Part 5: Management of a Commercial Society
42 Financial Institutions
Nations often establish rules and guidelines that help to determine the supply and availability of economic currency (money).
43 Fractional Reserve Banking
The financial system uses the base money to generate "deposit money," sometimes called "inside money," through a process of fractional reserve banking.
45 Gross Domestic Product (GDP)
Gross Domestic Product (GDP) is a broad measure of economic activity that is commonly used to gauge the economic performance of a whole country or region, and to make international comparisons.
46 Unemployment Rate
The unemployment rate, as officially measured, is a ratio of the number of unemployed individuals by all individuals currently in the labor force. The labor force is the number of people eligible for work.
48 Fiscal Policy
Fiscal policy is the use of government spending and taxation to influence the economy.
49 Monetary Policy
Monetary policy is the means through which a government, typically through a central bank, influences a nation's money supply.
50 Public Choice
One of the fundamental insights of liberal political theory is that if human society is to be peaceful and prosperous, then we need the rule of law to hold us accountable for the consequences of our actions. But the people who administer the rule of law are regular human beings with the same issues, desires, and motivations as everyone else.