by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Monopoly?A monopoly is a term used to refer to a market structure, where one entity, like a company, dominates the market with its products or services. Monopoly comes into existence when there is extreme free-market capitalism. In free-market capitalism,...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Term Auction Facility (TAF)?TheTerm Auction Facility, or TAF, is a provisional fiscal policyinitiative employed by the United States Federal Reserve, that seeks to ameliorate heightened business pressure that threatens short-term funding markets. The...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Taylor Rule?Taylor’s rule is a mathematical formula intended to serve as a guideline for the U.S. Federal Reserve and other central banks for adjusting interest rates in the short-term in response to changes in economic conditions such as inflation...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Pareto Efficiency?Pareto efficiency, also known as Pareto optimality, refers to an economic condition where at least one person receives resources, provided the other person doesnt get affected. It means that even if the allocation of resources is done in an...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Sticky Wage Theory?This theory, often referred to as nominal rigidity or wage stickiness, says that employee wages do not fall as quickly as company performance or economic conditions. So, if the company performs poorly or the economy performs poorly,...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Tight Monetary Policy?Tight monetary policy, also known as contractionary policy, refers to a policy that a countrys central bank like the Federal Reserve regulates for controlling the excessive economic growth. These policies focus on decreasing the spending...
