An in-depth look at wage resistance, encompassing historical context, types, key events, explanations, mathematical models, importance, and applicability in various fields.
A comprehensive analysis of the Wage-Price Spiral, its historical context, mechanisms, and implications in economics.
An in-depth exploration of Wage-Push Inflation, covering its historical context, types, key events, detailed explanations, models, charts, and its impact on economies.
The After-Tax Real Rate of Return represents the true earning on an investment after adjustments for taxes and inflation. Understand how it highlights the actual financial gain.
The Board of Governors of the Federal Reserve System is the seven-member managing body responsible for setting policy on banking regulations and the money supply, crucial for regulating inflation, interest rates, and economic growth.
Bracket Creep refers to the phenomenon where taxpayers are pushed into higher income tax brackets due to income rises aligned with inflation, increasing government revenue without changes in tax rates.
A comprehensive overview of Cost-of-Living Adjustment (COLA), its mechanisms, applications, historical context, and related terms.
The Consumer Price Index (CPI) is a measure of the change in consumer prices as determined by a monthly survey by the U.S. Bureau of Labor Statistics. This article explores its components, significance, historical context, and applications.
Detailed Explanation of 'Core' in Various Contexts Including Central Mechanism, Inflation Rate, CPU Design, and Historical RAM
Comprehensive overview of the Cost-of-Living Index, an economic indicator that measures the changes in the price level of a basket of consumer goods and services.
An in-depth explanation of cost-push inflation, its causes, examples, and comparison with demand-pull inflation.
Countercyclical policy refers to government economic policies designed to dampen the effects of business cycles, like the actions taken by the Federal Reserve Board in the early 1980s to combat inflation by raising interest rates.
Detailed explanation of creeping inflation, a mild yet persistent form of inflation that leads to significant long-run price increases.
Current dollars refer to the measurement of the cost of an asset using today's price level, which reflects inflation adjustments. For instance, using the Consumer Price Index (CPI) as a basis, an asset that cost $20,000 when the CPI base was 100 would cost $36,000 in current dollars if today's CPI is 180.
Debasement involves reducing the precious metal content in coinage, thereby rendering a country's currency less valuable.
An in-depth exploration of deflation, its causes, impacts, differences from inflation and disinflation, historical context, and more.
Understanding the deflator, the statistical tool used to remove the effects of inflation from economic variables, ensuring analysis in real or constant-value terms.
An exploration of the demand for money, its determinants, functions, and its role in monetary policy and inflation control.
An in-depth exploration of Demand-Pull Inflation, a phenomenon where prices rise because demand for goods and services exceeds supply.
Understanding disinflation, its causes, effects, implications, and differentiation from deflation.
Understanding double-digit inflation, its causes, effects, historical examples, and implications on the economy.
A state of the national money supply when the Federal Reserve System allows ample funds to build in the banking system, lowering interest rates and making loans easier to obtain.
A comprehensive analysis of the economic growth rate, its types, significance, and real-world application.
The Employment Cost Index (ECI), issued quarterly by the U.S. Department of Labor, monitors changes in employer payroll costs, including salaries, wages, benefits, and bonuses. It serves as a key indicator for inflation trends.
An escalator clause is a provision in a contract that allows for the adjustment of costs in response to specific economic conditions. Common in employment and lease agreements, these clauses ensure that wages and payments remain equitable in volatile markets.
The Fisher Effect explains the relationship between nominal interest rates and expected inflation rates, suggesting that interest rates adjust to reflect anticipated inflation.
An in-depth look at galloping inflation, its causes, historical episodes, economic impact, and related terms.
A comprehensive overview of the Gold Standard, its history, mechanisms, benefits, and limitations. Understand the anti-inflationary aspects of this system and its historical context in the United States.
A Goldbug is an analyst who strongly advocates for gold as a prime investment vehicle, particularly in times of economic turmoil such as depressions or hyperinflation. They view gold as a safe haven amidst financial instability.
A term coined in the mid-1990s describing an economy with steady growth and nominal inflation, akin to the 'just right' porridge in the fairy tale.
An in-depth understanding of Headline Inflation, its measurement through CPI and PPI, its significance, historical context, and comparison with Core Inflation.
Hidden Inflation refers to a pricing strategy where a company increases prices without changing the nominal cost of goods, typically by reducing the quantity or quality of the product offered. This tactic can have significant economic implications.
Hyperinflation is an extreme form of inflation characterized by a very high and typically accelerating rate, leading to the currency becoming virtually worthless.
Ibbotson & Associates, known for providing extensive historical data on financial investments, publishes the annual Stocks, Bonds, Bills & Inflation (SBBI) Yearbook, widely used by investors and analysts.
An Incomes Policy refers to government measures to control wages, prices, and costs, typically imposed to address high levels of inflation.
Detailed exploration of Indexation – the process of adjusting economic variables based on specific indicators, typically to inflation. Includes examples such as Federal income taxes and prevention of bracket creep.
An inflation hedge is an investment designed to protect against the loss of purchasing power due to inflation. Traditional inflation hedges include gold and real estate, although growth in stocks can also offset inflation in the long run.
A detailed guide on inflation rate, its significance in the economy, primary U.S. indicators such as the Consumer Price Index (CPI) and the Producer Price Index (PPI), historical context, and FAQs.
A detailed explanation of the inflationary gap, its causes, consequences, and related economic concepts.
An inflationary spiral refers to an episode of inflation in which price increases occur at an increasing rate, and currency rapidly loses value.
A detailed explanation of the market basket concept, its use in economic indicators like CPI and PPI, historical context, and examples.
Monetize the debt refers to the process of financing national debt by printing new money, which often leads to inflation.
Money Illusion refers to the cognitive bias where individuals mistakenly believe that an increase in their nominal income equates to an increase in their real purchasing power, neglecting the effect of inflation.
Detailed explanation of money income, its contrasts with real income, and its implications.
An in-depth explanation of the Natural Rate of Unemployment, how it relates to the Phillips Curve, and its implications for labor market equilibrium and inflation.
The Nominal Interest Rate is the rate of return on an investment that is unadjusted for the effect of inflation. It is distinguished from the real rate, which is the nominal rate less the rate of inflation.
A detailed exploration of nominal dollars, their significance, differences from real dollars, and practical applications in economic analysis.
An in-depth review of the term 'Overheating,' including its implications on inflation, productive capacity, and economic stability.
The Phillips Curve describes the inverse relationship between unemployment and inflation, where an increase in inflation often leads to a decrease in unemployment, and vice versa.
A comprehensive guide to understanding price indexes, their types, historical context, and applications, with a focus on well-known indexes like the CPI and PPI.
Comprehensive explanation of Price Level, including its importance in economics, historical context, and its effect on various financial aspects.
An in-depth exploration of government policies designed to stabilize prices during periods of rapid inflation or shortages.
An in-depth look at the concept of printing money, its connotations, economic consequences, and related monetary policies.
A comprehensive overview of the Producer Price Index (PPI), formerly known as the Wholesale Price Index, including its calculation, significance, and applications.
Purchasing Power of the Dollar is the measure of the amount of goods and services that a dollar can buy, taking into account historical changes due to inflation or deflation.
Purchasing Power Risk is the risk that inflation will erode the value of the currency in which a financial deal has been made. Explore its significance in long-term investments such as U.S. Treasury bonds, and understand how it differs from default risk.
A detailed exploration of QE2 (Quantitative Easing 2), its implementation, purposes, impacts, controversies, and economic implications.
The Quantity Theory of Money and Prices is a key concept in Monetarist economics, illustrating the relationship between money supply, velocity of money, price levels, and national income. It underpins the view that controlling inflation requires managing the growth of the money supply.
The Rate of Inflation measures the percentage change in the price level of goods and services over a specific period, often used to assess the economic health of a country.
An extensive exploration of the term 'real' in contrast to 'nominal,' highlighting its significance in economics, particularly in measuring price and income adjusted for inflation.
Real Earnings account for wages, salaries, and other earnings adjusted for inflation, reflecting actual changes in purchasing power over time.
An in-depth explanation of real income, which accounts for changes in purchasing power due to inflation. Includes examples, applications, historical context, and more.
The real interest rate is the current interest rate adjusted for inflation, providing insight into the actual cost of borrowing or the real return on investment. Learn how to calculate it and understand its economic impact.
The Real Rate of Return represents the return on investment adjusted for inflation, reflecting the actual purchasing power gained or lost. It is a crucial metric for investors to assess the true profitability of their investments over time.
A comprehensive explanation of the real value of money, which reflects the actual purchasing power of money as corrected for inflation over time.
Real wages are money wages adjusted for inflation, providing a measure of changes in actual purchasing power over time.
Detailed explanation of the term 'Runaway,' often used to describe out-of-control economic phenomena like inflation.
Stagflation, a term coined by economists in the 1970s, describes the unprecedented combination of slow economic growth, high unemployment, and rising prices.
Stagnation refers to a period of no or slow economic growth or even economic decline in real (inflation-adjusted) terms. Economic growth of about 1% or less per year is generally taken to constitute stagnation.
The Standard Deduction is a provision allowing taxpayers to deduct a fixed amount from their gross income in lieu of itemized deductions. This provision, updated annually for inflation, also accounts for specific circumstances such as age or blindness.
Detailed annual publication by Ibbotson & Associates providing comprehensive historical data and analysis on stocks, bonds, bills, and inflation.
An in-depth look at wage control, the governmental mechanisms for regulating wage increases to manage inflation and economic stability.
The Wage-Price Spiral is a macroeconomic situation in which rising prices lead to higher wages, which in turn cause increased production costs and further price hikes, creating a continuous cycle. This term is crucial for understanding inflationary pressures and economic policy responses.
Wage-Push Inflation occurs when increasing wages are not offset by increasing productivity, leading to higher costs and subsequently higher prices for goods produced.
A detailed exploration of the 'Basket of Goods' concept, its role in the calculation of the Consumer Price Index (CPI), and practical examples to illustrate its application.
A comprehensive guide to the Consumer Price Index (CPI), covering its definition, calculation, types, historical context, and its applications in economic analysis and policy making.
A comprehensive guide to understanding Cost-of-Living Adjustments (COLA), how they work, their importance in Social Security and Supplemental Security Income, and their impact on beneficiaries.
Explore the concept of cost-push inflation, its causes such as rising production costs, and the circumstances under which it occurs.
An in-depth exploration of demand-pull inflation, its causes, examples, historical context, and economic implications. Learn how this type of inflation affects supply and demand dynamics in the economy.
A comprehensive guide to the GDP price deflator, including its definition, formula, calculation, and practical examples to measure inflation's impact on the economy.
A comprehensive guide to understanding the Gross National Product (GNP) Deflator, including its definition, importance, calculation formulas, and historical context.
A detailed exploration of the Harmonized Index of Consumer Prices (HICP), used to measure consumer price inflation in the European Union and the Eurozone. The entry includes definitions, calculations, applications, historical context, and comparisons with other inflation measures.
A comprehensive guide on inflation, including its definition, methods of control, and significant historical examples.
A comprehensive overview of James Tobin's early life, public service, and significant contributions to economics, particularly his research on the financial system's impact on inflation and employment.
A comprehensive analysis of the Misery Index, including its definition, components, historical context, and limitations.
Explore the economic theory of money illusion, which posits that people tend to assess their wealth and income in nominal terms without accounting for inflation. Delve into its historical background, relevant examples, and implications.
Comprehensive explanation of the money supply, exploring its types, methods of measurement, and its significant influence on the economy.
An in-depth exploration of nominal interest rates, their formula, and comparison with real interest rates, including examples and applications in economics and finance.
Explore the non-accelerating inflation rate of unemployment (NAIRU), the critical unemployment threshold before inflationary pressures begin to escalate, including formulas, implications, and historical context.
A detailed examination of Open Mouth Operations, speculative statements by the Federal Reserve to influence interest rates and inflation, their historical context, and significance.
An in-depth exploration of the factors that lead to an overheated economy, its implications, and preventive measures.
An in-depth look at Owners' Equivalent Rent (OER), its calculation, and how it influences the Consumer Price Index (CPI).
An in-depth exploration of price level in economics, its measurement, implications for investment strategies, and its role in monetary policy and purchasing power.
A comprehensive look at the Producer Price Index (PPI), including its definition, calculation methods, importance, historical context, and its role in economics and finance.
Explore the concept of purchasing power, understand how it is measured using the Consumer Price Index (CPI), and learn about its implications for investors and the economy.
An in-depth look at the Quantity Theory of Money, its foundational formula, practical examples, historical context, and its relevance in modern economics.
An in-depth exploration of Real Gross Domestic Product (Real GDP), including its calculation, comparison with Nominal GDP, and its significance in economic analysis.
A comprehensive guide to understanding real income and real wages, including the impact of inflation, calculation methods, historical context, and economic implications.
Understand the real interest rate, its formula, significance in economics, and practical examples. Learn how the real interest rate is adjusted for inflation to reflect the true cost of borrowing and the actual yield for lenders.
Understanding the real rate of return, its significance, how to calculate it, and practical examples.
