WASHINGTON, D.C. (AP) It didn’t even register as a danger at first. It felt like a minor issue at the time. Inflation is now flashing red for policymakers at the Federal Reserve and giving sticker shock to Americans at the used car lot, supermarket, gas station, and rental office. Consumer prices rose 7% in December […]
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TIPS (Treasury Inflation-Protected Securities) give inflation protection. As assessed by the Consumer Price Index, the principal of a TIPS increases with inflation and falls with deflation. When a TIPS matures, the adjusted principal or the original principal, whichever is greater, is paid to you. TIPS pay a fixed rate of interest twice a year. Because
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The Chicago Metropolitan Area, which includes Chicago and its suburbs, is home to 36 Fortune 500 firms and serves as a transportation and distribution hub. Manufacturing, printing, publishing, insurance, transportation, financial trading and services, and food processing are all significant contributors to the city’s economy. In 2020, Chicago’s overall economic production in gross metropolitan product
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The US economy grew in fits and starts before the Federal Reserve Act of 1913 established the Federal Reserve. Following periods of fast inflation and asset price increase, severe shocks and panics occurred. The United States underwent four episodes of double-digit inflation between 1775 and 1913. When did the inflationary period begin? The Great Inflation
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There are many other ways to quantify gross domestic product (GDP), including real GDP and potential GDP, but the numbers are often so similar that it’s impossible to tell the difference. Because potential GDP is predicated on continuous inflation, whereas real GDP can change, real GDP and potential GDP address inflation differently. Potential GDP is
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A recession is a macroeconomic phrase that denotes a considerable drop in overall economic activity in a specific area. It was previously defined as two consecutive quarters of economic contraction, as measured by GDP and monthly indicators such as an increase in unemployment. The National Bureau of Economic Research (NBER), which officially declares recessions, claims
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The annual production of goods or services at current prices is measured by nominal GDP. Real GDP is a metric that estimates the annual production of goods and services at their current prices, without the impact of inflation. As a result, nominal GDP is considered to be a more appropriate measure of GDP. If you
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Inflation is important to consumers because it affects their costs and level of living. Businesses keep a close eye on the pricing of raw materials used in their products, as well as the salary they must pay their workers. Inflation has an impact on taxes, government spending and programs, interest rates, and other factors. What
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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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Cost-push When the supply of an item or service changes but the demand for it does not, inflation happens. It usually happens when there is a monopoly, wages rise, natural disasters strike, regulations are enacted, or currency rates fluctuate. What causes inflationary cost push and cost pull? In economics, there are three basic sources of
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