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Economics Dictionary

  I'm learning Economics as a hobby. My major is "Philosophy". Adam Smith (one of the founders of the Economics) was a philosopher.
So, let's have this economics dictionary online here.

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Carflation

Carflation -- it means "car inflation". The meaning is: increased car prices due to the rising cost of raw materials and components, wars, increased cost of labor, etc.

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Knife edge problem

Knife edge problem -- this is also known as "knife-edge equilibrium". It means that there is a condition in which something must either be at a precise equilibrium, or fall down, i.e. it is a kind of an unstable equilibrium. If that is reached, you may continue to stay in that equilibrium in the absence of any slightest shock, disturbance and so on.

 A related article: https://effectivedemand.typepad.com/ed/2013/05/reviving-the-knife-edge-with-effective-demand-response-to-jw-mason.html.

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Black swan events

Black swan events -- all these (black swan event, black swan events, black swan theory, the black swan theory, theory of black swan events, black swans, etc.) are metaphors which describes an event that comes as a surprise, has a major effect, results in severe and widespread consequences. These terms are based on an ancient saying that presumed black swans did not exist. Later people found out that the black swans do exist. An example for a black swan event may be the COVID-19 or the Russo-Ukrainian war in 2022.
 Economists use the term for the events that economic models could not predict.

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Cash cows

Cash cows -- a cash cow (pl. "cash cows") is a metaphor for a business, investment, or product that provides a steady income or profit; it is a venture that generates a steady return of profits that far exceed the outlay of cash required to acquire or start it.
They're the second best after the so-called "stars".

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Gray rhino events

Gray rhino events (grey rhino events) -- the gray/grey rhino event/events are the "known unknowns"; they're slowly emerging, obvious threats which are ignored or minimized by the decision makers. The term refers to highly probable but neglected threats that have an enormous impact, for example the climate change.
 The term was coined by Michele M. Wucker (an American author, commentator and policy analyst specializing in the world economy and crisis anticipation), who came up with the term after the 2012 Greek financial crisis.

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Stars

Stars -- a star (pl. "stars") is a metaphor for businesses, investments, or products which are in high growth markets and that make up a sizable portion of that market. That's why they're considered to be ones of the best (i. e. “stars”) and should be invested in more.

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Dogs

 Dogs -- a dog (pl. "dogs") is a metaphor for businesses, investments, or products which are with small market share in a mature industry, thus they neither generate the strong cash flow nor requires the hefty investment that a cash cow or star would. Dogs measure low on both market share and growth.

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Question marks

 Question marks -- a question mark (pl. "question marks") is a metaphor for businesses, investments, or products which are with low market share but in a high growth market. The product has an opportunity to increase market share and dominate the market.

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Bear market

 Bear market -- a bear market is a market in which prices are falling (a time of contraction in financial markets). It is a financial term used to describe a drop of over 20% in any asset (although it is most commonly used for stock market indexes).
 The bear markets happen fairly often and are part of the economic cycle, but they're also a strong signal of a potential economic downturn. Bear markets can be cyclical (i. e. can last for several weeks or a couple of months) or longer-term (i.e. can last for several years or even decades).

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Bull market

 Bull market -- a bull market is the condition of a financial market in which prices are rising (or are expected to rise). The term is most often used to refer to the stock market but can be applied to anything that is traded (like bonds, real estate, currencies, commodities...) Generically, a bull market exists if the market has risen 20% or more above its near-term lows.
 Compare with the bear market.

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Unicorn company

 Unicorn company -- an unicorn company is a private company with a valuation of at least $1 billion. About the "unicorn" -- it's a mythological, legendary creature. This is an animal resembling a horse (or a goat, which most of the people don't know) with a single horn on its forehead.

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Lame duck

 Lame duck -- lame duck is a term used with reference to a trader who had defaulted on his/her obligations or gone bankrupt due to an inability to cover trading losses. A lame duck can't trade again until all his/her debts had been settled and paid.

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White knight

 White knight -- White knight is a term used with reference to a hostile takeover defense whereby a "friendly" individual (or a "friendly" company) acquires a corporation at fair consideration when it is on the verge of being taken over by an "unfriendly" bidder or acquirer.
 In other words -- a person or company making an acceptable counteroffer for a company facing a hostile takeover bid.
 Although the target company doesn't remain independent, acquisition by a white knight is still preferred to the hostile takeover.

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Black knight

 Black knight -- Black knight is a term that means a company or individual that makes an unwelcome, hostile takeover bid. Companies do not want to be taken over by black knights, usually because their goals are destructive and don’t align with what management is trying to achieve.
 Related: white knight.