Introduction to Economic History and the Global Economy (Vocabulary Flashcards)

Glossary-style vocabulary flashcards covering key concepts from the lecture notes on economic history and globalization.

Great Divergence

The long historical gap in economic performance between Europe (and the Western world) and many other regions, especially since the 18th century.

Globalization

The process of increasing international economic integration, with financial globalization starting in 1971 and real-economy integration accelerating after 1989.

Bretton Woods system

Postwar framework (1944) that established fixed exchange rates and capital controls; abandoned in 1971 as constraints dissolved.

Washington Consensus

IMF/World Bank policy package favoring privatization, liberalization, and stabilization to create market-oriented economies.

Copenhagen Criteria

EU membership requirements emphasizing political, bureaucratic, and economic institutions compatible with the European Union.

Doing Business index

World Bank indicator (launched 2001) measuring the ease of starting and operating a business.

Transition Reports (EBRD)

Annual assessments by the European Bank for Reconstruction and Development tracking progress of transition economies and institutional development.

Endogenous growth theory

Growth theory where technology, human capital, and institutions inside the economy generate sustained growth.

Malthusian trap

The tendency for population to outpace food production, keeping per-capita incomes at subsistence unless advancements occur.

Institutions

Formal rules (laws, constitutions) and informal constraints (norms, conventions) shaping economic performance and enforcement.

Human capital

Investments in knowledge, skills, and abilities (education, training, experience) that raise productivity.

Primary, secondary, tertiary sectors

Primary: agriculture and natural resources; Secondary: manufacturing; Tertiary: services.

Engel's Law

As income increases, the percentage of income spent on food declines, shifting demand towards goods, services, eductaion, ect.

Economic structure

Relationships and shares among the economy’s sectors (primary, secondary, tertiary) and their roles in value creation.

Growth

A sustained increase in a country’s total output, typically measured by GDP.

Development

Growth plus substantial structural or organizational changes in the economy (e.g., industrialization, services).

Progress

A normative notion of improvement; not automatically linked to growth or development and debated ethically.

GDP, GNI, GNP

GDP is the value of goods/services produced domestically; GNI is gross national income/population in country. GNP is total value of all goods and services produced by a country in a year including abroad/ population. (productivity)

Real income

Income adjusted to remove effects of price changes, allowing comparisons over time.

Logistics / S-curve

The logistic (S-shaped) growth curve describing accelerating then decelerating growth, used to model population and diffusion.

Kuznets and modern growth

Simon Kuznets linked modern growth to a persistent rise in population and per-capita income (not before 1800).

BRIC

Brazil, Russia, India, and China—emerging large economies shaping global growth.

China’s one-child policy

A population-control policy used as an example of how government policy can affect demographic trends.

Four simple rules of growth (1990s)

Increase investment in manufacturing, raise education levels, reduce birth rates, and increase exports.

Ultimate resource

The idea that human capital and ingenuity are the ultimate resources enabling long-term growth.

Structural change and relative prices

Shifts among sectors (e.g., from agriculture to industry to services) driven by productivity, Engel’s Law, and price changes.

Subsistence economy

An economy where most production is just enough to meet basic needs, with little surplus for growth.