Economics

Does Inflation Make The Stock Market Go Up?

When inflation is high, value stocks perform better, and when inflation is low, growth stocks perform better. Does inflation affect stock prices? When inflation rises, stocks may suffer a setback, but inflation often indicates that the economy is expanding and that stocks are rising in general. Stagflation occurs when a lengthy economic decline is accompanied […]

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How Can A Financial Crisis Lead To A Recession?

During the 20072008 U.S. financial crisis, financial considerations played a role in the economy’s descent into recession. Excessive credit and debt on risky loans and marginal borrowers can result in a massive risk buildup in the financial sector. The Federal Reserve and the banking industry can take this process to extremes, fuelling dangerous asset price

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Is Inflation Tax?

Only in the last 14 months or so of the Biden administration has money been flowing at a rapid pace. Low interest rates and asset purchases by the Federal Reserve have been ongoing for years, all in an effort to ameliorate a tough position rather than to support a new spending plan. Inflation wasn’t completely

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