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101 Things Everyone Should Know About Economics

Book Description

What you don’t know about economics can hurt you—now more than ever. This easy-to-understand guide answers all the questions you need to know to secure your financial future, such as:
  • What does it mean to my paycheck when the Fed lowers or raises interest rates?
  • What’s the difference between bonds, securities, and derivatives—and which should I invest in now?
  • What does Keynesian economics have to do with my savings?
For those people whose heads spin when reading the business pages of the newspaper, here’s a roadmap through the economic jungle. In simple, plain language, Peter Sander explains how economies work, why they grow, how they contract, and what the government can and can’t do to help them. Most important, he tells you how all this affects you—and what kind of changes you’re going to see in your finances as a result.

Economics has been called the “dismal” science. But it doesn’t need to be gloomy or impenetrable. This book is an essential guide for anyone who wants to understand where the economy is today, where it’s going, and what it means for the rest of us.

Table of Contents

  1. Cover Page
  2. Title Page
  3. Copyright Page
  4. Contents
  5. INTRODUCTION
  6. CHAPTER 1: The Basics
    1. A GLOSSARY OF BASIC ECONOMIC TERMS
  7. CHAPTER 2: Economy And Economic Cycles
    1. 1. INCOME
    2. 2. CONSUMPTION
    3. 3. SAVING AND INVESTMENT
    4. 4. GROSS DOMESTIC PRODUCT (GDP)
    5. 5. UNEMPLOYMENT AND UNEMPLOYMENT RATES
    6. 6. RECESSIONS
    7. 7. DEPRESSIONS
    8. 8. BUSINESS CYCLE
    9. 9. DELEVERAGING
    10. 10. MISERY INDEX
    11. 11. CONSUMER CONFIDENCE
    12. 12. PRODUCTIVITY
    13. 13. ECONOMIC INDICATORS
    14. 14. DISTRIBUTION OF INCOME AND WEALTH
    15. 15. THE WEALTH EFFECT
  8. CHAPTER 3: Money, Prices, And Interest Rates
    1. 16. MONEY
    2. 17. MONEY SUPPLY
    3. 18. INFLATION
    4. 19. DEFLATION
    5. 20. STAGFLATION
    6. 21. INTEREST RATES
    7. 22. PRIME RATE
    8. 23. YIELD CURVE
    9. 24. RISK PREMIUM
    10. 25. BOND PRICES VS. INTEREST RATES
    11. 26. GOLD STANDARD
  9. CHAPTER 4: Banks and Central Banking
    1. 27. COMMERCIAL BANK
    2. 28. INVESTMENT BANK
    3. 29. MORTGAGE BANK
    4. 30. CENTRAL BANK
    5. 31. FEDERAL RESERVE
    6. 32. TARGET INTEREST RATES
    7. 33. FED OPEN MARKET OPERATIONS
    8. 34. FRACTIONAL RESERVE BANKING
    9. 35. REFLATION
    10. 36. PARADOX OF THRIFT
    11. 37. RESERVE REQUIREMENTS
    12. 38. LOAN LOSS RESERVE
    13. 39. TIER ONE CAPITAL
  10. CHAPTER 5: Governments and government Programs
    1. 40. U.S. TREASURY
    2. 41. FEDERAL BUDGET
    3. 42. FEDERAL DEFICITS AND DEBT
    4. 43. TARP
    5. 44. TALF
    6. 45. SECURITIES ACTS OF 1933, 1934, AND 1940
    7. 46. SECURITIES AND EXCHANGE COMMISSION (SEC)
    8. 47. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
    9. 48. GOVERNMENT-SPONSORED ENTERPRISES (GSES)
    10. 49. TAX POLICY AND INCOME TAXATION
    11. 50. CREDIT PROTECTION
    12. 51. BANKRUPTCY LAW
    13. 52. ENTITLEMENTS: SOCIAL SECURITY AND MEDICARE
    14. 53. RETIREMENT PLANS
    15. 54. UNEMPLOYMENT BENEFITS
    16. 55. HEALTH INSURANCE PROTECTION: COBRA AND HIPAA
  11. CHAPTER 6: Economic Schools and Tools
    1. 56. FISCAL POLICY
    2. 57. MONETARY POLICY
    3. 58. KEYNESIAN SCHOOL
    4. 59. CHICAGO OR MONETARIST SCHOOL
    5. 60. AUSTRIAN SCHOOL
    6. 61. SUPPLY-SIDE ECONOMICS
    7. 62. TRICKLE-DOWN ECONOMICS
    8. 63. REAGANOMICS
    9. 64. BEHAVIORAL ECONOMICS
    10. 65. NEW DEAL
    11. 66. PLANNED ECONOMY/SOCIALISM
  12. CHAPTER 7: Finance and Financial Markets
    1. 67. DERIVATIVES AND DERIVATIVE TRADING
    2. 68. ASSET-BACKED SECURITY
    3. 69. COLLATERALIZED DEBT OBLIGATION (CDO)
    4. 70. CREDIT DEFAULT SWAP
    5. 71. MUTUAL FUND
    6. 72. HEDGE FUND
    7. 73. PRIVATE EQUITY
    8. 74. LEVERAGED BUYOUT (LBO)
    9. 75. INSTITUTIONAL INVESTORS
    10. 76. MONEY MARKET FUND
    11. 77. CREDIT RATING AGENCY
    12. 78. STOCKS, STOCK MARKETS, AND STOCK EXCHANGES
    13. 79. Bonds And Bond Markets
    14. 80. COMMODITIES, FUTURES, AND FUTURES MARKETS
    15. 81. CURRENCY MARKETS/FOREX
    16. 82. BROKERS, BROKER DEALERS, AND REGISTERED INVESTMENT ADVISERS
    17. 83. FINANCIAL ADVISERS
    18. 84. ELECTRONIC TRADING
    19. 85. MARGIN AND BUYING ON MARGIN
    20. 86. SHORT SELLING
    21. 87. MEDIAN HOME PRICE
    22. 88. HOUSING AFFORDABILITY
    23. 89. FORECLOSURE/SHORT SALE
  13. CHAPTER 8: Trade and International Economics
    1. 90. GLOBALIZATION
    2. 91. CURRENCY POLICY AND EXCHANGE RATES
    3. 92. DEVALUATION AND DEPRECIATION
    4. 93. FOREIGN DIRECT INVESTMENT
    5. 94. BALANCE OF TRADE
    6. 95. BALANCE OF PAYMENTS AND CURRENT ACCOUNT
    7. 96. EURODOLLARS AND PETRODOLLARS
    8. 97. TRADE AGREEMENTS
    9. 98. PROTECTIONISM
    10. 99. INTERNATIONAL MONETARY FUND (IMF) AND WORLD BANK
    11. 100. WORLD TRADE ORGANIZATION
    12. 101. G8 ECONOMIC SUMMITS