Central Banking, Macroeconomics, Monetary Economics
Monetary Economics · Complete Pillar Guide In July 2012, the euro was days from breaking apart. The President of the European Central Bank spoke three words at a conference in London. Bond spreads collapsed. Not one euro was spent. Understanding why words alone were...
Consumer Price Index (CPI), Inflation, Macroeconomics, Statistics
Macroeconomics · Price Indices & Monetary Policy A single number, published monthly, determines the value of pensions, the level of interest rates, the real burden of national debt, and whether a government survives an election. It is constructed from a basket of...
GNI, Gross Domestic Product (GDP), Macroeconomics
By Valeria Popa: Let us first distinguish between GNI, GDP and GNP to understand how is GNI different from these two measuring indicators. GNI compared to GDP and GNP While Gross Domestic Product (GDP) and Gross National Product (GNP) measure the output of an economy,...
Consumer Price Index (CPI), Inflation, Macroeconomics
Valeria Popa In previous articles you have learned about macroeconomic indicator like GDP which is highly important for understanding business cycles and economic performances and GNI which can offer a perspective on the living standards of a country’s residents. We...
GDP Growth Rate, Gross Domestic Product (GDP), Macroeconomics
What is GDP growth rate and how to calculate it Since the media often talk about the growth rate of an economy, it is important to clarify and to correctly define what the growth rate of GDP is. This indicator has a lot more meanings and it can be used to measure...
Gross Domestic Product (GDP), Macroeconomics, Nominal, Real & GDP Deflator
Macroeconomics · National Income Accounting An economy where nothing is produced but every price doubles will report 100% nominal GDP growth. Separating the change in quantity from the change in price is the entire purpose of real GDP — and doing it correctly turns...
GDP vs GNP, Gross Domestic Product (GDP), Macroeconomics
Although both GDP and GNP measure the size of an economy, either for business or economics forecasting purposes, they are not one and the same thing. Therefore, one should not be confused by their similar terminology. Simply put, while GDP looks at the strength of a...
3 Approaches of Calculating GDP, Gross Domestic Product (GDP), Macroeconomics
Macroeconomics · National Income Accounting Three completely different accounting routes — production, expenditure, and income — must arrive at exactly the same number. That they do is not a coincidence. It is the deepest identity in macroeconomics, and understanding...
Gross Domestic Product (GDP), Macroeconomics
Although GDP is commonly used to measure the size of an economy nowadays, Simon Kuznets, the economist who created this tool has warned against its use as a measure of welfare. Commissioned by the US Congress in 1934 to create a system that would monitor the...
Macroeconomics, Unemployment
Macroeconomics · Labour Markets A person who gives up looking for work is not unemployed. They vanish from the statistic entirely — and the unemployment rate falls. Understanding what the unemployment rate excludes is more important than knowing what it includes....
