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Maya

Maya may refer to:

Civilizations

 * Maya peoples, of southern Mexico and northern Central America
 * Maya civilization, the historical civilization of the Maya peoples
 * Mayan languages, the languages of the Maya peoples
 * Maya (Ethiopia), a population native to the old Wej province in Ethiopia

Places

 * Maya (river), a river in Yakutia, Russia
 * Maya (Uda), a river in Khabarovsk Krai, Russia
 * Maya, Uganda, a town
 * Maya, Western Australia, a town
 * Maya Karimata, an island in West Borneo, Indonesia
 * Maya Mountains, a mountain range in Guatemala and Belize
 * Maya Biosphere Reserve, a nature reservation in Guatemala
 * Mount Maya, a mountain in Kobe, Japan
 * Maya Station, a railway station in Kobe, Japan
 * La Maya (mountain), an alp in Switzerland
 * Al Maya or Maya, a town in Libya

Religion and mythology

 * Maya (religion), in Dharmic religions, relates to the illusion of reality
 * Maya religion, the religious practices of the Maya peoples of parts of Mexico and Central America
 * Maya mythology, the myths and legends of the Maya civilization
 * Maya (mother of the Buddha) (died 563 BC), mother of the historical Buddha
 * Mayasura or Maya, a Hindu demon

Military

 * Japanese gunboat Maya, a Maya-class gunboat launched in 1886
 * Japanese cruiser Maya, a Takao-class cruiser launched in 1930
 * JS Maya, a Maya-class destroyer launched in 2018
 * Japanese ship class Maya, a list of ships
 * Aero L-29 Delfín, NATO reporting name Maya, a Czech military jet trainer aircraft
 * Battle of Maya, an 1813 battle of the Peninsular War, between British and French forces

Film and television

 * Maya (1949 film), a French drama film directed by Raymond Bernard
 * Maya (1961 film), an Indian Hindi film starring Dev Anand, Mala Sinha and Lalita Pawar
 * Maya (1966 film), an American film starring Sajid Khan, Jay North, and Clint Walker
 * Maya (1967 U.S. TV series), an American television series and reboot of the 1966 film
 * Maya the Honey Bee (1975 TV series), a Japanese anime television series
 * Maya (1999 film), an Indian trilingual film by Rama Narayanan
 * Maya (2001 film), an Indian Hindi film by Digvijay Singh
 * Maya & Miguel, 2004 animated TV series
 * Maya (2012 TV series), a 2012 Indian medical soap opera television series
 * Maya the Bee (2012 TV series), a French-German animated comedy television series
 * Maya the Bee (2014 film), a German-Australian animated comedy adventure film
 * Maya (2015 Pakistani film), a horror film
 * Maya (2015 Tamil film), 2015 Indian Tamil-language horror film starring Nayanthara
 * Maya 3D, a 2016 Sri Lankan horror film
 * Maya (2018 film), a French film
 * Maya the Bee: The Honey Games (2018 film), an Australian–German animated comedy adventure film
 * Maya (2018 TV series), 2018 Indian Tamil television series
 * Maya the Bee: The Golden Orb (2021 film), a German animated comedy adventure film
 * Maya TV, a television channel in Honduras

Literature

 * Maya (Surendran novel), a novel by K. Surendran
 * Maya (Campbell novel), a 2010 novel by Alastair Campbell
 * Maya, a 1999 book by Jostein Gaarder
 * Maya the Bee, a 1912 children's book by Waldemar Bonsels

Music

 * Maya (Banco de Gaia album) (1994)
 * Maya (Zubeen Garg album) (1994)
 * Maya (Bipul Chettri album) (2016) or its title song
 * Maya (Moheener Ghoraguli album) (1997)
 * Maya (M.I.A. album) (2010)
 * Maya (John Frusciante album) (2020)
 * "Maya", a 1968 song by the Incredible String Band from Wee Tam and the Big Huge

Other uses

 * Maya language (disambiguation)
 * Maya (bird), a folk taxon for several bird species in the Philippines
 * Maya (given name), a name (including a list of people and fictional characters with the name)
 * Maya (mobile payments), a financial services and digital payments company based in the Philippines
 * Autodesk Maya, a computer program for creating 3D graphics
 * C.D. Maya, a football club in El Salvador
 * Mayapada Group, an Indonesian-based conglomerate
 * Washburn Maya Signature Series, a series of six-string electric guitars created by Washburn Guitars
 * Most Advanced Yet Acceptable, a product design principle associated with Form follows function

title: Maya


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Deflation

In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). Inflation reduces the value of currency over time, but deflation increases it. This allows more goods and services to be bought than before with the same amount of currency. Deflation is distinct from disinflation, a slowdown in the inflation rate; i.e., when inflation declines to a lower rate but is still positive.

Economists generally believe that a sudden deflationary shock is a problem in a modern economy because it increases the real value of debt, especially if the deflation is unexpected. Deflation may also aggravate recessions and lead to a deflationary spiral (see later section).

Some economists argue that prolonged deflationary periods are related to the underlying of technological progress in an economy, because as productivity increases (TFP), the cost of goods decreases.

Deflation usually happens when supply is high (when excess production occurs), when demand is low (when consumption decreases), or when the money supply decreases (sometimes in response to a contraction created from careless investment or a credit crunch) or because of a net capital outflow from the economy. It can also occur when there is too much competition and too little market concentration.

Causes and corresponding types
In the IS–LM model (investment and saving equilibrium – liquidity preference and money supply equilibrium model), deflation is caused by a shift in the supply and demand curve for goods and services. This in turn can be caused by an increase in supply, a fall in demand, or both.

When prices are falling, consumers have an incentive to delay purchases and consumption until prices fall further, which in turn reduces overall economic activity. When purchases are delayed, productive capacity is idled and investment falls, leading to further reductions in aggregate demand. This is the deflationary spiral. The way to reverse this quickly would be to introduce an economic stimulus. The government could increase productive spending on things like infrastructure or the central bank could start expanding the money supply.

Deflation is also related to risk aversion, where investors and buyers will start hoarding money because its value is now increasing over time. This can produce a liquidity trap or it may lead to shortages that entice investments yielding more jobs and commodity production. A central bank cannot, normally, charge negative interest for money, and even charging zero interest often produces less stimulative effect than slightly higher rates of interest. In a closed economy, this is because charging zero interest also means having zero return on government securities, or even negative return on short maturities. In an open economy it creates a carry trade, and devalues the currency. A devalued currency produces higher prices for imports without necessarily stimulating exports to a like degree.

Deflation is the natural condition of economies when the supply of money is fixed, or does not grow as quickly as population and the economy. When this happens, the available amount of hard currency per person falls, in effect making money more scarce, and consequently, the purchasing power of each unit of currency increases. Deflation also occurs when improvements in production efficiency lower the overall price of goods. Competition in the marketplace often prompts those producers to apply at least some portion of these cost savings into reducing the asking price for their goods. When this happens, consumers pay less for those goods, and consequently, deflation has occurred, since purchasing power has increased.

Rising productivity and reduced transportation cost created structural deflation during the accelerated productivity era from 1870 to 1900, but there was mild inflation for about a decade before the establishment of the Federal Reserve in 1913. There was inflation during World War I, but deflation returned again after the war and during the 1930s depression. Most nations abandoned the gold standard in the 1930s so that there is less reason to expect deflation, aside from the collapse of speculative asset classes, under a fiat monetary system with low productivity growth.

CPI 1914-2022.webp}} {{legend|#EE220C |Deflation}}

]] In mainstream economics, deflation may be caused by a combination of the supply and demand for goods and the supply and demand for money, specifically the supply of money going down and the supply of goods going up. Historic episodes of deflation have often been associated with the supply of goods going up (due to increased productivity) without an increase in the supply of money, or (as with the Great Depression and possibly Japan in the early 1990s) the demand for goods going down combined with a decrease in the money supply. Studies of the Great Depression by Ben Bernanke have indicated that, in response to decreased demand, the Federal Reserve of the time decreased the money supply, hence contributing to deflation.

Causes include, on the demand side:
 * Growth deflation
 * Hoarding

And on the supply side:
 * Bank credit deflation
 * Debt deflation
 * Decision on the money supply side
 * Credit deflation

Growth deflation
Growth deflation is an enduring decrease in the real cost of goods and services as the result of technological progress, accompanied by competitive price cuts, resulting in an increase in aggregate demand.

A structural deflation existed from the 1870s until the cycle upswing that started in 1895. The deflation was caused by the decrease in the production and distribution costs of goods. It resulted in competitive price cuts when markets were oversupplied. The mild inflation after 1895 was attributed to the increase in gold supply that had been occurring for decades. There was a sharp rise in prices during World War I, but deflation returned at the war's end. By contrast, under a fiat monetary system, there was high productivity growth from the end of World War II until the 1960s, but no deflation.

Historically not all episodes of deflation correspond with periods of poor economic growth.

Productivity and deflation are discussed in a 1940 study by the Brookings Institution that gives productivity by major US industries from 1919 to 1939, along with real and nominal wages. Persistent deflation was clearly understood as being the result of the enormous gains in productivity of the period. By the late 1920s, most goods were over supplied, which contributed to high unemployment during the Great Depression.

Bank credit deflation
Bank credit deflation is a decrease in the bank credit supply due to bank failures or increased perceived risk of defaults by private entities or a contraction of the money supply by the central bank.

Debt deflation
Debt deflation is a complicated phenomenon associated with the end of long-term credit cycles. It was proposed as a theory by Irving Fisher (1933) to explain the deflation of the Great Depression.

Money supply-side deflation
From a monetarist perspective, deflation is caused primarily by a reduction in the velocity of money or the amount of money supply per person.

A historical analysis of money velocity and monetary base shows an inverse correlation: for a given percentage decrease in the monetary base the result is a nearly equal percentage increase in money velocity. This is to be expected because monetary base ($MB)$, velocity of base money ($VB)$, price level ($P$) and real output ($Y$) are related by definition: $MBVB = PY$. However, the monetary base is a much narrower definition of money than M2 money supply. Additionally, the velocity of the monetary base is interest-rate sensitive, the highest velocity being at the highest interest rates.

In the early history of the United States, there was no national currency and an insufficient supply of coinage. Banknotes were the majority of the money in circulation. During financial crises, many banks failed and their notes became worthless. Also, banknotes were discounted relative to gold and silver, the discount depended on the financial strength of the bank.

In recent years changes in the money supply have historically taken a long time to show up in the price level, with a rule of thumb lag of at least 18 months. More recently Alan Greenspan cited the time lag as taking between 12 and 13 quarters. Bonds, equities and commodities have been suggested as reservoirs for buffering changes in the money supply.

Credit deflation
In modern credit-based economies, deflation may be caused by the central bank initiating higher interest rates (i.e., to "control" inflation), thereby possibly popping an asset bubble. In a credit-based economy, a slow-down or fall in lending leads to less money in circulation, with a further sharp fall in money supply as confidence reduces and velocity weakens, with a consequent sharp fall-off in demand for employment or goods. The fall in demand causes a fall in prices as a supply glut develops. This becomes a deflationary spiral when prices fall below the costs of financing production, or repaying debt levels incurred at the prior price level. Businesses, unable to make enough profit no matter how low they set prices, are then liquidated. Banks get assets that have fallen dramatically in value since their mortgage loan was made, and if they sell those assets, they further glut supply, which only exacerbates the situation. To slow or halt the deflationary spiral, banks will often withhold collecting on non-performing loans (as in Japan, and most recently America and Spain). This is often no more than a stop-gap measure, because they must then restrict credit, since they do not have money to lend, which further reduces demand, and so on.

Historical examples of credit deflation
In the early economic history of the United States, cycles of inflation and deflation correlated with capital flows between regions, with money being loaned from the financial center in the Northeast to the commodity producing regions of the (mid)-West and South. In a procyclical manner, prices of commodities rose when capital was flowing in, that is, when banks were willing to lend, and fell in the depression years of 1818 and 1839 when banks called in loans. Also, there was no national paper currency at the time and there was a scarcity of coins. Most money circulated as banknotes, which typically sold at a discount according to distance from the issuing bank and the bank's perceived financial strength.

When banks failed their notes were redeemed for bank reserves, which often did not result in payment at par value, and sometimes the notes became worthless. Notes of weak surviving banks traded at steep discounts. During the Great Depression, people who owed money to a bank whose deposits had been frozen would sometimes buy bank books (deposits of other people at the bank) at a discount and use them to pay off their debt at par value.

Deflation occurred periodically in the U.S. during the 19th century (the most important exception was during the Civil War). This deflation was at times caused by technological progress that created significant economic growth, but at other times it was triggered by financial crises – notably the Panic of 1837 which caused deflation through 1844, and the Panic of 1873 which triggered the Long Depression that lasted until 1879. These deflationary periods preceded the establishment of the U.S. Federal Reserve System and its active management of monetary matters. Episodes of deflation have been rare and brief since the Federal Reserve was created (a notable exception being the Great Depression) while U.S. economic progress has been unprecedented.

A financial crisis in England in 1818 caused banks to call in loans and curtail new lending, draining specie out of the U.S. The Bank of the United States also reduced its lending. Prices for cotton and tobacco fell. The price of agricultural commodities also was pressured by a return of normal harvests following 1816, the year without a summer, that caused large scale famine and high agricultural prices.

There were several causes of the deflation of the severe depression of 1839–1843, which included an oversupply of agricultural commodities (importantly cotton) as new cropland came into production following large federal land sales a few years earlier, banks requiring payment in gold or silver, the failure of several banks, default by several states on their bonds and British banks cutting back on specie flow to the U.S.

This cycle has been traced out on a broad scale during the Great Depression. Partly because of overcapacity and market saturation and partly as a result of the Smoot–Hawley Tariff Act, international trade contracted sharply, severely reducing demand for goods, thereby idling a great deal of capacity, and setting off a string of bank failures. A similar situation in Japan, beginning with the stock and real estate market collapse in the early 1990s, was arrested by the Japanese government preventing the collapse of most banks and taking over direct control of several in the worst condition.

Scarcity of official money
The United States had no national paper money until 1862 (greenbacks used to fund the Civil War), but these notes were discounted to gold until 1877. There was also a shortage of U.S. minted coins. Foreign coins, such as Mexican silver, were commonly used. At times banknotes were as much as 80% of currency in circulation before the Civil War. In the financial crises of 1818–19 and 1837–1841, many banks failed, leaving their money to be redeemed below par value from reserves. Sometimes the notes became worthless, and the notes of weak surviving banks were heavily discounted. The Jackson administration opened branch mints, which over time increased the supply of coins. Following the 1848 finding of gold in the Sierra Nevada, enough gold came to market to devalue gold relative to silver. To equalize the value of the two metals in coinage, the US mint slightly reduced the silver content of new coinage in 1853.

When structural deflation appeared in the years following 1870, a common explanation given by various government inquiry committees was a scarcity of gold and silver, although they usually mentioned the changes in industry and trade we now call productivity. However, David A. Wells (1890) notes that the U.S. money supply during the period 1879-1889 actually rose 60%, the increase being in gold and silver, which rose against the percentage of national bank and legal tender notes. Furthermore, Wells argued that the deflation only lowered the cost of goods that benefited from recent improved methods of manufacturing and transportation. Goods produced by craftsmen did not decrease in price, nor did many services, and the cost of labor actually increased. Also, deflation did not occur in countries that did not have modern manufacturing, transportation and communications.

By the end of the 19th century, deflation ended and turned to mild inflation. William Stanley Jevons predicted rising gold supply would cause inflation decades before it actually did. Irving Fisher blamed the worldwide inflation of the pre-WWI years on rising gold supply.

In economies with an unstable currency, barter and other alternate currency arrangements such as dollarization are common, and therefore when the 'official' money becomes scarce (or unusually unreliable), commerce can still continue (e.g., most recently in Zimbabwe). Since in such economies the central government is often unable, even if it were willing, to adequately control the internal economy, there is no pressing need for individuals to acquire official currency except to pay for imported goods.

Currency pegs and monetary unions
If a country pegs its currency to one of another country that features a higher productivity growth or a more favourable unit cost development, it must – to maintain its competitiveness – either become equally more productive or lower its factor prices (e.g., wages). Cutting factor prices fosters deflation. Monetary unions have a similar effect to currency pegs.

On spending and borrowing
Some believe that, in the absence of large amounts of debt, deflation would be a welcome effect because the lowering of prices increases purchasing power. However, while an increase in the purchasing power of one's money benefits some, it amplifies the sting of debt for others: after a period of deflation, the payments to service a debt represent a larger amount of purchasing power than they did when the debt was first incurred. Consequently, deflation can be thought of as an effective increase in a loan's interest rate. If, as during the Great Depression in the United States, deflation averages 10% per year, even an interest-free loan is unattractive as it must be repaid with money worth 10% more each year.

Under normal conditions, most central banks, such as the Federal Reserve, implement policy by setting a target for a short-term interest rate – the overnight federal funds rate in the U.S. –  and enforcing that target by buying and selling securities in open capital markets. When the short-term interest rate hits zero, the central bank can no longer ease policy by lowering its usual interest-rate target. With interest rates near zero, debt relief becomes an increasingly important tool in managing deflation.

In recent times, as loan terms have grown in length and loan financing (or leveraging) is common among many types of investments, the costs of deflation to borrowers has grown larger.

On savings and investments
Deflation can discourage private investment, because there is reduced expectations on future profits when future prices are lower. Consequently, with reduced private investments, spiraling deflation can cause a collapse in aggregate demand. Without the "hidden risk of inflation", it may become more prudent for institutions to hold on to money, and not to spend or invest it (burying money). They are therefore rewarded by saving and holding money. This "hoarding" behavior is seen as undesirable by most economists. Friedrich Hayek, a libertarian Austrian-school economist, wrote that:

"It is agreed that hoarding money, whether in cash or in idle balances, is deflationary in its effects. No one thinks that deflation is in itself desirable."

Compared with inflation
Deflation causes a transfer of wealth from borrowers and holders of illiquid assets to the benefit of savers and of holders of liquid assets and currency, and because confused price signals cause malinvestment in the form of underinvestment. In this sense, its effects are the opposite of inflation, the effect of which is to transfer wealth from currency holders and lenders (savers) and to borrowers, including governments, and cause overinvestment. Whereas inflation encourages short term consumption and can similarly overstimulate investment in projects that may not be worthwhile in real terms (for example, the dot-com and housing bubbles), deflation reduces investment even when there is a real-world demand not being met. In modern economies, deflation is usually associated with economic depression, as occurred in the Great Depression and the Long Depression. Deflation was present during most economic depressions in US history.

Deflationary spiral
A deflationary spiral is a situation where decreases in the price level lead to lower production, which in turn leads to lower wages and demand, which leads to further decreases in the price level. Since reductions in general price level are called deflation, a deflationary spiral occurs when reductions in price lead to a vicious circle, where a problem exacerbates its own cause. In science, this effect is also known as a positive feedback loop. Another economic example of this situation in economics is the bank run.

The Great Depression was regarded by some as a deflationary spiral. A deflationary spiral is the modern macroeconomic version of the general glut controversy of the 19th century. Another related idea is Irving Fisher's theory that excess debt can cause a continuing deflation.

Counteracting deflation
During severe deflation, targeting an interest rate (the usual method of determining how much currency to create) may be ineffective, because even lowering the short-term interest rate to zero may result in a real interest rate which is too high to attract credit-worthy borrowers. In the 21st-century, negative interest rates have been tried, but it cannot be too negative, since people might withdraw cash from bank accounts if they have a negative interest rate. Thus the central bank must directly set a target for the quantity of money (called "quantitative easing") and may use extraordinary methods to increase the supply of money, e.g. purchasing financial assets of a type not usually used by the central bank as reserves (such as mortgage-backed securities). Before he was Chairman of the United States Federal Reserve, Ben Bernanke claimed in 2002, "sufficient injections of money will ultimately always reverse a deflation", although Japan's deflationary spiral was not broken by the amount of quantitative easing provided by the Bank of Japan.

Until the 1930s, it was commonly believed by economists that deflation would cure itself. As prices decreased, demand would naturally increase, and the economic system would correct itself without outside intervention.

This view was challenged in the 1930s during the Great Depression. Keynesian economists argued that the economic system was not self-correcting with respect to deflation and that governments and central banks had to take active measures to boost demand through tax cuts or increases in government spending. Reserve requirements from the central bank were high compared to recent times. So were it not for redemption of currency for gold (in accordance with the gold standard), the central bank could have effectively increased money supply by simply reducing the reserve requirements and through open market operations (e.g., buying treasury bonds for cash) to offset the reduction of money supply in the private sectors due to the collapse of credit (credit is a form of money).

With the rise of monetarist ideas, the focus in fighting deflation was put on expanding demand by lowering interest rates (i.e., reducing the "cost" of money). This view has received criticism in light of the failure of accommodative policies in both Japan and the US to spur demand after stock market shocks in the early 1990s and in 2000–2002, respectively. Austrian economists worry about the inflationary impact of monetary policies on asset prices. Sustained low real rates can cause higher asset prices and excessive debt accumulation. Therefore, lowering rates may prove to be only a temporary palliative, aggravating an eventual debt deflation crisis.

Special borrowing arrangements
When the central bank has lowered nominal interest rates to zero, it can no longer further stimulate demand by lowering interest rates. This is the famous liquidity trap. When deflation takes hold, it requires "special arrangements" to lend money at a zero nominal rate of interest (which could still be a very high real rate of interest, due to the negative inflation rate) in order to artificially increase the money supply.

Capital
Although the values of capital assets are often casually said to deflate when they decline, this usage is not consistent with the usual definition of deflation; a more accurate description for a decrease in the value of a capital asset is economic depreciation. Another term, the accounting conventions of depreciation are standards to determine a decrease in values of capital assets when market values are not readily available or practical.

EU countries
The inflation rate of Greece was negative during three years from 2013 to 2015. The same applies to Bulgaria, Cyprus, Spain, and Slovakia from 2014 to 2016. Greece, Cyprus, Spain, and Slovakia are members of the European monetary union. The Bulgarian currency, the lev, is pegged to the Euro with a fixed exchange rate. In the entire European Union and the Eurozone, a disinflationary development was to be observed in the years 2011 to 2015.

Table: Harmonised index of consumer prices. Annual average rate of change (%) (HICP inflation rate). Negative values are highlighted in colour.

Hong Kong
Following the Asian financial crisis in late 1997, Hong Kong experienced a long period of deflation which did not end until the fourth quarter of 2004. Many East Asian currencies devalued following the crisis. The Hong Kong dollar, however, was pegged to the U.S. dollar, leading to an adjustment instead by a deflation of consumer prices. The situation was worsened by the increasingly cheap exports from mainland China, and "weak consumer confidence" in Hong Kong. This deflation was accompanied by an economic slump that was more severe and prolonged than those of the surrounding countries that devalued their currencies in the wake of the Asian financial crisis.

Ireland
In February 2009, Ireland's Central Statistics Office announced that during January 2009, the country experienced deflation, with prices falling by 0.1% from the same time in 2008. This was the first time deflation has hit the Irish economy since 1960. Overall consumer prices decreased by 1.7% in the month.

Brian Lenihan, Ireland's Minister for Finance, mentioned deflation in an interview with RTÉ Radio. According to RTÉ's account, "Minister for Finance Brian Lenihan has said that deflation must be taken into account when Budget cuts in child benefit, public sector pay and professional fees are being considered. Mr Lenihan said month-on-month there has been a 6.6% decline in the cost of living this year."

This interview is notable in that the deflation referred to is not discernibly regarded negatively by the Minister in the interview. The Minister mentions the deflation as an item of data helpful to the arguments for a cut in certain benefits. The alleged economic harm caused by deflation is not alluded to or mentioned by this member of government. This is a notable example of deflation in the modern era being discussed by a senior financial Minister without any mention of how it might be avoided, or whether it should be.

Japan
Deflation started in the early 1990s. The Bank of Japan and the government tried to eliminate it by reducing interest rates and "quantitative easing," but did not create a sustained increase in broad money and deflation persisted. In July 2006, the zero-rate policy was ended.

Systemic reasons for deflation in Japan can be said to include:

 * Tight monetary conditions: The Bank of Japan kept monetary policy loose only when inflation was below zero, tightening whenever deflation ends.
 * Unfavorable demographics: Japan has an aging population (22.6% over age 65) which has been declining since 2011, as the death rate exceeds the birth rate.
 * Fallen asset prices: In the case of Japan asset price deflation was a mean reversion or correction back to the price level that prevailed before the asset bubble. There was a rather large price bubble in stocks and especially real estate in Japan in the 1980s (peaking in late 1989).
 * Insolvent companies: Banks lent to companies and individuals that invested in real estate. When real estate values dropped, these loans could not be paid. The banks could try to collect on the collateral (land), but this wouldn't pay off the loan. Banks delayed that decision, hoping asset prices would improve. These delays were allowed by national banking regulators. Some banks made even more loans to these companies that are used to service the debt they already had. This continuing process is known as maintaining an "unrealized loss", and until the assets are completely revalued and/or sold off (and the loss realized), it will continue to be a deflationary force in the economy. Improving bankruptcy law, land transfer law, and tax law have been suggested as methods to speed this process and thus end the deflation.
 * Insolvent banks: Banks with a larger percentage of their loans which are "non-performing", that is to say, they are not receiving payments on them, but have not yet written them off, cannot lend more money; they must increase their cash reserves to cover the bad loans.
 * Fear of insolvent banks: Japanese people are afraid that banks will collapse so they prefer to buy (United States or Japanese) Treasury bonds instead of saving their money in a bank account. This likewise means the money is not available for lending and therefore economic growth. This means that the savings rate depresses consumption, but does not appear in the economy in an efficient form to spur new investment. People also save by owning real estate, further slowing growth, since it inflates land prices.
 * Imported deflation: Japan imports Chinese and other countries' inexpensive consumable goods (due to lower wages and fast growth in those countries) and inexpensive raw materials, many of which reached all time real price minimums in the early 2000s. Thus, prices of imported products are decreasing. Domestic producers must match these prices in order to remain competitive. This decreases prices for many things in the economy, and thus is deflationary.
 * Stimulus spending: According to both Austrian and monetarist economic theory, Keynesian stimulus spending actually has a depressing effect. This is because the government is competing against private industry, and usurping private investment dollars. In 1998, for example, Japan produced a stimulus package of more than 16 trillion yen, over half of it public works that would have a quashing effect on an equivalent amount of private, wealth-creating economic activity. Overall, Japan's stimulus packages added up to over one hundred trillion yen, and yet they failed. According to these economic schools, that stimulus money actually perpetuated the problem it was intended to cure.

In November 2009, Japan returned to deflation, according to The Wall Street Journal. Bloomberg L.P. reports that consumer prices fell in October 2009 by a near-record 2.2%. It was not until 2014 that new economic policies laid out by Prime Minister Shinzo Abe finally allowed for significant levels of inflation to return. However, the COVID-19 recession once again led to deflation in 2020, with consumer good prices quickly falling, prompting heavy government stimulus worth over 20% of GDP. As a result, it is likely that deflation will remain as a long-term economic issue for Japan.

United Kingdom
During World War I the British pound sterling was removed from the gold standard. The motivation for this policy change was to finance World War I; one of the results was inflation, and a rise in the gold price, along with the corresponding drop in international exchange rates for the pound. When the pound was returned to the gold standard after the war it was done on the basis of the pre-war gold price, which, since it was higher than equivalent price in gold, required prices to fall to realign with the higher target value of the pound.

The UK experienced deflation of approximately 10% in 1921, 14% in 1922, and 3 to 5% in the early 1930s.

Major deflations in the United States
There have been four significant periods of deflation in the United States.

The first and most severe was during the depression in 1818–1821 when prices of agricultural commodities declined by almost 50%. A credit contraction caused by a financial crisis in England drained specie out of the U.S. The Bank of the United States also contracted its lending. The price of agricultural commodities fell by almost 50% from the high in 1815 to the low in 1821, and did not recover until the late 1830s, although to a significantly lower price level. Most damaging was the price of cotton, the U.S.'s main export. Food crop prices, which had been high because of the famine of 1816 that was caused by the year without a summer, fell after the return of normal harvests in 1818. Improved transportation, mainly from turnpikes, and to a minor extent the introduction of steamboats, significantly lowered transportation costs.

The second was the depression of the late 1830s to 1843, following the Panic of 1837, when the currency in the United States contracted by about 34% with prices falling by 33%. The magnitude of this contraction is only matched by the Great Depression. (See: .) This "deflation" satisfies both definitions, that of a decrease in prices and a decrease in the available quantity of money. Despite the deflation and depression, GDP rose 16% from 1839 to 1843.

The third was after the Civil War, sometimes called The Great Deflation. It was possibly spurred by return to a gold standard, retiring paper money printed during the Civil War:

"The Great Sag of 1873–96 could be near the top of the list. Its scope was global. It featured cost-cutting and productivity-enhancing technologies. It flummoxed the experts with its persistence, and it resisted attempts by politicians to understand it, let alone reverse it. It delivered a generation's worth of rising bond prices, as well as the usual losses to unwary creditors via defaults and early calls. Between 1875 and 1896, according to Milton Friedman, prices fell in the United States by 1.7% a year, and in Britain by 0.8% a year."

(Note: David A. Wells (1890) gives an account of the period and discusses the great advances in productivity which Wells argues were the cause of the deflation. The productivity gains matched the deflation. Murray Rothbard (2002) gives a similar account. )

The fourth was in 1930–1933 when the rate of deflation was approximately 10 percent/year, part of the United States' slide into the Great Depression, where banks failed and unemployment peaked at 25%.

The deflation of the Great Depression occurred partly because there was an enormous contraction of credit (money), bankruptcies creating an environment where cash was in frantic demand, and when the Federal Reserve was supposed to accommodate that demand, it instead contracted the money supply by 30% in enforcement of its new real bills doctrine, so banks failed one by one (because they were unable to meet the sudden demand for cash – see Bank run). From the standpoint of the Fisher equation (see above), there was a simultaneous drop both in money supply (credit) and the velocity of money which was so profound that price deflation took hold despite the increases in money supply spurred by the Federal Reserve.

Minor deflations in the United States
Throughout the history of the United States, inflation has approached zero and dipped below for short periods of time. This was quite common in the 19th century, and in the 20th century until the permanent abandonment of the gold standard for the Bretton Woods system in 1948. In the past 60 years, the United States has experienced deflation only two times; in 2009 with the Great Recession and in 2015, when the CPI barely broke below 0% at −0.1%.

Some economists believe the United States may have experienced deflation as part of the financial crisis of 2007–2008; compare the theory of debt deflation. Consumer prices dropped 1 percent in October 2008. This was the largest one-month fall in prices in the U.S. since at least 1947. That record was again broken in November 2008 with a 1.7% decline. In response, the Federal Reserve decided to continue cutting interest rates, down to a near-zero range as of December 16, 2008.

In late 2008 and early 2009, some economists feared the U.S. would enter a deflationary spiral. Economist Nouriel Roubini predicted that the United States would enter a deflationary recession, and coined the term "stag-deflation" to describe it. It was the opposite of stagflation, which was the main fear during the spring and summer of 2008. The United States then began experiencing measurable deflation, steadily decreasing from the first measured deflation of −0.38% in March, to July's deflation rate of −2.10%. On the wage front, in October 2009, the state of Colorado announced that its state minimum wage, which was indexed to inflation, was set to be cut, which would be the first time a state had cut its minimum wage since 1938.

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/

title: Deflation


text:
Talk:Milton Friedman

Conflicting, or at a minimum, disjointed statements to resolve
The end of Friedman's experience teaching at UW-Madison is cast in two different lights, in two sections. In Public Service, the article asserts that he left Madison due to antisemitism. In Academic Career: Early Years, Friedman left as a result of differing opinions on US involvement in World War II. These are incongruent, as far as I can tell. Ndemarco (talk) 12:14, 14 March 2024 (UTC)
 * both influences were at work and two sides of same coin., antisemitism was silent and pro/anti-war was noisy. they are locked together (antisemites in those days were anti-war, Jews like Friedman were accused of being unamerican warmongers) Rjensen (talk) 13:13, 14 March 2024 (UTC)

How is this a "good article"?
I really wonder how this article received the "good article" mark. Granted, this article has a good amount of references and citations, but it is completely one-sided in its presentation of Friedman's ideas. There is hardly any criticism - of which there is plenty - of his economical thought and theories. How is this possible? It seems this article has been made primarily by Friedman's supporters and admirers. GoneWithThePuffery (talk) 21:26, 2 May 2024 (UTC)

 * There is a section devoted to criticism of his published works. There is also noted criticism of him elsewhere in the article. Rja13ww33 (talk) 17:16, 3 May 2024 (UTC)

 * I do have to admit though, one thing I've always thought was missing here is a mention of Naomi Klein's book, 'Shock Doctrine'. It was in the Further Reading section at one point. (See the talk archives for that discussion.) That's been one of the more notable criticisms of Friedman I can think of over the last 20 years. (Although she is not an economist.) Rja13ww33 (talk) 17:48, 3 May 2024 (UTC)
 * @Rja13ww33, that's true, however, even the criticism in the article is sometimes completely weird, in the sense that it is brought more like a compliment than as a fundamental point of critique. For example: "Although the book was described by the Cato Institute as among the greatest economics books in the 20th century, and A Monetary History of the United States is widely considered to be among the most influential economics books ever made, it has endured criticisms for its conclusion that the Federal Reserve was to blame for the Great Depression." Compare: Although dictator X has been described as a phenomenal guy who is widely considered to be completely awesome, he has endured some criticism here and there....
 * My point is: for such a controversial figure, the article is in my opinion completely out of balance. Although his economical ideas are highly controversial and contested from the 1970s up until now, this is hardly reflected in the article, and even completely absent in the lede (which is far too big, but that's another matter...). GoneWithThePuffery (talk) 02:38, 4 May 2024 (UTC)

title: Talk:Milton Friedman


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Talk:Financial capital

First Untitled Thread
Roadrunner

The article looked ok to me even if a bit condensed for my taste. Perhaps we could augment it and break it into separate sections for different sources and uses of capital?

Or do you prefer a treatment of bond funds and bank accounts from the individual capitalist's viewpoint to a more macroeconomic societal description?

Keep in mind that Columbus allegedly talked Queen Isabella out the crown jewels to capitalize his venture to the new world. "Financial Capital" can be where a "capitalist" finds it. user:mirwin

The problem is that the article simply defined "financial capital" as "money". If this were the case then we could just redirect this to the article on money.
 * things liquidatable to money would be better, or "immediately liquid wealth" that can be converted to other types of capital.

Response: There is now a much more concise definition. (Financial capital is not simply money)

A very good point
Great work, mate.Robertson-Glasgow 06:28, 20 May 2007 (UTC)

Monkey Business?
Section 4 on Fixed Capital says: "This is money which is used to purchase food that will remain permanently in the business and help it to make a profit."

I hadn't realized *food* was quite so central to the concept of fixed capital. (Badlermd (talk) 07:34, 23 September 2008 (UTC))

Merge Financial capitalism and Finance capitalism and Financial capital?
Both of which as I've noted in the comments there are misnomers for the Marxist concept normally styled "Finance Capital" or "Financial Capital", i.e. that specific section of the overall Capitalist class. Both to be consolidated as a single "Marxists Perspectives" § here.

 * Yes Lycurgus (talk) 05:16, 2 October 2009 (UTC)

 * No Financial capitalism is different from Financial capital and Finance capitalism. Financial capitalism is a social theory, which is different from the Marxist version of Finance capitalism. Neither belong with Financial capital which is an explanation of financial concepts with no social theorietical implications. Odin 85th gen (talk) 21:00, 7 November 2009 (UTC)

102.221.220.143 (talk) 18:30, 9 May 2022 (UTC)

title: Talk:Financial capital


text:
Quillback

The quillback (Carpiodes cyprinus), also known as the quillback sucker, is a type of freshwater fish of the sucker family widely distributed throughout North America. It is deeper-bodied than most suckers, leading to a fuller-bodied appearance. However, the quillback is not a carp. Quillback are catostomids, and like all catstomids, they do not have barbels around the mouth. The quillback is long-lived, with age up to 30 years, 44 years, 49 years, and 52 years documented across different studies throughout North America.

Physical description
The quillback is a medium-sized, deep-bodied fish found throughout North America. It has a small head, humped back and deeply forked caudal fin. The compressed body of the quillback makes it look flattened when viewed from the side. The quillback has a subterminal mouth with no barbels, and no nipple-like protrusions on the bottom lip. It has large, reflective, silver cycloid scales that are responsible for giving the quillback its characteristic silver color. They have a white belly with yellow or orange lower fins. The tail and dorsal fin are usually gray or silver. The quillback gets its name from the long quill that is formed via the first several fin rays of the dorsal fin. Quillback are typically 15–20 inches on average, weighing between 1 and 4 pounds. However, they can grow up to 26 inches and weigh 10 pounds. The quillback has a nearly straight, hyper-sensitive lateral line, composed of at least 37 lateral line scales. This helps the fish locate predators and prey.

Distribution, habitat and diet
The quillback is found throughout much of North America, from Saskatchewan to Florida, and from South Dakota to Alabama. The quillback occupies temperate, freshwater habitats. This includes many streams, lakes, channels and rivers. They prefer water that is clear, slow moving, highly productive and moderately deep. The quillback can commonly be found in the Hudson Bay, the Mississippi River basin, the Great Lakes, and drainages from the Delaware, Apalachicola, and Pearl rivers. They often comprise a large portion of the biomass of warmwater rivers, but they are very difficult to catch with traditional American angling methods. The quillback is closely related to the highfin carpsucker and the river carpsucker. All three species are rarely caught by anglers due to their feeding habits, but they have been caught occasionally on worms, minnows, and artificial lures.

Quillbacks usually feed in schools. They are omnivores and bottom feeders that prefer lakes, rivers and streams in which the water is clear at the bottom. The school of quillbacks moves slowly over a sand or gravel bottom when they eat. Their typical diet consists of aquatic insect larvae and other small organisms although they have also been known to eat molluscs and aquatic vegetation.

Life history
The quillback is a slow-paced and long-lived freshwater fish species that belongs to a subfamily (Ictiobinae) for which extremely long-lived fishes are becoming known. A study of a Minnesota population found that they may reach sexual maturity by age 8–9 years, live several decades at adult size, recruit more sporadically than previously realized, and attain longevity in excess of 40 years. The study also documented accrual of age-spot pigmentation after 30 years, similar to their larger-bodied cousins, the bigmouth buffalo. A study from Colorado revealed sexual maturity by an age of 3 years, highly variable recruitment, population declines, and longevity approaching 50 years.

Reproduction
The quillback reproduces once yearly, typically in late spring or early summer. The timing of reproduction depends on the water temperature. Ideal temperatures for reproduction are between 7–18 degrees Celsius. Spawning occurs upstream of the typical quillback habitat, and they migrate in schools to the spawning site. The female quillback produces between 15,000 and 60,000 eggs, and scatters them in shallow water over a sandy or mud bottom. Fertilization then happens externally, and the eggs are left in quiet water. Since the quillback is oviparous, the eggs are hatched outside of the fish's body. The quillback possesses a polygynandrous mating system, meaning that two or more males have an exclusive sexual relationship with two or more females. The numbers of each sex can vary, and do not need to be equal.

Relationship with humans
The quillback is currently at risk for extinction in various states throughout the continental United States including Vermont, New York and Michigan. A recent threat to the species is modern bowfishing, which is unregulated across the USA and prone to excessive waste. Other places prove vulnerability to the species including Alberta, Saskatchewan, Quebec, South Dakota, Kansas, Oklahoma, Arkansas, Louisiana and North Carolina. Quillbacks benefit the ecosystem they reside in because they are bottom feeders. Bottom feeders help keep their natural environment clean by feeding on the material at the bottom of the habitat. The quillback has an economic benefit to Mexico. The IGFA world record for the species stands at 8lb 1oz taken from Lake Manitoba in Canada in 2016.

title: Quillback


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Market economy

A market economy is an economic system in which the decisions regarding investment, production and distribution to the consumers are guided by the price signals created by the forces of supply and demand. The major characteristic of a market economy is the existence of factor markets that play a dominant role in the allocation of capital and the factors of production.

Market economies range from minimally regulated free-market and laissez-faire systems where state activity is restricted to providing public goods and services and safeguarding private ownership, to interventionist forms where the government plays an active role in correcting market failures and promoting social welfare, as seen in some mixed economies. State intervention can happen at the production, distribution, trade and consumption areas in the economy. The distribution of basic need services and goods like health care may be entirely regulated by an egalitarian public health care policy (while having the production provided by private enterprise), effectively eliminating the forces of supply and demand.

State-directed or dirigist economies are those where the state plays a directive role in guiding the overall development of the market through industrial policies or indicative planning—which guides yet does not substitute the market for economic planning—a form sometimes referred to as a mixed economy.

Market economies are contrasted with planned economies where investment and production decisions are embodied in an integrated economy-wide economic plan. In a centrally planned economy, economic planning is the principal allocation mechanism between firms rather than markets, with the economy's means of production being owned and operated by a single organizational body.

Property rights
For market economies to function efficiently, governments must establish clearly defined and enforceable property rights for assets and capital goods. However, property rights does not specifically mean private property rights and market economies do not logically presuppose the existence of private ownership of the means of production. Market economies can and often do include various types of cooperatives or autonomous state-owned enterprises that acquire capital goods and raw materials in capital markets. These enterprises utilize a market-determined free price system to allocate capital goods and labor. In addition, there are many variations of market socialism where the majority of capital assets are socially owned with markets allocating resources between socially owned firms. These models range from systems based on employee-owned enterprises based on self-management to a combination of public ownership of the means of production with factor markets.

Supply and demand
Market economies rely upon a price system to signal market actors to adjust production and investment. Price formation relies on the interaction of supply and demand to reach or approximate an equilibrium where unit price for a particular good or service is at a point where the quantity demanded equals the quantity supplied.

Governments can intervene by establishing price ceilings or price floors in specific markets (such as minimum wage laws in the labor market), or use fiscal policy to discourage certain consumer behavior or to address market externalities generated by certain transactions (Pigovian taxes). Different perspectives exist on the role of government in both regulating and guiding market economies and in addressing social inequalities produced by markets. Fundamentally, a market economy requires that a price system affected by supply and demand exists as the primary mechanism for allocating resources irrespective of the level of regulation.

Capitalism
Capitalism is an economic system where the means of production are largely or entirely privately owned and operated for a profit, structured on the process of capital accumulation. In general, in capitalist systems investment, distribution, income and prices are determined by markets, whether regulated or unregulated.

There are different variations of capitalism with different relationships to markets. In laissez-faire and free-market variations of capitalism, markets are utilized most extensively with minimal or no state intervention and minimal or no regulation over prices and the supply of goods and services. In interventionist, welfare capitalism and mixed economies, markets continue to play a dominant role, but they are regulated to some extent by government in order to correct market failures or to promote social welfare. In state capitalist systems, markets are relied upon the least, with the state relying heavily on either indicative planning and/or state-owned enterprises to accumulate capital.

Capitalism has been dominant in the Western world since the end of mercantilism. However, it is argued that the term mixed economies more precisely describes most contemporary economies due to their containing both private-owned and state-owned enterprises. In capitalism, prices determine the demand-supply scale. Higher demand for certain goods and services lead to higher prices and lower demand for certain goods lead to lower prices, in relation to supply.

Free-market capitalism
A capitalist free-market economy is an economic system where prices for goods and services are set freely by the forces of supply and demand and are expected by its supporters to reach their point of equilibrium without intervention by government policy. It typically entails support for highly competitive markets, private ownership of productive enterprises. Laissez-faire is a more extensive form of free-market economy where the role of the state is limited to protecting property rights and enforcing contracts.

Laissez-faire
Laissez-faire is synonymous with what was referred to as strict free-market economy during the early and mid-19th century as a classical liberal ideal to achieve. It is generally understood that the necessary components for the functioning of an idealized free market include the complete absence of government regulation, subsidies, artificial price pressures and government-granted monopolies (usually classified as coercive monopoly by free market advocates) and no taxes or tariffs other than what is necessary for the government to provide protection from coercion and theft, maintaining peace and property rights and providing for basic public goods. Right-libertarian advocates of anarcho-capitalism see the state as morally illegitimate and economically unnecessary and destructive. Although laissez-faire has been commonly associated with capitalism, there is a similar left-wing laissez-faire system called free-market anarchism, also known as free-market anti-capitalism and free-market socialism to distinguish it from laissez-faire capitalism. Thus, critics of laissez-faire as commonly understood argues that a truly laissez-faire system would be anti-capitalist and socialist.

Welfare capitalism
Welfare capitalism is a capitalist economy that includes public policies favoring extensive provisions for social welfare services. The economic mechanism involves a free market and the predominance of privately owned enterprises in the economy, but public provision of universal welfare services aimed at enhancing individual autonomy and maximizing equality. Examples of contemporary welfare capitalism include the Nordic model of capitalism predominant in Northern Europe.

Anglo-Saxon model
Anglo-Saxon capitalism is the form of capitalism predominant in Anglophone countries and typified by the economy of the United States. It is contrasted with European models of capitalism such as the continental social market model and the Nordic model. Anglo-Saxon capitalism refers to a macroeconomic policy regime and capital market structure common to the Anglophone economies. Among these characteristics are low rates of taxation, more open international markets, lower labor market protections and a less generous welfare state eschewing collective bargaining schemes found in the continental and northern European models of capitalism.

East Asian model
The East Asian model of capitalism involves a strong role for state investment and in some instances involves state-owned enterprises. The state takes an active role in promoting economic development through subsidies, the facilitation of "national champions" and an export-based model of growth. The actual practice of this model varies by country. This designation has been applied to the economies of China, Japan, Singapore, South Korea, and Vietnam.

A related concept in political science is the developmental state.

Social market economy
The social market economy was implemented by Alfred Müller-Armack and Ludwig Erhard after World War II in West Germany. The social market economic model, sometimes called Rhine capitalism, is based upon the idea of realizing the benefits of a free-market economy, especially economic performance and high supply of goods while avoiding disadvantages such as market failure, destructive competition, concentration of economic power and the socially harmful effects of market processes. The aim of the social market economy is to realize greatest prosperity combined with best possible social security. One difference from the free market economy is that the state is not passive, but instead takes active regulatory measures. The social policy objectives include employment, housing and education policies, as well as a socio-politically motivated balancing of the distribution of income growth. Characteristics of social market economies are a strong competition policy and a contractionary monetary policy. The philosophical background is neoliberalism or ordoliberalism.

Socialism
Market socialism is a form of market economy where the means of production are socially owned. In a market socialist economy, firms operate according to the rules of supply and demand and operate to maximize profit; the principal difference between market socialism and capitalism being that the profits accrue either directly to the workers of the company or society as a whole as opposed to private owners.

The distinguishing feature between non-market socialism and market socialism is the existence of a market for factors of production and the criteria of profitability for enterprises. Profits derived from publicly owned enterprises can variously be used to reinvest in further production, to directly finance government and social services, or be distributed to the public at large through a social dividend or basic income system.

Advocates of market socialism such as Jaroslav Vaněk argue that genuinely free markets are not possible under conditions of private ownership of productive property. Instead, he contends that the class differences and inequalities in income and power that result from private ownership enable the interests of the dominant class to skew the market to their favor, either in the form of monopoly and market power, or by utilizing their wealth and resources to legislate government policies that benefit their specific business interests. Additionally, Vaněk states that workers in a socialist economy based on cooperative and self-managed enterprises have stronger incentives to maximize productivity because they would receive a share of the profits (based on the overall performance of their enterprise) in addition to receiving their fixed wage or salary. The stronger incentives to maximize productivity that he conceives as possible in a socialist economy based on cooperative and self-managed enterprises might be accomplished in a free-market economy if cooperatives were the norm as envisioned by various thinkers including Louis O. Kelso and James S. Albus.

Models of market socialism
Market socialism traces its roots to classical economics and the works of Adam Smith, the Ricardian socialists and mutualist philosophers.

In the 1930s, the economists Oskar Lange and Abba Lerner developed a model of socialism that posited that a public body (dubbed the Central Planning Board) could set prices through a trial-and-error approach until they equaled the marginal cost of production in order to achieve perfect competition and pareto optimality. In this model of socialism, firms would be state-owned and managed by their employees and the profits would be disbursed among the population in a social dividend. This model came to be referred to as market socialism because it involved the use of money, a price system and simulated capital markets, all of which were absent from traditional non-market socialism.

A more contemporary model of market socialism is that put forth by the American economist John Roemer, referred to as economic democracy. In this model, social ownership is achieved through public ownership of equity in a market economy. A Bureau of Public Ownership would own controlling shares in publicly listed firms, so that the profits generated would be used for public finance and the provision of a basic income.

Some anarchists and libertarian socialists promote a form of market socialism in which enterprises are owned and managed cooperatively by their workforce so that the profits directly remunerate the employee-owners. These cooperative enterprises would compete with each other in the same way private companies compete with each other in a capitalist market. The first major elaboration of this type of market socialism was made by Pierre-Joseph Proudhon and was called mutualism.

Self-managed market socialism was promoted in Yugoslavia by economists Branko Horvat and Jaroslav Vaněk. In the self-managed model of socialism, firms would be directly owned by their employees and the management board would be elected by employees. These cooperative firms would compete with each other in a market for both capital goods and for selling consumer goods.

Socialist market economy
Following the 1978 reforms, China developed what it calls a socialist market economy in which most of the economy is under state ownership, with the state enterprises organized as joint-stock companies with various government agencies owning controlling shares through a shareholder system. Prices are set by a largely free-price system and the state-owned enterprises are not subjected to micromanagement by a government planning agency. A similar system called socialist-oriented market economy has emerged in Vietnam following the Đổi Mới reforms in 1986. This system is frequently characterized as state capitalism instead of market socialism because there is no meaningful degree of employee self-management in firms, because the state enterprises retain their profits instead of distributing them to the workforce or government and because many function as de facto private enterprises. The profits neither finance a social dividend to benefit the population at large, nor do they accrue to their employees. In China, this economic model is presented as a preliminary stage of socialism to explain the dominance of capitalistic management practices and forms of enterprise organization in both the state and non-state sectors.

In religion
A wide range of philosophers and theologians have linked market economies to concepts from monotheistic religions. Michael Novak described capitalism as being closely related to Catholicism, but Max Weber drew a connection between capitalism and Protestantism. The economist Jeffrey Sachs has stated that his work was inspired by the healing characteristics of Judaism. Chief Rabbi Lord Sacks of the United Synagogue draws a correlation between modern capitalism and the Jewish image of the Golden Calf.

Christianity
In the Christian faith, the liberation theology movement advocated involving the church in labor market capitalism. Many priests and nuns integrated themselves into labor organizations while others moved into the slums to live among the poor. The Holy Trinity was interpreted as a call for social equality and the elimination of poverty. However, the Pope John Paul II was highly active in his criticism of liberation theology. He was particularly concerned about the increased fusion between Christianity and Marxism. He closed Catholic institutions that taught liberation theology and dismissed some of its activists from the church.

Buddhism
The Buddhist approach to the market economy was dealt with in E. F. Schumacher’s 1966 essay "Buddhist Economics". Schumacher asserted that a market economy guided by Buddhist principles would more successfully meet the needs of its people. He emphasized the importance or pursuing occupations that adhered to Buddhist teachings. The essay would later become required reading for a course that Clair Brown offered at University of California, Berkeley.

Criticism
The economist Joseph Stiglitz argues that markets suffer from informational inefficiency and the presumed efficiency of markets stems from the faulty assumptions of neoclassical welfare economics, particularly the assumption of perfect and costless information and related incentive problems. Neoclassical economics assumes static equilibrium and efficient markets require that there be no non-convexities, even though nonconvexities are pervasive in modern economies. Stiglitz's critique applies to both existing models of capitalism and to hypothetical models of market socialism. However, Stiglitz does not advocate replacing markets, but instead states that there is a significant role for government intervention to boost the efficiency of markets and to address the pervasive market failures that exist in contemporary economies. A fair market economy is in fact a martingale or a Brownian motion model and for a participant competitor in such a model there is no more than 50% of success chances at any given moment. Due to the fractal nature of any fair market and being market participants subject to the law of competition which impose reinvesting an increasing part of profits, the mean statistical chance of bankruptcy within the half life of any participant is also 50% and 100% whether an infinite sample of time is considered.

Robin Hahnel and Michael Albert claim that "markets inherently produce class division". Albert states that even if everyone started out with a balanced job complex (doing a mix of roles of varying creativity, responsibility and empowerment) in a market economy, class divisions would arise, arguing: "Without taking the argument that far, it is evident that in a market system with uneven distribution of empowering work, such as Economic Democracy, some workers will be more able than others to capture the benefits of economic gain. For example, if one worker designs cars and another builds them, the designer will use his cognitive skills more frequently than the builder. In the long term, the designer will become more adept at conceptual work than the builder, giving the former greater bargaining power in a firm over the distribution of income. A conceptual worker who is not satisfied with his income can threaten to work for a company that will pay him more. The effect is a class division between conceptual and manual laborers, and ultimately managers and workers, and a de facto labor market for conceptual workers."

David McNally argues in the Marxist tradition that the logic of the market inherently produces inequitable outcomes and leads to unequal exchanges, arguing that Adam Smith's moral intent and moral philosophy espousing equal exchange was undermined by the practice of the free markets he championed. The development of the market economy involved coercion, exploitation and violence that Smith's moral philosophy could not countenance. McNally also criticizes market socialists for believing in the possibility of fair markets based on equal exchanges to be achieved by purging parasitical elements from the market economy such as private ownership of the means of production. McNally argues that market socialism is an oxymoron when socialism is defined as an end to wage-based labor.

The role of supply and demand in a market economy
Supply and demand play an instrumental role in driving market economies by setting both prices and quantities traded in markets. Supply is defined as any increase in price leading to an increase in supply from producers; demand on the other hand means any drop leads to an increase in desired quantities from consumers; these two laws meet at equilibrium when provided quantity equals quantity demanded - known as equilibrium price/quantity equilibrium point. Prices play an extremely vital role in market economies by providing important information about commodity and service availability. When there is strong demand but limited supply, prices increase, signaling to producers that there may be opportunities to increase profits by producing more of that product. Conversely, when there is low demand with increased supply then prices reduce, showing manufacturers they must either reduce output or find methods of cutting costs in order to stay competitive and remain profitable.

External factors, including shifting technological standards, new government laws, and natural catastrophes can have a substantial impact on supply and demand. Technological innovations may increase supply, while laws issued by governments could decrease it or even demand. Natural disasters have the ability to severely disrupt supply chains, creating shortages of key items that increase costs while simultaneously decreasing demand. Supply and demand play an indispensable role in any market economy by ensuring prices reflect market forces accurately, adapting accordingly as conditions shift between supply and demand situations, while producers adjust production according to price signals from consumers, fulfilling customers' requests while giving individuals freedom in making purchasing choices based on personal preferences or financial constraints. Thus supply and demand play an instrumental part in shaping and stabilizing economies governed by market forces.

Sustainable market economy
A sustainable market economy seeks to balance economic expansion and environmental preservation. It acknowledges that sustainable environmental protection and resource management are essential for long-term economic growth. To achieve this balance, implementing sustainable practices across sectors, such as lowering carbon emissions, developing renewable energy sources, and putting circular economy ideas into practice. Tax incentives, carbon trading programs, and environmental requirements are just a few ways government rules and policies encourage enterprises to adopt sustainable practices.

At the same time, consumer demand for eco-friendly goods and services and understanding of these issues may influence market dynamics to favour more sustainable options. A sustainable market economy may encourage innovation, provide green employment, and guarantee the welfare of future generations by incorporating environmental factors into economic decision-making. Prioritizing sustainability while preserving economic development needs cooperation between governments, corporations, and people.

title: Market economy


text:
Walleye

The walleye (Sander vitreus, synonym Stizostedion vitreum), also called the walleyed pike, yellow pike, yellow pikeperch or yellow pickerel, is a freshwater perciform fish native to most of Canada and to the Northern United States. It is a North American close relative of the European zander, also known as the pikeperch. The walleye is sometimes called the yellow walleye to distinguish it from the blue walleye, which is a color morph that was once found in the southern Ontario and Quebec regions, but is now presumed extinct. However, recent genetic analysis of a preserved (frozen) 'blue walleye' sample suggests that the blue and yellow walleye were simply phenotypes within the same species and do not merit separate taxonomic classification.

In parts of its range in English-speaking Canada, the walleye is known as a Pickerel, though the fish is not related to the true pickerels, which are members of the family Esocidae.

Walleyes show a fair amount of variation across watersheds. In general, fish within a watershed are quite similar and are genetically distinct from those of nearby watersheds. The species has been artificially propagated for over a century and has been planted on top of existing populations or introduced into waters naturally devoid of the species, sometimes reducing the overall genetic distinctiveness of populations.

Etymology
The name "walleye" comes from its pearlescent eyes caused by the reflective tapetum lucidum which, in addition to allowing the fish to see well in low-light conditions, gives its eyes an opaque appearance. Their vision affects their behavior. They avoid bright light and feed in low light on fish that cannot see as well as they do. Many anglers look for walleyes at night since this is when major feeding efforts occur. The fish's eyes also allow them to see well in turbid waters (stained or rough, breaking waters), which gives them an advantage over their prey. Thus, walleye anglers commonly look for locations where a good "walleye chop" (i.e., rough water) occurs. Their vision also allows the fish to populate the deeper regions in a lake, and they can often be found in deeper water, particularly during the warmest part of the summer and at night.

Description
Walleyes are largely olive and gold in color (hence the French common name: doré—golden). The dorsal side of a walleye is olive, grading into a golden hue on the flanks. The olive/gold pattern is broken up by five darker saddles that extend to the upper sides. The color shades to white on the belly. The mouth of a walleye is large and is armed with many sharp teeth. The first dorsal and anal fins are spinous, as is the operculum. Walleyes are distinguished from their close relative the sauger by the white coloration on the lower lobe of the caudal fin, which is absent on the sauger. In addition, the two dorsals and the caudal fin of the sauger are marked with distinctive rows of black dots which are absent from or indistinct on the same fins of walleyes.

Length and weight
Walleyes grow to about 80 cm in length, and weigh up to about 9 kg. The maximum recorded size for the fish is 107 cm in length and 13 kg in weight. The rate depends partly on where in their range they occur, with southern populations often growing faster and larger. In general, females grow larger than males. Walleyes may live for decades; the maximum recorded age is 29 years. In heavily fished populations, however, few walleye older than five or six years of age are encountered. In North America, where they are highly prized, their typical size when caught is on the order of 30 to 50 cm, substantially below their potential size.

As walleye grow longer, they increase in weight. The relationship between total length (L) and total weight (W) for nearly all species of fish can be expressed by an equation of the form

 * $$W = cL^b \,$$

Invariably, b is close to 3.0 for all species, and c is a constant that varies among species. For walleye, b = 3.180 and c = 0.000228 (with units in inches and pounds) or b = 3.180 and c = 0.000005337 (with units in cm and kg).

This relationship suggests a 50 cm walleye will weigh about 1.5 kg, while a 60 cm walleye will likely weigh about 2.5 kg.

Population dynamics
The Garrison Dam National Fish Hatchery at Garrison Dam, North Dakota, is the largest walleye hatchery in the world. Although they are in high demand for fishing and consumption in North Dakota, elsewhere they are considered a nuisance. For that reason GDNFH is also researching hormonal population control to provide control options to other areas.

Reproduction
In most of the species' range, male walleyes mature sexually between three and four years of age. Females normally mature about a year later. Adults migrate to tributary streams in late winter or early spring to lay eggs over gravel and rock, although open-water reef or shoal-spawning strains are seen, as well. Some populations are known to spawn on sand or vegetation. Spawning occurs at water temperatures of 6 to 10 C. A large female can lay up to 500,000 eggs, and no care is given by the parents to the eggs or fry. The eggs are slightly adhesive and fall into spaces between rocks. The incubation period for the embryos is temperature-dependent, but generally lasts from 12 to 30 days. After hatching, the free-swimming embryos spend about a week absorbing a relatively small amount of yolk. Once the yolk has been fully absorbed, the young walleyes begin to feed on invertebrates, such as fly larvæ and zooplankton. After 40 to 60 days, juvenile walleyes become piscivorous. Thenceforth, both juvenile and adult walleyes eat fish almost exclusively, frequently yellow perch or ciscoes, moving onto bars and shoals at night to feed. Walleye also feed heavily on crayfish, minnows, and leeches.

Taxonomy
The walleye is part of the North American clade within the genus Sander, alongside the sauger (S. canadensis). Hubbs described a taxon called the blue walleye (S. glaucus) from the Great Lakes but subsequent taxonomic work showed no consistent differences between this form and the "yellow" walleye and the blue walleye is now considered to be a synonym and color variant of the walleye. The walleye was first formally described by the American naturalist Samuel Latham Mitchill (1764-1831) with the type locality given as Cayuga Lake near Ithaca, New York.

As food
The walleye is considered to be a quite palatable freshwater fish, and consequently, is fished recreationally and commercially for food. Because of its nocturnal feeding habits, it is most easily caught at night using live minnows or lures that mimic small fish. Most commercial fisheries for walleye are situated in the Canadian waters of the Great Lakes, and fried walleye is considered a staple of Canadian cuisine. In Minnesota, the walleye is often fished for in the late afternoon on windy days (known as a "walleye chop") or at night. Often served as a sandwich in Minnesota's pubs where the fish is very popular, deep fried walleye on a stick is a Minnesota State Fair food.

Fishing
Because walleyes are popular with anglers, fishing for walleyes is regulated by most natural resource agencies. Management may include the use of quotas and length limits to ensure that populations are not overexploited. For example, in Michigan, walleyes shorter than 15 in may not be legally kept.

Since walleyes have excellent visual acuity under low illumination levels, they tend to feed more extensively at dawn and dusk, on cloudy or overcast days, and under choppy conditions when light penetration into the water column is disrupted. Although anglers interpret this as light avoidance, it is merely an expression of the walleyes' competitive advantage over their prey under those conditions. Similarly, in darkly stained or turbid waters, walleyes tend to feed throughout the day. In the spring and fall, walleyes are located near the shallower areas due to the spawning grounds, and they are most often located in shallower areas during higher winds due to the murkier, higher oxygenated water at around six feet deep. On calm spring days, walleyes are more often located at the deep side of the shoreline drop-off and around shore slopes around or deeper than 10 feet.

As a result of their widespread presence in Canada and the northern United States, walleyes are frequently caught while ice fishing, a popular winter pastime throughout those regions.

"Walleye chop" is a term used by walleye anglers for rough water typically with winds of 10 to 25 km/h, and is one of the indicators for good walleye fishing due to the walleyes' increased feeding activity during such conditions. In addition to fishing this chop, night fishing with live bait can be very effective.

The current all-tackle world record for a walleye is held by Mabry Harper, who caught an 11.34-kg (25-lb) walleye in Old Hickory Lake in Tennessee on 2 August 1960.

Cultural aspects
Walleye is a culturally significant food in the Upper Midwest. Walleye is popular in Minnesota; the Minnesota Legislature declared walleye the official state fish in 1965. Three towns—Garrison, Minnesota, Baudette, Minnesota, and Garrison, North Dakota—each claim to be the "Walleye Capital of the World" and a large statue of the fish is erected in each town. Walleye pike was declared the official "state warm water fish" of Vermont in 2012. (Vermont's official "state cold water fish" is the brook trout, Salvelinus fontinalis.)

South Dakota designated the walleye as its official state fish in 1982. Although the fish is native to South Dakota, living in Missouri River reservoirs and eastern glacial lakes of the state, it only became a popular food in South Dakota in the 1970s and 1980s, when the fishing tournament circuit promoted the fish and operated walleye fishing contests in the state.

The walleye is the official provincial fish of Manitoba. Winnipeg, Manitoba, considers the walleye (referred to locally as "pickerel") its most important local fish. Icelandic fishermen in Lake Winnipeg traditionally supplied the Winnipeg market. The walleye is also the provincial fish of Saskatchewan, which declared the species its official fish in 2015 after it won a fish emblem contest. Walleye is the most popular fish for sport fishing in Saskatchewan, and can be caught in many rivers, reservoirs, and lakes. The International Underwater Spearfishing Association record for largest spearfishing-caught walleye is held by a 13.3-pound walleye caught in 2014 on the South Saskatchewan River north of Lake Diefenbaker.

title: Walleye