By Cadman Atta Mills
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Extra resources for Analytical approaches to stabilization and adjustment programs
As a result, manpower is transferred from the household sector to the labor force, and production is transferred from the household sector to the market economy. The services of housewife are similar to the situation of the farmer who consumes part of his produce. While the personal consumption of output by the farmer is accounted for in the GNP estimates, the services of the housewife are not part of the GNP. Given this anomaly in SNA, economists from time to time have put forth suggestions for evaluating the contribution of the household sector.
The value of such activities does not pass through the market. However, there is a continuous interaction between the nonmarket household sector and other sectors of the market. For example, a full-time homemaker takes up employment at nominal wages and in turn pays for childcare or hires a nurse to take care of the sick. As a result, manpower is transferred from the household sector to the labor force, and production is transferred from the household sector to the market economy. The services of housewife are similar to the situation of the farmer who consumes part of his produce.
Financial institutionsmonetary and other financial institutions play a key role as middlemen for transactions involving the acquisition of financial assets and liabilities. Central or reserve banks issue currencies and often hold the international reserves of a country. They may also have other liabilities in the form of demand deposits of other banks and, often, the government. Other monetary institutions are commercial banks that typically have liabilities in the form of deposits payable on demand and transferable by checks.
Analytical approaches to stabilization and adjustment programs by Cadman Atta Mills