Economies

The 2020 coronavirus (COVID-19) pandemic unhinged capital markets and domestic economies around the globe. From Asia to the United Kingdom, economic contraction became the rule. Amid lockdowns, quarantines and travel restrictions, day-to-day life underwent a dramatic transformation. Unfortunately for workers, businesses and investors, the world's labour markets experienced turbulence not seen since the Global Financial Crisis of 2008. What Is Unemployment? According to the Merriam-Webster dictionary, unemployment is the "involuntary…

The Dow Jones Industrial Average (DJIA) is one of the oldest and probably best-known stock indexes in the world. It is composed of 30 U.S.-based "blue chip" stocks, which change periodically based on market fluctuations and the fortunes of the individual companies. Four of the 10 largest U.S. companies ranked by market capitalisation were members of the DJIA as of 8 June 2022. However, all 10 are components of the…

The Australian Securities Exchange (ASX) is one of the largest global securities exchanges by value, with a total market capitalisation of about A$16 billion. It is also the largest market for interest rate derivatives in Asia and among the top five exchanges globally for raising capital. The ASX, which is based in Sydney, was the first major financial market open every day. The Australian Stock Exchange was formed on the…

The Toronto Stock Exchange (TSX) is Canada's largest and oldest equities trading and capital raising market. The TSX is part of TMX Group, which is a publicly traded company that operates several Canadian markets and clearinghouses for equities, cash, derivatives, fixed income and energy. The TSX dates back to 1852, when it was an association of 12 Canadian businessmen. The exchange was formally founded on 25 October 1861, when 18…

What Is A Reserve Currency? A reserve currency is a currency that is widely accepted around the world as a method of payment between countries for goods and services. Reserve currencies are also widely held by governments and central banks as foreign exchange reserves and to settle international debt obligations. Past And Current Reserve Currencies The U.S. dollar (USD) has been the primary reserve currency since the end of World…

The U.S. stock market crash of 1929 was the beginning of the longest and deepest decline in stocks in history. It precipitated the failure of about half of the banks in the U.S. and was one of the principal causes of the Great Depression, which lasted about 10 years and engulfed most of the world. The market crash was preceded by a long period of economic prosperity in the U.S.…

What Is Keynesian Economics? Keynesian economics is an economic theory that argues that governments should spend heavily on infrastructure projects and unemployment benefits during economic downturns in order to stimulate consumer and business spending, growth and job creation. The theory was developed by British economist John Maynard Keynes in his 1936 book, The General Theory of Employment, Interest, and Money. It was published during the Great Depression, when nothing seemed…

What Are Government Bonds? Bonds are debt instruments issued by governments to the public. Essentially, when a government sells bonds, it's borrowing money to finance its activities, including infrastructure projects, health and welfare benefits, defense expenditures and the like. It also sells bonds to pay off its previously issued debt—in other words, selling new debt to retire old debt. The United States government bond market is the largest debt market…

Since Donald Trump's victory in the U.S. General Election of 2016, the sitting President of the United States (POTUS) has been a polarising and controversial figure. From alleged Russian collusion to unprecedented Twitter practices, constant criticism has been a central theme among political adversaries. While critique and open discourse are staples of U.S. politics, an actual removal from office or impeachment of a POTUS is rare. On 24 September 2019,…

What Are Tariffs? Tariffs are a tax or duty imposed on imported foreign goods. They're paid by the company importing the product, although the foreign company exporting the product may thereby find its products too expensive to sell in foreign markets depending on how high the tariffs are. The importing company paying the tariff may absorb the cost or pass it along to consumers, or a combination of the two.…