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Showing posts from July, 2025

Understanding Trade Cycles- Ups and Downs of the economy

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Riding the Waves of Trade cycles   We often hear people talking about growing unemployment, why  do jobs come easily in one season and disappear in another?  Understanding these ups and downs isn’t just for economists — it’s for anyone who wants to make smarter decisions in business, investing, or everyday life.  Imagine trying to drive a car without knowing when the road might dip or rise. That’s what it’s like navigating the economy without understanding trade cycles. These cycles affect everything — from your job prospects to interest rates and business profits. So, what exactly are they, and why do they keep happening? Introduction to Trade Cycles According to Lord Keynes, “ a trade cycle is composed of periods of good trade, characterized by rising prices and low unemployment percentage altering with periods of bad trade, characterized by falling prices and high unemployment percentage.” a trade cycle is composed of periods of good trade, characterized by r...

Why are prices going up? Understanding Inflation in simple terms

 Inflation - A word we often listen everywhere, from news headlines to conversations about rising bills but what does inflation really mean, and why do prices seem to keep climbing. Is it good for us or has a detrimental effect? In this post we shall breakdown inflation in simple terms, uncover the reasons behind rising prices.   What is inflation?  According to Shapiro, "Inflation is persistent and appreciable rise in the general price level" According to Coulbourn, " Inflation is the stage of too much money chasing too few goods." In simple words, Inflation is the persistent rise in prices of goods and services.  Demand pull and Cost Push inflation   Demand pull Inflation:- A situation in which aggregate demand at existing price level far exceeds aggregate supply of goods and services.such inflation arises due to excessive demand.main reasons for excessive demand can be rapidly growing population, rising money, income, rising, black money, expansion of m...