The natural rate of interest, also known as r-star, is the real interest rate that would prevail if the economy were operating at its potential and inflation were at target. If a central bank sets its short-term nominal interest rate so that the real interest rate is above r-star, monet...
Proposition 1 is a statement which I think is approaching the level of mutual knowledge amongst the US population (and probably a large proportion of people following US politics overseas): even many of Trump’s nominal supporters secretly suspect that this proposition is true, even if they are...
What states are increasing minimum wages in 2025?Show More Minimum wage over time The minimum wage has not kept pace with inflation when you look at nominal wages (not adjusted for inflation) versus their spending power in 2023 numbers (adjusted for inflation). Because the federal minimum wa...
extra-governmental institutions sprang up to fill the protective role of government, with private security agencies offering the security that a police force would ordinarily offer. Similarly, ancient Iceland is sometimes pointed to as anarcho-capitalist, with the state having very little role in legal...
If you're under the impression that Class-D amplifiers are just 'three letters worse' than Class-A models, think again: Class-D technology is making an increasing impact on the live sound world by offering more power with less weight than ever before. We
That engineer is a credit to the team. Credit (science fiction) A unit of currency used in a fictional universe or timeframe. To repair your star cruiser will cost 100,000 credits. Credit A nominal unit of value assigned outside of a currency system. Would you like to play? I put in...
Is there any way to prevent reallocation into housing? Sure, the Fed could adopt a very tight monetary policy (as in 2008 or 1930) and NGDP would fall, reducing output in almost all sectors. But why would they want to do that? And if they did do that then nominal interest rates would...
Because of the self-reinforcing cycle of wealth, access to political power, and the impact of public policy on the economic relations of society, plutocracy is a rather common form of government, even where the nominal model of governance is democratic....
Nominal Value of Bonds For bonds, the nominal value is theface value, which is the amount repaid to the bondholder atmaturity. Corporate, municipal, and government bonds typically have face values of $1,000, $5,000, and $10,000, respectively. ...
the investor’s real rate of return is 1%. On the other hand, if the nominal interest rate is 2% in an environment of 3% annual inflation, the investor’s purchasing power erodes by 1% per year.