disappears. Profit can, however, occur in competitive and contestable markets in the short run, economic profit is, however, much more prevalent in uncompetitive markets such as in a perfect monopoly or oligopoly situation. This allows the firm to set a price which is higher than that which would be found in a similar but more competitive industry, allowing them economic profit in both the long and short run. In a single-goods case, an economic profit happens when the firms average cost is less than the price of the product or service at the profit-maximizing output. The economic profit is equal to the quantity of output multiplied by the difference between the average cost and the price, often, governments will try to intervene in uncompetitive markets to make them more competitive. Antitrust or competition laws were created to prevent powerful firms from using their power to artificially create the barriers to entry they need to protect their economic profits. This includes the use of predatory pricing toward smaller competitors, with lower barriers, new firms can enter the market again, making the long run equilibrium much more like that of a competitive industry, with no economic profit for firms. For example, the old AT&T monopoly, which existed before the courts ordered its breakup, had to get government approval to raise its prices. Though a regulated firm will not have a profit as large as it would in an unregulated situation. The social profit from a firms activities is the normal profit plus or minus any externalities or consumer surpluses that occur in its activity, a firm may report relatively large monetary profits, but by creating negative externalities their social profit could be relatively small. Profitability is a term of economic efficiency, mathematically it is a relative index – a fraction with profit as numerator and generating profit flows or assets as denominator. It is a standard economic assumption that, other things being equal, given that profit is defined as the difference in total revenue and total cost, a firm achieves a maximum by operating at the point where the difference between the two is at its greatest
19.
Gold standard
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A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. Three types can be distinguished, specie, bullion, and exchange, the gold bullion standard is a system in which gold coins do not circulate, but the authorities agree to sell gold bullion on demand at a fixed price in exchange for the circulating currency. The gold exchange standard usually does not involve the circulation of gold coins. This creates a de facto standard, where the value of the means of exchange has a fixed external value in terms of gold that is independent of the inherent value of the means of exchange itself. Most nations abandoned the standard as the basis of their monetary systems at some point in the 20th century. An estimated total of 174,100 tonnes of gold have been mined in human history and this is roughly equivalent to 5.6 billion troy ounces or, in terms of volume, about 9,261 cubic metres, or a cube 21 metres on a side. There are varying estimates of the volume of gold mined. One reason for the variance is that gold has been mined for thousands of years, another reason is that some nations are not particularly open about how much gold is being mined. In addition, it is difficult to account for the output in illegal mining activities. World production for 2011 was at 2,700 tonnes, since the 1950s, annual gold output growth has approximately kept pace with world population growth of around 2x, although far less than world economic growth of some 8x, or some 4x since 1980. The gold specie standard arose from the acceptance of gold as currency. Various commodities have been used as money, typically, the one that loses the least value over time becomes the accepted form, the use of gold as money began thousands of years ago in Asia Minor. During the early and high Middle Ages, the Byzantine gold solidus, commonly known as the bezant, was used widely throughout Europe, however, as the Byzantine Empires economic influence declined, so too did the use of the bezant. In its place, European territories chose silver as its currency over gold, Silver pennies based on the Roman denarius became the staple coin of Mercia in Great Britain around the time of King Offa, circa CE 757–796. Similar coins, including Italian denari, French deniers, and Spanish dineros circulated in Europe, Spanish explorers discovered silver deposits in Mexico in 1522 and at Potosí in Bolivia in 1545. International trade came to depend on such as the Spanish dollar, the Maria Theresa thaler, and later. In modern times, the British West Indies was one of the first regions to adopt a gold specie standard, following Queen Annes proclamation of 1704, the British West Indies gold standard was a de facto gold standard based on the Spanish gold doubloon. A formal gold specie standard was first established in 1821, when Britain adopted it following the introduction of the sovereign by the new Royal Mint at Tower Hill in 1816
20.
Fixed exchange-rate system
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There are benefits and risks to using a fixed exchange rate. In doing so, the rate between the currency and its peg does not change based on market conditions, the way floating currencies do. A fixed exchange-rate system can also be used as a means to control the behavior of a currency, however, in doing so, the pegged currency is then controlled by its reference value. In other words, a currency is dependent on its reference value to dictate how its current worth is defined at any given time. The central bank provides the assets and/or the foreign currency or currencies which are needed in order to any payments imbalances. In the 21st century, the associated with large economies typically do not fix or peg exchange rates to other currencies. The last large economy to use a fixed exchange system was the Peoples Republic of China which, in July 2005. The European Exchange Rate Mechanism is also used on a basis to establish a final conversion rate against the Euro from the local currencies of countries joining the Eurozone. The gold standard or gold standard of fixed exchange rates prevailed from about 1870 to 1914. The period between the two wars was transitory, with the Bretton Woods system emerging as the new fixed exchange rate regime in the aftermath of World War II. It was formed with an intent to rebuild war-ravaged nations after World War II through a series of currency stabilization programs, the early 1970s saw the breakdown of the system and its replacement by a mixture of fluctuating and fixed exchange rates. Timeline of the exchange rate system, The earliest establishment of a gold standard was in the United Kingdom in 1821 followed by Australia in 1852. Under this system, the value of all currencies was denominated in terms of gold with central banks ready to buy. Each central bank maintained gold reserves as their official reserve asset, for example, during the “classical” gold standard period, the U. S. dollar was defined as 0.048 troy oz. of pure gold. Following the Second World War, the Bretton Woods system replaced gold with the U. S. dollar as the reserve asset. The regime intended to combine binding legal obligations with multilateral decision-making through the International Monetary Fund, the rules of this system were set forth in the articles of agreement of the IMF and the International Bank for Reconstruction and Development. S. Dollar and to exchange rates within 1% of parity by intervening in their foreign exchange markets. In December 1971, the Smithsonian Agreement paved the way for the increase in the value of the price of gold from US$35.50 to US$38 an ounce
21.
Bank of Canada
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The Bank of Canada is Canadas central bank. The bank was chartered by and under the Bank of Canada Act on July 3,1934, in 1938, the bank was legally designated a federal Crown corporation. The Minister of Finance holds the entire share capital issued by the bank, the essential role of the bank, as Canadas central bank, is to promote the economic and financial well-being of Canada. With the exception of the word Canada replacing the word Dominion the wording today is identical to the 1934 legislation which created the bank. Changes to make the bank a government-owned institution in 1938 did not alter the purpose of the Bank as set out in the preamble to the Bank of Canada Act. The Bank of Canada headquarters are located at the Bank of Canada Building,234 Wellington Street in the nations capital, the edifice also houses the Currency Museum, which opened in December,1980. Between 2013 and 2017, the Bank of Canada temporarily moved its offices to 234 Laurier Street in Ottawa to allow renovations to its headquarters building. On March 11,1935, the Bank of Canada began operations, initially, the bank had been founded as a privately owned corporation, a move taken in order to ensure the bank would be free from partisan political influence. In 1938, under Prime Minister William Lyon Mackenzie King, the Bank of Canada, the Bank shall be under the management of a Board of Directors composed of a Governor, a Deputy Governor and twelve directors appointed in accordance with this Act. The Governor and Deputy Governor shall be appointed by the directors with the approval of the Governor in Council, prior to the creation of the Bank of Canada, the federal Department of Finance had been responsible for printing Canadas banknotes. The Bank of Montreal, then the nations largest bank, acted as the governments banker, a major proponent was the Royal Bank of Canada, which wanted to see the government business taken away from its rival. When the central bank was founded, the Government of Canada claimed it was constrained by its foreign debts, the Government also claimed it was constrained by its inability to deal directly on Canadas foreign debts. The farmers were joined by manufacturing interests and other groups in favor of a depreciating currency, in 1944, the Bank of Canada then became the sole issuer of legal tender banknotes in and under Canada. After the war, the role was expanded as it was mandated to encourage economic growth in Canada. An Act of Parliament in September 1944 established the subsidiary Business Development Bank of Canada to stimulate investment in Canadian businesses, Prime Minister John Diefenbakers central-bank monetary policy was directed towards increasing the money supply to generate low interest rates, and incentivize full employment. When inflation began to rise in the early 1960s, then-Governor James Coyne ordered a reduction in the Canadian money supply, since the 1980s, keeping inflation low has been the main priority of the Bank of Canada. In the early 1990s, the rules of Canada were changed. Since that time, the reserves of Canadas chartered banks have been internal corporate bank policy
22.
Inflation
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In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time resulting in a loss of value of currency. When the price rises, each unit of currency buys fewer goods. Consequently, inflation reflects a reduction in the power per unit of money – a loss of real value in the medium of exchange. A chief measure of inflation is the inflation rate, the annualized percentage change in a general price index, usually the consumer price index. The opposite of inflation is deflation, Inflation affects economies in various positive and negative ways. Economists generally believe that high rates of inflation and hyperinflation are caused by a growth of the money supply. However, money supply growth does not necessarily cause inflation, some economists maintain that under the conditions of a liquidity trap, large monetary injections are like pushing on a string. Views on which factors determine low to moderate rates of inflation are more varied, low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities. However, the view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth. Today, most economists favor a low and steady rate of inflation, the task of keeping the rate of inflation low and stable is usually given to monetary authorities. Rapid increases in quantity of the money or in the money supply have occurred in many different societies throughout history. By diluting the gold with other metals, the government could issue more coins without also needing to increase the amount of used to make them. When the cost of each coin is lowered in this way and this practice would increase the money supply but at the same time the relative value of each coin would be lowered. As the relative value of the coins becomes lower, consumers would need to give more coins in exchange for the same goods and these goods and services would experience a price increase as the value of each coin is reduced. Song Dynasty China introduced the practice of printing paper money in order to create fiat currency, during the Mongol Yuan Dynasty, the government spent a great deal of money fighting costly wars, and reacted by printing more money, leading to inflation. Fearing the inflation that plagued the Yuan dynasty, the Ming Dynasty initially rejected the use of paper money, historically, large infusions of gold or silver into an economy also led to inflation. This was largely caused by the influx of gold and silver from the New World into Habsburg Spain. The silver spread throughout a previously cash-starved Europe and caused widespread inflation, demographic factors also contributed to upward pressure on prices, with European population growth after depopulation caused by the Black Death pandemic
23.
Recession
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In economics, a recession is a business cycle contraction which results in a general slowdown in economic activity. Macroeconomic indicators such as GDP, investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies, in the United Kingdom, it is defined as a negative economic growth for two consecutive quarters. Recessions generally occur when there is a drop in spending. This may be triggered by events, such as a financial crisis, an external trade shock. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, in a 1979 New York Times article, economic statistician Julius Shiskin suggested several rules of thumb for defining a recession, one of which was two down consecutive quarters of GDP. In time, the rules of thumb were forgotten. Some economists prefer a definition of a 1. 5-2 percentage points rise in unemployment within 12 months, in the United States, the Business Cycle Dating Committee of the National Bureau of Economic Research is generally seen as the authority for dating US recessions. Almost universally, academics, economists, policy makers, and businesses defer to the determination by the NBER for the dating of a recessions onset. In the United Kingdom, recessions are generally defined as two consecutive quarters of economic growth, as measured by the seasonal adjusted quarter-on-quarter figures for real GDP. The exact same recession definition applies for all states of the European Union. These summary measures reflect underlying drivers such as employment levels and skills, household savings rates, corporate investment decisions, interest rates, demographics, when these relationships become imbalanced, recession can develop within the country or create pressure for recession in another country. Policy responses are often designed to drive the economy back towards this ideal state of balance, a severe or prolonged recession is referred to as an economic depression, although some argue that their causes and cures can be different. As an informal shorthand, economists refer to different recession shapes. The type and shape of recessions are distinctive, japan’s 1993–94 recession was U-shaped and its 8-out-of-9 quarters of contraction in 1997–99 can be described as L-shaped. Korea, Hong Kong and South-east Asia experienced U-shaped recessions in 1997–98, recessions have psychological and confidence aspects. For example, if companies expect economic activity to slow, they may reduce employment levels, such expectations can create a self-reinforcing downward cycle, bringing about or worsening a recession. Consumer confidence is one used to evaluate economic sentiment. The term animal spirits has been used to describe the factors underlying economic activity
24.
Latin
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Latin is a classical language belonging to the Italic branch of the Indo-European languages. The Latin alphabet is derived from the Etruscan and Greek alphabets, Latin was originally spoken in Latium, in the Italian Peninsula. Through the power of the Roman Republic, it became the dominant language, Vulgar Latin developed into the Romance languages, such as Italian, Portuguese, Spanish, French, and Romanian. Latin, Italian and French have contributed many words to the English language, Latin and Ancient Greek roots are used in theology, biology, and medicine. By the late Roman Republic, Old Latin had been standardised into Classical Latin, Vulgar Latin was the colloquial form spoken during the same time and attested in inscriptions and the works of comic playwrights like Plautus and Terence. Late Latin is the language from the 3rd century. Later, Early Modern Latin and Modern Latin evolved, Latin was used as the language of international communication, scholarship, and science until well into the 18th century, when it began to be supplanted by vernaculars. Ecclesiastical Latin remains the language of the Holy See and the Roman Rite of the Catholic Church. Today, many students, scholars and members of the Catholic clergy speak Latin fluently and it is taught in primary, secondary and postsecondary educational institutions around the world. The language has been passed down through various forms, some inscriptions have been published in an internationally agreed, monumental, multivolume series, the Corpus Inscriptionum Latinarum. Authors and publishers vary, but the format is about the same, volumes detailing inscriptions with a critical apparatus stating the provenance, the reading and interpretation of these inscriptions is the subject matter of the field of epigraphy. The works of several hundred ancient authors who wrote in Latin have survived in whole or in part and they are in part the subject matter of the field of classics. The Cat in the Hat, and a book of fairy tales, additional resources include phrasebooks and resources for rendering everyday phrases and concepts into Latin, such as Meissners Latin Phrasebook. The Latin influence in English has been significant at all stages of its insular development. From the 16th to the 18th centuries, English writers cobbled together huge numbers of new words from Latin and Greek words, dubbed inkhorn terms, as if they had spilled from a pot of ink. Many of these words were used once by the author and then forgotten, many of the most common polysyllabic English words are of Latin origin through the medium of Old French. Romance words make respectively 59%, 20% and 14% of English, German and those figures can rise dramatically when only non-compound and non-derived words are included. Accordingly, Romance words make roughly 35% of the vocabulary of Dutch, Roman engineering had the same effect on scientific terminology as a whole
25.
Nobel Memorial Prize in Economic Sciences
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The prize was established in 1968 by a donation from Swedens central bank, the Swedish National Bank, on the banks 300th anniversary. Although it is not one of the prizes that Alfred Nobel established in his will in 1895, laureates are announced with the other Nobel Prize laureates, and receive the award at the same ceremony. Laureates in the Memorial Prize in Economics are selected by the Royal Swedish Academy of Sciences and it was first awarded in 1969 to the Dutch and Norwegian economists Jan Tinbergen and Ragnar Frisch, for having developed and applied dynamic models for the analysis of economic processes. An endowment in perpetuity from Sveriges Riksbank pays the Nobel Foundations administrative expenses associated with the prize, since 2012, the monetary portion of the Prize in Economics has totalled 8 million Swedish kronor. This is equivalent to the amount given for the original Nobel Prizes, the Prize in Economics is not one of the original Nobel Prizes created by Alfred Nobels will. However, the process, selection criteria, and awards presentation of the Prize in Economic Sciences are performed in a manner similar to that of the Nobel Prizes. Laureates are announced with the Nobel Prize laureates, and receive the award at the same ceremony, shall have conferred the greatest benefit on mankind. According to its website, the Royal Swedish Academy of Sciences administers a researcher exchange with academies in other countries and publishes six scientific journals. Members of the Academy and former laureates are also authorised to nominate candidates, all proposals and their supporting evidence must be received before February 1. The proposals are reviewed by the Prize Committee and specially appointed experts, before the end of September, the committee chooses potential laureates. If there is a tie, the chairman of the committee casts the deciding vote, next, the potential laureates must be approved by the Royal Swedish Academy of Sciences. Members of the Ninth Class of the Academy vote in mid-October to determine the next laureate or laureates of the Prize in Economics. The first prize in economics was awarded in 1969 to Ragnar Frisch, in 2009, Elinor Ostrom became the first woman awarded the prize. This makes it available to researchers in such topics as political science, psychology, moreover, the composition of the Economics Prize Committee changed to include two non-economists. This has not been confirmed by the Economics Prize Committee, the members of the 2007 Economics Prize Committee are still dominated by economists, as the secretary and four of the five members are professors of economics. Some critics argue that the prestige of the Prize in Economics derives in part from its association with the Nobel Prizes, among them is the Swedish human rights lawyer Peter Nobel, a great-grandson of Ludvig Nobel. Nobel criticizes the institution of misusing his familys name. He explaiend that Nobel despised people who cared more about profits than societys well-being and this does not matter in the natural sciences
26.
Nobel Prize
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The Nobel Prize is a set of annual international awards bestowed in a number of categories by Swedish and Norwegian institutions in recognition of academic, cultural, or scientific advances. The will of the Swedish inventor Alfred Nobel established the prizes in 1895, the prizes in Chemistry, Literature, Peace, Physics, and Physiology or Medicine were first awarded in 1901. Medals made before 1980 were struck in 23 carat gold, between 1901 and 2016, the Nobel Prizes and the Prize in Economic Sciences were awarded 579 times to 911 people and organisations. With some receiving the Nobel Prize more than once, this makes a total of 23 organisations, the prize ceremonies take place annually in Stockholm, Sweden. Each recipient, or laureate, receives a medal, a diploma. The Nobel Prize is widely regarded as the most prestigious award available in the fields of literature, medicine, physics, chemistry, peace, and economics. The prize is not awarded posthumously, however, if a person is awarded a prize and dies before receiving it, though the average number of laureates per prize increased substantially during the 20th century, a prize may not be shared among more than three people. Alfred Nobel was born on 21 October 1833 in Stockholm, Sweden and he was a chemist, engineer, and inventor. In 1894, Nobel purchased the Bofors iron and steel mill and this invention was a precursor to many smokeless military explosives, especially the British smokeless powder cordite. As a consequence of his patent claims, Nobel was eventually involved in a patent infringement lawsuit over cordite, Nobel amassed a fortune during his lifetime, with most of his wealth from his 355 inventions, of which dynamite is the most famous. In 1888, Nobel was astonished to read his own obituary, titled The merchant of death is dead, as it was Alfreds brother Ludvig who had died, the obituary was eight years premature. The article disconcerted Nobel and made him apprehensive about how he would be remembered and this inspired him to change his will. On 10 December 1896, Alfred Nobel died in his villa in San Remo, Italy, Nobel wrote several wills during his lifetime. He composed the last over a year before he died, signing it at the Swedish–Norwegian Club in Paris on 27 November 1895, Nobel bequeathed 94% of his total assets,31 million SEK, to establish the five Nobel Prizes. Because of skepticism surrounding the will, it was not until 26 April 1897 that it was approved by the Storting in Norway. The executors of Nobels will, Ragnar Sohlman and Rudolf Lilljequist, formed the Nobel Foundation to take care of Nobels fortune, Nobels instructions named a Norwegian Nobel Committee to award the Peace Prize, the members of whom were appointed shortly after the will was approved in April 1897. Soon thereafter, the other prize-awarding organisations were designated or established and these were Karolinska Institutet on 7 June, the Swedish Academy on 9 June, and the Royal Swedish Academy of Sciences on 11 June. The Nobel Foundation reached an agreement on guidelines for how the prizes should be awarded, and, in 1900, in 1905, the personal union between Sweden and Norway was dissolved
27.
Alfred Nobel
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Alfred Bernhard Nobel was a Swedish chemist, engineer, inventor, businessman, and philanthropist. Known for inventing dynamite, Nobel also owned Bofors, which he had redirected from its previous role as primarily an iron and steel producer to a manufacturer of cannon. Nobel held 355 different patents, dynamite being the most famous, after reading a premature obituary which condemned him for profiting from the sales of arms, he bequeathed his fortune to institute the Nobel Prizes. The synthetic element nobelium was named after him and his name also survives in modern-day companies such as Dynamit Nobel and AkzoNobel, which are descendants of mergers with companies Nobel himself established. Born in Stockholm, Alfred Nobel was the son of Immanuel Nobel, an inventor and engineer. The couple married in 1827 and had eight children, the family was impoverished, and only Alfred and his three brothers survived past childhood. Alfred Nobels interest in technology was inherited from his father, an alumnus of Royal Institute of Technology in Stockholm, following various business failures, Nobels father moved to Saint Petersburg in 1837 and grew successful there as a manufacturer of machine tools and explosives. He invented modern plywood and started work on the torpedo, in 1842, the family joined him in the city. For 18 months, from 1841 to 1842, Nobel went to the school he ever attended as a child. As a young man, Nobel studied with chemist Nikolai Zinin, then, in 1850, there he met Ascanio Sobrero, who had invented nitroglycerin three years before. Sobrero strongly opposed the use of nitroglycerin, as it was unpredictable, but Nobel became interested in finding a way to control and use nitroglycerin as a commercially usable explosive, as it had much more power than gunpowder. At age 18, he went to the United States for one year to study chemistry, working for a period under inventor John Ericsson. Nobel filed his first patent, an English patent for a gas meter, in 1857, while his first Swedish patent, the family factory produced armaments for the Crimean War, but had difficulty switching back to regular domestic production when the fighting ended and they filed for bankruptcy. In 1859, Nobels father left his factory in the care of the son, Ludvig Nobel. Nobel and his parents returned to Sweden from Russia and Nobel devoted himself to the study of explosives, Nobel invented a detonator in 1863, and in 1865 designed the blasting cap. On 3 September 1864, a used for preparation of nitroglycerin exploded at the factory in Heleneborg, Stockholm, killing five people. Dogged and unfazed by more minor accidents, Nobel went on to build further factories, Nobel invented dynamite in 1867, a substance easier and safer to handle than the more unstable nitroglycerin. Dynamite was patented in the US and the UK and was used extensively in mining, in 1875 Nobel invented gelignite, more stable and powerful than dynamite, and in 1887 patented ballistite, a predecessor of cordite
28.
Interest rate
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An interest rate, is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed. The total interest on an amount lent or borrowed depends on the sum, the interest rate, the compounding frequency. It is defined as the proportion of an amount loaned which a lender charges as interest to the borrower and it is the rate a bank or other lender charges to borrow its money, or the rate a bank pays its savers for keeping money in an account. Annual interest rate is the rate over a period of one year, other interest rates apply over different periods, such as a month or a day, but they are usually annualised. A company borrows capital from a bank to buy assets for its business, in return, the bank charges the company interest. Base rate usually refers to the rate offered on overnight deposits by the central bank or other monetary authority. Annual percentage rate and effective annual rate or annual equivalent rate are used to help consumers compare products with different payment structures on a common basis, a discount rate is applied to calculate present value. Interest rate targets are a tool of monetary policy and are taken into account when dealing with variables like investment, inflation. The central banks of countries tend to reduce interest rates when they wish to increase investment. In the past two centuries, interest rates have been variously set either by national governments or central banks, during an attempt to tackle spiraling hyperinflation in 2007, the Central Bank of Zimbabwe increased interest rates for borrowing to 800%. Possibly before modern capital markets, there have been some accounts that savings deposits could achieve a return of at least 25%. Political short-term gain, Lowering interest rates can give the economy a short-run boost, under normal conditions, most economists think a cut in interest rates will only give a short term gain in economic activity that will soon be offset by inflation. The quick boost can influence elections, Most economists advocate independent central banks to limit the influence of politics on interest rates. Deferred consumption, When money is loaned the lender delays spending the money on consumption goods, since according to time preference theory people prefer goods now to goods later, in a free market there will be a positive interest rate. Inflationary expectations, Most economies generally exhibit inflation, meaning a given amount of money buys fewer goods in the future than it will now, the borrower needs to compensate the lender for this. Alternative investments, The lender has a choice between using his money in different investments, if he chooses one, he forgoes the returns from all the others. Different investments effectively compete for funds, risks of investment, There is always a risk that the borrower will go bankrupt, abscond, die, or otherwise default on the loan. This means that a lender generally charges a premium to ensure that, across his investments
29.
Lars Heikensten
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Lars Johan Heikensten, born 13 September 1950, is a former Governor of Sveriges Riksbank and Doctor of Economics. He is currently director of the Nobel Foundation. Heikensten passed his school certificate in Bromma in 1970 and spent one year in High school in Marion, Iowa, in the United States. In 1984 Heikensten was employed as a chief economist at the Swedish National Debt Office, from 1985 he was a Director and later Director-General and Head of the Economic Affairs Department at the Ministry of Finance. During this time he was responsible, amongst other things, for government reports known as the Long-Term Surveys of the Swedish Economy and he became known to a wider public when he around 1990 argued for the need to reform the public expenditure system. Between 1992 and 1995 Heikensten was Chief Economist at Handelsbanken and a member of the Executive Group for Handelsbankens investment bank, in the autumn of 1995 Heikensten became Deputy Governor of Sveriges Riksbank with particular responsibility for monetary policy. He retained this position after the reform where the Riksbank became independent and he succeeded Urban Bäckström as Governor of the Riksbank in 2003. During the ten years when Heikensten worked at the Riksbank – from 1995 to 2005 - major changes occurred, at the same time the Riksbank became one of the most transparent central banks in the world. Also, the workforce was drastically reduced, Heikensten left in 2006 to become the Swedish Member of the European Court of Auditors, the external auditing organisation of the European Union located in Luxembourg. He has also held board positions in companies, university departments, think-tanks. Besides, he has several books, numerous articles in professional journals and participated actively in the Swedish. Since 2007 he has been Chairman of the Swedish Expert Group on Public Economics. Heikensten has been a member of the Royal Swedish Academy of Engineering Sciences since 2001, the Kings Medal at the highest level
30.
Economy of Sweden
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The economy of Sweden is a developed export-oriented economy aided by timber, hydropower, and iron ore. These constitute the base of an economy oriented toward foreign trade. The main industries include motor vehicles, telecommunications, pharmaceuticals, industrial machines, precision equipment, chemical goods, home goods and appliances, forestry, iron, and steel. Approximately 90% of all resources and companies are owned, with a minority of 5% owned by the state. Sweden has achieved a standard of living under a mixed system of high-tech capitalism. Sweden has the second highest total tax revenue behind Denmark, as a share of the countrys income, as of 2012, total tax revenue was 44. 2% of GDP, down from 48. 3% in 2006. The National Institute of Economic research predicts GDP growth of 1. 8%,3. 1% and 3. 4% in 2014,2015 and 2016 respectively, in the 19th century Sweden evolved from a largely agricultural economy into the beginnings of an industrialized, urbanized country. However, incomes were sufficiently high to finance emigration to distant places, prompting a large portion of the country to leave, Economic reforms and the creation of a modern economic system, banks and corporations were enacted during the later half of the 19th century. During that time Sweden was in a way the powerhouse of the Scandinavian region with a strong industrialization process commencing in the 1860s, by the 1930s, Sweden had what Life magazine called in 1938 the worlds highest standard of living. Beginning in the 1970s and culminating with the recession of the early 1990s. Since the mid-1990s the economic performance has improved, in 2009, Sweden had the worlds tenth highest GDP per capita in nominal terms and was in 14th place in terms of purchasing power parity. Sweden has had a model in the post-World War II era. The Swedish economy has extensive and universal social benefits funded by high taxes, in the 1980s, a real estate and financial bubble formed, driven by a rapid increase in lending. A restructuring of the tax system, in order to emphasize low inflation combined with an economic slowdown in the early 1990s. Between 1990 and 1993 GDP went down by 5% and unemployment skyrocketed, the investment levels for IT and computers were restored as early as 1993. In 1992 there was a run on the currency, the central bank briefly jacking up interest to 500% in an effort to defend the currencys fixed exchange rate. Total employment fell by almost 10% during the crisis, a real estate boom ended in a bust. The government took over nearly a quarter of banking assets at a cost of about 4% of the nations GDP and this was known colloquially as the Stockholm Solution
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