ENG
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Compensation scheme
on
2023/07/21 by
alex1, []
In the financial sector, the payment of employees. After the financial crisis that followed the subprime crisis, there was a call for compensation to be based on the risk taken and the sustained success of the business. In addition, business failures should also be taken into account. – In April 2009, the Financial Stability Board […]
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Extension fee (back fee)
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2023/07/21 by
alex1, []
The amount payable when an option is extended beyond the original contract date and is extended through a subsequent contract (a premium paid when a buyer continues an option through a second option contract on extension date of the original contract). – Payment made by the owner of a compound option to the owner of […]
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Costs; incidentals, unforeseen expenses
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2023/07/21 by
alex1, []
A term for costs that is now frowned upon in economics, but is still very common in older literature and in some cases also in colloquial language. – The occurrence of extraordinarily high costs that were not foreseen to this extent. The prefix „Un-“ is used here not for negation, but for intensification (as in […]
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Unit-value ratio (also used in German; more rarely value-added ratio)
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2023/07/21 by
alex1, []
Ratio formed from the export value of goods (in GE) divided by the export quantity (in kg). It expresses the value added (net value added) of the exporting industries. – It is an important indicator for the exchange rate of a currency and the terms of trade. This is because the higher the quality of […]
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Group of companies, horizontal (horizontally integrated group of companies)
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2023/07/21 by
alex1, []
Pursuant to Section 1, Paragraph 21 of the German Banking Act, a group of companies exists on the financial market if – a company is affiliated with one or more other companies in such a way that they are jointly subject to uniform performance on the basis of a provision of the Articles of Association […]
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Urbarium also Urbar (rental, rent-roll)
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2023/07/21 by
alex1, []
In earlier times, a register of the revenues of the manor with a list of duties (levies, fiefs; soc(c)ages), often covering long periods of time, and a list of the serfs (villeins) liable to pay taxes. For economic history in general and for financial history in particular, the Urbarien with their diverse records are a […]
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VAR model (vector autoregressive model)
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2023/07/21 by
alex1, []
Econometric simulation of all effects of interest rate changes, first on the money market and then on other economic variables. The aim is to obtain reliable impulse-response functions from which the likely impact of a central bank policy measure can be determined in advance. – See book credit, key data, macroeconomic, equilibrium models, dynamic-stochastic, models, […]
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Constructive vagueness
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2023/07/21 by
alex1, []
Term from the central bank’s vocabulary. In this case, the central bank explains and justifies measures. However, it does not comment on the details so as not to send the wrong signals to market participants. – In the wake of the Greek crisis, for example, the ECB announced in summer 2010 that it had purchased […]
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Lendings to companies
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2023/07/21 by
alex1, []
Loans granted by a country’s banks to companies. These are reported to the central banks and monitored by the ECB under the two-pillar principle. – The share of loans to companies as a percentage of gross domestic product. In 2004, this rate was 70 percent for the United Kingdom, 56 percent for Germany and Japan, […]
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Urukagina principle
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2023/07/21 by
alex1, []
„Pay in best money!“; decree of the Sumerian (Sumer = an ancient country of southern Mesopotamia in present-day southern Iraq; the Sumerians are believed to have invented the cuneiform: the wedgeshaped system of writing) Urukagina around 2500 BC. The Urukagina, around 2500 B.C., instructed the (foreign trade) merchants to pay in Kurant coin – practically […]
