During the early 1900s, the United States experienced several financial panics, which caused great distress. One of the worst occurred in 1906, prompting the government to take action. In 1913, they passed the Federal Reserve Act to mitigate the impact of these crises and prevent them from happening again. Before…

Meldonium, also known by its trade name Mildronate, is a pharmaceutical with a limited market. The medication is primarily distributed in Eastern European countries and is utilized as an anti-ischemia treatment. Meldonium functions as a metabolic modulator, preventing the accumulation of harmful byproducts from enzymatic reactions preventing the accumulation of…

Gross domestic product (GDP) measures the total market value of all final goods and services produced within the economy during a given time. The output or income definition can be used to determine the GDP. Let’s go over the output and income of GDP. The output of GDP is the…

Zoltan Pozsar is a macroeconomist and investment strategist. He’s a recognized expert on global macroeconomic and financial market trends and has written extensively on global imbalances, U.S. monetary policy, and the global economy. He’s the Director of Credit Strategy at Credit Suisse and a Visiting Fellow at the Peterson Institute…

The global capitalist system is in a state where each individual actor is trying to maximize their own short-term gain, even if it comes at the expense of long-term stability or the well-being of the group. That often leads to suboptimal outcomes for everybody involved, analogous to the Prisoner’s Dilemma…

Microeconomics studies the economic activity and behavior of individual economic units such as households, companies, and markets. Microeconomics analysis examines a company’s output and income, the productivity of the labor force, the price level of its goods and services, and the actions of its management. Macroeconomics focuses on national aggregates …

Probability theory is a branch of mathematics that helps us understand random events. Probability is a measure of how likely an “event” is to occur. In practical situations like finance, we often have to decide where some risk is involved. …

Analysts use a comprehensive set of measures to decide whether to accept or reject a project. The most important measures are net present value (NPV) and Internal Rate of Return (IRR) as complementary decision criteria. payback period Discounted payback period Average rate of return (ARR) Profitability index (P). Net Present Value (NVP) Net present…

A capital budgeting process is a tool that companies use to compare the relative merits of different long-term investment options. That process involves estimating the future cash flows associated with each option and then discounting those cash flows back to the present value. The option with the highest present value…