Economic Cycle – What It Is And How It Works

An economic cycle refers to the natural fluctuations of the economy between periods of economic growth (an expansion or boom), and periods of stagnation or decline (a contraction or recession). Economic cycles are measured by considering the growth rates of macroeconomic variables like real GDP, interest rates, levels…

Deflation – What It Is And How It Works

Deflation is defined as a decline in the general price level of goods and services over time. Deflation occurs when the economy experiences a negative inflation rate, i.e. inflation rate falls below 0%. Deflation increases the purchasing power of money, allowing one to buy more…

Person-to-Person Loans

Person-to-person loans (also known as peer-to-peer loans) are loans to unrelated individuals, or “peers”. This type of lending takes place without the use of a traditional financial intermediary such as a bank. Most person-to-person loans are unsecured personal loans, where the borrowers do…