Macroeconomics

Time inconsistency:

The tendency of policy-

makers to announce policies in advance in order 

to influence the expectations of private decision-

makers, and then to follow different policies 

after those expectations have been formed and

acted upon.

Tobin’s q:

The ratio of the market value of installed

capital to its replacement cost.

Total factor productivity:

A measure of the level

of technology; the amount of output per unit of

input, where different inputs are combined on the

basis of their factor shares. (Cf. Solow residual.)

Trade balance:

The receipts from exports minus

the payments for imports.