by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Balance of Trade as a Balance of Payments? The connection between trade balances and international flows of financial capital is so close that economists sometimes describe the balance of trade as the balance of payments. Each category of the current...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
Is it better to have a trade surplus or a trade deficit? Because flows of trade always involve flows of financial payments, flows of international trade are actually the same as flows of international financial capital. The question of whether trade deficits or...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What are Income Payments? Income payments on assets, as the name implies, is income resulting from ownership of assets – including, interest, dividends, rents, royalties, etc. The third component of the current account balance, labeled “income payments,” refers...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How does U.S. unemployment insurance work? Unemployment insurance is a joint federal–state program that the federal government enacted in 1935. While the federal government sets minimum standards for the program, state governments conduct most of the administration....
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Natural Rate of Unemployment? Cyclical unemployment explains why unemployment rises during a recession and falls during an economic expansion, but what explains the remaining level of unemployment even in good economic times? Why is the unemployment rate...
