Economics
Understand the bigger picture.
Prices, interest rates and growth affect your finances. Get familiar with key economic concepts in plain language.
Deflation
Deflation is a sustained decline in the general price level across an economy.
In plain languageGross domestic product (GDP)
Gross domestic product measures the value of goods and services produced within a country over a period, net of intermediate inputs.
In plain languageInflation
Inflation is a sustained rise in the general price level. The same amount of money buys less on average.
In plain languagePolicy interest rate
Policy interest rates are rates used by a central bank to guide monetary policy and influence financing conditions.
In plain languageReal interest rate
The real interest rate describes interest after accounting for inflation, reflecting a change in purchasing power.
In plain languageRecession
A recession is a period of declining economic activity. It can affect production, employment, income and demand.
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03 / CONNECT THE DOTS
Knowledge that moves you forward.
Individual terms are the beginning.
Here’s how they fit together.
ETF vs stock: What is the difference?
One business or a whole basket? Understand diversification, costs and risk.
Read the guideCompound interest: When your earnings earn
Why time and reinvestment matter, with a worked example and the model’s limitations.
Read the guideInflation and purchasing power: What does your money buy?
Why a bank balance is only part of the picture, and how nominal and real returns differ.
Read the guide