The good and bad of Quantitative easing
To begin with, let’s discuss what quantitative easing (QE) is. QE is a monetary policy tool used by central banks to increase the supply of money in circulation and stimulate economic growth. It involves the central bank purchasing government bonds or other financial assets, effectively injecting additional money into the economy. With quantitative easing, there…
What is CPI, PPI, WPI and GDP: Exploring the Different Types of Price Indexes
This article discusses the different price indexes used to measure inflation and changes in the cost of living. Price indexes are important economic tools used to track the price changes of goods and services. Governments, businesses, and investors use them to make informed decisions about policy, pricing, and investment. consumer price index (CPI): The first…
what is inflation, the good and bad
Inflation refers to the general increase in the price level of goods and services in an economy. They calculate the percentage change in the Consumer Price Index (CPI) which tracks the prices of a basket of goods and services commonly consumed by households to measure it. Inflation can be both good and bad, depending on…
What is the fractional banking system
Fractional banking is a banking system in which banks are only required to hold a fraction of the total amount of deposits made by customers. The remaining amount can provide loans and earn interest. This system allows banks to make more loans than they could with the actual amount of deposits they have received. Understanding…
What Is Stagflation, and Why Is It Bad?
What Is Stagflation, and Why Is It Bad? Stagflation is an economic phenomenon that occurs when an economy experiences stagnant growth, high unemployment, and rising prices simultaneously. This phenomenon is a challenging economic condition can have severe consequences on an economy. In this article, we will discuss what stagflation is, its causes, its effects, and…