Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Find a Job
  • Tutoring
  • Home
  • Courses

Economics, Research & Analysis

Learn Economics and Analysis

Written by Jason Gordon

Updated at March 23rd, 2023

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

Overview: This material covers the primary topics covered within various Economics.

Economic Analysis & Monetary Policy


INTRODUCTION TO ECONOMICS

Economics

Scarcity in Economics 

Division of Labor

Microeconomics

Macroeconomics

Theory and Models 

Traditional Economy

Command Economy

Centrally Planned Economy

Market Economy

  • Free Market Economy
  • Collaborative Economy
  • Private Enterprise

Mixed Economy

Underground Economy

Black Economy

Government Market Regulation

  • Capitalism
    • Conscious Capitalism
  • Communism
    • Centrally Planned Economy
    • Socialism
  • Marxism
    • Egalitarianism
  • Plutocracy
  • Neoliberalism

Underground Economy

Black Economy

Globalization

Imports and Exports

Gross Domestic Product

Fiscal Policy

Application of Economics

  • Social Economics
  • Positive Economics
  • Mathematical Economics
  • Constitutional Economics
  • Labor Economics
  • Organizational Economics
  • Development Economics
  • Behavioral Economics
  • Environmental Economics
  • Evolutionary Economics
  • True-Cost Economics
  • Managerical Economics
  • Experimental Economics
  • Welfare Economics

Economics Organizations

  • American Economic Association
Delete

UTILITY DECISION MAKING AND SCARCITY

Budget Constraint

  • Radner Equilibrium
Opportunity Cost
  • Opportunity Set

Marginal Analysis

Utility

  • Self Interest
    • Cost-Benefit Analysis
    • Enlightened Self-Interest
    • Fisher's Separation Theorem
    • Ratchet Effect
  • Total Utility (Economics)
  • Efficiency Principle
  • Expected Utility
    • Subjective Theory of Value
    • Positional Goods
  • Utilitarianism
  • Indifference Curve
  • Time Preference Theory of Interest
  • Incentives
  • Marginal Benefit

Marginal utility

Diminishing Marginal Utility

Sunk Costs

Production Possibilities Frontier

Law of Diminishing Returns

Economic Efficiency

  • Efficiency Theory

Productive Efficiency

  • Capacity Utilization Rate

Allocative Efficiency

Pareto Efficient

Comparative Advantage

Criticisms of the Economic Approach

  • Behavioral Economics

Normative Economics

Positive Economics

Invisible Hand

Sunk cost

Delete

SUPPLY AND DEMAND

Price 

Theory of Price

  • Microeconomic Pricing Model

Demand

  • Demand Curve
  • Demand Schedule
  • Derived Demand

Demand Theory

Factors Affecting Demand

  • Pent Up Demand

Supply

  • Supply Schedule
  • Supply Curve

Law of Supply and Demand

Equilibrium (Economics)

  • General Equilibrium Theory
  • Rational of Choice Theory
  • Recursive Equilibrium
  • Disequilibrium

Equilibrium Price

Equilibrium Quantity

Surplus and Shortage

  • Excess Supply (Economic Surplus)
  • Excess Demand (Economic Shortage)
  • Walras' Law

Factors Affecting Supply

Factors Affecting Demand

Walras' Law

Ceteris Paribus

Normal Good and Inferior Goods

  • Giffen Good
  • Veblen Good
Supply Demand Analysis
  • Hubbert's Peak Theory
  • Recursive Equilibrium

Price Control - Ceilings and Floors

Economic Efficiency

Economic Surplus

  • Social Surplus

Consumer and Producer Surplus

  • Social Surplus

Total Surplus

Dead Weight Loss

Delete

ELASTICITY

Elasticity

  • Perfect, Zero, Infinite, and Constant Elasticity
Elasticity of Demand

Elasticity of Supply

Price Elasticity of Supply and Demand
  • Tax Incidence
Cross Elasticity of Demand
  • Cross-Price Elasticity of Demand

Raising Prices Affect Revenue

  • Price Sensitivity

What is Elasticity and Tax Incidence?

Short Run

Elasticity of Savings

Income Elasticity of Demand

Delete

UTILITY AND CONSUMPTION

Total utility

Marginal Utility

Diminishing Marginal Utility

  • Marginal Utility per Dollar

Rule of Maximizing Utility

Consumption

Consumer Goods

Changes in Income Affect Consumer Choices

Changes in Price Affect Consumer Choices

Substitution Effect

Income Effect

Budget Constraints Create Demand Curves

  • Lifecycle Model of Consumption
  • Autonomous Consumption
  • Permanent Income Hypothesis
  • Lipstick Effect
  • Engel's Law
  • Consumerism
  • Paradox of Thrift
  • Ricardo Barro Effect
  • Consumer Confidence Index
    • The Wealth Effect

Behavioral Economics

Delete

PRODUCTION

Theory of the Firm

  • Capital Formation
  • Rent Seeking
  • Structure Conduct Performance Model
  • Integration
    • Co-Insurance Effect
  • Conglomerates
  • Cost vs Profit Center
  • Accelerator Theory

Market Structure

Fixed Cost vs Variable Cost

Actual vs Implicit Costs

Explicit Costs

True Cost Economics

Accounting Profit

Economic Profit

What are Factors of Production?

  • Factor Income

Production Function

Fixed and Variable Inputs

Short-Run and Long-Run Production

  • Short Run

Total Product

Marginal Product

  • Value of Marginal Product

Law of Marginal Diminishing Product

Production Function

  • Production Possibilities Frontier
  • Capital 
  • Labor Theory of Value

How the Production Function Estimates Inputs

Factor Payment

  • Economic Rent

Cost Function

  • Incremental Cost
  • Marginal Input Cost  

Fixed and Variable Costs

Diminishing Marginal Productivity

Costs Relate to Diminishing Marginal Productivity

Law of Diminishing Marginal Returns

Average Total Cost

Average Variable Cost

Marginal Cost

Average Profit or Profit Margin

  • Accounting Profit
  • Economic Profit
  • Normal Profit

Short and Long-Run Production

Cost Curves

Long-Run Average Cost (LRAC)

Production Technologies

Economies of Scope

Economies of Scale
  • Diseconomies of Scale
  • Minimum Efficient Scale
  • Increasing, Constant, and Decreasing Returns to Scale

Shape of the Average Long-Run and Short-Run Cost Curves

Returns to Scale

Diseconomies of Scale

Long-Run Average Cost Curve Affect Industry Competitors

Technology Shifts the Long-Run Average Cost Curve

  • Law of Diminishing Marginal Returns
Delete

COMPETITION

Market Structure

Perfect Competition

  • Bidding War
  • Complements & Substitutes
  • Substitution Effect

Imperfect Competition

Market Power

  • Price Takers
  • Price Makers 

Perfect Competition and Decision Making

  • X-Efficiency
  • Captive Market
  • Contestable Market Theory

Highest Profit Point in a Perfectly Competitive Market

  • Marginal Revenue

Using Marginal Revenue and Marginal Costs to Maximize Profit

Marginal Revenue Curve

Profit Margin and Average Total Cost

Break Even Point - Cost Curve

Shutdown Point - Cost Curve

Short-Run Decisions Based Upon Costs in a Perfectly Competitive Market

Marginal Costs and the Supply Curve for a Perfectively Competitive Firm

  • Long-Run Average Supply (LRAS)

Decisions to Enter or Exit a Market in the Long Run

Long-Run Equilibrium in a Perfectly Competitive Market

Constant, Increasing, and Decreasing Cost Industries

Productive and Allocative Efficiency in Perfectly Competitive Markets

  • Market Efficiency
  • Market Inefficiency
  • Pareto Efficiency
  • Market Failure 
  • Search Theory

Monopoly

  • Natural Monopoly
  • Legal Monopoly
  • Bilateral Monopoly

Promoting Innovation through Intellectual Property

Predatory Pricing

How Monopolists Set Price with the Demand Curve

Total Cost and Total Revenue for a Monopolist

Marginal Revenue and Marginal Cost for a Monopolist

Inefficiency of Monopoly

Perfectly Competitive Market

Monopolistic Competition

Duopoly

Oligopoly

Differentiated Products

Perceived Demand for a Monopolistic Competitor

Monopolistic Competitors Choose Price and Quantity

Monopolistic Competitors and Entry

Monopolistic Competition and Efficiency

Cartel (Economics)

Game Theory

  • Traveler's Dilemma
  • Prisoner's Dilemma
  • Iterated Prisoner's Dilemma
  • Nash Equilibrium
  • Diner's Dilemma
  • Trembling Hand Perfect Equilibrium
  • Gambler's Fallacy
  • Arrows Impossibility Theorem
  • Backward Induction
  • Tournament Theory

Oligopoly and the Prisoner’s Dilemma

Forcing Cooperation in a Prisoner’s Dilemma

Cooperation and the Kinked Demand Curve

Corporate Merger or Acquisition

Antitrust Laws

Herfindahl-Hirschman Index

Concentration Ratio

Other Approaches to Measuring Monopoly Power in an Industry

Restrictive Practices under Antitrust Law

Natural Monopoly

Cost-Plus Regulation

Price Cap Regulation

Regulatory Capture

Delete

RISK AND UNCERTAINTY

Imperfect information

Asymmetric Information

Imperfect Information - Equilibrium Price and Quantity

Is Consumer Behavior Rational in Economics?

Insurance

Government and Social Insurance

Fundamental Law of Insurance

Risk Groups

The Moral Hazard Problem

The Adverse Selection Problem

Government Regulation of Insurance

Delete

LABOR AND WAGES

  • Labor Economics
  • Labor Market Equilibrium
  • Labor Market
  • Labor Market Equilibrium
  • Labor Market Efficiency

Price, Supply, and Demand in the Labor Market

Equilibrium Wage

Shifts in the Demand for Labor

What Causes Shifts in the Supply Labor?

How Technology affects Demand for Labor?

Minimum Wage as a Price Floor in the Labor Market

What is the First Rule of Labor Markets?

Labor Demand in Perfectly Competitive Markets

Imperfect Competition in Labor Markets

Monopsony

Oligopsony

Labor Market Power of Employers

What is the marginal Cost of Labor?

Labor Market Power of Employees

What is a Bilateral Monopoly in a Labor Market?

  • Wage Elasticity of Labor Supply

Equilibrium in Supply and Demand in Labor Markets

Shifts in Supply and Demand in Labor Markets

Delete

FINANCIAL MARKETS

Supply and Demand in Financial Markets

Usury Laws as Price Ceilings in Financial Markets

Delete

ECONOMICS AND PUBLIC GOODS

Market Competition and Innovation

New Technology and Positive Externalities

  • Externality
    • Network Externality
    • Pigovian Tax
    • Coase Theorem
    • Agglomeration Diseconomies

Education - Private and Social Rate of Return

Government Approaches to Encouraging Innovation

Public Good

Public, Private, Club, Common Goods

Excludable and Rivalrous Goods

What is the Free Rider Problem for Public Goods?

  • Free Rider
  • Social Loafing

Role of Government in Paying for Public Goods

What is the Tragedy of Commons for Common Resources?

Income Inequality

Poverty Line?

Poverty Trap

Public Safety Net

Measuring Income Inequality

Lorenz Curve

Ladder of Opportunity

Tradeoff between Incentives and Income Equality

Delete

MACROECONOMICS

INTRODUCTION TO MACROECONOMICS

Macroeconomics

Macroeconomic Frameworks

Macroeconomic Policy Tools

  • Productivity Economics
    • One-Third Rule

Gross Domestic Product (GDP)

  • Durable and Non-Durable Goods
  • Weightless Economy
  • Intermediate and Final Goods or Services

Nominal GDP

Converting Nominal to Real GDP

GDP Inflator

Nominal GDP Price Index

Measuring GDP

Gross National Product

Net National Product
  • Factor Income

Gross National Income

Expenditure Method

The Problem of Double Counting GDP

  • Double Counting

Why is Tracking Real GDP Important? 

Convert Currencies with Exchange Rates

Convert GDP to a Common Currency

Per Capita GDP

  • GDP Per Capita

GDP as a Measure of Society Well-Being

Limitations of GDP as a Measure of the Standard of Living

Delete

MACROECONOMIC GROWTH

Rule of Law relate to Economic Growth

Labor Productivity

  • Productivity and Learning Curve
  • Experience Curve
  • Acceleration Principle

Aggregate Production Function

How to Measure Productivity

What is the Effect of Sustained Economic Growth?

How are compound growth rates and compound interest rates related?

Compound Growth Rate

Solow Growth Model

What are the Components of Economic Growth?

  • Porter's Diamond
  • Physical Capital
  • Human Capital
  • Infrastructure
    • Staple Thesis
    • Resource Curse

Capital Deepening

What are Growth Accounting Studies?

What is a Healthy Climate for Economic Growth?

Economic Convergence

  • Emerging Market Economy
  • BRIC Countries 

Growth Consensus

Economic Conditions
  • Leading Economic Indicators
  • KOF Economic Barometer
  • CEO Confidence Survey
  • NAB Business Confidence Index
Delete

AGGREGATE DEMAND AND SUPPLY

Supply-Side Economics

Say's Law

  • Laffer Curve

Neo-Classical Economics

New Keynesian Economics

  • Classical Economics
  • Supply-Side Economics
Keynesian Economics
  • Keynes' Law
  • Keynesian Analysis
  • Demand Side Theory
  • Market Forces
Aggregate demand

Aggregate Demand Curve (and shifts)

Aggregate supply

Aggregate Supply Curve (and Shifts)

Aggregate Demand / Aggregate Supply Models

Potential GDP

Aggregate Supply and Demand Equilibrium

Aggregate Supply and Aggregate Demand in Macroeconomics and Microeconomics

Input-Output Model

Stagflation

Growth and Recessions in the Aggregate Demand - Aggregate Supply Model

Unemployment in the Aggregate Demand - Aggregate Supply Model

Inflation in the Aggregate Demand - Aggregate Supply Model

Keynesian, Intermediate, and Neoclassical Zones 

Delete

KEYNESIAN AND NEOCLASSICAL ECONOMICS

Keynesian Perspective of Aggregate Demand

Recessionary and Inflationary Gap

Consumption Expenditure

Investment Expenditure

Government Spending in Aggregate Demand

Net Exports in Aggregate Demand

Keynesian Economic Analysis

Wage and Price Stickiness 

Coordination Argument of Wage Stickiness

What are Menu Costs

Keynesian Assumptions in the Aggregate Demand and Aggregate Supply Model

Macroeconomic Externality

Expenditure Multiplier

The Phillips Curve

Keynesian Approach to Unemployment and Inflation

Keynesian Perspective on Market Forces

NeoClassical Economics

Long Run Potential GDP

Physical Capital Affects Productivity

Potential GDP in the Aggregate Demand Aggregate Supply Model

Prices are Flexible in the Long Run

Keynesian and NeoClassical View of Long-Run Aggregate Supply and Demand

Speed of Macroeconomic Adjustment of Wages and Prices

Paradox of Rationality

Rational Expectations Theory

  • Shapley Value
  • Mechanism Design Theory

What is the Adaptive Expectations Theory

Measure Inflation Expectations

Neoclassical Phillips Curve Tradeoff

Neoclassical View of Unemployment

Neoclassical View of Recessions

Keynesian vs Neoclassical Macroeconomic Policy Recommendations

Delete

GOVERNMENT AND FISCAL POLICY

What is Government Spending?

  • Autonomous Spending
  • Autonomous Consumption

Fiscal Policy

  • Expansionary Fiscal Policy
  • Contractionary Fiscal Policy

What are Taxes?

  • Progressive vs Regressive Tax
  • Marginal Tax Rates
  • Proportional Tax
  • Trickle Down Theory
  • Discretionary Fiscal Policy
    • Automatic Stabilizers
Effects of Discretionary Policy (Interest Rates & Lags)
  • Crowding Out Effect 

National Debt

Government Borrowing
  • Golden Rule
  • Ricardian Equivalence
Balanced Budget - Deficit and Surplus
  • National Debt
  • Standardized Employment Budget
  • Deficit Hawk
  • Austerity
  • Twin Deficits

Fiscal Policy and the Aggregate Supply and Demand Curve

Stabilization Policy
  • Robin Hood Effect
  • Ricardo Barro Effect

Automatic Stabilizers

Standardized Employment Budget

How Does Fiscal Policy Affect Interest Rates? 

Crowding Out

Types of Lag in Fiscal Policy

Temporary and Permanent Fiscal Policy

Limitations of Fiscal Policy?

How Politics Affects Discretionary Fiscal Policy

Government Borrowing

National Savings and Investment Identity

  • Debtor Nation

Fiscal Policy Affects Trade Balances

Twin Deficits

Exchange Rates Affect Budget and Trade Deficits

What are the risks of chronic large deficits in the United States?

How Fiscal Policy Can Affect Trade Imbalances

Government Borrowing Affect Private Savings

Ricardian Equivalence

Fiscal Policy Affects Investment and Economic Growth

Crowding Out of Physical Capital Investment?

How Does Government Borrowing Affect Interest Rates in Financial Markets?

Government Investment in Physical Capital

Public Investment in Human Capital

Fiscal Policy Can Affect Technology Development

Economic Cycles

  • Economic Cycle or Business Cycle
    • Business Cycle Indicator
    • Peak and Trough
    • Recession and Depression
    • Hard Landing vs Soft Landing
    • Economic Bubble
  • Boom and Bust Cycle
    • Great Depression
    • Baby Boomer Age Wave Theory
  • Skyscrapper Effect (Economics)
  • V-Shaped Recovery
  • W-Shaped Recovery
  • U-Shaped Recovery
  • Kondratieff Wave Cycle
  • Contagion

Government

  • Feedback Rule Policy
  • American Customer Satisfaction Index
  • CNN Effect
  • Bureau of Economic Analysis
  • Business Starts Index
  • American Recover and Reinvestment Act
  • Abenomics
  • Emergency Economic Stabilization Act of 2008
  • Commodity Credit Corporation
  • Humphrey Hawkins Act

Growth

  • Real Economic Growth Rate
    • Fox-Trot Economy
  • Stagnation
  • Neoclassical Growth Theory
  • Exogenous Growth Theory
  • Endogenous Growth Theory
  • New Growth Theory - Explained
  • Classical Growth Theory - Explained
  • Real Economic Growth Rate - Explained
  • Plutonomy
Delete

UNEMPLOYMENT

What is the US Labor Force?

  • Out of the Labor Force

Labor Force Participation Rate

Establishment Payroll Survey

Bureau of Labor Statistics 

Unemployment 

Underemployed

Full Employment Equilibrium

  • Okun's Law

 Issues with Measuring Unemployment

Cyclical Unemployment

Sticky Wage Theory (Economics)

Implicit Contract Theory of Wages

 Efficient Wage Theory

Adverse Selection of Wage Cuts Argument

The Insider-Outsider Model

Relative Wage Coordination Argument

Natural Rate of Unemployment

Frictional Unemployment

Structural Unemployment

Labor Productivity - Explained

  • Okun's Law


How does U.S. unemployment insurance work?

Measuring Unemployment

  • National Average Wage Index
  • Job Openings and Labor Turnover Survey
  • Labor Surplus Area - Explained
  • Lump of Labor Fallacy - Explained
  • Bureau of Labor Statistics 
  • ADP National Employment Survey
  • Labor Theory of Value - Explained
  • Wage Elasticity of Labor Supply
Delete

INFLATION

Inflation

  • Core Inflation
  • Cost Push Inflation
  • Demand Pull Inflation
  • Wage Push Inflation
  • Inflation Spiral (Wage-Price Spiral)
  • Agflation

Basket of Goods and Services

Indexing and Index Number

Base Year

Consumer Price Index

Substitution Bias

Quality / New Goods Bias

Core Inflation Index

Producer Price Index

International Price Index

Employment Cost Index

  • Buying Power Index
  • Breakfast Index
  • Employment Cost Index
  • Producer Price Index
  • Capital Goods Price Index
  • Farm (Agricultural) Price Index
  • Harmonized Index of Consumer Prices
  • Repeated Sales Method (Real Estate)

GDP Deflator

Deflation

  • Pigou Effect

Hyperinflation (Economics)

  • Biflation

Inflation and Redistribution of Purchasing Power

Inflation Blurs Price Signals

Inflation Affects Long-Term Planning

What are the Benefits of Inflation?

Indexing and Index Number

Cost of Living Allowance

Adjustable Rate Mortgage

Delete

INTERNATIONAL TRADE

Trade Balance: Surplus and Deficit

  • Mercantilism
  • J Curve
  • National Trade Data Bank

Capital Account (Economics)

Merchandise Trade Balance

Current Account 

Income Payments

Unilateral Transfer

Is it better to have a trade surplus or a trade deficit? 

Export of Goods and Services and Percentage of GDP

  • Heckscher-Ohlin Model 
  • Linder Hypothesis

The Balance of Trade as a Balance of Payments

National Savings and Investment Identity
  • Circular Flow of Money
  • Financial Capital

Supply and Demand Sides for Financial Capital? 

Flow of Capital

Domestic Saving and Investment Determine the Trade Balance

National Savings Identity and Trade Deficits

How the Business Cycle Affects Trade Balances

Trade Balance or Trade Surplus

Level of Trade

Comparative Advantage

Absolute Advantage

Specialization and Gain from Trade

Absolute Advantage in All Goods

Production Possibilities Frontier and Comparative Advantage

Comparative Advantage and Mutually Beneficial Trade

  • Gain from Trade

Opportunity Costs and International Trade

Intra-Industry Trade

Splitting Up the Value Chain

How Economies of Scale Lead to Trading Advantages

Protectionism

  • Closed Economy
  • Tariffs 
    • Double Column Tariff

Import Quotas

  • Double Column Tariff
  • Infant Industry Theory
  • National Interest Argument
  • Race to the Bottom
Anti-Dumping Laws
  • Dumping

Trade War

  • Race to the Bottom

Non-Tariff Barriers

Effects of Trade Barriers

Who Is Benefited and Who is Harmed by Protectionism?

Infant Industry Theory for Restricting Imports

What is the Anti-Dumping Argument for Restricting Imports?

  • Anti-Dumping Laws
    • Dumping

What is the Environmental Protection Argument for Restricting Imports?

Race to the Bottom

Unsafe Consumer Products Argument for Restricting Imports?

National Interest Argument for Restricting Imports

What is the WTO?

What is the GATT?

What are Free Trade Agreements?

  • North American Free Trade Agreement
  • Central European Free Trade Agreement
  • General Agreement on Free Tariff and Trade (GATT)

Common Market

  • Common Market for Eastern and Southern Africa
  • Central American Common Market
  • Caribbean Community and Common Market

What are Economic Unions?

International Organizations

  • WTO
  • International Monetary Fund
  • World Economic Forum
  • Inter-American Development Bank
  • Davos World Economic Forum 
  • Chamber of Commerce
  • Jackson Hole Economic Symposium
Delete

EXCHANGE RATES

What Does it Mean to Dollarize

Foreign Exchange Market

Who Demands and Supplies Currency in a Foreign Exchange Market? 

Foreign Direct Investment

  • Greenfield Investment
  • Brownfield Investment

Portfolio Investment

Hedging

Dealers in the Interbank Market

Weak and Strong Currency
  • Depreciation of Currency 
  • Appreciating and Depreciating Currency

Exchange Rate

  • Real Effective Exchange Rate (REER)
  • Limited Flexibility Exchange Rate System

Expectations about Future Exchange Rates Shift Demand

Expected rate of return shift demand and supply for a currency

Relative Inflation Shifts Demand and Supply for a Currency

Purchasing Power Parity (PPP)

  • Relative Purchasing Power Parity
  • Law of One Price
  • Burgernomics
  • Balassa-Samuelson Effect

Arbitrage

  • Tobin Tax
  • Foreign Exchange Market
  • Foreign Exchange Contract
  • Arbitrage
  • Hedge

Why Central Banks Care About Exchange Rates

How Do Exchange Rates Affect Aggregate Demand and Aggregate Supply? 

What Causes Exchange Rate Fluctuations?

Exchange Rate Policy

  • Fixed Exchange Rate 

Floating Exchange Rate

Hard and Soft Peg

What is a Merged Currency?

Regulation

  • Capital Control
  • Exchange Stabilization Fund
  • Smithsonian Agreement
Delete

BANKING SYSTEM & MONETARY POLICY

Legal Tender

  • Numismatics
  • Gresham's Law

Barter

Double Coincidence of Wants

  • Parity

Functions of Money

  • Medium of Exchange
  • Unit of Account
  • Store of Value
    • Time Value of Money
  • Standard of Deferred Payment
  • Liquidity Preference Theory
  • National Savings and Investment Identity
    • Circular Flow of Money
Commodity Money
  • Gold Exchange Standard
  • Bretton Woods System

Fiat Money

Money Supply

M1 and M2 Money Supply

  • Monetary Base
  • Savings, Demand, and Time Deposits

Banks

How Do Banks Create Money? 

Financial Intermediary

Bank Balance Sheet

Money Multiplier Formula

Velocity of Money

Multiplier Effect

  • Quantity Equation of Money
  • McCallum Rule
  • Neutrality of Money
  • Real Bills Theory

Banking System?

Central Bank

Federal Reserve System

  • Federal Open Market Committee (FOMC)
  • Fed Balance Sheet
  • Term Auction Facility
  • Taylor Rule

How is the Federal Reserve Bank Organized?

What is Bank Regulation?

  • CAMELS Rating
  • FDIC
  • CFPB

Bank Supervision

Bank Runs

What is Deposit Insurance?

Federal Deposit Insurance Corporation

Lender of Last Resort

Central Banks Carry Out Monetary Policy

Open Market Operations

Bank Reserve

Discount Rate

Federal Funds Rate

Monetary Policy

Contractionary and Expansionary Monetary Policy

  • Loose vs Tight Monetary Policy
  • Easy Monetary Policy 
  • Accommodative Monetary Policy
  • Dove & Hawk (Monetary Policy) - Explained
  • Tight Monetary Policy - Explained
  • Stabilization Policy
  • Pushing on a String

The Effect of Monetary Policy on Interest Rates

  • Federal Funds Rate
  • Gibson Paradox
  • Vasicek Interest Rate Model
  • Equation of Exchange (Economics)

The Effect of Monetary Policy on Aggregate Demand

Quantitative Easing

Reserve Currency

What are Excess Reserves?

Unpredictable Movements of Velocity

Central Banks - Unemployment and Inflation

  • Inflation Targeting
  • Fisher Effect

Asset Bubbles and Leverage Cycles

  • Countercyclical
Money Capital Market
  • Quantity Theory of Money
  • Aggregate Expenditure Model
  • IS-LM Model
  • European Capital Market Institute
Delete

GOVERNMENT POLICY

Economic Well Being - Standard of Living

What is the Growth Consensus?

High, Low, and Middle-Income Countries

Natural Rate of Unemployment

Delete

Research and Analysis (Under Development)

Introduction

  • Empirical Testing
  • Econometrics
  • Inflection Point - Explained
  • A Fortiori Analysis Definition
  • A Posteriori Definition
  • A Priori Probability Definition
  • Absolute Frequency Definition
  • Alpha Risk Definition
  • Altman Z-Score Definition
  • Analysis of Means Definition
  • Analysis of Variance (ANOVA) Definition
  • Autoregression Definition
  • Autoregressive Moving Average (ARMA) Definition
  • Back of the Envelope Calculation Definition
  • Bartletts Test (Statistics) Definition
  • Bell Curve Definition
  • Big Data Definition
  • Bonferroni Test Definition
  • Boolean Logic Definition
  • Bounded Rationality Definition
  • Box Cox Transformation Definition
  • Box Jenkins Model Definition
  • Central Limit Theorem Definition
  • Chi Square Distribution Definition
  • Clinical Trial Definition
  • Cluster Analysis Definition
  • Coefficient of Determination Definition
  • Coefficient of Variation Definition
  • Confidence Interval Definition
  • Correlation Definition
  • Cost Benefit Analysis Definition
  • Cost-Benefit Analysis Definition
  • Covariance Definition
  • Data Analytics Definition
  • Data Mining Definition
  • Data Science Definition
  • Decision Analysis Definition
  • Decision Theory Definition
  • Decision Tree Definition
  • Degrees of Freedom Definition
  • Discrete Distribution Definition
  • Elasticity Coefficient Definition
  • Empirical Probability Definition
  • Empirical Rule Definition
  • Frequency Distribution Definition
  • Hedonic Regression Definition
  • Histogram Definition
  • Hypothesis Testing Definition
  • Incremental Analysis Definition
  • Kruskal Wallis Test Definition
  • Kurtosis Definition
  • Law of Large Numbers Definition
  • Least Squares Method Definition
  • Likert Scale Definition
  • Linear Regression Definition
  • Mean-Variance Analysis Definition
  • Multiple Linear Regression Definition
  • Multivariate Model Definition
  • Nonlinear Regression Definition
  • Normal Distribution Definition
  • Null Hypothesis Definition
  • One-Tailed Test Definition
  • OODA Loop Definition
  • P Value Definition
  • Pareto Rule (80/20 Rule)
  • Poisson Distribution Definition
  • Positive Correlation Definition
  • Predictive Analytics Definition
  • Predictive Modeling Definition
  • Prescriptive Analytics
  • Probability Distribution Definition
  • Programmed and Unprogrammed Decisions
  • Qualitative Analysis Definition
  • Quantitative Analysis Definition
  • R-Squared Definition
  • Random Factor Analysis Definition
  • Regression Analysis Definition
  • Residual Sum of Squares Definition
  • Sampling Distribution Definition
  • Sampling Error Definition
  • Scheffe's Test Definition
  • Sensitivity Analysis Definition
  • Standard Error Definition
  • Statistically Significant Definition
  • Stepwise Regression Definition
  • Stochastic Modeling Definition
  • Structured Problem vs Unstructured Problem
  • Subjective Probability Definition
  • Sum of Squares Definition
  • T Distribution Definition
  • Three Way Anova Definition
  • Tree Diagram Definition
  • Trend Analysis Definition
  • Trimmed Mean Definition
  • Two-Way ANOVA Definition
  • Type I Error Definition
  • Type II Error Definition
  • Uniform Distribution Definition
  • Variance Analysis Definition
  • Venn Diagram Definition
  • Weighted Average Definition
  • What-If Calculation
  • What is Environmental Scanning?
  • Wilcoxon Test Definition


Delete

Decision Making

Introduction

  • Management and Decision Making
  • Approaches to Management Decision Making
  • What is Design Thinking?
  • Common Biases and Errors in Decision Making
  • Structured Problem vs Unstructured Problem
  • Programmed Decision and Unprogrammed Decisions
  • Conditions for Management Decision Making
  • Methods of Decision Making
  • Queuing Theory

Delete

Economics and Finance Category

Other Topics

  • Fragmented Market - Explained
  • Malthusian Theory - Explained
  • Ministry of Economy, Trade, and Industry - Explained
  • Modiglani - Miller Hypothesis - Explained
  • Malthusian Thesis
economics economic analysis

Was this article helpful?

Yes
No

Related Articles

  • Accounting & Taxation
  • Management & Leadership
  • Operations & Project Mgmt
  • Finance (Under Development)



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand