◆ HOW MONEY WORKS
Macro
10 articles
FeaturedWhat Is Recession?
Two consecutive quarters of negative GDP growth. The economic contraction phase of business cycles.
Read more →Deep Dives
4 articles
◆ MACRO
↔ Also in Factor MarketsInterest Rates and the Rental Price of Capital: How Firms Decide What to Build
The interest rate is the rental price of capital - the hurdle every investment must clear. Here is the net-present-value math firms use to decide what to build.
◆ MACRO
↔ Also in International TradeTrade Doesn't Cost Jobs — It Moves Them. Here's the Evidence.
The idea that imports destroy jobs and trade is zero-sum is intuitive, persistent, and wrong in the aggregate — but the real story is more honest than either…
◆ MACRO
↔ Also in International TradeTariffs: Winners, Losers, and the Deadweight Loss Nobody Talks About
A tariff helps domestic producers and the Treasury, but it costs consumers more than both gain combined. The gap is deadweight loss — pure value destroyed.
◆ MACRO
Why does inflation happen?
Inflation comes from demand outpacing supply, rising costs, or money growth. Here's the mechanism in plain English.
Quick Answers
5 termsWhat Is Business Cycle?
The recurring pattern of expansion and contraction in economic activity. Understanding cycles helps predict downturns and prepare.
Read more →What Is Fiscal Policy?
Government spending and taxation decisions that affect the economy. The primary lever Congress uses to manage economic cycles.
Read more →What Is Inflation?
The increase in the general price level of goods and services over time, reducing purchasing power. Understanding inflation is critical for financial planning.
Read more →Trade Surplus and Trade Deficit: What They Mean and What They Don't
A trade surplus means a country exports more than it imports; a deficit means it imports more than it exports.
↔ Also in International TradeRead more →What Is Deflation?
Decrease in the general price level of goods and services. Often more dangerous than inflation, deflation causes economic stagnation.
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