A country’s monetary policy defines the policies its central bank employs to control its money supply. Usually, the bank does so to achieve macroeconomic goals. In this process, the central bank manages the growth and volume rate of the money supply in the economy. There are several steps involved in …

Inflation is a term used in economics to represent increasing goods and services prices. Similarly, it signifies a decline in a currency’s purchasing power. Inflation can be good or bad, depending on various factors. There are two terms associated with inflation that people often confuse. These include deflation and disinflation. …

A nation or region’s economy may go through many fluctuations over a defined period. Usually, countries experience positive changes, which increases employment, production, demand, etc. Sometimes, however, some countries may also go through adverse changes. These changes have the opposite effect. These fluctuations represent the country or nation’s business cycle. …

Investors need a diversified portfolio to mitigate any systematic or unsystematic risks. For that reason, they will include a variety of investments in their portfolio. While investing in the stock and bond market is common for most investors, they may also look towards the housing market. The housing market, however, …

Inflation is the decline in the purchasing power of a given currency over a specific time. Usually, it represents the rate at which the price level of a basket of selected goods and services in an economy increase. The selection of this basket will depend on the index which measures …

For investors, investing in various assets or income streams presents several risks. These risks can be specific to the asset class or the market that investors enter. Some risks may apply to all investments regardless of the type of asset or market. One of these risks includes inflationary risk associated …

A nation’s economy is its state in terms of production and consumption of goods and services. It also includes other factors, such as the supply of money. Based on these factors, a country’s economy may undergo several fluctuations over a period of time. Usually, there are various stages that an …

What is Gross Domestic Product (GDP)? Gross Domestic Product (GDP) is a monetary value used to track a county’s economic health. It represents the total market value of all the finished goods and services produced within a country over a specific time. There are several factors that can contribute to …

Most economies experience inflation regularly. Inflation represents a specific currency’s purchasing power. A high increase in inflation can result in damage to most economies. Some economies may also experience negative inflation, also known as deflation. While, theoretically, it can be a good thing, it also has some drawbacks. What is …

Inflation refers to the decrease in a currency’s purchasing power. It can come as a result of various factors. Inflation isn’t necessarily a bad thing, as it can also accompany positive changes. However, it usually has adverse effects on businesses and individuals. Inflation risk, also known as purchasing power risk, …