The exchange rates of countries’ currencies such as the U.S. dollar, euro or British pound may seem obscure. But they matter a great deal to all of us. Businessman falling from pound seesaw (Ikon Images via AP Images) Even when currencies are crashing and making...
Many nations’ economies are bouncing back from COVID-19, putting upward pressure on prices. The jury’s out on whether inflation is back to haunt us. Signs advertising jobs in Harmony, Pennsylvania, 21 May 2020. Increased economic growth in some economies...
Inflation can be a challenging topic to understand. What exactly is it, why is it important and is it really all that bad? Correspondent Sarah Edmonds brings her economics expertise to this decoder that unpacks the link between the prices of goods and services and the value of your money, and shows how consumer expectations as economies rebound could lead to an inflationary spiral.
Exercise: Ask students to compare the average price of goods in their city, such as food, gas or a new car, with average local wages since the pandemic began in March 2020. How have they changed (or not)?
U.S. colleges can cost a lot, and many students take on debt. Is it really worth it, financially, to pay all that money for higher education? Let’s see. (Federal Reserve Bank of New York) It’s the time of year when millions of students in their last year...
On any day, the stock market can go up or down. But in the long run, a young person cannot afford to ignore the chance to invest in company shares. The effect of compound interest, with an initial investment of $1,000 and 20% annual interest, compounded at various...
Alan Wheatley’s article on stock markets touches on concepts of tremendous long-term importance to young people, such as compounded interest and interest rates. Wheatley has decades of experience covering international finance, and it shows as he connects investing fundamentals with economic growth and the current U.S. political situation. The article finishes with questions that can be taken up in a wide range of classrooms: Who would be better for stock markets — Trump or Biden? If you have $1,000, should you spend or save it? And why is Wall Street near a record high during the coronavirus pandemic? With Wheatley explaining matters, there’s no reason why economics should be “the dismal science”!
Power-hungry politicians are piling pressure on central banks to do their bidding. But short-term meddling only erodes long-term stability. U.S. President Donald Trump (R) with Federal Reserve Board Chairman Jerome Powell, Washington, 2 November 2017 (AP Photo/Pablo...