Category: Macroeconomics

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Inflation: when the money dies

Consider country X as a fictional country. The economy of this country has all the characteristics of a normal economy: Markets trade goods, individuals take part in financial affairs and institutions regulate the process...

Foreign Exchange Rate, (Photo by Carl Court/Getty Images)

Foreign Exchange Rate

Inside the borders of a country, goods and services are traded with that nation’s currency. However, to trade goods and services with other countries, foreign currencies are needed. Foreign exchange rate is the amount...

Monetary Policy

Monetary policy is the actions taken by the central bank of a country to manipulate liquidity, i.e. the amount of money available in the economy. Such actions include modifying the interest rates, bank reserves,...