ex ante is Latin for before the event. ex ante means we look at future events based on possible predictions. ex post is Latin for after the event. ex post means we look at results and events after they have occurred. Example of ex ante and ex post There is an example of ex ante …
After keeping interest rates at close to zero for several years, the US Federal Reserve has moved to finally increase interest rates. This increase in interest rates is more significant than usual because it marks an end to the unique circumstance of ultra-low interest rates. The Federal Reserve has also indicated they expect to raise …
Disposable income is the amount of personal income – direct taxes. Example: In the UK, a person may have a gross salary of £31,000. But, after income tax and NI contributions have been taken off, their disposable income may be £19,000 a year. Discretionary income is the income available to spend. It is disposable (after …
Definition of Dependency Ratio: The dependency ratio measures the % of dependent people (not of working age) / number of people of working age (economically active) Dependency Ratio = Number of Children (0-15) + Number of Pensioners ( > 65 ) ——————————————————————– Number of Working age 16-65 A dependency ratio of 1.2 means that for …
The first admission about writing on the economic policies of Donald Trump is that nobody can be entirely sure what it will be – perhaps even Donald Trump himself. Campaign promises are one thing, but the reality of a Republican controlled Congress, may be something else. I don’t think it unreasonable to think that the …
Economic uncertainty refers to how firms and consumers are unsure about the future direction of the economy and usually react in a more conservative behaviour (i.e. less spending and investment) Economic uncertainty usually causes a lower rate of economic growth, until the uncertainty is resolved. UK economic uncertainty Measuring uncertainty There is no easy …
Last Sunday, I rode a 12 hour time trial, finishing 2nd in the National Championships with 284 miles. If you’re fed up with politics, riding a 12 hour time trial is very good for clearing the mind. A little extreme maybe, but worth considering if you want to get away from it all. This week …
Readers Question: Economic theory says that when Quantity (Q.S) increases Price (P) should ordinarily fall. After the 2007 crisis in the USA, the FED pumped billions of Dollars into the economy through QE. However the price of dollars, interest rate has not only fallen lower, but is closer to zero as of today ( 2016). …