An introduction to the information economy

Conclusion Economics is a field of study that has become increasingly relevant in our globalized, financialized society. The economy is part of our collective conscious and a buzzword that links personal finances to big business and international trade deals. Economics deals with individual choice, but also with money and borrowing, production and consumption, trade and markets, employment and occupations, asset pricing, taxes and much more. What then is the definition of economics?

An introduction to the information economy

From rising GDP growth rates to declining unemployment or the threat of inflation in Europe, economic trends are a major determinant of what happens to American companies and their stock prices.

Along with corporate earnings, economic reports are the most watched regularly scheduled pieces of news. Almost every week there is an economic report that can help investors estimate what the future of the economy holds. This section will educate you about several basic, yet crucial economic concepts and will tell you the economic information that's most important to you as an investor.

Fiscal Policy The economy can be impacted by the U. The first type is called fiscal policy, which is economic policy instigated by the President or by Congress. The fundamental tools at the disposal of these branches of government are taxation law and government spending.

An introduction to the information economy

By changing tax laws, the government can effectively modify the amount of disposable income available to its taxpayers. For example, if taxes were to increase, consumers would have less disposable income and in turn would have less money to spend on goods and services.

This difference in disposable income would go to the government instead of going to consumers, who would pass the money onto companies. Or, the government could choose to increase government spending by directly purchasing goods and services from private companies.

This would increase the flow of money through the economy and would eventually increase the disposable income available to consumers. Unfortunately, this process takes time, as the money needs to wind its way through the economy, creating a significant lag between the implementation of fiscal policy and its effect on the economy.

Monetary Policy The second way the government can impact the economy is through monetary policy. Monetary policy is instigated by the central bank of a nation the Federal Reserve in the U.

By impacting the effective cost of money, the Federal Reserve can affect the amount of money that is spent by consumers and businesses.

An introduction to the information economy

By InvestorGuide Staff Copyrighted Content published with author's permission.Introduction to the Economy, Fiscal and Monetary Policy From rising GDP growth rates to declining unemployment or the threat of inflation in Europe, economic trends are a major determinant of what happens to American companies and their stock prices.

A Brief Introduction to Theories of International Political Economy William W. Newmann Department of Political Science Virginia Commonwealth University.

In this new 'Informational Economy' a firm's competitiveness is dependent on its knowledge of technology, information, and access to networks. The new economy is defined by a 'transformation of work and employment'. This concept implies that there is higher unemployment in countries where technology is scarce.

Economics of Information Technology to be critical in the information economy. Second-order effects for industrial Hitt (), Steindel and Stiroh (), and Stiroh () for an introduction to this literature.

Introduction to Political Economy | Economics | MIT OpenCourseWare

For different approaches, see Litan and Rivlin () and Litan and Varian (). Introduction and Information. Family businesses in general have in the past made a large contribution to a surge in the European economy and play a significant role in economic growth and social development, in reducing unemployment, particularly among young people, and in investment in human capital.

The intention for their.

Course Features

1 An Introduction. Richard T. Watson (University of Georgia, USA) Electronic commerce is a revolution in business practices. If organizations are going to take advantage of new Internet technologies, then they must take a strategic perspective.

Economics Basics