Inflation hit a 40-year high in February, and experts predict that the worst is yet to come as the US economy heads into a recession. According to data issued Thursday by the Bureau of Labor Statistics, the consumer price index (CPI) increased 7.9% on an annual basis. Inflation increased by 0.8 percent month over month. […]
Are We In Inflation Or Recession? Read More »
A recession is a natural element of the business cycle that occurs when the economy declines for two consecutive quarters. A depression, on the other hand, is a prolonged decline in economic activity that lasts years rather than months. This makes recessions far more common: in the United States, there have been 33 recessions and
When Does A Recession Become A Depression? Read More »
Dividends aren’t just great to have; they’re critical to the stock market’s performance, accounting for around 40% of total gains since 1930. According to Denise Chisholm, Fidelity’s sector analyst, stocks that grew their dividends the most significantly outperformed the general market on average during periods of high inflation. The regular, planned payments of dividend-paying companies
Do Dividend Stocks Do Well With Inflation? Read More »
The most significant approach to gauge a country’s economic health is to look at its GDP. It adds up the monetary worth of all things and services produced within a specific time period, minus the value of goods and services consumed in the process. GDP is used by both large and small enterprises to plan
What Problem Is Solved By Using Real GDP? Read More »
It’s vital to remember that capital markets, which include bond and stock investors, are mostly forward-looking. This indicates that today’s price change reflects forecasts for future economic situations. Bond prices tend to rise and stock prices tend to fall when investors expect a recession, for example. In a recession, what happens to bond prices? Bond
Do Bonds Lose Value In A Recession? Read More »
A zero-inflated model is a statistical model that is built on a zero-inflated probability distribution, that is, a distribution that allows for many zero-valued observations. What exactly is zero inflation? When an economy achieves price stability, it reaches zero inflation. Prices aren’t rising (inflation) or declining (deflation) (deflation). In theory, most central banks want to
What Is Zero Inflation? Read More »
Exports of goods and services as a percentage of GDP in China are 18.50 percent, while imports of goods and services are 17.34 percent. What proportion of China’s GDP is made up of exports? China’s export percentage of GDP increased to almost 19 percent in 2021, up from 17.65 percent the previous year. In that
How Much Of China’s GDP Is Exports? Read More »
Interest rate levels will be affected by inflation. The higher the rate of inflation, the more likely interest rates will rise. This happens because lenders will demand higher interest rates in order to compensate for the eventual loss of buying power of the money they are paid. When inflation is high, why boost interest rates?
Why Does Inflation Increase Interest Rates? Read More »
The United States’ annual inflation rate has risen from 3.2 percent in 2011 to 4.7 percent in 2021. This suggests that the dollar’s purchasing power has deteriorated in recent years. What was the rate of inflation between 2019 and 2020? Between 2019 and 2020, the dollar saw an average annual inflation rate of 1.23 percent,
What Was Inflation This Year? Read More »
Inflation isn’t always a negative thing. A small amount is actually beneficial to the economy. Companies may be unwilling to invest in new plants and equipment if prices are falling, which is known as deflation, and unemployment may rise. Inflation can also make debt repayment easier for some people with increasing wages. Inflation of 5%
How Much Inflation Is Too Much? Read More »
