Topics and Terminology

This site will grow over time. We plan it to include topics and some references we consider "good sources" of information on each topic.

Aggregate

  • To aggregate literally means to add everything up or sum it up or consider everything together. Economists use "aggregate" to mean "the economy as a whole" or "the macroeconomy".  In this sense, aggregate demand is the overall demand in the economy for all goods and services.  Aggregate supply is the overall supply of all goods and services in the economy.

Aggregate Supply - Aggregate Demand Analysis (AS-AD Analysis)

  • ASAD analysis is the basic level of macroeconomic analysis. It is generally taught in introductory college level macroeconomic courses.  While simple, most PhD economists would still consider AS-AD analysis a great "first pass" or "back of the envelope" analytical tool to get basic insights into the macroeconomic effects of a change in the economy (either a "shock" or a policy change).

  • AS-AD analysis is essentially "static" and plots the short-run aggregate supply curve (SRAS) and aggregate demand curve (AD) in a diagram with the price level (usually thought of as the CPI) on the y-axis and real GDP on the x-axis. 

  • InvestCEE Videos: We have a short course on AS-AD Analysis consisting of 4 videos teaching the basics, then 4 videos working through two different examples.

Exchange rate vs Currency Appreciation/Depreciation

  • Coming Soon

Tariffs

  • A tariff is essentially a tax on an imported good.

  • Wikipedia on tariffs explains the concept and the history of tariffs.

  • InvestCEE Videos: These videos present a basic macroeconomic analysis of the effects of tariffs.  This is a bit unique since most analysis focuses on the micro-economics of tariffs.

  • Navigating the Trade Wars, talk delivered by Chris Ball at CBIA Economic Forum in September 2019
     

Yield Curves

  • Yields are returns on investments. And we generally just think of them as "interest rates" which are the returns on investments, or, in other words, "yields". Investments generally have a time component to them. Short term investments of, say, 3 months, pay a different returns (yields), than long-term investments of, say, 10 years.  The yield curve is just a plot of these yields for the same investment but at different times or at different lengths of time. That is, a yield curve plots the return (yield) on a 3-month bond, on a 1 year bond, a 2 year bond, and so on. A very common bond to consider is a US Treasury bond.  Normally yield curves are upward sloping over time (i.e., the longer the horizon, the higher the yield).

  • InvestCEE Special Report Series on the 2019 US Yield Curve inversion.  When longer horizon yields fall below short horizon yields, we say the "yield curve inverted" and this is often considered a sign that the economy will enter a recession in the coming 12-18 months.  When this happened in March 2019, InvestCEE released a short series on the topic and its implications for CEE economies.

  • Wikipedia on yield curves.​

Visegrád Four (V4)

  • The V4 countries are Czechia, Hungary, Poland and Slovakia.  Visegrád is a town in Hungary where the leaders of then Czechoslovakia, Hungary and Poland met in 1991 as the first post-Communist leaders of their free countries.  The three, and later four (after Czechia and Slovakia split in 1993), countries agreed for mutually support each other and have formed a loose trading and political bloc.  All four are members of the European Union and Slovakia is the only country of the four to have adopted the Euro as its currency.  InvestCEE currently focuses on the economies in the V4 plus Romania.

  • Wikipedia on the Visegrád Four (V4), called the Visegrád Group.

  • The Visegrád Fund was established by the group of finance scholarships and research support related to the V4.


 

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