TheBusinessProfessor, Author at TheBusinessProfessor

Business Cycle and Trade Balances

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

How Does the Business Cycle Affect Trade Balances? In the short run, whether an economy is in a recession or on the upswing can affect trade imbalances. A recession tends to make a trade deficit smaller, or a trade surplus larger, while a period of strong economic...

Domestic Saving and Investment and the Trade Balance

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

How does Domestic Saving and Investment Determine the Trade Balance?One insight from the national saving and investment identity is that a nation’s own levels of domestic saving and investment determine a nation’s balance of trade. To understand this point,...

Trade Surplus or Trade Deficit – Which is Better?

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...

Unemployment Insurance – Explained

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....

Natural Rate of Unemployment

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...

« Older Entries

Next Entries »