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Interest Rate Parity (IRP).



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IRP is an economic theory that states that the interest rate differential between two countries should be equal to the difference between the expected inflation rates of those countries. In other words, the interest rate in one country should equal the interest rate in another country plus or minus the expected inflation rate in that … Read more

What Is Rent Seeking?



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Rent seeking occurs when an individual or firm seeks to gain an economic rent by engaging in activities that do not create new value, but simply redistribute existing value. This can take the form of lobbying for government favors or regulations that create artificial scarcity, or acquiring licenses or permits that restrict competition. Rent seeking … Read more