macroeconomics question

G

grego

Active Member
is there a term for an economic policy that means income/monies generated in one department/area are only reinvested in that same dept/area.

like a policy of direct reinvestment or somethin............has this got a specific name??
 
thanks but isn't that more to do with the reserving of budgets for specific tasks/areas but not necessarily always to then reinvest.
 
not sure, i can only think of my history of working in local government where the local authorities housing revenue account was 'ring fenced' that meant that only money from within that area could be spent on that area, this was a requirement by law but only applied to the public sector..i THINK! sorry, not a finance professional but thought it sounded right:oops:
 
Profits kept within the organisation for future expenditure are known as "retained profits".

That's the closest i can help you with mate,perhaps Beckiboo could help further (i think she's an accountant).
 
MARKB said:
Profits kept within the organisation for future expenditure are known as "retained profits".

That's the closest i can help you with mate,perhaps Beckiboo could help further (i think she's an accountant).
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I'm a very poor Trainee Accountant who spends most of their time on here :lol:

I don't really get economics. In Accounting we would accrue money for future expenses that we know will, or might be coming. But I don't think that's what Grego means is it? :?
 
hmmmm.......we're along the right lines but its not so much the management of budgets in terms of them being ringfenced or retained for future expenditure but more so the policy of then reinvesting them from the same source as they came.

dunno, maybe there is no term.
 
M
Macroeconomics is a sub-field of economics that examines the behavior of the economy as a whole, once all of the individual economic decisions of companies and industries have been summed. Economy-wide phenomena considered by macroeconomics include Gross Domestic Product (GDP) and how it is affected by changes in unemployment, national income, rate of growth, and price levels.
In contrast, microeconomics is the study of the economic behaviour and decision-making of individual consumers, firms, and industries.
Macroeconomics can be used to analyze how to influence government policy goals such as economic growth, price stability, full employment and the attainment of a sustainable balance of payments.
Macroeconomics is sometimes used to refer to a general approach to economic reasoning, which includes long term strategies and rational expectations in aggregate behavior.acroeconomics is a sub-field of economics that examines the behavior of the economy as a whole, once all of the individual economic decisions of companies and industries have been summed. Economy-wide phenomena considered by macroeconomics include Gross Domestic Product (GDP) and how it is affected by changes in unemployment, national income, rate of growth, and price levels.
In contrast, microeconomics is the study of the economic behaviour and decision-making of individual consumers, firms, and industries.
Macroeconomics can be used to analyze how to influence government policy goals such as economic growth, price stability, full employment and the attainment of a sustainable balance of payments.
Macroeconomics is sometimes used to refer to a general approach to economic reasoning, which includes long term strategies and rational expectations in aggregate behavior.
 
grego said:
is there a term for an economic policy that means income/monies generated in one department/area are only reinvested in that same dept/area.

like a policy of direct reinvestment or somethin............has this got a specific name??
Click to expand...

plough back?
 
grego said:
is there a term for an economic policy that means income/monies generated in one department/area are only reinvested in that same dept/area.

like a policy of direct reinvestment or somethin............has this got a specific name??
Click to expand...

Do you mean hypothecation?

That's where money raised by the state (i.e. through taxes, usually) is earmarked for a specific purpose. An example would be the windfall tax on the privatised utilities that Labour levied when it came to power in 1997. The money was spent on the New Deal programme for the unemployed.
 
Digger said:
Do you mean hypothecation?

That's where money raised by the state (i.e. through taxes, usually) is earmarked for a specific purpose. An example would be the windfall tax on the privatised utilities that Labour levied when it came to power in 1997. The money was spent on the New Deal programme for the unemployed.
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not entirely right cos i need the money to be going directly back from whence it came and not to other schemes (however purposeful the intentions).

this may help though, thanks.:D

any other offers?????
 
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