Category: Economics

The Hooter Meter: Main Street’s Economic Indicator

On Thursday, natural gas prices hit a 17-year low. Ouch… We often talk about how to manage your company and the best way to judge what the economy is doing. One of the simplest (and most often overlooked) things to do is to look beyond what’s right in front of you to the hints the economy has left behind.

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Mistakes in Troubled Times

There’s never a good time to make a mistake. However, errors during times of distress can be especially crippling. As we enter month 17 of the oil crisis, even minor missteps can have devastating consequences. To help you stay vigilant, we’ve detailed some common mistakes in troubled times that organizations make and how to avoid them. Mistakes in Troubled Times Changing

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If It’s Always On Sale, Is It Ever On Sale?

When you walk into a shopping mall, what do you see? I see sale signs everywhere! How could a company ever make money if its products or services are always on sale? 50% off, buy 1 get 1 free, 70%… It never ends. Have you wondered if it’s always on sale, is it ever on sale? Marketing

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Recession = Fewer Professional Jobs Available

If you haven’t been living under a rock for the past 15 months, then you have probably noticed that the decline in oil prices has resulted in many Houston businesses experiencing symptoms of an economic recession. What does a recession mean for you? Historically, recessions equate to reduced availability of professional jobs. While the effects of the free fall in oil

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Fiscal vs Monetary Policy

Fiscal vs Monetary Policy What is Fiscal Policy? Fiscal policy is essentially how the government decides to collect and spend money to impact the economy. This is studied in Macroeconomics to better understand the relationship between the economy and governmental influence. The study of fiscal policy is useful in speculating the reaction to changes in

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What is Compound Interest?

See Also: Effective Rate of Interest Calculation When is Interest Rate Not as Important in Selecting a Loan? Interest Expense Nominal Interest Rate Interest Rate Swaps What is Compound Interest? Compound interest is interest earned on the principal plus interest earned on prior interest. Compounding interest rates not only earn interest on the original money,

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What is Inflation?

See Also: Economic Indicators Consumer Price Index Supply and Demand Elasticity The Feds Beige Book Z-Score Model What is Inflation? What is inflation and what does it measure? Inflation measures the rate at which prices increase for consumer goods and services. Inflation also measures the rate at which a currency’s purchasing power declines. If consumer

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Wage Rate

See Also: How to compensate sales staff Compensation Plan Equity Interest Capital Project Damage Claim Wage Rate Definition The wage rate definition is the rate of compensation for a worker. It is one of the central themes of the study of human resources. It is determined by 2 factors: productivity at work or number of

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Tokyo Stock Exchange (TSE)

Tokyo Stock Exchange (TSE) Definition The Tokyo Stock Exchange (TSE) is among the world’s largest by trading volume and market capitalization. Furthermore, the TSE listed firms are around 2,400. Tokyo Stock Exchange (TSE) Meaning The TSE indexes are both the Nikkei 225 and the TOPIX index. The Nikkei is a price weighted index for the top

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The Fed Beige Book

See Also: Economic Indicators Balance of Payments Supply and Demand Elasticity Stagflation What are the Twin Deficits? Federal Reserve Beige Book The Fed beige book is more formally known as the “Summary of Commentary on Current Economic Conditions.” The beige book describes economic conditions in each of the twelve Federal Reserve Bank districts. The beige

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Transaction Exposure

See Also: Translation Exposure Currency Swap Exchange Traded Funds Hedge Funds Fixed Income Securities Transaction Exposure Definition Transaction exposure, defined as a type of foreign exchange risk faced by companies that engage in international trade, exists in any worldwide market. It is the risk that exchange rate fluctuations will change the value of a contract

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Toronto Stock Exchange (TSX)

Toronto Stock Exchange (TSX) Definition The Toronto Stock Exchange (TSX) is the third largest stock exchange in the Americas. It is also the eighth largest in the world in terms of market capitalization. It is located in the city of Toronto in Canada. Toronto Stock Exchange (TSX) Meaning The Toronto Stock Exchange has the highest

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