GDP is a good indicator of an economy’s size, and the GDP growth rate is perhaps the best indicator of economic growth, while GDP per capita has a strong link to the trend in living standards over time. Why is GDP the most accurate indicator of economic growth? GDP is significant because it provides information […]
Is GDP The Best Measure Of Economic Growth? Read More »
Bond funds are popular among risk-averse investors for a variety of reasons. U.S. Treasury bond funds are at the top of the list because they are considered to be one of the safest investments. Investors are not exposed to credit risk since the government’s capacity to tax and print money reduces the risk of default
How Safe Are Bonds In A Recession? Read More »
Chairman Jerome Powell said Tuesday that the Federal Reserve has a different understanding of the term “transitory inflation” than most Americans, suggesting that the term be “retired.” Powell and Treasury Secretary Janet Yellen spoke before the Senate Banking, Housing, and Urban Affairs Committee on Tuesday, the first of two days of evidence on the Coronavirus
What Does Inflation Is Transitory Mean? Read More »
Anticipated inflation is the percentage increase in the level of prices that people in an economy expect over a particular period. Consider a loaf of bread or any form of consumer staple that you buy on a daily basis. It’s safe to assume that the cost of that staple will rise over time. Bread probably
What Is Anticipated Inflation? Read More »
Natural resources, capital goods, human resources, and technology are the four supply variables that have a direct impact on the value of goods and services delivered. Economic growth, as measured by GDP, refers to an increase in the rate of growth of GDP, but what affects the rate of growth of each component is quite
What Factors Affect GDP? Read More »
A recession is characterized as a prolonged period of low or negative real GDP (output) growth, which is accompanied by a considerable increase in the unemployment rate. During a recession, many other economic indicators are equally weak. What are the three distinct sorts of economic downturns? A recession is defined as a time in which
What Constitutes A Recession? Read More »
The Great Recession demonstrates how tax revenues plummeted during a severe downturn. Revenues declined by 11% across the OECD countries from 2008 to 2009, with business income taxes suffering the biggest drop at 28%. Individual income tax revenues declined by 16 percent. During a recession, what happens to taxes? This audio presentation’s full transcript may
Do Taxes Increase During Recession? Read More »
Stocks have a good chance of keeping up with inflation, but not all equities are made equal when it comes to doing so. Inflationary periods, for example, tend to batter high-dividend-paying stocks like fixed-rate bonds. Is the stock market immune to inflation? Returns on the Stock Market and Inflation Nominal returns minus inflation equals real
Are Stocks Inflation Proof? Read More »
Interest rates are its primary weapon in the fight against inflation. According to Yiming Ma, an assistant finance professor at Columbia University Business School, the Fed does this by determining the short-term borrowing rate for commercial banks, which subsequently pass those rates on to consumers and companies. This increased rate affects the interest you pay
Why Do High Interest Rates Reduce Inflation? Read More »
Money is a merely theoretical construct, and I’m not saying that from a hippie, anti-materialist, counter-culture perspective. That isn’t a revolutionary idea; economists have understood it for a long time. The money in our wallets, bank accounts, and other places makes up a very small part of our economy. The rest is made up of
Where Does The Money Go In A Recession? Read More »
