Reference

A general guideline suggesting that retirees can withdraw four percent of their initial portfolio balance annually, adjusted for inflation, without running out of money.

A measure that examines the weighted average of prices of a basket of consumer goods and services. It is one of the most popular measures of inflation and cost-of-living changes.

A decrease in government spending or an increase in taxes intended to slow down the economy and reduce inflation.

A policy used to slow down economic growth or combat inflation by decreasing the money supply and raising interest rates.

A policy used to slow down an economy that is growing too fast or to curb rising inflation. It involves raising interest rates or reducing government spending to decrease the money supply.

A measure of inflation that excludes certain items that face volatile price movements, notably food and energy. It is used by central banks to identify long-term inflation trends.

An increase in Social Security or pension benefits to help maintain purchasing power as inflation rises.

Consumer Price Index is a measure used to track how the average prices of everyday goods like groceries and gas change over time, helping us understand the rate of inflation. Think of it like a monthly shopping basket check; if the total price of that basket goes up, your cost of living is rising.

A slowing in the rate of price inflation over time. It describes a situation where prices are still rising, but at a slower pace than they were previously.

The highest level of employment that an economy can sustain without creating inflationary pressure. It implies that everyone who wants a job at the prevailing wage can find one, except for those transitionally unemployed.

An event occurring at set intervals where the reward for mining new blocks is cut in half, reducing the inflation rate of the cryptocurrency.

A term describing policymakers who favor higher interest rates to keep inflation in check.

Extremely rapid, excessive, and out-of-control general price increases in an economy. It typically occurs when a government prints excessive amounts of money to fund spending.

The general increase in prices and the corresponding fall in the purchasing value of money over time.

A periodic increase in retirement benefits, like Social Security, intended to help the recipient keep up with rising prices.

The percentage increase in the price level of goods and services in an economy over a period of time.

The possibility that the rising cost of living will reduce the future value and purchasing power of retirement savings.

A broad measure of the money supply that includes M1 plus 'near money' such as savings deposits, money market funds, and certificates of deposit. It is a key indicator of potential future inflation.

An economic school of thought that emphasizes the role of governments in controlling the amount of money in circulation. It argues that changes in the money supply are the primary driver of economic growth and inflation.

The actions taken by a central bank to manage the money supply and interest rates. Its goal is to achieve macroeconomic objectives like controlling inflation and consumption.

Non-Accelerating Inflation Rate of Unemployment: This represents the lowest level of unemployment that a country can have without causing prices to rise too quickly. Economists use this to figure out the 'sweet spot' where there are enough jobs available without the economy overheating.

Natural Rate of Unemployment — The lowest rate of unemployment that an economy can sustain over the long run without causing inflation. It consists primarily of frictional and structural unemployment.

The total value of all goods and services produced within a country at current market prices. Unlike Real GDP, it does not account for the effects of inflation or deflation.

The interest rate on a loan or investment that has not been adjusted for inflation. it represents the actual percentage increase in the amount of money over time.

An economic concept stating that inflation and unemployment have a stable and inverse relationship. It suggests that with economic growth comes inflation, which in turn should lead to more jobs and less unemployment.

The maximum level of output an economy can produce when it is operating at full capacity. It assumes that labor and capital are being used efficiently without causing inflation.

The Producer Price Index measures how much it costs for businesses to produce goods and services. When this number goes up, companies often raise their prices later, so it serves as an early warning for rising inflation.

The exchange rate between two currencies adjusted for the relative price levels or inflation rates in both countries.

An inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year. It allows economists to compare economic output over time by accounting for price changes.

A rare economic condition characterized by slow economic growth and relatively high unemployment accompanied by rising prices. It presents a dilemma for policymakers because actions to lower inflation may increase unemployment.