Blog Posts

Economic surveys are vital tools that help in the understanding of various facets of an economy that traditional data can’t capture (because they’re based on forward expectations). These surveys provide data about growth, consumption, employment, and numerous other factors that contribute to the health of an economy.   Key Takeaways – Economic Survey Reliability Economic […]

The S&P 500 is a benchmark index, comprising 500 of the largest US publicly traded companies. It represents the performance of the stock market by reporting the risks and returns of the biggest companies. Investors use it as the benchmark of the overall market, to which all other investments are compared. Below we’ll look at […]

The issuance of government bonds, an instrument of fiscal policy, plays a significant role in the macroeconomic environment and affects various aspects of financial markets. Here we look at the impacts of government bond issuance on different market sectors, including the credit market, stock market, foreign exchange market, and the general economy. We’ll also take […]

Trading, in its various forms, is an activity that has the potential to be highly lucrative.  There’s a prevailing notion that it requires high intelligence (or “IQ”) to be successful in trading.  The reality, however, is much more nuanced.  We look at the role of intelligence/IQ in trading and determine what really matters for success […]

Below we look at the difference between repo, reverse repo, the ON RRP, and the TGA. All are important features in the plumbing of the global financial system.   Key Takeaways – Repo vs. Reverse Repo vs. ON RRP vs. TGA Repurchase Agreements (Repo) and Reverse Repos are essential components of the global financial system, […]

Current and Capital Account Convertibility are key concepts in international economics and foreign exchange markets, particularly in the context of balance of payments. Current account convertibility refers to the freedom of converting local financial assets into foreign financial assets and vice versa at market-determined rates of exchange for income-related transactions (e.g., exports and imports, remittances). […]

A reserve currency is one that is held in significant quantities by governments and institutions as part of their foreign exchange reserves. These currencies are often used for international transactions and tend to be currencies of the world’s most powerful and stable economies. The US dollar, the Euro, and the Japanese yen are examples of […]

It is a common misconception that a currency is a permanent thing and cash is a safe asset. Every currency is susceptible to devaluation or complete dissolution. When this occurs, cash and bonds (promises to receive currency) become worthless or significantly devalued. This phenomenon is largely tied to debt burdens and how economies manage these […]

Inflationary depressions are an economic phenomenon that can have devastating consequences for an economy. They are born out of the interplay between the amount of currency and debt in the economic system. Below we look into the relationship between currency, debt, and central banks’ role, the balancing act they must perform to stave off economic […]

Economic development is a dynamic process, often visualized as a cycle that progresses through various stages. These stages are not merely a measure of income and wealth but also show up in terms of societal values, behaviors, and self-perception. The economic life-cycle of a country, consisting of what might be viewed as five main stages, […]