Businesses that prosper during a downturn Groceries. Grocery retailers, unsurprisingly, do the best business in a depressed economy. Can firms succeed during a downturn? During economic downturns, not all firms and industries suffer equally. Consumers are cutting back on substitute items and other competitive options, which benefits certain businesses. Many of the firms that do […]
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The number of weekdays per month, quarter, and year has been addressed on the FRED Blog. (It may seem insignificant, but when working with data, you must be exact about federal and municipal holidays, as well as how weekends fall during the month.) The FRED graph above depicts the federal government’s budget balance as a
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Gold has long been thought to be a good inflation hedge. In reality, many people have looked to gold as a “alternative currency,” especially in countries where the national currency is depreciating. When their own currency fails, these countries often resort to gold or other strong currencies. Gold is a genuine, tangible asset that, for
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A recession is a period of falling economic performance that lasts several months and affects the entire economy. Businesses, investors, and government officials monitor a variety of economic indicators that can help anticipate or confirm the onset of recessions, but the National Bureau of Economic Research (NBER) is the one who officially declares them. To
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Given what is happening in the developed world, the Indian rupee will remain stable to strong. If we continue on our current path of 8-9 percent real GDP growth, we will see 8% dollar GDP growth. We should be at USD 5 trillion by 2025-26 or 2026-27, if we extrapolate,” he remarked. Can India’s GDP
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According to U.S. Labor Department data published March 10, the annual inflation rate in the United States was 7.9 percent for the 12 months ended February 2022, the highest since January 1982 and after reaching 7.5 percent earlier. On April 12, at 8:30 a.m. ET, the next inflation update will be released. It will provide
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The term “Gross Domestic Product” refers to the total monetary worth of all final goods and services produced (and sold on the market) within a country over a given time period (typically 1 year). The gross domestic product (GDP) is the most often used indicator of economic activity. What does GDP stand for? GDP quantifies
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The Fed monitors inflation measures such as the Consumer Price Index (CPI) and the Producer Price Index (PPI) to assist keep inflation under control (PPI). When these indicators begin to climb at a rate of more than 2%3% per year, the Federal Reserve will raise the federal funds rate to keep increasing prices in check.
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So, how do interest rates effect inflation’s growth and fall? Lower interest rates, as previously said, provide consumers additional borrowing capacity. When customers spend more, the economy expands, resulting in inflation. If the Fed determines that the economy is growing too quickly and that demand is outstripping supply, it might raise interest rates, restricting the
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Inflation is calculated using the consumer price index, which tracks price fluctuations for retail goods and services. The inflation rate measures the increase or reduction in the price of consumer goods over time. You can use historical price records in addition to the CPI. The steps below can be used to calculate the rate of
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