by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How do Central Banks affect Unemployment and Inflation?If you were to survey central bankers around the world and ask them what they believe should be the primary task of monetary policy, the most popular answer by far would be fighting inflation. Most central bankers...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What are Asset Bubbles and Leverage Cycles? One long-standing concern about having the central bank focus on inflation and unemployment is that it may be overlooking certain other economic problems that are coming in the future. For example, from 1994 to 2000 during...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Growth Consensus? The Growth Consensus concerns the extent to which there is consensus among analysts or stakeholders concerning the growth achieved by a company or in an economy.
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What are Banks? Somebody once asked the late bank robber named Willie Sutton why he robbed banks. He answered: “That’s where the money is.” While this may have been true at one time, from the perspective of modern economists, Sutton is both right and wrong. He is...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Protectionism? Protectionism concerns governmental policies that restrict international trade in favor of promoting domestic businesses or industries. How Protectionism Affects Supply and Demand? To the non-economist, restricting imports may appear to be...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How does Monetary Policy affect Aggregate Demand? Monetary policy affects interest rates and the available quantity of loanable funds, which in turn affects several components of aggregate demand. Tight or contractionary monetary policy that leads to higher interest...
