ratchet effect
A term used to describe a variable quantity that typically only moves in one direction. Some of the best examples of the ratchet effect in an economic context relevant to forex traders are the values of goods and services, or the cost of labor. Each of these values tends to rise or ratchet upward over time since prices and wages are rarely permitted to fall.
Browse by Subjects
batch costing
safe harbor
cost of living bonus
real GDP