The author reflects on the high inflation rate suffered by the economy of Zimbabwe. She pointed out how government ministers who do not have the requisite specialist knowledge to run an economy are inflicting damage to the country. She also explained how unemploy...
The most common measurement of inflation in the United States is the government's measurement, known as the Consumer Price Index (CPI). There are actually multiple CPIs. The most common is the CPI-U, the consumer price index for all urban consumers. However, there is also a CPI-W, the ...
On the other side, we have the nominal rate, which is the interest rate mentioned explicitly in your loan agreement without taking inflation or other economic variables into account. Being aware of the nominal rate can help gauge the face value cost of borrowing. Interest in Various Financial P...
Additionally, it can help shelter your retirement savings from market volatility, inflation, and the risk you may outlive your savings. The variable annuity's costs and limited equity participation are the only obstacles to capturing potentially positive returns, making such an alternative easier to ...
This can lead to the imposition of higher prices, which is called demand-pull inflation. Find out more about the causes and effects of demand-pull inflation below. Demand-pull inflation explained When the aggregate demand for goods and services is higher than aggregate supply, this creates the ...
A direct trigger for crises in Sri Lanka and Peru is high inflation, Wang Dan, chief economist of Hang Seng Bank China, told CGTN. The two countries rely on imports of energy and food, the prices of which have been sent skyrocketing by disruptions from the Russia-Ukraine confli...
When the economy is running hot, the central bank may try to slow things down and preventinflationby raising interest rates. This encourages businesses to maintain operations rather than expand them, and it makes cautious consumers less likely to borrow money. ...
Changes ininflation Some of these factors lead to positive changes in aggregate supply while others cause a decline in aggregate supply. For example, increased laborefficiency, perhaps through outsourcing or automation, raises supply output by decreasing the labor cost per unit of supply. By contrast...
While investors may be able to anticipate some sources of unsystematic risk, it is nearly impossible to be aware of all risks. For instance, an investor in healthcare stocks may be aware that a major shift in health policy is on the horizon, but may not fully know the particulars of the...
Unemployment is a keyeconomic indicatorbecause it signals the ability (or inability) of workers to obtain gainful work and contribute to the productive output of the economy. More unemployed workers mean less total economic production. The unemployment definition doesn't include people who leave the ...