The law of one price states that a good should sell for the same price in all markets. Different markets sell the same good for different prices however. This would give the opportunity for arbitrage.
@econ_ta#econumd
The U.S dollar to Euro exchange rate has been falling over the past month. The Euro is now worth more than the dollar. Why has this been happening.
@econ_ta#econumd
We're seeing initial signs that inflation is coming down.
This week we saw that the increase in prices businesses pay for goods and services moderated. Gas prices are down. And prices for things like clothes and TVs are going down.
That's good news as we head into the holidays.
The dollar’s role as the world’s preeminent medium of exchange remains unassailable. 88% of currency transactions involved the $ this year, according to BIS. Still, its share in central bank reserves has been falling rapidly, from 65% at the end of 2016 to 59% earlier this year.
This shows the power the central bank has over the financial markets. It shows how they can regulate the prices through the money supply.
@econ_ta#ECONumd
There are many different ways to invest in the financial market. Whether it be stocks or bonds. They can provide large healthy paybacks.
#umdecon@econ_ta
This is an excellent example of diminishing returns. It shows perfectly how at a certain point of adding input to something it will eventually help less and less.
@econ_ta#econumd
As human capital per worker falls, so does overall production. There is a negative correlation between human capital and production. This will have a large negative effect on our country's production.
@econ_ta#econumd
Devastating new report suggesting that the value of American human capital has fallen by more than a trillion dollars.
When SP 500 falls by 5% it is a national event. Today we learned that more than 30 million kids lost 6 or more month of learning.
https://t.co/yLHPpOVqNV
As talk of inflation continues, talk of quiet fleecing should too: Average wages in the U.S. have been stagnant for years, while the cost of living has grown and worker productivity has fueled increasing corporate profits. https://t.co/qrdNbPeEfY
The unemployment rate in Florida has fallen 1% below the national average. How is their rate so much lower than the rest of the country?
#Umdecon@econ_ta
Today's tight labor market has many experts claiming we are in a worker shortage.
And after rising for fifty years, the Labor Force Participation Rate has been falling since 2000. Are people getting lazy? Are jobs getting automated? Are public benefits too generous?
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The technical definition of a recession is two consecutive negative quarters of GDP. Does the Q2 negative GDP really mean we are in a recession or is there other factors?
#Econumd@econ_ta
congratulations russia on being the global leader of negative gdp growth (russia was one of the world's fastest growing economies before putin's invasion of ukraine)
This is because more people were buying and using natural resources in this quarter. This also means that the over all supply of natural resources went up.
#ECONumd@econ_ta
RT @StatCan_eng: Real gross domestic product (#GDP) of the natural-resources sector increased 1.8% in the second quarter, after rising 0.3% in the first quarter of 2022. Learn more: https://t.co/WM20KP2wkx
As people aren't purchasing online anymore, the demand for packages falls. This is due to a decrease in the number of buyers causing the demand curve to shift to the left.
#ECONumd@econ_ta
FedEx cuts its sales forecast by half a billion dollars as demand for packages tumbles. The CEO says the slowdown portends a global recession. https://t.co/vjVY0s3B1O
This is a very simple occurrence of companies increasing supply to try and reach equilibrium in the market. Are both companies going to benefit mutually from this deal?
#EconUMD@econ_ta@LuiggiDonayre