Unrequited Exports Goods

Unrequited Exports Goods

Unrequited Exports, goods or services exported to pay interest on a loan or repay the capital. They are therefore not paid for by those to whom they are sent and so do not earn foreign exchange. In recent years they have referred in particular to the withdrawal abroad of money held in Britain (the 'sterling balances').

Usury, charging excessive' or 'unreasonable' rates of interest on loans. Early laws of the Church and State prohibited or controlled usury. The usury laws were repealed in 1854 as part of the process of removing economic restrictions. In economics the term has little meaning unless markets are highly imperfect. If interest rates are high, then, unless the suppliers of loans have created a monopoly or the demanders do not know how much they are paying, the implication is that loans are scarce relatively to the demand for them. Allowing rates of interest to rise is therefore a method of removing the scarcity by stimulating the supply and/or reducing the demand. Much of the usury of which Shakespeare wrote, and moralists and churchmen of the Middle Ages complained, may have arisen from local monopolies caused by poor transport and lack of knowledge that loans could be obtained for lower rates of interest elsewhere. In more recent times poor people who borrowed money from pawnbrokers or moneylenders did not know how high the rate of interest was or could not easily borrow elsewhere. In our day many people who buy by hire purchase do not know that they are paying 40 or 50 per cent interest. Hire purchase laws require the information to be stated more plainly. 'Personal' loans by some of the joint-stock banks to people with middling or lower incomes is also making the market for private borrowing less imperfect and thus helping to reduce interest rates.

Utilitarianism, philosophical and political term originated by Jeremy Bentham for the theory of the means of ensuring 'the greatest happiness of the greatest number'. It had many followers among economists and political philosophers.

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Since then his writings have in turn been increasingly reinterpreted as a special case both by some followers and by some economists who had not wholly accepted his writings. The content of economics is in a state of change, and this consumeraffairs.org.uk site is therefore not a final statement of economic doctrine.

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