The Consumer Price Index
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Find out how this economic measure can help you make key financial decisions.
The exchange rate is one of the most important determinants of a country's relative level of economic health, and can impact your returns.
Financialization is an increase in the size and importance of a country's financial sector relative to its overall economy.
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.
Learn the difference between these two declarative statements and what they mean in the world of economics and finance.
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