Knowledge cluster
Economics & Markets
The bigger picture: inflation, interest rates, central banks, recessions and the economic indicators that move markets.
Definition
Federal Reserve (the Fed)
The Federal Reserve is the central bank of the United States. It sets monetary policy, supervises banks and acts as lender of last resort in financial crises.
4 min read
Definition
Gross Domestic Product (GDP)
GDP is the total market value of all final goods and services produced in a country during a period. It is the most used yardstick for the size and growth of an economy.
4 min read
Definition
Inflation
Inflation is a sustained rise in the general level of prices, which means each unit of currency buys less over time. It is usually measured with a consumer price index.
6 min read
Definition
Interest Rate
An interest rate is the price of borrowing money, expressed as a percentage per year. Central-bank policy rates anchor all the others.
4 min read
Definition
Quantitative Easing (QE)
Quantitative easing is a central-bank policy of buying large quantities of bonds to push down long-term interest rates when the normal policy rate is already near zero.
4 min read
Definition
Recession
A recession is a significant, broad and persistent decline in economic activity. A common shorthand is two consecutive quarters of falling real GDP, though official definitions are broader.
4 min read