Economics Articles

The balance of trade is a key indicator of a nation’s health. Investors and market professionals appear more concerned with trade deficits than trade surpluses, since chronic deficits may be a precursor to a currency devaluation.

Interest rates can be broken down into several subcategories that incorporate various factors such as inflation. Smart investors know to look beyond the nominal or coupon rate of a bond or loan to see whether it really fits their investment objectives.

Inflation - defined as a sustained increase in the price of goods and services - seems to be inevitable. While rising prices are bad news for consumers, as it takes an ever-increasing amount of money to purchase the same basket of goods and services year after year, inflation can be quite profitable for investors.

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.

Few people have much sympathy for the woes of those earning six figure or more each year. But, given that high-income earners drive economic expansion, the risks and problems facing high earners must be addressed if the U.S. is to sustain a long-term recovery.

This tool is easy to use and can provide valuable information on financial analysis and forecasting. Find out how.

Get a deeper understanding of the importance of interest rates and what makes them change.

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.

When market volatility spikes or stalls, newspapers, websites, bloggers and television commentators all refer to the VIX®. Formally known as the CBOE Volatility Index, the VIX is a benchmark index designed specifically to track S&P 500 volatility.

Hyperinflation can destroy your life savings in a matter of months or less. We’ve seen again and again throughout history…Germany in the 1920s, Hungary in the 1940s, Yugoslavia in the 1990s and Zimbabwe just a few short years ago. Hardest hit are seniors who generally don’t have many employment options for boosting their income.

Investors that understand and utilize the U.S. GDP report have a significant advantage over those that don't.

The consumer confidence is key to any market economy, so investors need to learn the measures and how to analyze them.

Understand how rate changes can affect home prices, and learn how you can keep up.

Learn how a country's current account balance reflects the country's economic health.

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

The balance of payments helps countries to track how much money is coming in and how much money is going out. Learn more about BOPs here.

Understanding these investing tools will put the market in your hands.

GDP is the typical indicator used to measure a country's economic health. Find out what it fails to reveal and how the Genuine Progress Indicator can help.

When stocks are divided into growth and value categories, the evidence is clear that value stocks perform better in periods of high inflation, and growth stocks perform better during periods of low inflation.

Monetary policy changes can have a significant impact on every asset class. investors can position their portfolios to benefit from policy changes and boost returns by being aware of the nuances of monetary policy.

This index is a widely-used and respected barometer of the U.S. housing market and the broader economy.

Explore the controversies surrounding companies commenting on their forward-looking expectations.

Find out why economists are torn about how to calculate inflation.

Find out how the PPI can be used to gauge the overall health of the economy.

What people buy and where they shop can provide valuable information about the economy.

A great deal can happen in between the New York close of the market and the open the following morning. Learn how you can access opportunities and hedge against risk outside regular trading hours.

Leading indicators help investors to predict and react to where the market is headed.

Depending on which estimate you believe, Obama's proposed budget would raise the tax bill of a household with a yearly income of $50,000 to $75,000 between $63 and $100 per year. However, that’s not all you should know.

When a government tightens its belt in tough economic times the entire nation feels the squeeze.

The quantitative easing program, recently announced by the new governor of the Bank of Japan, Haruhiko Kuroda, is for a cash infusion of $1.4 trillion by the end of 2014. Will it help the Japanese economy recover?

Learn the ways in which inflation nibbles away at your retirement income, especially in light of the President’s proposal for Chained CPI adjustments to Social Security.

Discover how to trade the NFP report without getting knocked out by the irrational volatility it can create.

According to the World Trade Organization, world merchandise trade value grew by 20% in 2011, to $16.7 trillion.

Hetty Green was the richest woman of her time and possibly the first value investor, yet she's not remembered kindly.

Tensions over just how to handle debt are pitting the rich world against the developing world like never before.

Find out the other options Cyprus could use to resolve it's financial troubles, since its proposal to tax bank deposits didn't work out.

America's lengthy title reign as "World's Largest Economy" is fast under threat by China's surging economic growth. Find out what the global rankings are forecasted to be for these economic powerhouses.

Discover what's behind the Cyprus debacle and what investors should do about the situation.

Macroeconomic factors like GDP, Inflation, and Retail Sales affect the value of your portfolio. Understanding these economic indicators is vital for every investor in the marketplace.

Muriel Siebert has blazed many paths for investors, but is especially relevant as the first woman to sit on the NYSE.

Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth.

In addition to the oft-cited fiscal cliff, there are economic, tax, political, geopolitical and earnings pitfalls to avoid.

The United States, Japan and Germany together make up 53.3% of the total worldwide high net worth individual population.

Examining how a company makes money can offer clues about its earnings potential.

Discover which countries have shown the most growth since 1980, and which have shown the more ignominious fizzle and pop.

For nearly a century, the U.S. dollar has served as the world's premier reserve currency, but the future is uncertain.

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

Chained CPI is one of many ways to approximate the impact of rising or falling prices to consumers' pocketbooks.

Small businesses are more likely to fail in the aftermath of devastation. How can you as an employee handle issues after a disaster?

Learn how to use this type of investment as an alternative way to participate in the market.

The debt ceiling debate could, once again, negatively impact the nation's credit rating.

The factors that influence the U.S. dollar and currencies in general.

China's economy has plenty of long-term fight left in it, offering one of the best bets on developing world growth.

Is a $1 trillion coin really a feasible way to pay off the nation's debt?

Differentiate between good and bad volatility with the Sortino Ratio.

These gains and losses have been attributed to the North American Free Trade Agreement.

When calculating your net worth, don't forget to take inflation into account.

Wall Street believes its dream of a Santa Claus rally will surely come to pass.

The dramatic increase in unpaid internships has given rise to favorable and unfavorable arguments based on their impact on the students/interns, the labor force and the economy as a whole.

Learn about Okun's Law, why it is important and how it stood the test of time since first being published.

The IMF upgrading the Canadian and Australian dollars to "official" reserve currency status is a recognition of reality.

Though it increased for decades following World War II, real median family income has dropped since the 1970s.

While debt is fundamentally necessary to the operation of a national government, it can also be limiting and dangerous.

Assets on the Fed's balance sheet, money supply level, national debt level and economic production should be maintained in equilibrium.

There's little denying that Germany is the boss of the eurozone. Discover what sets it apart from the rest of Europe.

Here are the top five from the Heritage Foundation's influential 2012 ranking of the most economically-free countries.

The TARP program is estimated to cost taxpayers about $32 billion, much less than the OMB's reported estimate.

The fiscal cliff is all over the news. Find out what it means and how it could affect you.

From taxes to unemployment rates, there are many ways the average American could be affected by the possible fiscal cliff.

Individuals do not have absolute control of their employability since employability is also affected by market and economic conditions.

Hedge fund analysis requires more than just the metrics used to analyze mutual funds.

To balance the budget, the first priority should be to eliminate unnecessary spending. Here are five examples of how that's just not happening.

China counts on Japan for its manufacturing savvy, while Japan needs China's market to help it grow out of an economic funk.

Divorce not only affects the people involved, it also affects the nation's economy.

With insourcing the latest trend in the employment market, we look at whether it is sustainable in such a stark economic climate.

Monopolies often receive a negative reception, but sometimes they can benefit consumers.

Inflation has a negative connotation, but is it all bad or does it offer some tangible benefits?

Don't let your portfolio go with it! Find out which signs to watch out for.

Here are some industry-impacting innovations that could potentially belong in the famed Carousel of Progress.

Whether you're buying lunch, a home or a stock, you're influenced by interest rates.

Facebook can be a viable marketing platform for your business. It can even earn you revenue.

Some items like electronics and automobiles have vastly different prices in different countries. Here's a look at why.

What does the Fed's recent announcement mean for the U.S. economy? Read on to learn more.

Lower-wage jobs have increased because of the recession, but the minimum wage is lower than in 1967 when adjusting for inflation.

These emerging markets have the most debt of any others. How does this affect the world economy?

Discover the steps that the Federal Reserve has taken to help save the economy.

The auto, technology and retail industries in the U.S. were once known for dominance and innovation. Recently, these industries have lost their way.

Learning about the study of economics can help you understand why you face contradictions in the market.

BRIC nations aren't the only emerging markets worth investing in. Poland, Indonesia and Peru are also on the rise.

The current, capital and financial accounts compose a nation's balance of payments.

Discover a few of the most popular probability distributions and how to calculate them.

Get to know the relationships that determine a bond's price and its payout.

Data shows that countries that are winning a smaller percentage of gold medals are seeing their share of the worldwide GDP decrease as well.

People will do anything to get a little extra money. If you need some cash, here are some ways you can borrow without much hassle.

Find out about sunk costs and why "getting your money's worth" can cost you more than you think.

We go over the nations that are in the grip of financial crisis.

Barclays and other banks are alleged to have submitted artificially low LIBOR rates between 2007 and 2009.