The Human Development Index (HDI) is a tool used to rank countries based on their level of human
Glossary Category: Economics
economic development
Economic development is a process that improves the living standards and general well-being of people in a country.
current account surplus
A current account surplus happens when a country sells more goods, services, and income to the rest of
current account deficit
A current account deficit happens when a country spends more money on foreign goods, services, and income transfers
revaluation
Revaluation is the official and deliberate increase in the value of a country’s currency in relation to another
devaluation
Devaluation is an official decision by a government to lower the value of its currency against other currencies.
exchange rate determination
Exchange rate determination explains how the value of a currency is decided in a floating exchange rate system.
managed exchange rate
A managed exchange rate, also known as a dirty float, is a system where a currency’s value is
trade-weighted exchange rate
The trade-weighted exchange rate (TWER) is a way to measure the overall value of a currency compared to
real exchange rate
The real exchange rate (RER) measures the actual price of goods and services between two countries. It adjusts