Commodity Money vs Fiat Money

Macroeconomics, Money

There has been numerous stories about exchanges of goods as a form of money in different circumstances . Like there were Cigarettes used in WWII by the prisoner of War camps, beads used by north american Indians , cattle in south Africa, and small green scraps of...

Central Banks: Functions, Monetary Policy Tools, Independence and Credibility (Complete Guide)

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): Construction, Bias, and Its Impact on Interest Rates

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...

Consumer Price Index and its Influence on the long-term interest rate

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...

Nominal GDP, Real GDP and the GDP Deflator: Formulas, Worked Examples and Index-Number Bias

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...

Difference Between Inflation, Deflation and Disinflation

Deflation Vs Disinflation, Inflation, Macroeconomics

Deflation and Disinflation are not the same. Although they all show the behavior of Price level but They are different in their direction and change in the Rate of Price Level. Deflation means an opposite to Inflation Or Falling Price (just like we have rising prices...

What Is Inflation? Definition, Measurement, Costs and Who Really Pays

Inflation, Macroeconomics

Macroeconomics · Foundational Concept Inflation is not an increase in all prices. It is not the same as a price level. It is not caused by “money printing” in any straightforward sense. Almost everything the public believes about inflation is a...