Intervention

Intervention When.a government fixes its exchange rate, it must “intervene” in foreign exchange markets to maintain the rate. Government exchange-rate intenentioD occurs when the government buys or sells foreign exchange to affect exchange rates. For...

The leaky bucket

In taking steps to redistribute income from the rich to the poor; governments may harm economic efficiency and reduce the amount of national income available to distribute. On the ocher hand, If equality Is a social good. it is one worth pay for. Redistribution Costs...

Who Are the Poor?

Who Are the Poor? Poverty hits some groups harder than others. Table 19-4 shows the incidence of poverty in different groups for 1998.While 12.7 percent of the total population was counted as falling below the 1998 poverty line, the rate among black and Hispanic...

Entrepreneurship

Entrepreneurship Compared to thrift, entrepreneurship is a much !flore important road to riches. Table 19-3 displays the experience of the top 100 wealth holders in 1999. ~ .These data suggest that most of the richest people .in America got that Wily by taking risks...