Mali isn’t the only geographical phrase in Africa that needs to be clarified. Similarly, the Sudan is not to be mistaken with the current Sudan: the Sudan is an arid territory covering around 2 million square miles (3.2 million square kilometers), roughly the size of the United States west of the Mississippi River. It spans […]

Over the life of the bond, an inflation-indexed bond protects both investors and issuers against the risk of inflation. 1 Indexed bonds, like traditional bonds, pay interest at regular intervals and refund the principal at maturity. What are some of the advantages of indexed bonds? Indexed bonds offer investors inflation-adjusted returns, or real interest rates

Governments can fight inflation by imposing wage and price limits, but this can lead to a recession and job losses. Governments can also use a contractionary monetary policy to combat inflation by limiting the money supply in an economy by raising interest rates and lowering bond prices. Another measure used by governments to limit inflation

When the price of goods and services rises, inflation happens; when the price of goods and services falls, deflation occurs. The delicate balance between these two economic circumstances, which are opposite sides of the same coin, is difficult to maintain, and an economy can quickly shift from one to the other. What is inflation, for