How Global Stock Markets Affect The Euro
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Currency strategist Todd Gordon reviews key correlations between the euro and global stock markets, explaining how traders can profit from news from the euro zone and China.
The term “open market operations” refers to a monetary policy tool in which central banks buy and sell bonds to regulate the money supply in the economy. The United States employs open market operations through the Federal Reserve Bank.
The balance of trade is the difference between a country’s imports and exports. A trade deficit occurs when a country buys or imports more goods from other countries than it sells or exports. A trade surplus occurs when a country sells more than it buys from foreign markets.
Tariffs, or customs duties, are taxes imposed on foreign goods and services. In addition to providing a country with additional revenue, tariffs offer protection to domestic producers. Imported items become more expensive, allowing businesses at home to become more competitive with their pricing.
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Learn more about this economic theory that incorporates government intervention in the marketplace.
Also commonly translated as "all other things equal", learn more about this latin phrase and its application in economics.
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