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Global Economics: The Expansive Effects of a Strong U.S. Dollar

 The Federal Reserve was established in 1913 to function as of the central bank of the United States and the key arbiter of its monetary policy systems.  The Fed’s vital role is to regulate the supply of money and credit in an effort to maintain price stability and promote sustainable economic growth throughout the country.  … Continue reading Global Economics: The Expansive Effects of a Strong U.S. Dollar

Fed Policy: Why Do Rates Hikes Hurt Stock Markets?

Fed Policy: Why Do Rates Hikes Hurt Stock Markets? On December 18th, the Federal Reserve announced a rate hike of 25 basis points. For the U.S. economy, this is the fourth increase of 2018 and it brings the Fed funds rate to a range of 2.25% to 2.5%.  The move came despite strong opposition from … Continue reading Fed Policy: Why Do Rates Hikes Hurt Stock Markets?

Foundations of Economics: The Law of Scarcity

Foundations of Economics: The Law of Scarcity Most of the basic laws of economics focus on ways to efficiently build wealth and prosperity over time.  But there are important financial concepts that turn this problem in the other direction, instead choosing to focus on the effects that a lack of available resources can have on … Continue reading Foundations of Economics: The Law of Scarcity

Bitcoin: Have Cryptocurrencies Become Legitimate Market Assets?

Bitcoin: Have Cryptocurrencies Become Legitimate Market Assets? In the last few years, one of the biggest stories to hit the financial markets is the rise of Bitcoin, which is a blockchain-based digital currency that can be used to exchange in global transactions.  For many, these cryptocurrency is an asset that is both mysterious and uncertain. … Continue reading Bitcoin: Have Cryptocurrencies Become Legitimate Market Assets?

Financial Markets: What Is The Price To Earnings Ratio?

Financial Markets: What Is The Price To Earnings Ratio? For those without experience, the stock market can seem like a complicated entity.  But the reality is that most of the strategic conclusions that are drawn by hedge funds and other large investors can be boiled down to relatively simple math equations. One example is the … Continue reading Financial Markets: What Is The Price To Earnings Ratio?

Consumer Economics: What is the Market Absorption Rate?

Consumer Economics: What is the Market Absorption Rate? In school, some students avoid economics because they might feel as though the lessons have little-or-no application in the real world.  Unfortunately, this is usually not actually the case. Economics concepts play many roles in our daily lives – and if we can understand how these concepts … Continue reading Consumer Economics: What is the Market Absorption Rate?

Global Economics: What is a Trade War?

In all of the recent news dealing with US President Donald Trump and the world economy, the term “trade war” is being used a lot more than would normally be the case.  But what does this term actually mean? Who are the winners and who are the losers? Does a “trade” war resemble a military … Continue reading Global Economics: What is a Trade War?

Commodities Economics: What Is Peak Oil?

With all of the recent discussions surrounding the possibility of electric cars, many economics investors have already started to move beyond crude in search of the next technological revolution.   But the reality is that the world economy is not even close to eliminating the use of fossil fuels, and it will be quite some … Continue reading Commodities Economics: What Is Peak Oil?

Financial Markets: How Savings Accounts Gain Interest

For most people, the first bank account they will have will likely be a savings account. This traditional account pays you interest in exchange for you keeping your money with the institution. Different financial institutions have different rules and interest rates, which can make the world of savings accounts tricky to navigate. However, once you … Continue reading Financial Markets: How Savings Accounts Gain Interest

What is Opportunity Cost?

Opportunity cost sounds like a dry topic, but it is a concept that can be applied to many aspects of daily life. I recently found a quote from a famous author and realized that it applies to life, business, economics, opportunity cost, and just about every other aspect of our waking moments. “For every opportunity … Continue reading What is Opportunity Cost?