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asset stripping (M2)<br />The sale of parts of a company which, in many cases, has recently been taken over by another company. Large holding companies have been built up in the past this way as each stripping provides resources for another company acquisition. By selling off parts of a company previously undervalued, finance for further acquisitions is obtained.
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Bank of Italy (BOI) (E5)<br />The central bank of Italy founded in 1883 through the merger of four note-issuing banks. It was granted its independence from the Italian government in 1993.
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mesoeconomy (PO)<br />That part of the ECONOMY run by big business. It is intermediate between households or small firms and national governments.<br /><em>Reference</em><br />Holland, S. (1987) The Market Economy from Micro to Mesoeconomics, London: Weidenfeld & Nicolson.
Pigou effect (E2)<br />The effect on consumption of a change in the real value of cash balances brought about by a change in the money supply, e.g. an increase in the money supply which causes a rise in prices, a reduction in the purchasing power of cash balances which results in lower consumption. Diagrammatically, this effect can be shown as a shift in the IS curve. Also known as the 'real balance effect'.<br /><em>See also:</em> IS-LM curves
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