Year: 2022

The Objectives of Monetary Policy

Monetary policy is an important tool for any country’s economic development and overall economic stability. The objectives of monetary policy may vary from country to country depending on the economic and social condition of the country and other needs. Even in the same country, monetary policy has different objectives at different times. The main objectives …

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The Best Definition of Microeconomics

There are different definitions of microeconomics given by different economists and the common matter of almost all the definitions is that microeconomics refers to the study of economic behaviors of very small and individual units of an entire economy. Thus, first microeconomics divides the entire economy into several small parts and then studies each part …

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Among Nominal GDP and Real GDP, which GDP is better?

The nominal gross domestic product is the total market value of all newly produced goods and services during each time, usually annually. Real GDP is nominal GDP adjusted for inflation or measurement of newly-produced goods and services at constant prices. Real GDP is used to measure the actual growth of production without any effects of …

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Williamson’s Model of Managerial Discretion

Introduction The model of the managerial theory of the firm presented by Oliver E. Williamson is known as Williamson’s Model of Managerial Discretion. This model was developed by Williamson in 1963 in his article ‘Managerial Discretion and Business Behaviour’ published in ‘American Economic Review’.Williamson argues that managers are motivated by their self-interest and they try …

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