"Somehow, we have come to think the whole purpose of the economy is to grow, yet growth is not a goal or purpose. The pursuit of endless growth is suicidal." – David Suzuki

See the Economist's definitions of terms: A-Z

In a nutshell, macroeconomics analyzes the economy at a national or global level and is concerned with the economy as a whole, while microeconomics is concerned with individual consumers, firms, and markets.

Absolute advantage Defined
This is the simplest yardstick of economic performance. If one person, firm or country can produce more of something with the same amount of effort and resources, they have an absolute advantage over other producers. Being the best at something does not mean that doing that thing is the best way to use your scarce economic resources. The question of what to specialise in--and how to maximise the benefits from international trade--is best decided according to comparative advantage. Both absolute and comparative advantage may change significantly over time.

Comparative advantage Defined
Paul Samuelson, one of the 20th century's greatest economists, once remarked that the principle of comparative advantage was the only big idea that ECONOMICS had produced that was both true and surprising. It is also one of the oldest theories in economics, usually ascribed to DAVID RICARDO. The theory underpins the economic case for FREE TRADE. But it is often misunderstood or misrepresented by opponents of free trade. It shows how countries can gain from trading with each other even if one of them is more efficient - it has an ABSOLUTE ADVANTAGE - in every sort of economic activity. Comparative advantage is about identifying which activities a country (or firm or individual) is most efficient at doing.

Steady State Economy Defined:
"Perpetual economic growth is neither possible nor desirable. Growth, especially in wealthy nations, is already causing more problems than it solves. Recession isn't sustainable or healthy either. The positive, sustainable alternative is a steady state economy." SSE

A steady state economy is an economy with stable or mildly fluctuating size. To be sustainable, a steady state economy may not exceed ecological limits. John Stuart Mill developed the idea of the steady state economy in the mid-19th century: "It is scarcely necessary to remark that a stationary condition of capital and population implies no stationary state of human improvement. There would be as much scope as ever for all kinds of mental culture, and moral and social progress; as much room for improving the Art of Living and much more likelihood of its being improved, when minds cease to be engrossed by the art of getting on."

Ecopsychology Defined:
Ecopsychology, or eco-psychology as it is sometimes called, is situated at the intersection of a number of fields of enquiry, including environmental philosophy, psychology, and ecology, but is not limited by any disciplinary boundaries. At its core, ecopsychology suggests that there is a synergistic relation between planetary and personal well being; that the needs of the one are relevant to the other. Visit The International Community of Ecopsychologists
"Why would otherwise intelligent people be advocating a return to the normal that brought us to the edge of this cliff, albeit with a fresh coat of green paint?... We come from the Earth and are totally dependent upon it for our sustenance, so we require a healthy planet in order to be healthy ourselves--and vice versa." – David Ewoldt, Ecopsychologist, "Connecting the Dots: A Roadmap for Critical Systemic Change" (2020)

Transition Town Network Defined
Transition Network was originally launched in the historic town of Kinsale, Co. Cork, Ireland. The Transition initiative is a community-led response to the pressures of climate change, fossil fuel depletion and increasingly, economic contraction. There are thousands of initiatives around the world including Transition towns, cities, villages, universities, churches and more. See the Interactive map of Transition Town groups around the world

Relocalization Defined
In 2009 Post Carbon Institute partnered with the international Transition movement to support and inspire community led responses around the relocalization strategy. The aims and work of Relocalization Network, a Post Carbon program from 2003-2009 with a network of 200 local groups, were at this stage integrated into Transition.

Relocalization is a strategy to build societies based on the local production of food, energy and goods, and the local development of currency, governance and culture. The main goals of relocalization are to increase community energy security, to strengthen local economies, and to improve environmental conditions and social equity. The relocalization strategy developed in response to the environmental, social, political and economic impacts of global over-reliance on cheap energy.

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