Definition of Key Economic Terms

Inflation refers to the situation in a situation in which when the price of goods and services rise, while deflation occurs when those costs decrease. Deflation refers to a contraction in the supply of circulated money within an economy, also the opposite of inflation. In times of deflation, the purchasing power of currency and wages are higher than expected in an economy. Gross domestic product (GDP) is just the total value of goods produced and services provided in a country during one year.

Monetary policy is the macroeconomic policy developed by the country’s central bank and works to manage the supply of money and interest rate. This system is used by a nation to achieve macroeconomic objectives such as consumption, inflation, liquidity, and growth.

Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence economic growth (Richardson, 2006).


The following are some of the economic facts that are similar from the selected articles ” interest in debt based monetary systems, the volatility of exchange rates under the present managed-float regime creates both opportunities and threats. One way of responding to this instability is for countries to develop strategic flexibility by dispersing production to different locations around the globe by contracting out manufacturing and other means. The articles also illustrate the global financial breakdown and the implications of debt on economic development (Gillis, 2001).

Research Papers:

Global Financial Breakdown: Precipitating Factors & Underlying Causes, by Kenneth Matziorinis The Causes of the Great Depression: A Retrospective, by Kenneth MatziorinisA Brief History of the International Monetary System, by Kenneth MatziorinisCanadian Trade Policy: A Brief History of Canada’s Trade Policy, by Kenneth Matziorinis


Gillis, M. (2001). Financial Crisis in East Asia: Underlying and Precipitating Factors. Trade, Development and Political Economy, 251-267. doi:10.1057/9780230523685_14

Globalizing Capital: A History of the International Monetary System. (n.d.). The SHAFR Guide Online. doi:10.1163/2468-1733_shafr_sim280020572

Jensen, R. J. (1989). The Causes and Cures of Unemployment in the Great Depression. Journal of Interdisciplinary History, 19(4), 553. doi:10.2307/203954

Richardson, G. (2006). Quarterly Data on the Categories and Causes of Bank Distress During the Great Depression. doi:10.3386/w12715