What Is Implementation Lag? Implementation lag is the delay between an adverse macroeconomic event and the implementation of a fiscal or monetary policy response by the government and central bank. Implementation lag can result from delays in recognizing a problem; disagreements and bargaining over the appropriate response; physical, technical, and administrative constraints on the actual
What Is an Implementation Shortfall? In trading terms, an implementation shortfall is the difference between the prevailing price or value when a buy or sell decision is made with regard to a security and the final execution price or value after taking into consideration all commissions, fees, and taxes. As such, implementation shortfall is the sum
What Is an Implicit Cost? An implicit cost is any cost that has already occurred but not necessarily shown or reported as a separate expense. It represents an opportunity cost that arises when a company uses internal resources toward a project without any explicit compensation for the utilization of resources. This means when a company
What Is an Implied Contract? An implied contract is a legally-binding obligation that derives from actions, conduct, or circumstances of one or more parties in an agreement. It has the same legal force as an express contract, which is a contract that is voluntarily entered into and agreed on verbally or in writing by two or
What Is the Implied Repo Rate? The implied repo rate is the rate of return that can be earned by simultaneously selling a bond futures or forward contract, and then buying that actual bond of equal amount in the cash market using borrowed money. The bond is held until it is delivered into the futures
What Is Implied Authority? Implied authority refers to an agent with the jurisdiction to perform acts that are reasonably necessary to accomplish the purpose of an organization. Under contract law, implied authority figures have the ability to make a legally binding contract on behalf of another person or company. How Implied Authority Works Implied authority
What Is an Implied Warranty? An implied warranty is a legal term for the assurances that a product is fit for the purpose that it is intended and that it is merchantable, i.e., conforms to an ordinary buyer’s expectations. The warranty of merchantability is implied unless expressly disclaimed by name, or the sale is identified
What Is an Import? An import is a good or service bought in one country that was produced in another. Imports and exports are the components of international trade. If the value of a country’s imports exceeds the value of its exports, the country has a negative balance of trade, also known as a trade deficit. The
What Are the Import and Export Price Indexes (MXP)? The U.S. import and export price indexes (MXP) measure the change in prices of goods and services purchased from abroad by U.S. consumers and businesses (imports) and sold to foreign buyers (exports). The MXP measure changes in the prices of non-military goods and services. The indexes
What Is Import Substitution Industrialization (ISI)? Import substitution industrialization (ISI) is a theory of economics typically adhered to by developing countries or emerging market nations that seek to decrease their dependence on developed countries. The approach targets the protection and incubation of newly formed domestic industries to fully develop sectors so that the goods produced are competitive with imported
