From Conservapedia
Jump to: navigation, search

In economics, exogenous effects are those whose causes cannot be predicted or derived from economic factors at work within the status quo. For example, the Oil Embargo of 1973 that led to massive supply disruptions in the United States and that resulted in severe cost-push inflation or "stagflation" was caused by an act of the multinational OPEC cartel - an unforeseeable economic vicissitude.

A development that results from an existing factor, such as decreased investment spending following a rise in the Federal Reserve's discount rate, would be classified as endogenous, not exogenous, due to its having logically arisen from the status quo.