Coreconomy

When you read economic news, you often see headlines like: “National debt reaches a record high.” “Government borrowing continues to rise.” “Debt-service costs are putting pressure on the budget.” For someone new to economics, this can raise a very simple question: “If a person borrows money, they eventually have to pay it back. Why can … Read more

In the previous articles, we looked at credit and national debt, and how both affect the economy. Credit can increase purchasing power and support: Borrowing↓Spending and investment↓Economic activity↓Income and growth But when debt grows much faster than the income available to service it, the situation can become more difficult. A highly indebted government may face: … Read more

When you read economic or financial news, you often see the word credit. But what does it actually mean? You might naturally think: “Does good credit just mean having a high credit score?” Or: “When a bank gives someone a loan, isn’t it simply lending money that somebody else deposited?” And then an even stranger … Read more

Economic news is full of phrases like: “Government debt is too high.” “Household debt is becoming a problem.” “Higher interest rates are increasing debt-service costs.” “The economy may eventually need to deleverage.” But what does debt actually have to do with the business cycle? At first, debt seems simple. You borrow money today and repay … Read more

Economic news is full of phrases such as: “The dollar strengthened.” “The yen weakened.” “The country recorded a current account surplus.” “The yen carry trade could affect global markets.” These terms can sound complicated when you first encounter them. But they become much easier to understand once you start with a few simple questions: What … Read more

When you read financial news, you will often come across the term Quantitative Easing, or QE. At first, QE can sound confusing. You may wonder: “What does it mean when a central bank ‘injects money’ into the economy?” “Why can buying bonds affect stock prices?” “Does QE automatically create inflation?” “And why would a central … Read more

When you read economic news, you often come across words like inflation, deflation, and stagflation. They may sound complicated at first. You might naturally think: “Does inflation simply mean that things at the supermarket are getting more expensive?” “Is deflation just the opposite?” “And is stagflation simply a period of very high inflation?” These ideas … Read more

Interest rates and bonds are two of the most important concepts for understanding financial markets. Whether you invest in stocks, bonds, real estate, or simply keep money in a savings account, changes in interest rates can affect the financial environment around you. You may have wondered: These questions are closely connected. In this guide, we’ll … Read more

When you first start investing in stocks, a stock chart can look like a confusing collection of candles, lines, and numbers. But once you understand the basic structure, a stock chart becomes a useful tool for examining how prices have moved in the past and how recent trends are developing. In this guide, we’ll explain … Read more

When you first start investing in stocks, you may come across many unfamiliar financial abbreviations. EPS, PER, ROE, BPS, PBR, and NAV are among the most commonly used indicators for evaluating a company’s profitability, valuation, and asset value. However, no single indicator can tell you whether a stock is a good investment. The key is … Read more