K
| Term | Definition |
|---|---|
| Keynesian Economics | An economic theory associated with economist John Maynard Keynes, emphasizing the importance of government intervention to manage economic fluctuations. Keynesian economics advocates for active fiscal policy, such as government spending and taxation, to stabilize the economy. |
| Kuznets Curve | A graphical representation suggesting an inverted U-shaped relationship between economic development and income inequality. The curve is named after economist Simon Kuznets. It implies that income inequality initially increases during the early stages of economic development but decreases as the economy matures. |
| Kondratiev Waves | Long-term economic cycles, also known as K-waves or long waves, identified by Russian economist Nikolai Kondratiev. These cycles typically last 40-60 years and are characterized by alternating periods of economic growth and decline. Also referred to as Kondratieff Waves, they have been controversial, with limited hard evidence supporting their existence. |
| Knowledge Economy | An economy where knowledge, information, and intellectual capabilities play a crucial role in the production and distribution of goods and services. Emphasizes the importance of education, innovation, and technology. |
| Kickback | In economics, a kickback refers to a payment made to someone in return for facilitating a transaction or securing favorable terms. Kickbacks are generally considered unethical and, in some cases, illegal. |
| Kaldor-Hicks Efficiency | A criterion used in welfare economics to evaluate policy changes. A change is considered Kaldor-Hicks efficient if the winners could, in theory, compensate the losers, resulting in a Pareto improvement (a situation where at least one person is better off without making anyone worse off). |
| Keiretsu | A form of business group in Japan, consisting of interlinked companies with cross-shareholdings, often centered around a major bank. Keiretsu members work closely together and may have reciprocal shareholdings. |
| Kaizen | A Japanese term for continuous improvement. In economic and business contexts, Kaizen refers to the philosophy of making ongoing, incremental improvements in processes, products, and operations. |
| Kinked Demand Curve | A model used to explain price rigidity in oligopolistic markets. The kinked demand curve suggests that firms face a relatively elastic demand curve above the existing price but a less elastic demand curve below the price. |
| Kiosk Economy | An economic model where businesses operate in small, self-contained units or kiosks rather than traditional brick-and-mortar establishments. This model is often associated with modern retail trends and the use of technology. |
| Knowledge Capital | The intellectual and educational assets possessed by individuals and organizations, contributing to their productivity and competitiveness in the knowledge economy. |
| Kremlinomics | Informal term referring to economic policies associated with the Russian government, particularly those implemented during the Soviet era. |
| Keynesian Cross | A graphical representation of the Keynesian model, showing the equilibrium level of national income where aggregate demand equals aggregate supply. The Keynesian Cross is used to analyze the impact of changes in spending on the economy. |
| Kleptocracy | A corrupt, thieving government where politicians and bureaucrats misuse state powers for personal gain. |
| Kondratieff Wave | A 50-year business cycle, named after Nikolai Kondratieff, a Russian economist. He claimed to have identified cycles of economic activity lasting half a century or more in his 1925 book, The Long Waves in Economic Life. Because this implied that capitalism was ultimately a stable system, contrasting with the Marxist view that it was self-destructively unstable, he ended up in one of Stalin’s prisons, where he died. Alas, there is little hard evidence to support Kondratieff’s conclusion. |