Hiring in the U.S. slowed only slightly in May, signaling resilience in the labor market despite growing concerns over tariffs and a slowing economy. According to the Bureau of Labor Statistics, nonfarm payrolls increased by 139,000, exceeding the Dow Jones estimate of 125,000 but falling short of April’s downwardly revised 147,000. The unemployment rate remained…
Category: Market
Stagflation Explained: Can It Happen Again?
Stagflation represents one of the most perplexing and feared economic phenomena in modern history. This rare condition combines three devastating elements: stagnant economic growth, rising unemployment, and persistent inflation, creating what economists call an economic nightmare. The term, coined by British politician Iain Macleod in the 1960s, gained widespread recognition during the turbulent 1970s when…
What Is the Phillips Curve and Is It Still Relevant?
The Phillips Curve represents one of economics’ most debated relationships, illustrating the inverse connection between inflation and unemployment that has shaped monetary policy for decades. Named after economist A.W. Phillips, who first observed this pattern in 1958 while studying wage inflation and unemployment data in the United Kingdom from 1861-1913, the curve suggests that policymakers…
What Is Quantitative Easing and How It Affects Markets?
Quantitative easing (QE) represents one of the most powerful monetary policy tools available to central banks when traditional interest rate cuts prove insufficient to stimulate economic growth. This unconventional approach involves central banks purchasing large quantities of government bonds and other financial securities from commercial banks and financial institutions, effectively injecting new money directly into…
The Laffer Curve: Debating Tax Cuts and Revenue
The relationship between tax rates and government revenue has puzzled economists and policymakers for centuries. At the heart of this debate lies the Laffer Curve, a theoretical framework that suggests cutting taxes might actually increase government revenue under certain conditions. This counterintuitive concept has sparked intense political and economic discussions since economist Arthur Laffer popularized…
What Are Economic Bubbles and How Do They Burst?
Economic bubbles represent one of the most fascinating and destructive phenomena in financial markets. These periods of rapid asset price inflation followed by dramatic crashes have shaped economic history for centuries, from the Dutch Tulip Mania of the 1600s to the 2008 housing crisis. An economic bubble occurs when asset prices rise far beyond their…
How Geopolitical Tensions Affect Market Volatility
Geopolitical tensions have emerged as one of the most significant drivers of market volatility in today’s interconnected global economy. From military conflicts and diplomatic breakdowns to trade disputes and territorial tensions, political events create ripple effects that extend far beyond their geographical origins, profoundly impacting financial markets worldwide. The unpredictable nature of these events makes…
The Rise of De-Dollarization: Is the USD Losing Power?
The US dollar’s reign as the world’s primary reserve currency is facing unprecedented challenges in 2025. After decades of unquestioned dominance, the greenback has experienced a dramatic decline of over 8% since the beginning of the year, marking its worst performance among G10 currencies. This sharp downturn has reignited global discussions about de-dollarization – the…
Understanding the BRICS Nations and Their Global Strategy
The global economic is experiencing a fundamental shift as the BRICS nations—Brazil, Russia, India, China, and South Africa—emerge as a formidable force challenging traditional Western dominance. What began as an investment banking concept in 2001 has evolved into a powerful economic and political alliance that now accounts for 40% of the global economy and represents…
The Impact of Oil Prices on Global Inflation
Oil prices have long been considered a barometer for global economic health, with their fluctuations sending ripples through financial markets and household budgets worldwide. As we navigate through 2025, the relationship between oil prices and inflation remains a critical concern for policymakers, businesses, and consumers alike. With global commodity prices expected to tumble 12% in…