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DISEQUILIBRIUM: The state that exists when opposing forces do not offset each other and there is an inherent tendency for change. Disequilibrium is most noted in market analysis in which the opposing forces are demand (the buyers) and supply (the sellers). The result is either a shortage, which entices the market price to rise, or a surplus, which entices the market price to fall.
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POLICY LAGS Time lags that occur between the onset of an economic problem and the full impact of the policy intended to correct the problem. Policy lags come in two broad categories--inside lag (getting the policy activated) and outside lag (the subsequent impact of the policy). The three specific inside lags are recognition lag, decision lag, and implementation lag. The one specific outside lag is termed impact lag. Policy lags can reduce the effectiveness of business-cycle stabilization policies and can even destabilize the economy. Policy lags, especially inside lags, are often different for monetary policy than for fiscal policy.
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BLUE PLACIDOLA
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Today, you are likely to spend a great deal of time calling an endless list of 800 numbers trying to buy either storage boxes for your income tax returns or an AC adapter for your CD player. Be on the lookout for empty parking spaces that appear to be near the entrance to a store.
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During the American Revolution, the price of corn rose 10,000 percent, the price of wheat 14,000 percent, the price of flour 15,000 percent, and the price of beef 33,000 percent.
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"Don't be afraid if things seem difficult in the beginning. That's only the initial impression. The important thing is not to retreat; you have to master yourself." -- Olga Korbut, Gymnast
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FDIC
Federal Deposit Insurance Corporation
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