by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Paradox Of Thrift?The paradox of thrift, also known as the “paradox of savings”, is an economic theory stating that individual savings can hurt a nation’s economic productivity thus causing detriment to individuals within that nation.Who...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Disequilibrium?Disequilibrium is when the market fails to find an equilibrium point – which is the state of a market when there are no shortages or surpluses of supply and demand at a market-clearing price (this is also referred to as equilibrium...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Deficit Hawk?Deficit hawk is a slang term that advocates a reduction in government spending.Why is Understanding a Deficit Hawk Important?Deficit Hawk is often used in a political context to tell the government to limit the federal budget deficit or keep it...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Capital Goods Price Index (CGPI)?The Capital Goods Price Index (CGPI) is a statistic that monitors changes in the prices of fixed assets, as well as how changes in income affect changes in prices of these assets. CGPI is peculiar to New Zealand and it...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Fox-Trot Economy?A “fox-trot economy” refers to an unexpected pattern of economic growth and activity in which an economy experiences two periods of fast growth and another two periods of slow growth. This term follows the pattern of the fox-trot...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is an Iterated Prisoner’s DilemmaIn game theory, a prisoner’s dilemma is a situation in a game when two players need to bargain and cooperate to achieve the biggest reward – but they might not do so. When the two players refuse to cooperate,...
