Tag: macroeconomics

  • Inflation and interest rates

    Inflation and interest rates are closely related. They are very common macroeconomic indicators that are tracked by economists. Interest rates are one of the measures that economies leverage to keep control of inflation. Higher interest rates When a nation’s central bank increases the interest rates, it becomes less motivating for businesses and consumers to borrow…

  • How are currency rates decided?

    Ever wondered how the rate of the rupee against the dollar is decided? Why do all the currency rates fluctuate all the time? Why are the rates of different currencies different from other currencies? The currency exchange rates are determined by foreign exchange markets or Forex. What is the foreign exchange market (Forex)? Forex is…

  • Recession indicators

    Layoffs have become a frequently heard word in recent times. The venture capital flow has been reduced in companies. Macroeconomic conditions have forced the corporate world to let go of employees and freeze the new hires. What is a recession? A decline in the economy for consecutive quarters in a nation is when it’s called…

  • Capitalism vs Socialism

    Economic systems are the ways in which governments distribute all the resources among the public. Socialism and capitalism are the two most common systems of economies. What is the difference between them? Capitalism Capitalism is an economic system that promotes private ownership in the society. It is a free economy where anyone has the liberty…

  • What are economic indicators?

    Macroeconomics deals with the study of high-level impacts of a given economic, social, and political environment of a nation. Economic indicators, for a given time, help in determining the health of an economy. It helps in getting the answers to questions like – Where is a nation heading? What is the further growth looking like?…

  • Microeconomics vs macroeconomics

    What is the difference between microeconomics and macroeconomics? How are they related? Microeconomics When will my car be delivered? When would the new model of my phone be available? What price should I keep for my product? What is my profit margin? How much is the demand for this TV model?  These are some normal…