The economy and markets
Understand inflation, rates, economic data and cross-asset connections.
Browse the full library →Inflation and Purchasing Power
Inflation is an increase in a general price level over time. It reduces how much a fixed amount of money buys. The inflation rate measures the pace of price change; a lower positive rate does not mean prices have returned to their earlier level.
Concept explained · BeginnerInterest Rates and Monetary Policy
An interest rate expresses the cost of borrowing or compensation for lending under stated terms. Central-bank policy influences short-term rates and financial conditions, while market rates also reflect maturity, credit, expectations and risk premiums.
Concept explained · BeginnerBond Prices and Yields
For fixed promised cash flows, a higher required yield implies a lower present price, and a lower required yield implies a higher price. This inverse relationship is arithmetic; a real bond’s result also depends on credit, timing and contractual features.
Concept explained · BeginnerWhat Is the Yield Curve?
A yield curve compares yields across maturities for a defined class of debt at a point in time. Its shape can reflect expectations about future rates and compensation for risk. A curve spread is evidence to interpret, not a certain economic forecast.
Concept explained · BeginnerHow to Read Economic Indicators
Economic indicators measure particular parts of activity, prices or employment using defined methods. Interpreting a release requires its period, unit, comparison, revision status and uncertainty—not just whether its headline number rose or fell.
Concept explained · BeginnerCurrencies and Commodities
Currency prices describe an exchange between units of money; commodity prices describe a specified raw material or contract. Both can connect to inflation, company earnings and portfolio returns, but their relationships are conditional rather than fixed rules.