closed economy


Also found in: Dictionary, Thesaurus, Encyclopedia.

closed economy

an economy that is not influenced by any form of INTERNATIONAL TRADE, that is, there are no EXPORTS or IMPORTS of any kind. By concentrating on a closed economy, it is possible to simplify the CIRCULAR FLOW OF NATIONAL INCOME MODEL and focus upon income and expenditure within an economy. In terms of the circular flow, AGGREGATE DEMAND in a closed economy is represented by:

By contrast, the OPEN ECONOMY allows for the influence of imports and exports and here aggregate demand is represented in the circular flow as:

Mentioned in ?
References in periodicals archive ?
Chapter 7 looks at a two-good (agriculture and manufacturing), closed economy (no trade) model and explains how policies promoting the industrial (manufacturing) sector (such as subsidies) lead to higher rates of growth and welfare.
The closed economy (indexed by c) equilibrium interest rate [i.sup.c.sub.t] and capital [K.sup.c.sub.t] are such that the demand for capital equals the supply:
From IMF consider that Macedonia, being a small and geographically closed economy, can only reduce unemployment by attracting foreign investments.
Iran cannot be "managed as a closed economy and have these issues solved," said Mousaei, who also heads the Tehran-based Islamic Economics Scientific Association of Iran.
In the 1960s, the era of Green revolution and industrialization, the planners and policy makers suggested the need for using a wide variety of instruments like state allocation of investment, licensing and other regulatory controls to steer Indian industrial development on a closed economy basis.
North Korea's closed economy rose last year at a slightly slower pace compared to 2013, South Korea's central bank data showed on Friday, even as the United Nations toughened sanctions for its nuclear and missile programs, Reuters said June 27.
"The Why Australia: Benchmark Report 2014 report shows Australia has transformed from a comparatively homogenous society, with a closed economy, into a thriving melting pot which is entering its 23rd year of continuous economic growth", Mr Suckling said.
It's a closed economy. They like friends and family.
In terms of economy, Malaysia took early steps to transform from a relatively closed economy, depending mainly on agriculture and mining, to an open economy that is well-integrated in regional and global economies.
Regarding monetary policy, money supply process in an open economy differs from that in a closed economy. The reason is that the monetary base is composed not only of Central Bank credit creation, but of the Central Bank's holdings of international reserves as well.
One group of researcher examines the relationship of money demand to a closed economy and another to an open economy framework.
24, 1980 decisions that dealt the fatal blow to the single party administration's favorite closed economy. In other words, the country had transitioned to liberal free market conditions through the infrastructure established by Euzal.