Economics Articles

  1. Hypothesis Testing in Finance: Concept & Examples

    When you're indecisive about an investment, the best way to keep a cool head might be test various hypotheses using the most relevant statistics.
  2. How Your Finances Compare To The Average American

    The phrase personal finance is pretty apt; your budget, financial goals and income are all unique to you, but there are some similarities with the average American.
  3. Basics Of The Binomial Distribution

    Despite the fancy-sounding name, you already understand the Binomial Distribution, and you can use it to make money. Ready? Read on.
  4. Successful Ways That Governments Reduce Federal Debt

    Governments have many options when trying to reduce debt, and throughout history some of them have actually worked.
  5. The U.S. National Spending And Debt

    Just like any average American household, government overspending can carry on for extended periods by rolling over debt and borrowing more and more money in what seems like a never-ending game of chasing our tail.
  6. Using Historical Volatility To Gauge Future Risk

    Use these calculations to uncover the risk involved in your investments.
  7. Strategies And Secrets Of High Frequency Trading (HFT) Firms

    Secrecy, strategy and speed are the words that best define high-frequency trading (HFT) firms.
  8. How Influential Economists Changed Our History

    Find out how these five groundbreaking thinkers laid our financial foundations.
  9. The Dark Side Of The WTO

    The World Trade Organization has its share of detractors. Find out why this international entity has such harsh critics.
  10. Coping With Inflation Risk

    Inflation is less dramatic than a crash, but it can be more devastating to your portfolio.
  11. How Fannie Mae And Freddie Mac Were Saved

    These mortgage giants had to be put under government conservatorship, driving home the gravity of the subprime crisis.
  12. Investment Misselling A Global Problem

    When banks and advisors focus on fees and commissions, it is investors and the market that take the hit.
  13. The Economics Of Labor Mobility

    Loosening labor restrictions has both good and bad effects for a country and its workers.
  14. Examining The Phillips Curve

    This model depicts an inverse relationship between unemployment and wage inflation, but is it accurate?
  15. Leveraging Leverage For Bigger Profits

    Leverage is like fire. Find out how to use it to heat up your investing without burning your portfolio.
  16. The Causes And Effects Of Credit Shocks

    These shocks cycle through history. Find out what you need to know to avoid the alarm bells.
  17. Combating Retirement's Silent Killer: Inflation

    Inflation can devour a once secure nest egg. Learn how to protect yours.
  18. What Is Fiscal Policy?

    Learn how governments adjust taxes and spending to moderate the economy.
  19. How To Lie With Financial Statistics

    Can you really trust what the financial services industry puts out? We tell about some tricks that hide the truth.
  20. What Is Opportunity Cost And Why Does It Matter?

    Economists suggest that the "opportunity cost" of any decision, the value of the next-best alternative, is crucial to making sound choices.
  21. The Treasury And The Federal Reserve

    Find out how these two agencies create policies to stimulate the economy in tough economic times.
  22. Competitive Advantage Counts

    What's the best indicator of a company's future success? Its ability to succeed when others fail.
  23. Cost-Push Inflation Versus Demand-Pull Inflation

    Gain a deeper understanding of aggregate supply and demand, forces which raise the price of goods and services.
  24. The Scottish Referendum & Fed News For Investors

    Last week’s stock losses were a reflection of investors looking to two big news events: the Scottish independence vote and the Federal Reserve statement.
  25. What Are The Odds Of Scoring A Winning Trade?

    Just because you're on a winning streak doesn't mean you're a skilled trader. Find out why.
  26. Countries With The Highest Fracking Potential

    Is fracking a "necessary evil," as some believe? Here are some countries with huge fracking potential--and what they stand to lose or gain from fracking.
  27. 5 Lessons From The Recession

    The bear market of 2008 was a game-changer for many investors. Find out what lessons you can take away from it.
  28. Adam Smith And "The Wealth Of Nations"

    Adam Smith's 1776 classic may have had the largest global impact on economic thought.
  29. 10 Common Financial Terms Every Newbie Needs To Know

    In order to get a better understanding of what you read in markets news, we’ll briefly explore the terms you commonly encounter.
  30. The Austrian School Of Economics

    Investopedia explains: If you think economists are only concerned with numbers, check out the Austrian School, who are more like economic philosophers.
  31. Boom or Bust? The End of China's One-Child Policy

    China's easing of its one-child policy has demographers speculating whether it'll lead to a baby boom. Here's why it might not.
  32. Investing Implications Of An Uneven Global Economy

    As last week’s non-farm payroll report illustrated, the recovery – both in and outside the United States – remains a grudging, disappointing one.
  33. Putting The Decline Of European ETFs In Context

    European ETFs have experienced a difficult summer amid a faltering currency and central bank that is scrambling to implement looser monetary policies.
  34. A Primer On Reserve Currencies

    For nearly a century, the U.S. dollar has served as the world's premier reserve currency, but the future is uncertain.
  35. A Review Of Past Recessions

    Here we look at the biggest economic declines in the U.S. since the Great Depression.
  36. Is Growth Always A Good Thing?

    Getting big quickly looks good, but companies can get into trouble when they do it too fast. Find out how to spot this trouble.
  37. Top Ranking Nations By HNWI

    The United States, Japan and Germany together make up 53.3% of the total worldwide high net worth individual population.
  38. Is Your Stock Headed South?

    Don't let your portfolio go with it! Find out which signs to watch out for.
  39. What The National Debt Means To You

    The U.S. deficit seems to grow every year. But how does it actually affect you?
  40. As Boomers Slow Down, Will The Economy Follow?

    Many baby boomers are working past 65. Yet as they inevitably retire, effects on workforce participation and consumer spending levels will be profound.
  41. The Gini Index: Measuring Income Distribution

    A country with $100 billion in assets and four residents sounds good - unless three of them have $0.
  42. The World's Top Financial Cities

    These cities are the heart of the world's financial activity.
  43. What You Should Know About The U.S. Bureau of Labor Monthly Statistics

    The Bureau of Labor Statistics' monthly employment figures are a key economic indicator. Here's how they work.
  44. Introduction To Remittances

    Remittances are an important factor in the global economy, and help drive growth both at home and abroad.
  45. Muriel Siebert: Female Finance Pioneer

    Muriel Siebert has blazed many paths for investors, but is especially relevant as the first woman to sit on the NYSE.
  46. Central Banks Pump Up the Volume

    Central bank liquidity trying to restart stalling economies around the globe bodes well for equities and bond prices.
  47. How Globalization Affects Developed Countries

    The increase in communications technology has companies competing in a global market.
  48. Alan Greenspan: 19 Years In The Federal Reserve

    Follow the economic glories and bumbles in the career of the previous Fed chair.
  49. How Budget Sequestration Affects You

    Sequestration became a household word in 2011, but neither the term, the concept or the controversy surrounding the topic are new.
  50. The GDP And Its Importance

    GDP is an accurate indication of an economy's size. In terms of its ability to convey information about the economy in one number, few data points can match the GDP and its growth rate.
  51. Why And When Do Countries Default?

    Countries can, and periodically do, default on their debt. This happens when the government is either unable or unwilling to make good on its fiscal promises.
  52. Breaking Down The Geometric Mean

    Understanding portfolio performance, whether for a self-managed, discretionary portfolio or a non-discretionary portfolio, is vital to determining whether the portfolio strategy is working or needs to be amended. There are numerous ways to measure performance and determine if the strategy is successful.
  53. The Evolution Of Banking

    Banks are a part of ancient history. Find out how this system of money management developed into what we know today.
  54. The Federal Reserve System Affects You More Than You Might Think

    How does the Federal Reserve System affect ordinary citizens? In more ways than you might realize.
  55. S&P 500 ETFs: What Every Investor Should Know

    Before you invest in that SPDR S&P 500 ETF (or any other ETF based on that index) here are a few things to consider.
  56. The S&P 500: The Index You Need To Know

    Just how are companies added to and dropped from the S&P 500, and how is its value calculated? Curious? Read on.
  57. The Companies That Headline The S&P 500

    These companies are the creme de la creme of the S&P 500. Here's how they got there.
  58. Top Indicators From The Bureau of Labor Statistics

    Of the BLS indicators, the change in nonfarm payrolls and unemployment rate, as well as the CPI and PPI, are the ones most closely watched by investors.
  59. The Rate Rise Timeline to Watch for Now

    When will the Fed begin to raise rates? Here’s a take on the rate rise timeline to watch for now post Jackson Hole.
  60. How Banks Set Interest Rates On Your Loans

    On the face of it, figuring out how a bank makes money is a pretty straightforward affair. A bank earns a spread on the money it lends out from the money it takes in as a deposit. The net interest margin (NIM), which most banks report quarterly, represents this spread, which is simply the difference between what it earns on loans versus what it pays out as interest on deposits.
  61. An Analysis Of Social Security Benefits And Their Future

    Social Security is a significant driver of the US economy--as good a reason as any to make sure you understand it!
  62. How the Cost of Living Affects Your Income

    Do you know all the ways cost of living increases can affect your income?
  63. What Exactly is a Socialist Economy?

    Socialism's role in the world has changed dramatically in the last several decades.
  64. How Countries Deal With Debt

    For many emerging economies, issuing sovereign debt is the only way to raise funds, but things can go sour quickly.
  65. Great Company Or Growing Industry?

    Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth.
  66. Four Ways to Increase Your Corporate Bond Exposure

    Looking at the corporate bond market over the past few years, we see that there has been a growing demand for both investment grade and high yield corporate bonds.
  67. The Rise And Fall Of The Shadow Banking System

    We look at the evolution, failure and fallout from the shadow banking system.
  68. How Inflation Affects Your Cost of Living

    How will your wallet be impacted by inflation?
  69. Socialist Economies: How China, Cuba And North Korea Work

    What is socialist economics in the context of Cuba, China and North Korea?
  70. The Taylor Rule: An Economic Model For Monetary Policy

    This interest rate forecasting model has helped central banks around the world adjust their rates to balance out inflation.
  71. This is What the Fed’s Monetary Policy Means To You

    It’s a good thing for everyone concerned with their finances to take five minutes or so to find out what the Federal Reserve next move will be.
  72. Why You Should Invest In This Vibrant Asian Nation

    Other than tourism and a recent military coup, what's there for investors to know about Thailand? Plenty.
  73. Is it Time to Prepare for Inflation?

    While U.S. inflation remains at historic lows, it has ticked up recently, leaving many investors fearing rising prices.
  74. More Volatility Ahead?

    Despite recent market swings, volatility is still low by historic standards, suggesting that markets aren’t taking into account the prospect of bad news.
  75. How Big Are Emerging Markets?

    Satistical studies of GDP in emerging markets have been in the news recently. One calculation indicated that the Chinese economy could be close to the U.S.
  76. 5 Reasons Why Low Rates May be Harmful To The Economy

    Like quantitative easing before it, the Fed’s zero interest rate policy may actually be inhibiting economic growth and job creation in unintended ways.
  77. Why Inflation Is Still A Threat To Your Retirement

    One reason people tend to underestimate their retirement saving needs is that they fail to properly account for the impact of inflation.
  78. The Biggest Threat To The Housing Recovery

    Despite a run of positive economic news that most recently includes a surge in new home sales, you have to be prepared for the possibility of a setback.
  79. Are Stock ETF Investors Placing Too Much Faith In The Fed?

    For one thing, inflation-adjusted spending declined over the last few months. That cannot be a strong sign for the U.S
  80. Supply, Demand and Interest Rates: Why One thing Leads to Another

    A recent report from the Federal Reserve reveals a disconnect in global bond supply and demand, which partially explains why interest rates have fallen so far in 2014.
  81. What is the OIS LIBOR Spread And What Is It For?

    When the LIBOR-OIS spread rises significantly, it represents the worry that banks might not be able to pay down even their short-term debt obligations.
  82. 3 “Risk-Off” Signs For ETF Investors

    Warning signs that ETF investors may wish to follow.
  83. What Is The Relationship Between The Federal Funds, Prime And LIBOR Rates?

    The prime rate and LIBOR rate, two of the most prominent benchmark rates, tend to track the federal funds rate closely over time. However, during periods of economic turmoil, LIBOR appears more likely to diverge from the central bank’s key rate to a greater extent.
  84. Will OIS Replace LIBOR?

    LIBOR manipulation by large banks during the financial crisis has raised serious doubts about the interest rate's reliability. Now, the question is whether to reform the rate or replace it with another benchmark such as OIS.
  85. Russian Interests

    Tensions between Russia and Ukraine remain high, and have spilled onto the international stage.
  86. Why a Rise In the National Debt Is Good for You

    In the first quarter of the year, the household national debt for Americans was $129 billion. Yet contrary to popular belief, debt is not always a bad thing.
  87. These Sectors Benefit From Rising Interest Rates

    You've adjusted your debt portfolio to prepare for rising interest rates; now what about your equity holdings? Here are some sectors and companies to keep an eye on.
  88. What Is ICE LIBOR And What Is It Used For?

    In the case of ICE LIBOR, an innocent-sounding set of letters has a profound bearing on every loan you make.
  89. Four Market Risks to Focus on This Summer

    Four market risks to pay attention to this summer.
  90. 5 Funds to Fight Inflation

    Judging by the price action and performance of conventional inflation hedges over the last 12 months, it appears the investing public's worries over inflation are nearly non-existent.
  91. America The Youthful? Yes, On a Relative Basis

    While the United States is aging at a much slower pace than much of the rest of the world, the U.S. population will almost certainly continue to age.
  92. How To Protect Yourself From Rising Interest Rates

    Today's historically low interest rates have just one way to go. How should you prepare for their inevitable rise?
  93. Millennials: Let’s Grab A Beer, Burger and a Movie In 2064

    Asking a 25-year old to save money for his 75-year old future self is like asking him to give money to a stranger. But if you put the future in more relatable terms saving may start to make sense.
  94. Japan’s 20-Year Deflationary Spiral Is About To End

    With this month’s hike in the consumption tax from 5% to 8%, investors are fearful that history may repeat itself.
  95. Thoughts from the Frontline: The Cost of Code Red

    Thoughts from the Frontline: The Cost of Code Red
  96. State Employment Trends: Does a Low Tax/Right-to-Work/Low Minimum Wage Regime Correlate to Growth?

    Employment in Governor Walker’s Wisconsin, as in Governor Brownback’s Kansas, has lagged behind that of the United States (and behind that of Governor Dayton’s Minnesota and Governor Brown’s California).
  97. Connecting the Dots on Fed Policy

    A close look at how the Fed decides which path to follow.
  98. Outside the Box: Hoisington Investment Mgmt Review and Outlook, Q1 2014

    Outside the Box: Hoisington Investment Management Quarterly Review and Outlook, First Quarter 2014
  99. Why Stick With Energy Stocks? (Hint: Geopolitical Risk)

    By most fundamental measures, oil prices should be declining. Russ explains why they’re on the rise instead, how this has helped energy stocks in 2014 and why investors should still consider an overweight to the global energy sector.
  100. Are We Setting Ourselves Up For Another Financial Crisis?

    “More money has been lost because of four words than at the point of a gun. Those words are, ‘This time is different.’”
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