Exchange rate In finance, an exchange rate (also known as a foreign-exchange rate, forex rate, FX rate or Agio) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency.[1] For example, an interbank exchange rate of 119 Japanese yen (JPY, ¥) to the United States dollar (US$) means that ¥119 will be exchanged for each US$1 or that US$1 will be exchanged for each ¥119. In this case it is said that the price of a dollar in terms of yen is ¥119, or equivalently that the price of a yen in terms of dollars is $1/119. Exchange rates are determined in the foreign exchange market,[2] which is open to a wide range of different types of buyers and sellers where currency trading is continuous: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday. The spot exchange rate refers to the current exchange rate. Retail exchange market[edit] Quotations[edit]
Interest rate An interest rate is the rate at which interest is paid by borrowers (debtors) for the use of money that they borrow from lenders (creditors). Specifically, the interest rate is a percentage of principal paid a certain number of times per period for all periods during the total term of the loan or credit. Interest rates are normally expressed as a percentage of the principal for a period of one year, sometimes they are expressed for different periods like for a month or a day. Different interest rates exist parallelly for the same or comparable time periods, depending on the default probability of the borrower, the residual term, the payback currency, and many more determinants of a loan or credit. Interest-rate targets are a vital tool of monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment. Interest rate notations[edit] Historical interest rates[edit] Interest rates in the United States[edit] is widely used. where: Risk[edit] so
Gross national product Gross national product (GNP) is the market value of all the products and services produced in one year by labor and property supplied by the citizens of a country. Unlike Gross Domestic Product (GDP), which defines production based on the geographical location of production, GNP allocates production based on ownership. GNP does not distinguish between qualitative improvements in the state of the technical arts (e.g., increasing computer processing speeds), and quantitative increases in goods (e.g., number of computers produced), and considers both to be forms of "economic growth".[1] Basically, GNP is the total value of all final goods and services produced within a country in a particular year, plus income earned by its citizens (including income of those located abroad)(no need to minus income of non resident as income includes of only its citizen). GNP measures the value of goods and services that the country's citizens produced regardless of their location. Use[edit] GNP Growth[edit]
Producer price index A Producer Price Index (PPI) measures the average changes in prices received by domestic producers for their output. It is one of several price indices. Its importance is being undermined by the steady decline in manufactured goods as a share of spending.[1] Related measures[edit] A number of countries that now report a Producer Price Index previously reported a Wholesale Price Index. PPIs around the world[edit] United States[edit] In the US, the PPI was known as the Wholesale Price Index, or WPI, up to 1978. India[edit] See also[edit] References[edit] Jump up ^ The Economist, Volume 387, May 31 - June 6, 2009, page 109Jump up ^ BLS Handbook of Methods, Chapter 14 Producer Prices, Background (found online at: up ^ Senate Committee on Finance, Wholesale Prices, Wages, and Transportation, Senate Report No. 1394, “The Aldrich Report,” Part I, 52nd Congress, 2d sess., March 3, 1893; and U.S. External links[edit]
Inflation In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4] The opposite of inflation is deflation. History[edit] Annual inflation rates in the United States from 1666 to 2004. Historically, infusions of gold or silver into an economy also led to inflation. The adoption of fiat currency by many countries, from the 18th century onwards, made much larger variations in the supply of money possible. Related definitions[edit] Measures[edit] Other common measures of inflation are: Effects[edit] where
Consumer price index A graph of the US CPI from 1913 to 2013 (in blue), and its percentage annual change (in red) A consumer price index (CPI) measures changes in the price level of a market basket of consumer goods and services purchased by households. The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. Sub-indexes and sub-sub-indexes are computed for different categories and sub-categories of goods and services, being combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the index. It is one of several price indices calculated by most national statistical agencies. Introduction[edit] The index is usually computed monthly, or quarterly in some countries, as a weighted average of sub-indices for different components of consumer expenditure, such as food, housing, clothing, each of which is in turn a weighted average of sub-sub-indices. or . where the
Government debt Government debt (also known as public debt, national debt and sovereign debt)[1][2] is the debt owed by a central government. (In federal states, "government debt" may also refer to the debt of a state or provincial, municipal or local government.) By contrast, the annual "government deficit" refers to the difference between government receipts and spending in a single year, that is, the increase of debt over a particular year. Government debt is one method of financing government operations, but it is not the only method. Governments can also create money to monetize their debts, thereby removing the need to pay interest. As the government draws its income from much of the population, government debt is an indirect debt of the taxpayers. History[edit] The sealing of the Bank of England Charter (1694) During the Early Modern era, European monarchs would often default on their loans or arbitrarily refuse to pay them back. Government and sovereign bonds[edit] By country[edit] Risk[edit] U.S.
Construction price and cost indices The quarterly Department for Business, Innovation and Skills (BIS) construction price and cost indices (PCIs) are produced for use in estimating, cost checking and fee negotiation on public sector construction works. The PCIs are published as an online service by Aecom under contract to BIS. The publication provides comprehensive public sector construction price and cost information in Great Britain, including the following indices: tender price index of public sector building non-housing, social housing, and road construction resource cost indices for buildings, roads, infrastructure and building maintenance output price indices for construction sectors output price indices for direct labour location and function studies The UK Statistics Authority has designated these statistics as National Statistics, in accordance with the Statistics and Registration Service Act 2007 and signifying compliance with the Code of Practice for Official Statistics.
Unemployment Unemployment occurs when people are without work and actively seeking work.[1] The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force. During periods of recession, an economy usually experiences a relatively high unemployment rate.[2] According to International Labour Organization report, more than 197 million people globally or 6% of the world's workforce were without a job in 2012.[3] There remains considerable theoretical debate regarding the causes, consequences and solutions for unemployment. In addition to these comprehensive theories of unemployment, there are a few categorizations of unemployment that are used to more precisely model the effects of unemployment within the economic system. Definitions, types, and theories[edit] Classical unemployment[edit] Cyclical unemployment[edit] Marxian theory of unemployment[edit] Measurement[edit]
Monster Employment Index The Monster Employment Index was a monthly analysis of online job demand conducted by Monster Worldwide, running from October 2003 to December 2012.[1] Based on a monthly review of millions of opportunities culled from a large selection of corporate career sites and job boards, including Monster, the Index presented a snapshot of employer online recruitment activity in the United States, Canada and Europe. Because recruitment typically precedes actual hiring by a month or two, the Monster Employment Index was considered a labor market leading indicator and a rough gauge of the overall economy. The U.S. Monster Employment Index was released the day prior to the Bureau of Labor Statistics' Employment Situation while the Monster Employment Index Europe was published on the second Tuesday of each month, with individual reports for the UK, Germany, France, Netherlands, Italy, Sweden and Belgium. The Monster Employment Index Canada was released quarterly.
Balance of trade The commercial balance or net exports (sometimes symbolized as NX), is the difference between the monetary value of exports and imports of output in an economy over a certain period, measured in the currency of that economy. It is the relationship between a nation's imports and exports.[1] A positive balance is known as a trade surplus if it consists of exporting more than is imported; a negative balance is referred to as a trade deficit or, informally, a trade gap. The balance of trade is sometimes divided into a goods and a services balance. Understand- Balance of Trade[edit] Trade, in general connotation, means the purchase and sales of commodities. Policies of early modern Europe are grouped under the heading mercantilism. Definition[edit] The balance of trade forms part of the current account, which includes other transactions such as income from the net international investment position as well as international aid. Factors that can affect the balance of trade include:
Macroeconomics Circulation in macroeconomics. Macroeconomics (from the Greek prefix makro- meaning "large" and economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies.[1][2] With microeconomics, macroeconomics is one of the two most general fields in economics. While macroeconomics is a broad field of study, there are two areas of research that are emblematic of the discipline: the attempt to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the attempt to understand the determinants of long-run economic growth (increases in national income). Macroeconomic models and their forecasts are used by governments to assist in the development and evaluation of economic policy. Basic macroeconomic concepts[edit] Output and income[edit] Unemployment[edit] Main article: Unemployment IS–LM[edit] 1.
Stock market Size of market[edit] Stocks are partitioned in various ways. One common way is by the country where the company is domiciled. For example, Nestle, Roche, and Novartis are domiciled in Switzerland, so they are part of the Swiss stock market. The size of the world stock market was estimated at about $36.6 trillion at the beginning of October 2008.[1] The total world derivatives market has been estimated at about $791 trillion face or nominal value,[2] 11 times the size of the entire world economy.[3] The value of the derivatives market, because it is stated in terms of notional values, cannot be directly compared to a stock or a fixed income security, which traditionally refers to an actual value. Stock exchanges[edit] Stocks are listed and traded on stock exchanges which are entities of a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together. Trade[edit] Market participants[edit]