Macroeconomic Indicators. What They Are & How to Use Them. Monetary policy affects financial markets.
What They Are & How to Use Them
Euro rate rise puts heat on the Fed… after the central banks of the euro region and the United Kingdom raised interest rates to restrain inflation after economic growth accelerated. Stocks and bonds fell as investors bet borrowing costs are headed higher. 8/4/2006
Hang Seng slide continues
Hong Kong\'s stocks dropped for a fourth time
in five days after a US central banker said the Federal Reserve may need to raise interest rates further. 8/24/06
US rate pause
buoys AsiaMost Asian bourses gained ground Wednesday in reaction to the US Federal Reserve\'s decision to keep interest rates unchanged. 8/10/2006
Fed rate hopes lift regionAsian markets rose Wednesday in anticipation that the latest US economic data would persuade the Federal Reserve to keep US interest rates on hold. 8/17/2006
Chief measure of economy is the level of production
All goods sold in an economy share a common unit of measure: the price at which they are sold.Gross Domestic Product (GDP)
Sum up the value of goods
Final goods are goods sold to their end-users
Inflation: prices are growing
Disinflation: inflation is slowing down but still positive
Deflation: inflation is negative and prices are actually dropping.