Economics Articles

  1. The Insiders Who Fix Rates for Gold, Currencies And Libor

    The system by which benchmark rates are fixed for interest rates, currencies and gold is archaic - and, many would argue, deeply flawed.
  2. Quantitative Easing: Does It Work?

    This controversial monetary policy has been used by some of the world's most powerful economies. But does it work?
  3. Sanctions Between Countries Pack a Bigger Punch Than You Might Think

    In response to Russia's annexation of Crimea, in March 2014 the West slapped sanctions on dozens of Russian hotshots. So what, you ask? Well, sancitons can pack a bigger punch than you might think.
  4. Obama Budget Released: Who Are The Winners And Losers?

    Tuesday President Barack Obama unveiled a $3.9 trillion budget for fiscal year 2015 that includes new programs for education and rebuilding infrastructure while it also seeks to balance income inequality.
  5. What Will Happen To Treasury Yields With Yellen And Tapering?

    Janet Yellen was sworn in as Federal Reserve chair Feb. 3, 2014, ending Ben Bernanke's eight-year tenure. Yellen assumes her role at a time when the economy is its strongest since the recession ended in mid-2009.
  6. 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.
  7. Introduction To Supply And Demand

    Find out all about supply and demand and how it relates to your daily purchases.
  8. Accelerating Returns With Continuous Compounding

    Investopedia explains the natural log and exponential functions used to calculate this value.
  9. A Study On The Wealth Effect And The Economy

    The notion that the wealth effect spurs personal consumption makes sense intuitively. After all, wouldn’t you be more inclined to buy that big-screen TV or SUV if your house or stock portfolio had appreciated nicely and you were sitting on huge gains?
  10. How To Profit During High Inflation

    Some companies are better than others at pivoting their strategies to overcome inflation or other cost-increasing concerns. The best companies can push cost increases out to the market quickly (think gas companies), allowing them to stay profitable even during cost volatility.
  11. Calculating Covariance For Stocks

    Learn how to figure out how two stocks might move together in the future by calculating covariance.
  12. The Importance Of The Purchasing Managers' Index (PMI)

    The PMI is the headline indicator in the ISM Manufacturing Report on Business, an influential monthly survey of purchasing and supply executives across the United States. The acronym PMI stood for Purchasing Managers’ Index prior to September 1, 2001.
  13. Fed’s Yellen Risks Inflation Spiral With Unemployment Target

    The Fed may be treading on dangerous ground by lowering its unemployment target for determining when to end the central bank's bond buying program.
  14. Seven Market Anomalies Investors Should Know

    Though they're unpredictable and heavily contested, market anomalies can often work in an investor's favor.
  15. Philly Fed Survey: Valuable To Investors?

    For many investors, the Philly Fed's monthly manufacturing survey provides important clues about the direction of the economy. But trading on the monthly report is probably best left to the professionals since it has a very short-term impact on the market.
  16. The Interest Rates: APR, APY And EAR

    When most people shop for financial products, all they focus on is the listed interest rate. Human eyes instinctively dismiss the fine print, which usually includes the terms APR (annual percentage rate) and APY (annual percentage yield) – or to use a synonym for the latter, EAR (effective annual rate) – as just arcane trios of letters.
  17. 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.
  18. The Fundamentals Of Forex Fundamentals

    Charting is not the only way to analyze the foreign-exchange market. Learn how to apply fundamental analysis to the economic indicators.
  19. The Unemployment Rate: Get Real

    Depending on how it's measured, the unemployment rate is open to interpretation. Learn how to find the real rate.
  20. The Intelligent Investor: Benjamin Graham

    Learn about the man who mentored Warren Buffett, who eventually became the investing "Oracle of Omaha".
  21. 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.
  22. Five Rules To Improve Your Financial Health

    Learn five broad personal finance rules that can help get you on track to achieving specific financial goals.
  23. Advanced Game Theory Strategies For Decision-Making

    The importance of game theory to modern analysis and decision-making can be gauged by the fact that since 1970, as many as 12 leading economists and scientists have been awarded the Nobel Prize in Economic Sciences for their contributions to game theory.
  24. The Big Squeeze On Your Wallet

    The Federal Reserve has been printing money to cover some of our debts, but how long can they do so without spawning hyperinflation?
  25. Utilizing Prisoner’s Dilemma In Business And The Economy

    The Prisoner’s Dilemma, one of the most famous game theories, provides a framework for understanding how to strike a balance between cooperation and competition, and is a very useful tool for strategic decision-making. As a result, it finds application in diverse areas ranging from business, finance, economics and political science to philosophy, psychology, biology and sociology.
  26. Understanding Supply-Side Economics

    Does the amount of goods and services produced set the pace for economic growth? Here are the arguments.
  27. What You Need To Know About The Employment Report

    This widely watched indicator of economic well-being directly influences the market.
  28. 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.
  29. Reading The MBA Mortgage Purchase Index

    By following the trend shown in the MBA Purchase Index, investors can identify investment opportunities in businesses that are poised to benefit, and find cautionary signals around industries and companies that are likely to suffer.
  30. 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.
  31. How Much Influence Does The Fed Have?

    Find out how current financial policies may affect your portfolio's future returns.
  32. What The National Debt Means To You

    The U.S. deficit seems to grow every year. But how does it actually affect you?
  33. Debt Monetization: A Nearsighted Government Policy?

    We look at whether this financial practice benefits a government in the long term.
  34. What Is Fiscal Policy?

    Learn how governments adjust taxes and spending to moderate the economy.
  35. Interesting Facts About Imports And Exports

    Imports and exports exert a profound influence on the consumer and the economy. Learn what affects these figures, and in turn how these figures affect the economy.
  36. Adam Smith: The Father Of Economics

    This free thinker promoted free trade at a time when governments controlled most commercial interests.
  37. A Look At National Debt And Government Bonds

    Learn the functions of the U.S. Treasury, and find out how and why it issues debt.
  38. Monetarism: Printing Money To Curb Inflation

    Learn how Milton Friedman's monetarist views shaped economic policy after World War II.
  39. How Interest Rates Affect Property Values

    When interest rates fall, real estate prices tend to increase. Why? Find out here.
  40. How To Read The Michigan Consumer Sentiment Index

    The Michigan Consumer Sentiment Index has provided a key leading indicator for investors and economists for decades. This respected index is published monthly from the results of random telephone surveys.
  41. Trading With The Jobless Claims Report

    Introduction to the jobless claims report. This article looks at what jobless claims tell us about the economy's health and how to interpret the data contained in the release.
  42. Understanding The Consumer Confidence Index

    We look at this closely watched economic indicator to see what it means and how it's calculated.
  43. How To Manage Lifestyle Inflation

    Learn how to manage your finances so that making extra money actually equates to getting ahead.
  44. How Analyzing Economic Trends Will Help You Save Money

    It may seem like a tactic for active traders, but following economic trends can help you to save and make money.
  45. Introduction To Treasury Inflation-Protected Securities (TIPS)

    If you want to protect your portfolio from inflation, all you need are a few TIPS.
  46. Introduction To Coincident And Lagging Economic Indicators

    Investors can learn a lot, or very little, from these indicators once they know how to use them.
  47. Nobel Winners Are Economic Prizes

    Before you try to profit from their theories, you should learn about the creators themselves.
  48. Breaking Down The Balance Of Trade

    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.
  49. Understanding Interest Rates: Nominal, Real And Effective

    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.
  50. How To Profit From Inflation

    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.
  51. 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.
  52. Why High-Income Earners Are Not Safe From The Threat Of Bankruptcy

    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.
  53. Regression Basics For Business Analysis

    This tool is easy to use and can provide valuable information on financial analysis and forecasting. Find out how.
  54. Forces Behind Interest Rates

    Get a deeper understanding of the importance of interest rates and what makes them change.
  55. 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.
  56. Tracking Volatility: How The VIX Is Calculated

    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.
  57. How To Survive When Prices Double Every Day And A Half

    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.
  58. Trading GDP Like A Currency Trader

    Investors that understand and utilize the U.S. GDP report have a significant advantage over those that don't.
  59. Consumer Confidence: A Killer Statistic

    The consumer confidence is key to any market economy, so investors need to learn the measures and how to analyze them.
  60. How Interest Rates Affect The Housing Market

    Understand how rate changes can affect home prices, and learn how you can keep up.
  61. Exploring The Current Account In The Balance Of Payments

    Learn how a country's current account balance reflects the country's economic health.
  62. 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.
  63. What Is The Balance Of Payments?

    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.
  64. Economic Indicators That Do-It-Yourself Investors Should Know

    Understanding these investing tools will put the market in your hands.
  65. Does High GDP Mean Economic Prosperity?

    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.
  66. Inflation's Impact On Stock Returns

    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.
  67. How Monetary Policy Affects Your Investments

    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.
  68. Understanding The Case-Shiller Housing Index

    This index is a widely-used and respected barometer of the U.S. housing market and the broader economy.
  69. Earnings Guidance: Can It Accurately Predict The Future?

    Explore the controversies surrounding companies commenting on their forward-looking expectations.
  70. Why The Consumer Price Index Is Controversial

    Find out why economists are torn about how to calculate inflation.
  71. Predict Inflation With The Producer Price Index

    Find out how the PPI can be used to gauge the overall health of the economy.
  72. Consumer Spending As A Market Indicator

    What people buy and where they shop can provide valuable information about the economy.
  73. Activities You Can Take Advantage Of In The Pre-Market And After-Hours Trading Sessions

    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.
  74. Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.
  75. How The 2014 Obama Budget Could Affect Your Finances

    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.
  76. Austerity: When The Government Tightens Its Belt

    When a government tightens its belt in tough economic times the entire nation feels the squeeze.
  77. Will Quantitative Easing Be Japan's Savior?

    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?
  78. Will Obama’s Chained CPI Help Keep Inflation From Eating Into Your Savings?

    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.
  79. Trading The Non-Farm Payroll Report

    Discover how to trade the NFP report without getting knocked out by the irrational volatility it can create.
  80. The Effect Of Trade On International Growth

    According to the World Trade Organization, world merchandise trade value grew by 20% in 2011, to $16.7 trillion.
  81. Hetty Green: The Witch Of Wall Street

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

    Tensions over just how to handle debt are pitting the rich world against the developing world like never before.
  83. Other Options For The Cyprus Bailout

    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.
  84. U.S. Vs. China: Battle To Be The Largest Economy In The World

    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.
  85. The Cyprus Crisis 101

    Discover what's behind the Cyprus debacle and what investors should do about the situation.
  86. Economic Indicators That Affect The U.S. Stock Market

    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.
  87. 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.
  88. 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.
  89. All The Cliffs You Need To Know About

    In addition to the oft-cited fiscal cliff, there are economic, tax, political, geopolitical and earnings pitfalls to avoid.
  90. 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.
  91. Revenue Projections Show Profit Potential

    Examining how a company makes money can offer clues about its earnings potential.
  92. Countries With The Fastest And Slowest GDP Growth

    Discover which countries have shown the most growth since 1980, and which have shown the more ignominious fizzle and pop.
  93. 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.
  94. 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.
  95. What Is "Chained CPI?"

    Chained CPI is one of many ways to approximate the impact of rising or falling prices to consumers' pocketbooks.
  96. Here We Go Again: The Debt Ceiling

    The debt ceiling debate could, once again, negatively impact the nation's credit rating.
  97. Derivatives 101

    Learn how to use this type of investment as an alternative way to participate in the market.
  98. Natural Disasters: Issues Relating To Leaves Of Absence

    Small businesses are more likely to fail in the aftermath of devastation. How can you as an employee handle issues after a disaster?
  99. Economic Factors That Affected The U.S. Dollar In 2012

    The factors that influence the U.S. dollar and currencies in general.
  100. China Is Set To Continue Growing

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