by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Economic Convergence? Convergence occurs when a country with smaller GDP grows (economically) faster than those of high-income countries. Since economic growth in these countries has exceeded the average of the world’s high-income economies, these countries...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Standard of Living? Standard of living concerns the degree of wealth and material comfort available to a person or community.
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Countercyclical? Cyclicality of the fiscal policy simply refers to a change in direction of government expenditure and taxes based on economic conditions. These pertain to decisions by policymakers based on the fluctuations in economic growth. There are two...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Inflation Targeting? Inflation targeting is a central bank strategy of specifying an inflation rate as a goal and adjusting monetary policy to achieve that rate. Inflation targeting primarily focuses on maintaining price stability, but its proponents also...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Quantitative Easing? The most powerful and commonly used of the three traditional tools of monetary policy—open market operations—works by expanding or contracting the money supply in a way that influences the interest rate. In late 2008, as the U.S. economy...
