Macroeconomics

What is expansionary fiscal policy

What is Expansionary Fiscal Policy

Expansionary fiscal policy refers to a policy that seeks to grow the economy through fiscal stimulus. Governments do so by using two main methods. The first is lower taxation, and the second is an increase in government spending.

Fiat Money Definition

Fiat Money Definition

Fiat money is a currency whereby its value comes from government decree. This is because government grants it legal authority for consumers to use this as legal tender, but also for businesses to accept it. On its own, fiat money has little value.

Recession Definition

Recession Definition

In economics, a recession is defined as a decline in economic growth. More specifically, it is when an economy experiences two consecutive quarters of economic decline. This occurs when GDP falls in comparison to the previous quarter.

Causes of Inflation

Causes of Inflation

There are three main causes of inflation. They are cost-push, demand-pull, and the velocity by which money circulates in the economy.

Effects of Inflation

Effects of Inflation

Some of the common effects of inflation include; loss in purchasing power, higher asset prices, rising inequality, and impacts on cost of borrowing.

How Does Quantitative Easing Work

How Does Quantitative Easing Work

Quantitative Easing works in 5 sequential steps: Central Bank Creates Money, Central Bank Purchases Debt, Interest Rates Decline, Businesses/Consumers Borrow More, and Businesses/Consumers Spend More.

Pros and Cons of Cryptocurrency

What is Cryptocurrency Cryptocurrency Definition Cryptocurrency Pros and Cons Cryptocurrency Alternatives Pros and Cons of Cryptocurrency WRITTEN BY ABBY COLLINS | Updated 12 January 2022 What is Cryptocurrency Cryptocurrencies have become this decade’s most successful financial disruptor. Despite being a speculative digital currency, Pew Research states that 16% of all Americans have invested and traded crypto. This …

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Mercantilism Definition

Mercantilism Definition

Mercantilism is an economic policy whereby a nation aims to maximize exports and minimize the imports. It originates from the term ‘mercantile’, which refers to merchants and trade.